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--04-30
2009-10-31
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Large Accelerated Filer
H&R BLOCK INC
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">3. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Earnings (Loss) Per Share and Stockholders’ Equity</font></b></td> </tr> </table> <!-- XBRL,body --> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Basic and diluted loss per share is computed using the two-class method. See note 13 for additional information on our adoption of the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 19.3 million shares for the three and six months ended October 31, 2009, and 23.7 million shares for the three and six months ended October 31, 2008, as the effect would be antidilutive due to the net loss from continuing operations during each period.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The computations of basic and diluted loss per share from continuing operations are as follows:</div> <div style="margin-top: 3pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="57%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right" colspan="16"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s, except per share amounts)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Three Months Ended October 31,</font></td> <td> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Six Months Ended October 31,</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from continuing operations attributable to shareholders</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(126,472</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(133,161</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(257,089</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(261,584</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Amounts allocated to participating securities (nonvested shares)</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(27</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">248</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">340</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">447</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from continuing operations attributable to common shareholders</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(126,445</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(133,409</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(257,429</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(262,031</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Basic weighted average common shares</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">335,346</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">329,810</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">334,939</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">328,475</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Potential dilutive shares from stock options and nonvested shares</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Convertible preferred stock</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Dilutive weighted average common shares</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">335,346</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">329,810</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">334,939</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">328,475</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Earnings (loss) per share from continuing operations attributable to common shareholders:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Basic</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.38</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.40</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.77</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.80</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Diluted</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.38</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.40</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.77</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(0.80</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="17"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="17"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The weighted average shares outstanding for the three and six months ended October 31, 2009 increased to 335.3 million and 334.9 million, respectively, from 329.8 million and 328.5 million for the three and six months ended October 31, 2008, respectively, primarily due to the issuance of shares of our common stock in October 2008.</div> <!-- XBRL Pagebreak Begin --><!--EndFragment--></div> <div style="margin-left: 6%;"> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During the six months ended October 31, 2009 and 2008, we issued 1.6 million and 4.5 million shares of common stock, respectively, due to the exercise of stock options, employee stock purchases and vesting of nonvested shares.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During the six months ended October 31, 2009, we acquired 0.2 million shares of our common stock at an aggregate cost of $3.8 million, and during the six months ended October 31, 2008, we acquired 0.2 million shares at an aggregate cost of $4.5 million. Shares acquired during these periods represented shares swapped or surrendered to us in connection with the vesting of nonvested shares and the exercise of stock options.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">During the six months ended October 31, 2009, we granted 4.6 million stock options and 0.9 million nonvested shares and units in accordance with our stock-based compensation plans. The weighted average fair value of options granted was $3.27 for management options and $2.70 for options granted to our seasonal associates. Stock-based compensation expense totaled $4.8 million and $12.1 million for the three and six months ended October 31, 2009, respectively, and $8.5 million and $13.0 million for the three and six months ended October 31, 2008, respectively. At October 31, 2009, unrecognized compensation cost for options totaled $17.1 million, and for nonvested shares and units totaled $23.4 million.</div> <!-- XBRL,n --><!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">10. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Commitments and Contingencies</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Changes in deferred revenue balances related to our Peace of Mind (POM) program, the current portion of which is included in accounts payable, accrued expenses and other current liabilities and the long-term portion of which is included in other noncurrent liabilities in the condensed consolidated balance sheets, are as follows:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="79%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="8"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended October 31,</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="8"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, beginning of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">146,807</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">140,583</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Amounts deferred for new guarantees issued</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,351</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,148</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Revenue recognized on previous deferrals</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(47,044)</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(45,826)</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, end of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">101,114</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">95,905</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="9"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="9"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The following table summarizes certain of our other contractual obligations and commitments:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="68%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="13%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="10%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="8"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">As of</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="8"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Franchise Equity Lines of Credit – undrawn commitment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">29,286</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,055</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Contingent business acquisition obligations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">24,973</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">24,165</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Media advertising purchase obligation</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,768</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,768</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="9"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="9"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We routinely enter into contracts that include embedded indemnifications that have characteristics similar to guarantees. Guarantees and indemnifications of the Company and its subsidiaries include obligations to protect counterparties from losses arising from the following: (1) tax, legal and other risks related to the purchase or disposition of businesses; (2) penalties and interest assessed by federal and state taxing authorities in connection with tax returns prepared for clients; (3) indemnification of our directors and officers; and (4) third-party claims relating to various arrangements in the normal course of business. Typically, there is no stated maximum payment related to these indemnifications, and the terms of the indemnities may vary and in many cases are limited only by the applicable statute of limitations. The likelihood of any claims being asserted against us and the ultimate liability related to any such claims, if any, is difficult to predict. While we cannot provide assurance we will ultimately prevail in the event any such claims are asserted, we believe the fair value of guarantees and indemnifications relating to our continuing operations is not material as of October 31, 2009.</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; margin-right: 0%; font-family: Arial, Helvetica;" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">Discontinued Operations</font></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Sand Canyon Corporation (SCC), formerly Option One Mortgage Corporation, maintains recourse with respect to loans previously sold or securitized under indemnification of loss provisions relating to breach of representations and warranties made to purchasers or insurers. At October 31, 2009 and April 30, 2009, our loan repurchase reserve totaled $201.2 million and $206.6 million, respectively. This liability is included in accounts payable, accrued expenses and other current liabilities on our condensed consolidated balance sheets.</div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">8. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Fair Value</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The following table presents for each hierarchy level the financial assets that are measured at fair value on both a recurring and non-recurring basis at October 31, 2009:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="61%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="3%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="14"><font class="_mt" style="font-family: Arial, Helvetica;">(dollars in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Total</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Level 1</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Level 2</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Level 3</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Recurring:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Available-for-sale securities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">40,702</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">40,702</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Non-recurring:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Impaired mortgage loans held for investment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">252,351</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">252,351</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">293,053</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">40,702</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">252,351</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">As a percentage of total assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5.9%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">0.8%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5.1%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="17"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="17"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">There were no significant changes to the unobservable inputs used in determining the fair values of our level 2 and level 3 financial assets.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The carrying amounts and estimated fair values of our financial instruments at October 31, 2009 are as follows:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="right"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(in 000s)</font></div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="53%"> </td> <!-- colindex=01 type=maindata --> <td width="1%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="21%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="1%"> </td> <!-- colindex=04 type=gutter --> <td width="6%"> </td> <!-- colindex=04 type=maindata --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Carrying<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Estimated<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right"> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Fair Value</font></td> <td> </td> <td> </td> <td valign="bottom" align="right"> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Mortgage loans held for investment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">671,049</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">506,622</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">IRAs and other time deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">732,355</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">732,245</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Long-term debt</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,032,562</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,106,878</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="11"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="11"> </td> </tr> </table> </div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
75000000
75000000
25000000
25000000
850230000
856880000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">5. </font></b></td> <td><b><font class="_mt" style="font-family: 'Times New Roman', Times;">Goodwill and Intangible Assets</font></b></td> </tr> </table> <!-- XBRL,body --> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Changes in the carrying amount of goodwill for the six months ended October 31, 2009 consist of the following:</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;"> (in 000s)</font></div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="20%"> </td> <!-- colindex=01 type=maindata --> <td width="6%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="10%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="6%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="6%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="6%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="4%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="6%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="13%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Additions</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Impairment</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Other</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Tax Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">447,591</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">6,227</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,862</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">455,680</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Business Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">402,639</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,439</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">401,200</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Total</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">850,230</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">6,227</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">856,880</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We test goodwill for impairment annually at the beginning of our fourth quarter, or more frequently if events occur which could, more likely than not, reduce the fair value of a reporting unit’s net assets below its carrying value.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">We considered the July 21, 2009 notice by M&P of its intent to terminate the administrative services agreement with RSM to represent a significant change in circumstances requiring an interim evaluation of the fair value of our RSM reporting unit. Goodwill of this reporting unit totaled $371.9 million at October 31, 2009. The net carrying value of other intangible assets of RSM totaled $92.4 million at October 31, 2009, including $50.8 million for an indefinite-lived trade name asset. We have concluded that, as of October 31, 2009, the fair value of this reporting unit exceeds its carrying value and also that the net carrying value of other intangible assets is recoverable.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Our conclusion is based on our current assumptions, including, but not limited to, those listed below.</div> <table cellspacing="0" cellpadding="0" border="0"> <tr> <td width="6%"></td> <td width="2%"></td> <td width="92%"> <p> </p> </td> </tr> <tr style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" valign="top"> <td> </td> <td> </td> <td align="left"> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt">§<font class="_mt" style="font: 7pt 'Times New Roman';"> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We have assumed that our noncompete rights are enforceable.</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;" align="left"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt">§<font class="_mt" style="font: 7pt 'Times New Roman';"> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We have assumed that, more likely than not, RSM and M&P will continue to</font></font></font></font><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt"><font class="_mt" style="font: 7pt 'Times New Roman';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"> collaborate; or,</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;" align="left"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt"><font class="_mt" style="font: 7pt 'Times New Roman';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"> in the event of a separation, RSM will successfully establish an alliance with other attest</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;" align="left"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt"><font class="_mt" style="font: 7pt 'Times New Roman';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"> firms.</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt">§<font class="_mt" style="font: 7pt 'Times New Roman';"> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We have assumed that ongoing negotiations between RSM and M&P will not result in</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt"><font class="_mt" style="font: 7pt 'Times New Roman';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"> modifications of their relationship that would be materially adverse to the financial interests of RSM.</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt">§<font class="_mt" style="font: 7pt 'Times New Roman';"> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In the event of a separation, we have made various assumptions concerning client retention</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt"><font class="_mt" style="font: 7pt 'Times New Roman';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"> and post-separation operating margins.</font></font></font></font></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt 0.5in; text-indent: -0.25in; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: Wingdings;"><font class="_mt">§<font class="_mt" style="font: 7pt 'Times New Roman';"> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In the event of a separation, we have assumed M&P would be able to repay its indebtedness to RSM.</font></font></font></font><!--EndFragment--></p> </td> </tr> <tr style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" valign="top"> <td> </td> <td></td> <td align="left"></td> </tr> <tr style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" valign="top"> <td> </td> <td></td> <td align="left"></td> </tr> <tr style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" valign="top"> <td> </td> <td></td> <td align="left"></td> </tr> </table> <!--EndFragment--></div> <div style="margin-left: 6%;"> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">It is difficult to predict the outcome of the above matters, including the outcome of mitigating factors that we are currently pursuing. Therefore, it is possible that changes in our assumptions, based on future events or circumstances, could result in changes in our fair value estimates and corresponding impairment charges.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">RSM’s subsidiary, RSM EquiCo, Inc. (RSM EquiCo), which assists clients with capital markets transactions, has experienced declining revenues in the current economic environment. If availability of financing for acquisitions in the middle-market remains limited, revenues may continue to fall below our expectations, which could lead us to consider impairment of the $29.3 million carrying value of goodwill related to our capital markets business.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Intangible assets consist of the following:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="34%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="2%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="2%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="2%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="2%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --> <td width="2%"> </td> <!-- colindex=07 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=07 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=07 type=body --> <td align="left" width="1%"> </td> <!-- colindex=07 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">As of</font></td> <td> </td> <td align="center" colspan="10"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td> </td> <td align="center" colspan="10"><font class="_mt" style="font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Gross<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Gross<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Carrying<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Accumulated<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Carrying<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Accumulated<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amortization</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Net</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amortization</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Net</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Tax Services:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Customer relationships</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">61,475</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(29,237</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">32,238</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">54,655</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(25,267</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">29,388</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Noncompete agreements</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">22,537</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(20,808</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,729</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">23,263</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(20,941</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,322</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Reacquired franchise rights</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">229,438</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,045</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">225,393</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">229,438</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,838</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">227,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Franchise agreements</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">19,201</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,173</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">18,028</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">19,201</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(533</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">18,668</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Purchased technology</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,500</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(5,219</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">7,281</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,500</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,240</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,260</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Trade name</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,325</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(300</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,025</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,025</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(217</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">808</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Business Services:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Customer relationships</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">145,177</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(115,558</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">29,619</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">146,040</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(111,017</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">35,023</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Noncompete agreements</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">33,061</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(21,031</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,030</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">33,068</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(19,908</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">13,160</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Trade name – amortizing</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Trade name – <font class="_mt" style="white-space: nowrap;">non-amortizing</font></div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">55,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,868</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">50,769</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">55,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,868</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">50,769</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">582,951</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(204,839</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">378,112</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">577,427</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(191,429</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">385,998</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="25"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="25"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Amortization of intangible assets for the three and six months ended October 31, 2009 was $7.5 million and $14.4 million, respectively, and $8.0 million and $13.6 million, for the three and six months ended October 31, 2008, respectively. Estimated amortization of intangible assets for fiscal years 2010 through 2014 is $29.7 million, $27.1 million, $24.1 million, $19.8 million and $16.4 million, respectively.</div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"><font class="_mt">6.<font class="_mt" style="font: 7pt 'Times New Roman';"> </font></font></font></b> <b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Income Taxes</font></b></p> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif'; letter-spacing: -0.1pt;">We file a consolidated federal income tax return in the United States and file tax returns in various state and foreign jurisdictions. Consolidated tax returns for the years 1999 through 2007 are currently under examination by the Internal Revenue Service. Tax years prior to 1999 are closed by statute. Historically, tax returns in various foreign and state jurisdictions are examined and settled upon completion of the exam.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">During the six months ended October 31, 2009, we accrued an additional $0.8 million for interest and penalties related to our uncertain tax positions. We had unrecognized tax benefits of $121.9 million and $124.6 million at October 31, 2009 and April 30, 2009, respectively. The unrecognized tax benefits decreased $2.7 million in the current year, due primarily to positions related to prior years. Except as noted below, we have classified the liability for unrecognized tax benefits, including corresponding accrued interest, as long-term at October 31, 2009, which is included in other noncurrent liabilities on the condensed consolidated balance sheets.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Based upon the expiration of statutes of limitations, payments of tax and other factors in several jurisdictions, we believe it is reasonably possible that the total amount of reserves for previously unrecognized tax benefits may decrease by approximately $16 million within twelve months of October 31, 2009. This portion of our liability for unrecognized tax benefits has been classified as current and is included in accounts payable, accrued expenses and other current liabilities on the condensed consolidated balance sheets.</font></p> </blockquote> </blockquote> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">4. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Mortgage Loans Held for Investment and Related Assets</font></b></td> </tr> </table> <!-- XBRL,body --> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The composition of our mortgage loan portfolio as of October 31, 2009 and April 30, 2009 is as follows:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="47%"> </td> <!-- colindex=01 type=maindata --> <td width="1%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="5%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="9%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="1%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="11%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(dollars in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">As of</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">% of Total</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">% of Total</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Adjustable-rate loans</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">472,292</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">62</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">534,943</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">65</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Fixed-rate loans</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">288,824</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">286,894</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">35</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">761,116</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">821,837</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">%</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Unamortized deferred fees and costs</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5,926</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">7,135</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Less: Allowance for loan losses</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(95,993</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(84,073</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">671,049</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">744,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="17"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="17"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Activity in the allowance for loan losses for the six months ended October 31, 2009 and 2008 is as follows:</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="right"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(in 000s)</font></div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="57%"> </td> <!-- colindex=01 type=maindata --> <td width="1%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="21%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="1%"> </td> <!-- colindex=04 type=gutter --> <td width="6%"> </td> <!-- colindex=04 type=maindata --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended October 31,</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> <td> </td> <td valign="bottom" align="right"> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, beginning of the period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">84,073</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,401</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Provision</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">27,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,083</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Recoveries</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">29</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Charge-offs</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(15,109</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(19,835</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, end of the period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">95,993</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">63,652</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="11"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="11"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Our loan loss reserve as a percent of mortgage loans was 12.61% at October 31, 2009, compared to 10.23% at April 30, 2009.</div> <!--EndFragment--></div> <div style="margin-left: 6%;"> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">In cases where we modify a loan and in so doing grant a concession to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring (TDR). TDR loans totaled $159.9 million and $160.7 million at October 31, 2009 and April 30, 2009, respectively. The principal balance of impaired loans and real estate owned as of October 31, 2009 and April 30, 2009 is as follows:</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="right"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(in 000s)</font></div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="44%"> </td> <!-- colindex=01 type=maindata --> <td width="1%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="13%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="21%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="10%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="1%"> </td> <!-- colindex=04 type=gutter --> <td width="6%"> </td> <!-- colindex=04 type=maindata --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">As of</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right"> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Impaired loans:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">60 – 89 days</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">19,976</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">21,415</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">90+ days, non-accrual</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">157,282</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">121,685</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">TDR loans, accrual</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">98,547</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">60,044</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">TDR loans, non-accrual</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">61,318</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100,697</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">337,123</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">303,841</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Real estate owned(1)</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,895</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">44,533</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Total non-performing assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">376,018</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">348,374</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="11"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="11"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" border="0"> <tr> <td width="5%"></td> <td width="1%"></td> <td width="94%"></td> </tr> <tr> <td valign="top" align="right"><font class="_mt" style="font-size: 8pt; font-family: Arial, Helvetica;"><sup style="font-size: 85%; vertical-align: top;">(1)</sup></font></td> <td></td> <td valign="bottom"><font class="_mt" style="font-size: 8pt; font-family: Arial, Helvetica;">Includes loans accounted for as in-substance foreclosures of $18.3 million and $27.4 million at October 31, 2009 and April 30, 2009, respectively.</font></td> </tr> </table> <div style="font-size: 3pt; margin-left: 4%; width: 100%; border-bottom: #000000 1pt solid; align: left;"></div> <!-- callerid=999 iwidth=468 length=0 --> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Activity related to our real estate owned is as follows:</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="right"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(in 000s)</font></div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="57%"> </td> <!-- colindex=01 type=maindata --> <td width="1%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="5%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="1%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="21%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="5%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="1%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="1%"> </td> <!-- colindex=04 type=gutter --> <td width="6%"> </td> <!-- colindex=04 type=maindata --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended October 31,</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> <td> </td> <td valign="bottom" align="right"> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="11"> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, beginning of the period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">44,533</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">350</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Additions</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">9,212</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">62,578</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Sales</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(10,055</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,787</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Impairments</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,795</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(5,938</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Balance, end of the period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,895</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">53,203</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="11"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="11"> </td> </tr> </table> </div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
743461000
511231000
-48801000
43280000
-665931000
-786152000
-268593000
-135874000
-262221000
-128587000
-3476000
-2121000
4989000
1700000
-436947000
-225332000
-428715000
-214553000
439226000
409044000
-2564000
-597000
-418000
329000
-11158000
-11472000
12123000
2586000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">7. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Interest Income and Expense</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">The following table shows the components of interest income and expense of our continuing operations:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="61%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="14"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Three Months Ended October 31,</font></td> <td> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Six Months Ended October 31,</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Interest income:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Mortgage loans</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,072</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,098</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">15,968</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">25,363</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Other</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,041</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,949</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,432</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">9,531</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,113</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">17,047</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">24,400</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">34,894</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Interest expense:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Borrowings</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">18,514</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">21,054</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">37,471</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">39,226</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,284</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,884</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,333</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">7,927</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">FHLB advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">508</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,327</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,017</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,655</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">21,306</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">26,265</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">42,821</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">49,808</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="17"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="17"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
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<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">9. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Regulatory Requirements</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">H&R Block Bank (HRB Bank) files its regulatory Thrift Financial Report (TFR) on a calendar quarter basis with the Office of Thrift Supervision (OTS). The following table sets forth HRB Bank’s regulatory capital requirements at September 30, 2009, as calculated in the most recently filed TFR:</div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="33%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="5%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="3%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="5%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="7%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="3%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="5%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --> <td width="5%"> </td> <!-- colindex=07 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=07 type=lead --> <td align="right" width="3%"> </td> <!-- colindex=07 type=body --> <td align="left" width="1%"> </td> <!-- colindex=07 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 9pt;" valign="middle"> <td valign="bottom" align="right" colspan="24"><font class="_mt" style="font-family: Arial, Helvetica;">(dollars in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="middle"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" valign="middle"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="middle" colspan="6"> </td> <td> </td> <td> </td> <td valign="middle" colspan="6"> </td> <td> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">To Be Well Capitalized<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" valign="middle"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="middle" colspan="6"> </td> <td> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">For Capital Adequacy<br /></font></td> <td> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Under Prompt Corrective<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" valign="middle"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Actual</font></td> <td> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Purposes</font></td> <td> </td> <td> </td> <td valign="middle" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Action Provisions</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="middle"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" valign="middle"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Ratio</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Ratio</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Amount</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Ratio</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="middle"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="24"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Total risk-based capital ratio<sup style="font-size: 85%; vertical-align: top;">(1)</sup></div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">287,082</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">50.1%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,883</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8.0%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">57,354</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">10.0%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Tier 1 risk-based capital ratio<sup style="font-size: 85%; vertical-align: top;">(2)</sup></div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">279,460</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">48.7%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">N/A</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">N/A</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">34,412</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">6.0%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Tier 1 capital ratio (leverage)<sup style="font-size: 85%; vertical-align: top;">(3)</sup></div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">279,460</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">19.4%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">172,746</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12.0%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">71,977</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5.0%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Tangible equity ratio<sup style="font-size: 85%; vertical-align: top;">(4)</sup></div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">279,460</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">19.4%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">21,593</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1.5%</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">N/A</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">N/A</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="25"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="25"> </td> </tr> </table> </div> <!--EndFragment--></div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" border="0"> <tr> <td valign="top" align="right"><font class="_mt" style="font-size: 8pt;"><sup style="font-size: 85%; vertical-align: top;">(1)</sup></font></td> <td></td> <td valign="bottom"><font class="_mt" style="font-size: 8pt;">Total risk-based capital divided by risk-weighted assets.</font></td> </tr> <tr> <td valign="top" align="right"><font class="_mt" style="font-size: 8pt;"><sup style="font-size: 85%; vertical-align: top;">(2)</sup></font></td> <td></td> <td valign="bottom"><font class="_mt" style="font-size: 8pt;">Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets.</font></td> </tr> <tr> <td valign="top" align="right"><font class="_mt" style="font-size: 8pt;"><sup style="font-size: 85%; vertical-align: top;">(3)</sup></font></td> <td></td> <td valign="bottom"><font class="_mt" style="font-size: 8pt;">Tier 1 (core) capital divided by adjusted total assets.</font></td> </tr> <tr> <td valign="top" align="right"><font class="_mt" style="font-size: 8pt;"><sup style="font-size: 85%; vertical-align: top;">(4)</sup></font></td> <td></td> <td valign="bottom"><font class="_mt" style="font-size: 8pt;">Tangible capital divided by tangible assets.</font></td> </tr> </table> <div style="font-size: 4pt; margin-left: 4%; width: 100%; border-bottom: #000000 1pt solid; align: left;"></div> <!-- callerid=999 iwidth=468 length=0 --> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Block Financial LLC (BFC) typically makes capital contributions to HRB Bank to help it meet its capital requirements. Capital contributions totaling $245.0 million were made by BFC during the fiscal year ended April 30, 2009. BFC made capital contributions to HRB Bank of $150.0 million during the six months ended October 31, 2009 and, in November 2009, BFC made an additional capital contribution to HRB Bank of $85.0 million.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> As of October 31, 2009, HRB Bank’s leverage ratio was 14.6%.</div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
40000000
0
60000000
0
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542943000
294958000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">14. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Condensed Consolidating Financial Statements</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">BFC is an indirect, wholly-owned consolidated subsidiary of the Company. BFC is the Issuer and the Company is the Guarantor of the Senior Notes issued on January 11, 2008 and October 26, 2004, our unsecured committed lines of credit (CLOCs) and other indebtedness issued from time to time. These condensed consolidating financial statements have been prepared using the equity method of accounting. Earnings of subsidiaries are, therefore, reflected in the Company’s investment in subsidiaries account. The elimination entries eliminate investments in subsidiaries, related stockholders’ equity and other intercompany balances and transactions.</div> <!--EndFragment--></div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="32%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="12%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="3%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="10%"> <p> </p> <p> </p> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="left" colspan="4"><font class="_mt" style="font-family: Arial, Helvetica;">Condensed Consolidating Income Statements</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Three Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Total revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">21,026</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">305,055</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">326,081</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Cost of revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,861</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">365,088</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">410,949</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Selling, general and administrative</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,457</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">127,228</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">129,685</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Total expenses</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">48,318</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">492,316</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">540,634</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Operating loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(27,292</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(187,261</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(214,553</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Other income (expense), net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,607</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,307</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,700</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Loss from continuing operations before tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(29,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(182,954</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Income tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(86,381</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(12,294</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(74,087</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">86,381</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(86,381</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss from continuing operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(126,472</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(17,605</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(108,867</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">126,472</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(126,472</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss from discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,115</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,115</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,115</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,115</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(128,587</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(19,720</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(108,867</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">128,587</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(128,587</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="32%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="12%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="3%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="10%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Three Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2008</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Total revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">18,326</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">334,434</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,291</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">351,469</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Cost of revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">46,744</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">392,040</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(19</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">438,765</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Selling, general and administrative</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">17,493</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">120,639</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(96</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">138,036</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Total expenses</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">64,237</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">512,679</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(115</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">576,801</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Operating loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(45,911</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(178,245</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,176</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(225,332</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Other income (expense), net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(227,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">460</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,581</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">227,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,121</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Loss from continuing operations before tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(227,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(45,451</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(180,826</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">226,277</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(227,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Income tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(94,292</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(18,001</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(75,736</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">93,737</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(94,292</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss from continuing operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(133,161</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(27,450</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(105,090</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">132,540</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(133,161</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss from discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,713</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,285</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,285</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,713</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Net loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(135,874</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(30,735</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(105,090</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">135,825</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(135,874</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> </tr> </table> </div> <div style="margin-left: 6%;"> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Total revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">44,222</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">557,420</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(56</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">601,586</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cost of revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">91,421</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">705,978</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">797,399</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Selling, general and administrative</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,955</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">228,003</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(56</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">232,902</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total expenses</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">96,376</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">933,981</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(56</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,030,301</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Operating loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(52,154</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(376,561</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(428,715</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other income (expense), net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,840</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,829</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,989</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Loss from continuing operations before tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(55,994</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(367,732</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Income tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(166,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(22,986</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(143,651</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">166,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(166,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from continuing operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(257,089</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(33,008</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(224,081</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">257,089</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(257,089</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(5,132</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(5,132</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5,132</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(5,132</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(262,221</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(38,140</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(224,081</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">262,221</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(262,221</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="37%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="11%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="3%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2008</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Total revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">39,101</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">587,006</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,729</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">623,378</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cost of revenues</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">92,444</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">712,656</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(15</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">805,085</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Selling, general and administrative</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">30,544</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">224,878</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(182</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">255,240</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total expenses</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">122,988</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">937,534</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(197</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,060,325</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Operating loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(83,887</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(350,528</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,532</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(436,947</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other income (expense), net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(440,423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,890</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">414</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">440,423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,476</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Loss from continuing operations before tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(440,423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(87,777</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(350,114</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">437,891</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(440,423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Income tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(178,839</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(34,540</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(143,271</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">177,811</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(178,839</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from continuing operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(261,584</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(53,237</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(206,843</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">260,080</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(261,584</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss from discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(7,009</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(8,464</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,464</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(7,009</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net loss</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(268,593</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(61,701</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(206,843</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">268,544</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(268,593</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="37%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="11%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="2%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="2%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="8%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="2%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="8%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="2%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">Condensed Consolidating Balance Sheets</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="14"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash & cash equivalents</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,088,485</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">346,151</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,393</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,432,243</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash & cash equivalents – restricted</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">386</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45,686</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">46,072</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Receivables, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">111,025</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">350,457</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">461,485</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Mortgage loans held for investment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">671,049</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">671,049</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Intangible assets and goodwill, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,234,992</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,234,992</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Investments in subsidiaries</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,926,151</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">190</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,926,151</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">190</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">314,954</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">806,374</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,121,328</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,926,154</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,185,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,783,850</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,928,544</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,967,359</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Customer deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,496,119</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,393</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,493,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Long-term debt</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">998,425</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">34,137</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,032,562</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">FHLB borrowings</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other liabilities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">45</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">122,724</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,147,205</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,269,974</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,855,012</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(644,470</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,210,542</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Stockholders’ equity</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,071,097</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">113,101</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,813,050</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,926,151</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,071,097</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total liabilities and stockholders’ equity</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,926,154</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,185,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,783,850</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,928,544</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,967,359</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <!-- XBRL Pagebreak Begin --><!--EndFragment--></div> <div style="margin-left: 6%;"> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">April 30, 2009</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash & cash equivalents</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">241,350</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,419,535</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(6,222</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,654,663</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash & cash equivalents – restricted</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,303</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">47,353</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">51,656</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Receivables, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">114,442</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">398,334</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">512,814</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Mortgage loans held for investment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">744,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">744,899</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Intangible assets and goodwill, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,236,228</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,236,228</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Investments in subsidiaries</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,289,435</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">194</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,289,435</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">194</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">308,481</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">850,787</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,159,268</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total assets</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,289,473</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,413,475</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,952,431</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,295,657</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5,359,722</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Customer deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">861,110</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(6,222</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">854,888</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Long-term debt</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">998,245</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">33,877</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,032,122</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">FHLB borrowings</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Other liabilities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">130,362</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,836,477</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,966,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,883,612</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(827,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,056,147</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(12</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Stockholders’ equity</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,405,859</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">151,211</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,138,224</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,289,435</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,405,859</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Total liabilities and stockholders’ equity</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,289,473</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,413,475</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,952,431</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,295,657</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5,359,722</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="39%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="11%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="2%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="8%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="2%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="5%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="2%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left" colspan="16"><font class="_mt" style="font-family: Arial, Helvetica;">Condensed Consolidating Statements of Cash Flows</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2009</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash provided by (used in) operating activities:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">5,880</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(14,655</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(777,377</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(786,152</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash flows from investing:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Mortgage loans originated for investment, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,693</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">38,693</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Purchase property & equipment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">546</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(7,826</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(7,280</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">89,577</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(89,577</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Other, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">13,847</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,980</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">11,867</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash provided by (used in) investing activities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">89,577</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">53,086</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(9,806</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(89,577</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">43,280</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash flows from financing:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Customer banking deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">634,637</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,829</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">638,466</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Dividends paid</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(100,784</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(100,784</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Acquisition of treasury shares</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,785</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(3,785</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Proceeds from stock options</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,218</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,218</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">183,042</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(272,619</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">89,577</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Other, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">894</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(8,975</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(22,803</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(30,884</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash provided by (used in) financing activities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(95,457</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">808,704</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(295,422</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">93,406</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">511,231</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Effects of exchange rates on cash</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">9,221</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">9,221</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net increase (decrease) in cash</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">847,135</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(1,073,384</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,829</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(222,420</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash – beginning of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">241,350</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,419,535</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(6,222</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,654,663</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash – end of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,088,485</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">346,151</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(2,393</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,432,243</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="21"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="21"> </td> </tr> </table> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="margin-top: 12pt; font-size: 1pt;"> </div> <!-- XBRL Pagebreak Begin --><!--EndFragment--></div> <div style="margin-left: 6%;"> <div style="margin-left: 4%; margin-right: 0%;"> <table style="font-size: 9pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="40%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="11%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="2%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="2%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="6%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --> <td width="2%"> </td> <!-- colindex=06 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=06 type=lead --> <td align="right" width="9%"> </td> <!-- colindex=06 type=body --> <td align="left" width="1%"> </td> <!-- colindex=06 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Six Months Ended<br /></font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">H&R Block, Inc.<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">BFC<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Other<br /></font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 9pt; font-family: Arial, Helvetica;">Consolidated<br /></font></td> <td> </td> </tr> <tr style="font-size: 9pt;" align="center"> <td valign="bottom" align="left"><font class="_mt" style="font-family: Arial, Helvetica;">October 31, 2008</font></td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Guarantor)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(Issuer)</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Subsidiaries</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">Elims</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">H&R Block</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="20"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash used in operating activities:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(6,752</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(40,397</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(618,782</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(665,931</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash flows from investing:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Mortgage loans originated for investment, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">54,501</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">54,501</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Purchase property & equipment</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(6,822</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(51,764</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(58,586</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(112,550</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">112,550</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Investing cash flows of discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(48,917</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(48,917</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Other, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,407</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(206</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,201</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash provided by (used in) investing activities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(112,550</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">3,169</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(51,970</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">112,550</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(48,801</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash flows from financing:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Repayments of short-term borrowings</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(100,000</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Proceeds from short-term borrowings</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">768,625</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">768,625</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Customer banking deposits</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">96,205</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(136,800</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(40,595</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Dividends paid</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(96,555</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(96,555</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Acquisition of treasury shares</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,467</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(4,467</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Proceeds from stock options</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">61,699</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">61,699</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Proceeds from issuance of stock</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">141,558</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">141,558</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Net intercompany advances</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(533,396</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">645,946</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(112,550</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Financing cash flows of discontinued operations</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,783</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,783</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 18pt; text-indent: -9pt;">Other, net</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">17,067</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(8,654</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">8,413</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net cash provided by financing activities</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">119,302</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">236,217</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">637,292</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(249,350</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">743,461</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Net increase (decrease) in cash</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">198,989</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(33,460</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(136,800</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">28,729</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash – beginning of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">34,611</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">630,933</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(647</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">664,897</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 9pt; text-indent: -9pt;">Cash – end of period</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">-</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">233,600</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">597,473</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(137,447</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">693,626</td> </tr> </table> <!--EndFragment--></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <blockquote dir="ltr" style="margin-right: 0px;"> <blockquote dir="ltr" style="font-size: 10pt; margin-right: 0px; font-family: 'CenturyITC TT','serif';"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><a name="OLE_LINK36"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"><font class="_mt">11.<font class="_mt" style="font: 7pt 'Times New Roman';"> </font></font></font></b> <b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Litigation and Related Contingencies</font></b></a></p> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">We are party to investigations, legal claims and lawsuits arising out of our business operations. As required, we accrue our best estimate of loss contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. Amounts accrued, including obligations under indemnifications, totaled $32.9 million and $27.9 million at October 31, 2009 and April 30, 2009, respectively. Litigation is inherently unpredictable and it is difficult to predict the outcome of particular matters with reasonable certainty and, therefore, the actual amount of any loss may prove to be larger or smaller than the amounts reflected in our consolidated financial statements.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><a name="OLE_LINK20"></a><a name="OLE_LINK12"></a><a name="OLE_LINK10"></a><a name="OLE_LINK61"></a><a name="OLE_LINK55"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">RAL Litigation</font></font></font></font></font></a></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">We have been named as a defendant in numerous lawsuits throughout the country regarding our refund anticipation loan programs (collectively, “RAL Cases”). The RAL Cases have involved a variety of legal theories asserted by plaintiffs. These theories include allegations that, among other things: disclosures in the RAL applications were inadequate, misleading and untimely; the RAL interest rates were usurious and unconscionable; we did not disclose that we would receive part of the finance charges paid by the customer for such loans; untrue, misleading or deceptive statements in marketing RALs; breach of state laws on credit service organizations; breach of contract, unjust enrichment, unfair and deceptive acts or practices; violations of the federal Racketeer Influenced and Corrupt Organizations Act; violations of the federal Fair Debt Collection Practices Act and unfair competition regarding debt collection activities; and that we owe, and breached, a fiduciary duty to our customers in connection with the RAL program.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 15pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">The amounts claimed in the RAL Cases have been very substantial in some instances, with one settlement resulting in a pretax expense of $43.5 million in fiscal year 2003 (the “Texas RAL Settlement”) and other settlements resulting in a combined pretax expense in fiscal year 2006 of $70.2 million.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"><font class="_mt"> We have settled all but one of the RAL Cases. The sole remaining RAL Case is a putative class action entitled <i>Sandra J. Basile, et al. v. H&R Block, Inc., et al.</i>, April Term 1992 Civil Action No. 3246 in the Court of Common Pleas, First Judicial District Court of Pennsylvania, Philadelphia County, instituted on April 23, 1993. The plaintiffs seek unspecified actual and punitive damages, injunctive relief, attorneys’ fees and costs. A Pennsylvania class was certified, but later decertified by the trial court in December 2003. The trial court’s decertification decision is currently on appeal. We believe we have meritorious defenses to this case and intend to defend it vigorously. There can be no assurances, however, as to the outcome of this case or its impact on our consolidated results of operations.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Peace of Mind Litigation</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">We are defendants in lawsuits regarding our Peace of Mind program (collectively, the “POM Cases”), under which our applicable tax return preparation subsidiary assumes liability for additional tax assessments attributable to tax return preparation error. The POM Cases are described below.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 15pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><i><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">Lorie J. Marshall, et al. v. H&R Block Tax Services, Inc., et al.</font></i><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">, Case No. 08-CV-591 in the U.S. District Court for the Southern District of Illinois, is a putative class action case originally filed in the Circuit Court of Madison County, Illinois on January 18, 2002. The plaintiffs allege that the sale of POM guarantees constitutes (1) statutory fraud by selling insurance without a license, (2) an unfair trade practice, by omission and by “cramming” (i.e., charging customers for the guarantee even though they did not request it or want it), and (3) a breach of fiduciary duty. The plaintiffs seek unspecified damages, attorneys’ fees and costs. The Madison County court ultimately certified a class consisting of all persons residing in 13 states who from January 1, 1997 to final judgment (1) were charged a separate fee for POM by “H&R Block;” (2) were charged a separate fee for POM by an “H&R Block” entity not licensed to sell insurance; or (3) had an unsolicited charge for POM posted to their bills by “H&R Block.” Persons who received the POM guarantee through an H&R Block Premium office were excluded from the class. We subsequently removed the case to federal court in the Southern District of Illinois, where it is now pending. In November 2009, the federal court issued an order effectively vacating the state court’s class certification ruling and allowing plaintiffs time to file a renewed motion for class certification under the federal rules.</font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 15pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">There is one other putative class action pending against us in Texas that involves the POM guarantee. This case, styled <i>Desiri L. Soliz v. H&R Block, et al.</i> (Cause No. 03-032-D), was filed on January 23, 2003 in the District Court of Kleberg County, Texas and is pending before the same judge that presided over the Texas RAL Settlement, involves the same plaintiffs’ attorneys that are involved in the <i>Marshall</i> litigation in Illinois, and contains allegations similar to those in the <i>Marshall</i> case. The plaintiff seeks actual and treble damages, equitable relief, attorney fees and costs. No class has been certified in this case.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';"><font class="_mt"> We believe we have meritorious defenses to the claims in the POM Cases, and we intend to defend them vigorously. The amounts claimed in the POM Cases are substantial, however, and there can be no assurances as to the outcome of these pending actions or their impact on our consolidated results of operations individually or in the aggregate.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'Frutiger 45 Light';">Express IRA Litigation</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">On March 15, 2006, the New York Attorney General filed a lawsuit in the Supreme Court of the State of New York, County of New York (Index No. 06/401110) entitled <i>The People of New York v. H&R Block, Inc. and H&R Block Financial Advisors, Inc</i>. <i>et al</i>. The complaint asserts nationwide jurisdiction and alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the Express IRA product and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages. In July 2007, the Supreme Court of the State of New York issued a ruling that dismissed all defendants other than H&R Block Financial Advisors, Inc. (HRBFA) and the claims of common law fraud. The intermediate appellate court reversed this ruling in January 2009. <font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">The amount claimed in this case is substantial. <font class="_mt" style="color: black;">We believe we have meritorious defenses to the claims in this case and intend to defend this case vigorously. There can be no assurances, however, as to the outcome of this case or its impact on our consolidated results of operations.</font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 15pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">On January 2, 2008, the Mississippi Attorney General filed a lawsuit in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) entitled <i>Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., et al.</i> The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the Express IRA product and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages. The defendants have filed a motion to dismiss. We believe we have meritorious defenses to the claims in this case, and we intend to defend this case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated results of operations.</font></font></font></font></p> <p class="Default" style="font-size: 12pt; margin: 0in 0in 0pt; color: black; text-indent: 15pt; font-family: 'Arial','sans-serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In addition to the New York and Mississippi Attorney General actions, a number of civil actions were filed against HRBFA and us concerning the Express IRA product, the first of which was filed on March 15, 2006. Except for two cases pending in state court, all of the civil actions have been consolidated by the panel for Multi-District Litigation into a single action styled <i>In re H&R Block, Inc. Express IRA Marketing Litigation</i> (Case No. 06-1786-MD-RED) in the United States District Court for the Western District of Missouri. The amounts claimed in these cases are substantial. <font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We believe we have meritorious defenses to the claims in these cases and intend to defend these case<font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">s vigorously, but there can be no assurances as to their outcome or their impact on our consolidated results of operations.</font></font></font></font></font></font></font></font></font></font></font></font></p> <p class="Default" style="font-size: 12pt; margin: 0in 0in 0pt; color: black; text-indent: 15pt; font-family: 'Arial','sans-serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Although we sold HRBFA effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation through an indemnification agreement.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Securities and Shareholder Litigation</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">On April 6, 2007, a putative class action styled <i>In re H&R Block Securities Litigation</i> (Case No. 06-0236-CV-W-ODS) was filed against the Company and certain of its officers in the United States District Court for the Western District of Missouri. The complaint alleged, among other things, deceptive, material and misleading financial statements and failure to prepare financial statements in accordance with generally accepted accounting principles. The complaint sought unspecified damages and equitable relief. The court dismissed the complaint in February 2008, and the plaintiffs appealed the dismissal in March 2008. In addition, plaintiffs in a shareholder derivative action that was consolidated into the securities litigation filed a separate appeal in March 2008, contending that the derivative action was improperly consolidated. The derivative action is <i>Iron Workers Local 16 Pension Fund v. H&R Block, et al.</i>, in the United States District Court for the Western District of Missouri, Case No. 06-cv-00466-ODS (instituted on June 8, 2006) and was brought against certain of our directors and officers purportedly on behalf of the Company. The derivative action alleged breach of fiduciary duty, abuse of control, gross mismanagement, waste, and unjust enrichment pertaining to (1) our restatement of financial results in fiscal year 2006 due to errors in determining our state effective income tax rate and (2) certain of our products and business activities. In September 2009, the appellate court affirmed the dismissal of the securities fraud class action, but reversed the dismissal of the shareholder derivative action. We believe we have meritorious defenses to the claims in the shareholder derivative action and intend to defend the action vigorously. There can be no assurances, however, as to its outcome.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">RSM McGladrey Litigation</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><a name="OLE_LINK32"></a><a name="OLE_LINK27"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">RSM EquiCo, its parent and certain of its subsidiaries and affiliates, are parties to a class action filed on July 11, 2006 and entitled <i>Do Right’s Plant Growers, et al. v. RSM EquiCo, Inc., et al.</i> Case No. 06 CC00137, in the California Superior Court, Orange County. The complaint contains allegations relating to business valuation services provided by RSM EquiCo, including allegations of fraud, negligent misrepresentation, breach of contract, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty and unfair competition. Plaintiffs seek unspecified actual and punitive damages, in addition to pre-judgment interest and attorneys’ fees. On March 17, 2009, the court granted plaintiffs’ motion for class certification on all claims. The defendants filed two requests for interlocutory review of the decision, the last of which was denied by the Supreme Court of California on September 30, 2009. A trial date has been set for January 2011.</font></font></a></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 0.25in; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">The certified class consists of all RSM EquiCo U.S. clients who signed platform agreements and for whom RSM EquiCo did not ultimately market their business for sale. The fees paid to RSM EquiCo in connection with these agreements total approximately $185 million, a number which substantially exceeds the equity of RSM EquiCo. We intend to defend this case vigorously. The amount claimed in this action is substantial and could have a material adverse impact on our consolidated results of operations. There can be no assurance regarding the outcome of this matter.</font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 0.25in; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">On December 7, 2009, a lawsuit was filed in the Circuit Court of Cook County, Illinois (2009-L-014920) against M&P, RSM and H&R Block entitled Ronald R. Peterson ex rel. Lancelot Investors Fund, L.P., et al. v. McGladrey & Pullen LLP, et al. The complaint, which was filed by the trustee for certain bankrupt investment funds, seeks unspecified damages and asserts claims against M&P for failure to meet generally accepted auditing standards and failure to detect fraud in financial statement audits. The complaint also asserts claims for vicarious liability and alter ego liability against RSM, and for equitable restitution against H&R Block. We are evaluating the claims asserted and have not yet formed an opinion about the case or its materiality.<font class="_mt"> </font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';"><font class="_mt"> RSM has a relationship with certain <font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">public accounting firms (collectively, “the Attest Firms”) <font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">pursuant to which (1) some RSM employees are also partners or employees of the Attest Firms, (2) many clients of the Attest Firms are also RSM clients, and (3) our RSM McGladrey brand is closely linked to the Attest Firms. The Attest Firms are parties to claims and lawsuits (collectively, “Attest Firm Claims”) arising in the normal course of business. Judgments or settlements arising from Attest Firm Claims exceeding the Attest Firms’ insurance coverage could have a direct adverse effect on Attest Firm operations and could impair RSM’s ability to attract and retain clients and quality professionals. For example, accounting and auditing firms (including one of the Attest Firms) have become subject to claims based on losses their clients suffered from investments in investment funds managed by third parties. Although RSM may not have a direct liability for significant Attest Firm Claims, such Attest Firm Claims could have a material adverse effect on RSM’s operations and impair the value of our investment in RSM. There is no assurance regarding the outcome of the Attest Firm Claims.</font></font></font></font></font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';"><font class="_mt"> See note 2 for discussion of the arbitration proceeding between RSM and M&P.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Litigation and Claims Pertaining to Discontinued Mortgage Operations</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">Although mortgage loan origination activities were terminated and the loan servicing business was sold during fiscal year 2008, SCC remains subject to investigations, claims and lawsuits pertaining to its loan origination and servicing activities that occurred prior to such termination and sale. These investigations, claims and lawsuits include actions by state attorneys general, other state regulators, municipalities, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these investigations, claims and lawsuits allege discriminatory or unfair and deceptive loan origination and servicing practices, public nuisance, fraud, and violations of the Truth in Lending Act, Equal Credit Opportunity Act and the Fair Housing Act. In the current non-prime mortgage environment, the number of these investigations, claims and lawsuits has increased over historical experience and is likely to continue at increased levels. The amounts claimed in these investigations, claims and lawsuits are substantial in some instances, and the ultimate resulting liability is difficult to predict. In the event of unfavorable outcomes, the amounts SCC may be required to pay in the discharge of liabilities or settlements could be substantial and, because SCC’s operating results are included in our consolidated financial statements, could have a material adverse impact on our consolidated results of operations.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';"><font class="_mt"> On June 3, 2008, the Massachusetts Attorney General filed a lawsuit in the Superior Court of Suffolk County, Massachusetts (Case No. 08-2474-BLS) entitled <i>Commonwealth of Massachusetts v. H&R Block, Inc., et al.,</i> alleging unfair, deceptive and discriminatory origination and servicing of mortgage loans and seeking equitable relief, disgorgement of profits, restitution and statutory penalties. In November 2008, the court granted a preliminary injunction limiting the ability of the owner of SCC’s former loan servicing business to initiate or advance foreclosure actions against certain loans originated by SCC or its subsidiaries without (1) advance notice to the Massachusetts Attorney General and (2) if the Attorney General objects to foreclosure, approval by the court. The preliminary injunction generally applies to loans meeting all of the following four characteristics: (1) adjustable rate mortgages with an introductory period of three years or less; (2) the borrower has a debt-to-income ratio generally exceeding 50 percent; (3) an introductory interest rate at least 2 percent lower than the fully indexed rate (unless the debt-to-income ratio is 55% or greater); and (4) loan-to-value ratio of 97 percent or certain prepayment penalties. We have appealed this preliminary injunction. We believe the claims in this case are without merit, and we intend to defend this case vigorously. There can be no assurances, however, as to its outcome or its impact on our consolidated results of operations.</font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';"><font class="_mt"> SCC also remains subject to potential claims for indemnification and loan repurchase<font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">s pertaining to loans previously sold<font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">. In the current non-prime mortgage environment, it is likely that the frequency of repurchase and indemnification claims may increase over historical experience and give rise to additional litigation. In some instances, H&R Block, Inc. was required to guarantee SCC’s obligations. The amounts involved in these potential claims may be substantial, and the ultimate resulting liability is difficult to predict. Because SCC’s operating results are included in our consolidated financial statements, the amounts SCC may be required to pay in the discharge or settlement of these claims in the event of unfavorable outcomes could have a material adverse impact on our consolidated results of operations.</font></font></font></font></font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"> </font></b></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Other Claims and Litigation</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">We are from time to time party to investigations, claims and lawsuits not discussed herein arising out of our business operations. These investigations, claims and lawsuits include actions by state attorneys general, other state regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated. Some of these investigations, claims and lawsuits pertain to RALs, the electronic filing of customers’ income tax returns, the POM guarantee program, wage and hour claims and investment products. We believe we have meritorious defenses to each of these investigations, claims and lawsuits, and we are defending or intend to defend them vigorously. The amounts claimed in these matters are substantial in some instances, however the ultimate liability with respect to such matters is difficult to predict. In the event of an unfavorable outcome, the amounts we may be required to pay in the discharge of liabilities or settlements could have a material adverse impact on our consolidated results of operations.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 15pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In addition to the aforementioned types of matters, we are party to claims and lawsuits that we consider to be ordinary, routine litigation incidental to our business, including claims and lawsuits (collectively, “Other Claims”) concerning the preparation of customers’ income tax returns, the fees charged customers for various products and services, relationships with franchisees, intellectual property disputes, employment matters and contract disputes. While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay in the discharge of liabilities or settlements in these Other Claims will not have a material adverse effect on our consolidated <font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">operating results<font class="_mt"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">.</font></font></font></font></font></font></font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"> </p> </blockquote> </blockquote> <!--EndFragment--></blockquote> <!--EndFragment--><!-- body --><!-- body --></div> <!-- body --><!-- body --></div> <!-- body --><!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"><font class="_mt">13.<font class="_mt" style="font: 7pt 'Times New Roman';"> </font></font></font></b> <b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Accounting Pronouncements</font></b></p> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In October 2009, the <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Financial Accounting Standards Board (FASB) <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">issued Accounting Standards Update 2009-13, “Revenue Recognition (Topic 605) – Multiple-Deliverable Revenue Arrangements” (ASU 2009-13). This guidance amends the criteria for separating consideration in multiple-deliverable arrangements to enable vendors to account for products or services (deliverables) separately rather than as a combined unit. <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">This guidance establishes a selling price hierarchy for determining the selling price of a deliverable, which is based on: (1) vendor-specific objective evidence; (2) third-party evidence; or (3) estimates. This guidance also eliminates the residual method of allocation and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method. In addition, this guidance significantly expands required disclosures related to a vendor’s multiple-deliverable revenue arrangements.<font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">This guidance is effective <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">prospectively for revenue arrangements entered into or materially modified beginning with our fiscal year 2012. We are currently evaluating the effect of this statement on our consolidated financial statements.</font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In June 2009, the FASB issued Statement of Financial Accounting Standards No. 167, “Amendments to FASB Interpretation No. 46(R)” (SFAS 167). SFAS 167 changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting or similar rights should be consolidated. The determination of whether a reporting entity is required to consolidate another entity is based on, among other things, the other entity’s purpose and design and the reporting entity’s ability to direct the activities of the other entity that most significantly impact the other entity’s economic performance. SFAS 167 will require a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. SFAS 167 will be effective for our fiscal year 2011. We are currently evaluating the effect of this statement on our consolidated financial statements.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In June 2009, the FASB issued Statement of Financial Accounting Standards No. 166, “Accounting for Transfers of Financial Assets” (SFAS 166). SFAS 166 is a revision to FASB Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,” and will require more disclosure about transfers of financial assets, including securitization transactions, and where entities have continuing exposure to the risks related to transferred financial assets. It eliminates the concept of a qualifying special purpose entity and changes the requirements for derecognizing financial assets. SFAS 166 will be effective at the beginning of our fiscal year 2011. We are currently evaluating the effect of this statement on our consolidated financial statements.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In May 2009, the FASB issued guidance, under Topic 855 – Subsequent Events, to <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. <a name="jump_exp_3"></a>This guidance is effective for fiscal years and interim periods ending after June 15, 2009 and is applied prospectively. We adopted the new disclosure requirements in our condensed consolidated financial statements effective July 31, 2009.</font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; color: black; font-family: 'CenturyITC TT','serif';">In December 2007, the FASB issued guidance, under Topic 805 – Business Combinations, <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">requiring an acquiring entity to recognize all the assets acquired and liabilities assumed in a transaction, including non-controlling interests, at the acquisition-date fair value with limited exceptions<font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">. This guidance will require acquisition-related expenses to be expensed and will generally require contingent consideration to be recorded as a liability at the time of acquisition. Under this guidance, subsequent changes to deferred tax valuation allowances relating to acquired businesses and acquired liabilities for uncertain tax positions will no longer be applied to goodwill but will instead be typically recognized as an adjustment to income tax expense. We adopted the provisions of this guidance as of May 1, 2009. The adoption did not have a material impact on our consolidated financial statements.</font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">In June 2008, the FASB issued guidance, under Topic 260 – Earnings Per Share, addressing whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, should be included in the process of allocating earnings for purposes of computing earnings per share<i><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">.</font></i> <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We adopted the provisions of this guidance as of May 1, 2009. <font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">The adoption and retrospective application of this guidance did not change the current year or prior period earnings per share amounts for the fiscal quarter. The adoption of this accounting guidance will reduce earnings per share as previously reported for fiscal year 2009 by $0.01. See additional discussion in note 3.</font></font></font></p> </blockquote> </blockquote> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"><font class="_mt">2.<font class="_mt" style="font: 7pt 'Times New Roman';"> </font></font></font></b> <b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Recent Events</font></b></p> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">RSM McGladrey, Inc. (RSM) and McGladrey & Pullen LLP (M&P), an independent registered public accounting firm, collaborate to provide accounting, tax and consulting services to clients under an alternative practice structure. <a name="OLE_LINK16">RSM and M&P also share in certain common overhead costs through an administrative services agreement. These services are provided by, and coordinated through, RSM, for which RSM receives a management fee.</a></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><a name="OLE_LINK72"></a><a name="OLE_LINK71"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"><font class="_mt"> On July 21, 2009, M&P provided 210 days notice of its intent to terminate the administrative services agreement. The effect of the notice will be to terminate the alternative practice structure on February 16, 2010, unless revoked or modified prior to that time. As a protective measure, on September 15, 2009, RSM provided notice of its intent to terminate the administrative services agreement. Absent revocation or modification by RSM, the effect of RSM’s notice will be to terminate the alternative practice structure on April 13, 2010 even in the event M&P revokes or modifies the M&P notice.</font></font></font></a> <font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Since July 23, 2009, <font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">RSM and M&P have been engaged in arbitration to resolve various disputes regarding their contractual relationship, including the scope and enforceability of restrictive covenants agreed to by M&P. On November 24, 2009, the arbitration panel issued a final and binding ruling regarding the enforceability of the covenants. The ruling is confidential. RSM and M&P <font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">are continuing negotiations to determine if there are mutually agreeable changes to the current arrangements that would allow the alternative practice structure with M&P to continue. <font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">There are no assurances as to the outcome of these negotiations.</font></font></font></font></font></font></font></font></font></font></font></font></p> </blockquote> </blockquote> <!--EndFragment--><!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div> <div style="margin-left: 6%;"> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: Arial, Helvetica;" cellspacing="0" cellpadding="0" border="0"> <tr valign="top"> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">12. </font></b></td> <td><b><font class="_mt" style="font-family: Arial, Helvetica;">Segment Information</font></b></td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"> </div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Results of our continuing operations by reportable operating segment are as follows:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="53%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --> <td width="3%"> </td> <!-- colindex=03 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=03 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=03 type=body --> <td align="left" width="1%"> </td> <!-- colindex=03 type=hang1 --> <td width="3%"> </td> <!-- colindex=04 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=04 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=04 type=body --> <td align="left" width="1%"> </td> <!-- colindex=04 type=hang1 --> <td width="3%"> </td> <!-- colindex=05 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=05 type=lead --> <td align="right" width="7%"> </td> <!-- colindex=05 type=body --> <td align="left" width="1%"> </td> <!-- colindex=05 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"> </td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td align="center" colspan="6"> </td> <td> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Six Months Ended<br /></font></td> <td> </td> </tr> <tr style="font-size: 10pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">Three Months Ended October 31,</font></td> <td> </td> <td> </td> <td align="center" colspan="6"><font class="_mt" style="font-family: Arial, Helvetica;">October 31,</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">2009</font></td> <td> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">2008</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="16"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Revenues:</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Tax Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">109,305</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">104,734</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">197,268</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">186,434</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Business Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">206,602</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">233,045</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">384,220</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">407,696</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Corporate</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">10,174</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">13,690</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">20,098</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">29,248</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">326,081</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">351,469</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">601,586</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">623,378</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Pretax income (loss):</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Tax Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(172,188</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(188,125</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(344,162</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(351,782</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Business Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">174</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">13,081</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,495</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">12,786</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Corporate</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(40,839</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(52,409</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(81,059</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(101,427</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 20pt; text-indent: -10pt;">Loss from continuing operations before tax benefit</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(212,853</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(227,453</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(423,726</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">(440,423</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">)</td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="17"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="17"> </td> </tr> </table> <div style="font-size: 10pt; background: #ffffff; margin-left: 0%; color: #000000; text-indent: 0%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left"></div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">Effective May 1, 2009, we realigned certain segments of our business to reflect a new management reporting structure. The operations of HRB Bank, which was previously reported as the Consumer Financial Services segment, have now been reclassified, with activities that support our retail tax network included in the Tax Services segment, and the net interest margin and gains and losses relating to our portfolio of mortgage loans held for investment and related assets included in corporate. Presentation of prior period results reflects the new segment reporting structure.</div> <div style="font-size: 10pt; background: #ffffff; margin-left: 4%; color: #000000; text-indent: 2%; margin-right: 0%; font-family: 'Times New Roman', Times;" align="left">These segment changes also resulted in the reclassification of assets between segments. Identifiable assets by reportable segment at October 31, 2009 are as follows:</div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-size: 10pt; background: #ffffff; color: #000000; font-family: 'Times New Roman', Times;" cellspacing="0" cellpadding="0" align="center" border="0"><!-- Table Width Row BEGIN --> <tr style="font-size: 1pt;" valign="bottom"> <td width="88%"> </td> <!-- colindex=01 type=maindata --> <td width="2%"> </td> <!-- colindex=02 type=gutter --> <td align="right" width="1%"> </td> <!-- colindex=02 type=lead --> <td align="right" width="8%"> </td> <!-- colindex=02 type=body --> <td align="left" width="1%"> </td> <!-- colindex=02 type=hang1 --></tr> <!-- Table Width Row END --><!-- TableOutputHead --> <tr style="font-size: 8pt;" align="center"> <td valign="bottom" align="right"> </td> <td> </td> <td valign="bottom" align="right" colspan="2"><font class="_mt" style="font-size: 10pt; font-family: Arial, Helvetica;">(in 000s)</font></td> <td> </td> </tr> <tr style="font-size: 1pt;" align="center"> <td style="font-size: 1pt; border-bottom: #000000 1px solid;" valign="bottom" align="right" colspan="4"> </td> <td> </td> </tr> <tr style="font-size: 1pt; line-height: 3pt;"> <td> </td> </tr> <!-- TableOutputBody --> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Tax Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">2,790,766</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Business Services</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">857,698</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="background: #cceeff;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> <div style="margin-left: 10pt; text-indent: -10pt;">Corporate</div> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">1,318,895</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 1px solid;"> </td> <td style="border-top: #000000 1px solid;"> </td> <td> </td> </tr> <tr valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> <td> </td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left">$</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="right">4,967,359</td> <td style="font-family: Arial, Helvetica;" valign="bottom" align="left"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td> </td> <td> </td> <td style="border-top: #000000 3px double;"> </td> <td style="border-top: #000000 3px double;"> </td> <td> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="font-family: Arial, Helvetica;" valign="bottom" colspan="5"> </td> </tr> <tr style="font-size: 1pt;" valign="bottom"> <td style="border-top: #000000 1px solid;" colspan="5"> </td> </tr> </table> <!--EndFragment--></div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div> <!-- body --></div> </div><!-- body --></div></div> </div>
255240000
138036000
232902000
129685000
<div> <div><!-- 2.0.3575.42017 --><div><!-- body --><blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';"><font class="_mt">1.<font class="_mt" style="font: 7pt 'Times New Roman';"> </font></font></font></b> <b><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Summary of Significant Accounting Policies</font></b></p> </blockquote> <blockquote dir="ltr" style="margin-right: 0px;"> <blockquote dir="ltr" style="margin-right: 0px;"> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Basis of Presentation</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">The condensed consolidated balance sheet as of October 31, 2009, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended October 31, 2009 and 2008, and the condensed consolidated statements of cash flows for the six months ended October 31, 2009 and 2008 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows at October 31, 2009 and for all periods presented have been made. <a name="OLE_LINK65"></a><a name="OLE_LINK64"></a></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">“H&R Block,” “the Company,” “we,” “our” and “us” are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context.</font></font></font></p> <p style="font-size: 9pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Arial','sans-serif'; text-align: justify;"><a name="OLE_LINK14"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Certain reclassifications have been made to prior year amounts to conform to the current year presentation. In addition, we realigned our segments as discussed in note 12, and accordingly restated segment disclosures for prior periods. These changes had no effect on our results of operations or stockholders’ equity as previously reported.</font></font></font></a></p> <p class="MsoBodyText" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';"><font class="_mt"> Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial <font class="_mt" style="letter-spacing: -0.1pt;">statements and notes thereto included in our April 30, 2009 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2009 or for the year then ended, are derived from our <font class="_mt" style="letter-spacing: -0.1pt;">April 30, 2009 Annual Report to Shareholders on Form 10-K.</font></font></font></font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; text-indent: 13.5pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">We have evaluated subsequent events through December 9, 2009, the date of issuance of our condensed consolidated financial statements.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif';"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 8.5pt; font-family: TimesNewRomanPS-ItalicMT-Identi;"> </font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Management Estimates</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the determination of our allowance for loan losses, potential losses from loan repurchase and indemnity obligations associated with our discontinued mortgage business, contingent losses associated with pending litigation, fair value of reporting units, reserves for uncertain tax positions and related matters. We revise our estimates when facts and circumstances dictate. However, future events and their effects cannot be determined with absolute certainty. As such, actual results could differ materially from those estimates.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif';"><font class="_mt" style="font-size: 8.5pt; font-family: TimesNewRomanPS-ItalicMT-Identi;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Seasonality of Business</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Our operating revenues are seasonal in nature with peak revenues occurring in the months of January through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.</font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; line-height: 6pt; font-family: 'Century Schoolbook','serif';"><font class="_mt" style="font-size: 8.5pt; font-family: TimesNewRomanPS-ItalicMT-Identi;"> </font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"><a name="OLE_LINK38"></a><a name="OLE_LINK30"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'Frutiger 45 Light';">Concentrations of Risk</font></font></a></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif'; text-align: justify;"><font class="_mt"><font class="_mt"><font class="_mt" style="font-size: 10pt; font-family: 'CenturyITC TT','serif';">Our mortgage loans held for investment include concentrations of loans to borrowers in certain states, which may result in increased exposure to loss as a result of changes in real estate values and underlying economic or market conditions related to a particular geographical location. Approximately 52% of our mortgage loan portfolio consists of loans to borrowers located in the states of Florida, California and New York.</font></font></font></p> <p class="MsoNormal" style="font-size: 12pt; margin: 0in 0in 0pt; font-family: 'Century Schoolbook','serif';"> </p> </blockquote> </blockquote> <!--EndFragment--><!-- body --></div></div> </div>
1405859000
1071097000
62578000
9212000
2094858000
2068987000