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align="center">(in millions)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="2" align="center">Fiscal Year</td> <td colspan="8" align="center">Fiscal Year 2010</td> <td colspan="8" align="center">Fiscal Year 2011</td> <td colspan="6" align="center">Fiscal Year 2012</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q4</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" colspan="2" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q4</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Total</td></tr> <tr valign="bottom"><td align="left">Loan Origination Year:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">2005</td> <td align="right">$</td> <td align="right">62</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">15</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">6</td> <td align="right">$</td> <td align="right">1</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">1</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">85</td></tr> <tr valign="bottom"><td align="left">2006</td> <td align="right"> </td> <td align="right">217</td> <td align="right"> </td> <td align="right">2</td> <td align="right"> </td> <td align="right">57</td> <td align="right"> </td> <td align="right">4</td> <td align="right"> </td> <td align="right">45</td> <td align="right"> </td> <td align="right">100</td> <td align="right"> </td> <td align="right">15</td> <td align="right"> </td> <td align="right">29</td> <td align="right"> </td> <td align="right">50</td> <td align="right"> </td> <td align="right">29</td> <td align="right"> </td> <td align="right">130</td> <td align="right"> </td> <td align="right">678</td></tr> <tr valign="bottom"><td align="left">2007</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">153</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">353</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">546</td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">432</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">6</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">83</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">11</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">45</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">109</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">21</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">33</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">55</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">31</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">483</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,309</td></tr></table> </div> 432000000 62000000 153000000 217000000 6000000 4000000 2000000 83000000 15000000 11000000 57000000 11000000 7000000 4000000 45000000 45000000 109000000 6000000 3000000 100000000 21000000 1000000 5000000 15000000 33000000 4000000 29000000 55000000 1000000 4000000 50000000 31000000 2000000 29000000 1309000000 85000000 546000000 678000000 483000000 84000000 385000000 353000000 130000000 537000000 735264000 48290000 39009000 -99697000 13107000 10841000 54000000 67854000 61357000 34000000 -7000 -26000 176000 62000 8500000 0.037 0.007 0.030 0.111 0.0 0.078 0.033 0.42 0.42 -8217000 -3260000 -5955000 -6672000 -1275000 -485000 820000 <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(dollars in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="3" colspan="4" align="center">Actual</td> <td rowspan="3" colspan="4" align="center">For Capital Adequacy Purposes</td> <td rowspan="3" colspan="4" align="center">To Be Well Capitalized Under Prompt Corrective Action Provisions</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td></tr> <tr valign="bottom"><td align="left">As of September 30, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total risk-based capital ratio (1)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">409,193</td> <td align="right">97.1</td> <td align="left">%</td> <td align="right">$</td> <td align="right">33,715</td> <td align="right">8.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">42,144</td> <td align="right">10.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 risk-based capital ratio (2)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">95.8</td> <td align="left">%</td> <td align="right"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td> <td align="left">$</td> <td align="right">25,287</td> <td align="right">6.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 capital ratio (leverage) (3)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">35.6</td> <td align="left">%</td> <td align="right">$</td> <td align="right">136,150</td> <td align="right">12.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">56,729</td> <td align="right">5.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tangible equity ratio (4)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">35.6</td> <td align="left">%</td> <td align="right">$</td> <td align="right">17,019</td> <td align="right">1.5</td> <td align="left">%</td> <td align="left"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td></tr> <tr><td colspan="13"> </td></tr> <tr valign="bottom"><td align="left">As of March 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total risk-based capital ratio (1)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">405,000</td> <td align="right">92.5</td> <td align="left">%</td> <td align="right">$</td> <td align="right">35,019</td> <td align="right">8.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">43,773</td> <td align="right">10.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 risk-based capital ratio (2)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">91.2</td> <td align="left">%</td> <td align="right"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td> <td align="left">$</td> <td align="right">26,264</td> <td align="right">6.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 capital ratio (leverage) (3)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">22.8</td> <td align="left">%</td> <td align="right">$</td> <td align="right">209,758</td> <td align="right">12.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">87,399</td> <td align="right">5.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tangible equity ratio (4)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">22.8</td> <td align="left">%</td> <td align="right">$</td> <td align="right">26,220</td> <td align="right">1.5</td> <td align="left">%</td> <td align="left"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td></tr></table></div>   <div align="left"> <table class="MetaData" border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="3%"> </td> <td width="94%"> </td></tr> <tr valign="bottom"><td align="right">(1</td> <td align="left">)</td> <td class="MetaData" align="left">Total risk-based capital divided by risk-weighted assets.</td></tr> <tr valign="bottom"><td align="right">(2</td> <td align="left">)</td> <td class="MetaData" align="left">Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets.</td></tr> <tr valign="bottom"><td align="right">(3</td> <td align="left">)</td> <td class="MetaData" align="left">Tier 1 (core) capital divided by adjusted total assets.</td></tr> <tr valign="bottom"><td align="right">(4</td> <td align="left">)</td> <td class="MetaData" align="left">Tangible capital divided by tangible assets.</td></tr></table></div></div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="3%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td colspan="4" align="center">Three months ended October 31,</td> <td colspan="6" align="center">Six months ended October 31,</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Revenues</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">199,042</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">203,088</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">365,928</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" colspan="2" align="right">378,109</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Income (loss) from operations before impairment and</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">income tax benefit</td> <td align="left">$</td> <td align="right">(22,949</td> <td align="left">)</td> <td align="left">$</td> <td align="right">5,708</td> <td align="right">$</td> <td align="right">(18,472</td> <td align="left">)</td> <td align="right"> </td> <td align="left">$</td> <td align="right">327</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Impairment of goodwill</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(99,697</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Pretax income (loss)</td> <td align="left"> </td> <td align="right">(22,949</td> <td align="left">)</td> <td align="left"> </td> <td align="right">5,708</td> <td align="left"> </td> <td align="right">(118,169</td> <td align="left">)</td> <td align="right"> </td> <td align="left"> </td> <td align="right">327</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Income tax expense (benefit)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,238</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,313</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(43,515</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">805</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(18,711</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,395</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(74,654</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(478</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table> </div> 28000000 50000000 7700000 6200000 709491000 709491000 700509000 700509000 3828000 3323000 0.161 0.170 201100000 157464000 14106000 143358000 168572000 23079000 145493000 0.80 0.80 0.01 -3344000 -3337000 0.58 <div> <table border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="10%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left">$</td> <td align="right">215,817</td> <td align="left">$</td> <td align="right">262,118</td></tr> <tr valign="bottom"><td align="left">Prepaid expenses and other current assets</td> <td align="left"> </td> <td align="right">61,357</td> <td align="left"> </td> <td align="right">67,854</td></tr> <tr valign="bottom"><td align="left">Property and equipment, net</td> <td align="left"> </td> <td align="right">49,833</td> <td align="left"> </td> <td align="right">52,022</td></tr> <tr valign="bottom"><td align="left">Intangible assets, net</td> <td align="left"> </td> <td align="right">87,324</td> <td align="left"> </td> <td align="right">92,579</td></tr> <tr valign="bottom"><td align="left">Goodwill</td> <td align="left"> </td> <td align="right">299,896</td> <td align="left"> </td> <td align="right">412,094</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,926</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">13,661</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">729,153</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">900,328</td></tr> <tr valign="bottom"><td align="left">Accounts payable, accrued expenses and deposits</td> <td align="left">$</td> <td align="right">67,947</td> <td align="left">$</td> <td align="right">67,088</td></tr> <tr valign="bottom"><td align="left">Accrued salaries, wages and payroll taxes</td> <td align="left"> </td> <td align="right">39,009</td> <td align="left"> </td> <td align="right">48,290</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td align="right">10,841</td> <td align="left"> </td> <td align="right">13,107</td></tr> <tr valign="bottom"><td align="left">Deferred tax liability</td> <td align="left"> </td> <td align="right">50,209</td> <td align="left"> </td> <td align="right">81,492</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,024</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,585</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">199,030</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">241,562</td></tr></table> </div> <div> <div> Management Estimates 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, valuation allowances based on future taxable income, reserves for uncertain tax positions, credit losses on receivable balances and related matters. Estimates have been prepared on the basis of the most current and best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.</div> </div> 700 700 103079000 103079000 114394000 114394000 271634000 11800000 15851000 423572000 -439423000 17228000 266274000 -283502000 -423572000 423572000 -266274000 266274000 120 60 37695000 34162000 171188000 88318000 170054000 86551000 28195000 15941000 12254000 36934000 28300000 8634000 64851000 64851000 27682000 27682000 283470000 283470000 180222000 180222000 0.85 0.0100 0.90 0.52 0.78 0.22 0.324 0.117 0.447 191360000 218054000 8673000 8673000 7447000 7447000 4141000 10798000 18726000 9365000 15491000 8200000 27112000 27112000 16918000 16918000 <div> <table border="0" cellspacing="0"> <tr><td width="60%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance at beginning of period:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to repurchase and indemnifications</td> <td align="right">$</td> <td align="right">126,260</td> <td align="left"> </td> <td align="right">$</td> <td align="right">138,415</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">49,785</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">126,260</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">188,200</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Changes:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Provision for estimated losses</td> <td align="right"> </td> <td align="right">20,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Losses on repurchase and indemnifications</td> <td align="right"> </td> <td align="right">(3,337</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(3,344</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments under indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(134</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Balance at end of period:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to repurchase and indemnifications</td> <td align="right"> </td> <td align="right">142,923</td> <td align="left"> </td> <td align="right"> </td> <td align="right">135,071</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">49,651</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">142,923</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">184,722</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="8%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="7%"> </td> <td width="5%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="13" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td> <td rowspan="2" colspan="3" align="center">Loans to Franchisees</td> <td rowspan="2" colspan="3" align="center">All Other</td> <td rowspan="2" colspan="3" align="center">Total</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Balance as of April 30, 2011</td> <td align="right">$</td> <td align="right">4,400</td> <td align="right">$</td> <td style="text-indent: 3px;" align="right">—</td> <td style="text-indent: 4px;" align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">43,543</td> <td align="right"> </td> <td align="right">$</td> <td align="right">47,943</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="right"> </td> <td align="right">1,530</td> <td align="right"> </td> <td style="text-indent: 3px;" align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right"> </td> <td align="right">828</td> <td align="right"> </td> <td align="right"> </td> <td align="right">2,358</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,889</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,889</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td></tr> <tr valign="bottom"><td align="left">Balance as of October 31, 2011</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,930</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">42,482</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">48,412</td> <td style="border-bottom: #000000 3px double;" align="right"> </td></tr> <tr valign="bottom"><td align="left">Balance as of April 30, 2010</td> <td align="right">$</td> <td align="right">35,239</td> <td align="right">$</td> <td align="right">12,191</td> <td style="text-indent: 4px;" align="right">$</td> <td align="right">4</td> <td align="right"> </td> <td align="right">$</td> <td align="right">43,723</td> <td align="right"> </td> <td align="right">$</td> <td align="right">91,157</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="right"> </td> <td align="right">1,120</td> <td align="right"> </td> <td style="text-indent: 6px;" align="right">2</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right"> </td> <td align="right">984</td> <td align="right"> </td> <td align="right"> </td> <td align="right">2,106</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,526</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,530</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td></tr> <tr valign="bottom"><td align="left">Balance as of October 31, 2010</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">36,359</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">12,193</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">43,181</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,733</td> <td style="border-bottom: #000000 3px double;" align="right"> </td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="12%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Allowance related to:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Emerald Advance lines of credit</td> <td align="right">$</td> <td align="right">5,930</td> <td align="right">$</td> <td align="right">4,400</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax client receivables related to RALs</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans to franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other receivables</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42,482</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">43,543</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">48,412</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,943</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="60%"> </td> <td width="8%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Portion of total allowance for loan losses allocated to</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">impaired loans and TDR loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Based on collateral value method</td> <td align="right">$</td> <td align="right">72,727</td> <td align="right">$</td> <td align="right">69,794</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Based on discounted cash flow method</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,576</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11,055</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">81,303</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">80,849</td></tr></table> </div> <div> <table style="width: 786px; height: 184px;" border="0" cellspacing="0"> <tr><td width="77%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="77%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="77%" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="9%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="9%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Balance, beginning of the period</td> <td width="1%" align="right">$</td> <td width="9%" align="right">92,087</td> <td width="1%" align="right"> </td> <td width="1%" align="right">$</td> <td width="9%" align="right">93,535</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Provision</td> <td width="1%" align="right"> </td> <td width="9%" align="right">12,750</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="9%" align="right">16,300</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Recoveries</td> <td width="1%" align="right"> </td> <td width="9%" align="right">88</td> <td width="1%" align="left"> </td> <td width="1%" align="right"> </td> <td width="9%" align="right">86 </td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(13,546</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(22,354 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="77%" align="left">Balance, end of the period</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">91,379</td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">87,567</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right"> </td></tr></table> </div> <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="17%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="18" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Gross Unrealized Gains</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Gross Unrealized Losses (1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Fair Value</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Gross Unrealized Gains</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Gross Unrealized Losses (1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Short-term:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right">$</td> <td align="right">2,008</td> <td align="right">$</td> <td align="right">21</td> <td align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">2,029</td> <td align="right">$</td> <td align="right">3,023</td> <td align="right">$</td> <td align="right">58</td> <td align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">3,081</td></tr> <tr valign="bottom"><td align="left">Long-term:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="center">securities</td> <td align="right"> </td> <td align="right">297,157</td> <td align="right"> </td> <td align="right">3,716</td> <td align="right"> </td> <td align="right">(209</td> <td align="right">)</td> <td align="right"> </td> <td align="right">300,664</td> <td align="right"> </td> <td align="right">157,970</td> <td align="right"> </td> <td align="right">401</td> <td align="right"> </td> <td align="right">(194</td> <td align="right">)</td> <td align="right"> </td> <td align="right">158,177</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,277</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">369</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,646</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,312</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">347</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,659</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">302,434</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,085</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(209</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">306,310</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">163,282</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">748</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(194</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">163,836</td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">304,442</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">4,106</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(209</td> <td style="border-bottom: #000000 3px double;" align="right">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">166,305</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">806</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(194</td> <td style="border-bottom: #000000 3px double;" align="right">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">166,917</td></tr></table></div>   (1) At October 31, 2011 and April 30, 2011, we had no investments that had been in a continuous loss position for more than twelve months.</div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="30%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td></tr> <tr valign="bottom"><td align="left">Common stock</td> <td align="left">$</td> <td align="right">130</td></tr> <tr valign="bottom"><td align="left">Additional paid-in capital</td> <td align="left"> </td> <td align="right">7,826</td></tr> <tr valign="bottom"><td align="left">Retained earnings</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">169,548</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right"> <div>177,504</div></td></tr></table> </div> <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="4%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Condensed Consolidating Balance Sheets</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td style="text-indent: 4px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents</td> <td align="left">$</td> <td style="text-indent: 5px;" align="left">—</td> <td align="right">$</td> <td align="right">380,692</td> <td align="left"> </td> <td align="right">$</td> <td align="right">192,199</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(280</td> <td align="left">)</td> <td align="right">$</td> <td align="right">572,611</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents – restricted</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">922</td> <td align="left"> </td> <td align="right"> </td> <td align="right">36,602</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,524</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left"> </td> <td style="text-indent: 6px;" align="left">33</td> <td align="right"> </td> <td align="right">105,082</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,947</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">128,062</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">450,137</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">450,137</td></tr> <tr valign="bottom"><td align="left">Intangible assets and goodwill, net</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">700,509</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">700,509</td></tr> <tr valign="bottom"><td align="left">Investments in subsidiaries</td> <td align="left"> </td> <td align="left">2,121,899</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">516</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(2,121,899</td> <td align="left">)</td> <td align="right"> </td> <td align="right">516</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">729,153</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">729,153</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left">10,775</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">528,281</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">818,945</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,358,001</td></tr> <tr valign="bottom"><td align="right">Total assets</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,132,707</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,465,114</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,500,871</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,122,179</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,976,513</td></tr> <tr valign="bottom"><td align="left">Customer deposits</td> <td align="left">$</td> <td style="text-indent: 5px;" align="left">—</td> <td align="right">$</td> <td align="right">723,598</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(280</td> <td align="left">)</td> <td align="right">$</td> <td align="right">723,318</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">999,145</td> <td align="left"> </td> <td align="right"> </td> <td align="right">40,786</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,039,931</td></tr> <tr valign="bottom"><td align="left">Commercial paper borrowings</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">39,990</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">39,990</td></tr> <tr valign="bottom"><td align="left">FHLB borrowings</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">25,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">25,000</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">199,030</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">199,030</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">191</td> <td align="right"> </td> <td align="right">(127,614</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,213,845</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,086,422</td></tr> <tr valign="bottom"><td align="left">Net intercompany advances</td> <td align="left"> </td> <td align="left">1,269,694</td> <td align="right"> </td> <td align="right">24,060</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,293,754</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td align="left">Stockholders' equity</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">862,822</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(219,065</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,340,964</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,121,899</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">862,822</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total liabilities and stockholders' equity</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,132,707</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,465,114</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,500,871</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,122,179</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,976,513</td></tr></table></div>   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="4%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td style="text-indent: 4px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">April 30, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents</td> <td align="left">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">616,238</td> <td align="left"> </td> <td align="right">$</td> <td align="right">1,061,656</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(50</td> <td align="left">)</td> <td align="right">$</td> <td align="right">1,677,844</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents – restricted</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">9,522</td> <td align="left"> </td> <td align="right"> </td> <td align="right">38,861</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">48,383</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left"> </td> <td align="right">88</td> <td align="right"> </td> <td align="right">102,011</td> <td align="left"> </td> <td align="right"> </td> <td align="right">128,073</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">230,172</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment, net</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">485,008</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right"> —</td> <td align="left"> </td> <td align="right"> </td> <td align="right">485,008</td></tr> <tr valign="bottom"><td align="left">Intangible assets and goodwill, net</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">709,491</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">709,491</td></tr> <tr valign="bottom"><td align="left">Investments in subsidiaries</td> <td align="left"> </td> <td align="right">2,699,555</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">32</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(2,699,555</td> <td align="left">)</td> <td align="right"> </td> <td align="right">32</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">900,328</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">900,328</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">13,613</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">469,461</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">755,121</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,238,195</td></tr> <tr valign="bottom"><td align="right">Total assets</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,713,256</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,682,240</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,593,562</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,699,605</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,289,453</td></tr> <tr valign="bottom"><td align="left">Customer deposits</td> <td align="left">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">852,270</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(50</td> <td align="left">)</td> <td align="right">$</td> <td align="right">852,220</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">998,965</td> <td align="left"> </td> <td align="right"> </td> <td align="right">41,119</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,040,084</td></tr> <tr valign="bottom"><td align="left">FHLB borrowings</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">25,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">25,000</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">241,562</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">241,562</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td align="left"> </td> <td align="right">178</td> <td align="right"> </td> <td align="right">(26,769</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,707,604</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,681,013</td></tr> <tr valign="bottom"><td align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">1,263,504</td> <td align="right"> </td> <td align="right">24,173</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,287,677</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td align="left">Stockholders' equity</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,449,574</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(191,399</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,890,954</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,699,555</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,449,574</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total liabilities and stockholders' equity</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,713,256</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,682,240</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,593,562</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,699,605</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,289,453</td></tr></table></div> </div> </div> <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="28%"> </td> <td width="2%"> </td> <td width="11%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Condensed Consolidating Statements of Cash Flows</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="right"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 3px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) operating</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">activities:</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">5,821</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(40,451</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(547,998</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(582,628</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from investing:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchases of available-for-sale</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">securities</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(155,159</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(155,159</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans originated for</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">investment, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,978</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,978</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchase property & equipment</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(94</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(40,416</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(40,510</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments made for business</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">acquisitions, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(8,164</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(8,164</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from sale of businesses, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,036</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,036</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans made to franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(27,682</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(27,682</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments from franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">7,447</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">7,447</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="right"> </td> <td align="right">266,274</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(266,274</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">28,300</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,634</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">36,934</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) investing</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">activities</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">266,274</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(124,210</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,910</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(266,274</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(127,120</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from financing:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments of commercial paper</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(37,989</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(37,989</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from commercial paper</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,979</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,979</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer banking deposits</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(129,055</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(129,285</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Dividends paid</td> <td align="right"> </td> <td align="right">(91,446</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(91,446</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repurchase of common stock</td> <td align="right"> </td> <td align="right">(180,222</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(180,222</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from exercise of stock</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">options, net</td> <td align="right"> </td> <td align="right">(430</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(430</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">17,228</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(283,502</td> <td align="left">)</td> <td align="right"> </td> <td align="right">266,274</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">952</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,012</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(28,057</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net cash used in financing activities</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(272,095</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(70,885</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(312,514</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">266,044</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(389,450</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effects of exchange rates on cash</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,035</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,035</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net decrease in cash</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(235,546</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(869,457</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(1,105,233</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash – beginning of period</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">616,238</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,061,656</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(50</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,677,844</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cash – end of period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">380,692</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">192,199</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(280</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">572,611</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="4%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 3px;" align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Net cash used in operating activities:</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(46,961</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(15,379</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(485,661</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(548,001</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from investing:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans originated for</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">investment, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">30,829</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">30,829</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchase property & equipment</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(35,005</td> <td align="left">)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(35,005</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments made for business</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">acquisitions, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(43,310</td> <td align="left">)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(43,310</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from sale of businesses, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">58,834</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">58,834</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans made to franchisees</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(64,851</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(64,851</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments from franchisees</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">8,673</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">8,673</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">423,572</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(423,572</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">15,941</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,254</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">28,195</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) investing</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">activities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">423,572</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(9,408</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(7,227</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(423,572</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(16,635</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from financing:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments of commercial paper</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(75,000</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(75,000</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from commercial paper</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">114,490</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">114,490</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer banking deposits</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">76,923</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">100</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,023</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Dividends paid</td> <td align="left"> </td> <td align="right">(95,068</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(95,068</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repurchase of common stock</td> <td align="left"> </td> <td align="right">(283,470</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(283,470</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from exercise of stock</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">options, net</td> <td align="left"> </td> <td align="right">1,493</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,493</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">15,851</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(439,423</td> <td align="left">)</td> <td align="left"> </td> <td align="right">423,572</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">434</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">760</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(22,546</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(21,352</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) financing</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">activities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(376,611</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">133,024</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(461,969</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">423,672</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(281,884</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effects of exchange rates on cash</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,221</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,221</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net increase (decrease) in cash</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">108,237</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(952,636</td> <td align="left">)</td> <td align="left"> </td> <td align="right">100</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(844,299</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash – beginning of period</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">702,021</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,102,135</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(111</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,804,045</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cash – end of period</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">810,258</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">149,499</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(11</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">959,746</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div></div> </div> <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="55%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left">Condensed Consolidating Statements of Operations</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Three months ended</td> <td width="1%" align="center"> </td> <td width="7%" align="center">H&R Block, Inc.</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">BFC</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">Other</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">Consolidated</td> <td width="1%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="7%" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">17,560</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">111,634</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">129,194</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Cost of revenues</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">36,978</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">190,635</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="7%" align="right">227,613</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">6,444</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">101,568</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">108,012</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Total expenses</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">43,422</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">292,203</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">335,625</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Operating loss</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">(25,862 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(180,569</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(206,431 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(203,929</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">3,065 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"> (563</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">203,929</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">2,502 </td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Loss from continuing operations before tax benefit</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(203,929</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(22,797 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(181,132</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">203,929</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(203,929 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(80,916</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(15,063 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(65,853</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">80,916</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(80,916 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net loss from continuing operations</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(123,013</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(7,734 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(115,279</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">123,013</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(123,013 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(18,711</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(19,066 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">355</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">18,711</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(18,711 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(26,800</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(114,924</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td></tr></table></div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="3%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left">Three months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">17,320</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">102,270</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">119,590</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">35,959</td> <td align="left"> </td> <td align="right"> </td> <td align="right">196,016</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">231,975</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,379</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">65,604</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">74,983</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">45,338</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">261,620</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">306,958</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(28,018</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(159,350</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(187,368</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(183,516</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,890</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,038</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">183,516</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,852</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(183,516</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(23,128</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(160,388</td> <td align="left">)</td> <td align="right"> </td> <td align="right">183,516</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(183,516</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(72,072</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(7,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(64,418</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,072</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(72,072</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(111,444</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(15,474</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(95,970</td> <td align="left">)</td> <td align="right"> </td> <td align="right">111,444</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(111,444</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,395</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,330</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,725</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,395</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,395</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(109,049</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(16,804</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(92,245</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">109,049</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(109,049</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="3%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr><td colspan="16"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">39,333</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">190,484</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">229,817</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">74,640</td> <td align="left"> </td> <td align="right"> </td> <td align="right">365,557</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">440,197</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,339</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">186,326</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">200,665</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">88,979</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">551,883</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">640,862</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(49,646</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(361,399</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(411,045</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(404,530</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">6,346</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">169</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">404,530</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">6,515</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(404,530</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(43,300</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(361,230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">404,530</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(404,530</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(162,362</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(16,913</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(145,449</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">162,362</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(162,362</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(242,168</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(26,387</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(215,781</td> <td align="left">)</td> <td align="right"> </td> <td align="right">242,168</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(242,168</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(74,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(20,703</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(53,951</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">74,654</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(74,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(316,822</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(47,090</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(269,732</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">316,822</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(316,822</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="4%" align="center"> </td> <td width="6%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">38,320</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">181,105</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">219,425</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">74,987</td> <td align="left"> </td> <td align="right"> </td> <td align="right">382,663</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">457,650</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11,469</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">148,093</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">159,562</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">86,456</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">530,756</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">617,212</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(48,136</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(349,651</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">(397,787</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(390,667</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,272</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,848</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">390,667</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,120</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(390,667</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(42,864</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(347,803</td> <td align="left">)</td> <td align="right"> </td> <td align="right">390,667</td> <td align="right"> </td> <td align="right">(390,667</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(151,415</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(15,495</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(135,920</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">151,415</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(151,415</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(239,252</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(27,369</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(211,883</td> <td align="left">)</td> <td align="right"> </td> <td align="right">239,252</td> <td align="right"> </td> <td align="right">(239,252</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(478</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,334</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,856</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">478</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(478</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(239,730</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(31,703</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(208,027</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">239,730</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(239,730</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div> </div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="40%"> </td> <td width="16%"> </td> <td width="13%"> </td> <td width="4%"> </td> <td width="11%"> </td> <td width="5%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Credit Quality Indicators</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Purchased from SCC</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">All Other</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Total Portfolio</td></tr> <tr valign="bottom"><td align="left">Occupancy status:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Owner occupied</td> <td align="right">$</td> <td align="right">238,204</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">127,138</td> <td align="right">$</td> <td align="right">365,342</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Non-owner occupied</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">98,485</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">73,927</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">172,412</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr> <tr valign="bottom"><td align="left">Documentation level:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Full documentation</td> <td align="right">$</td> <td align="right">100,555</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">145,912</td> <td align="right">$</td> <td align="right">246,467</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Limited documentation</td> <td align="right"> </td> <td align="right">8,707</td> <td align="right"> </td> <td align="right">21,830</td> <td align="right"> </td> <td align="right">30,537</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Stated income</td> <td align="right"> </td> <td align="right">196,106</td> <td align="right"> </td> <td align="right">20,515</td> <td align="right"> </td> <td align="right">216,621</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">No documentation</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,321</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,808</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">44,129</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr> <tr valign="bottom"><td align="left">Internal risk rating:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">High</td> <td align="right">$</td> <td align="right">136,885</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">136,885</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Medium</td> <td align="right"> </td> <td align="right">199,804</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">199,804</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Low</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr></table> </div> <div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="6%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Portfolio Balance With Allowance</td> <td rowspan="2" colspan="2" align="center">Portfolio Balance With No Allowance</td> <td rowspan="2" colspan="2" align="center">Total Portfolio Balance</td> <td rowspan="2" colspan="2" align="center">Related Allowance</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2011:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">180,396</td> <td align="right">$</td> <td align="right">45,369</td> <td align="right">$</td> <td align="right">225,765</td> <td align="right">$</td> <td align="right">72,465</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">26,241</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,301</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">35,542</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,838</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">206,637</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">54,670</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">261,307</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">81,303</td></tr> <tr valign="bottom"><td align="left">As of April 30, 2011:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC (1)</td> <td align="right">$</td> <td align="right">180,387</td> <td align="right">$</td> <td align="right">51,674</td> <td align="right">$</td> <td align="right">232,061</td> <td align="right">$</td> <td align="right">71,733</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other (1)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">29,027</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,561</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">36,588</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,116</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">209,414</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">59,235</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">268,649</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">80,849</td></tr></table></div> <div align="left"> </div> <div align="left">(1) Classification of amounts as of April 30, 2011 has been restated to conform to the current period presentation.</div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="37%"> </td> <td width="16%"> </td> <td width="9%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="3%"> </td> <td width="8%"> </td> <td width="3%"> </td> <td width="7%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Three months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Six months ended October 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Interest income:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans, net</td> <td align="right">$</td> <td align="right">5,151</td> <td align="right">$</td> <td align="right">6,525</td> <td align="right">$</td> <td align="right">10,812</td> <td align="right">$</td> <td align="right">12,848</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,770</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,972</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,449</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,806</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">9,921</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">10,497</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">20,261</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">20,654</td></tr> <tr valign="bottom"><td align="left">Interest expense:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Borrowings</td> <td align="right">$</td> <td align="right">21,114</td> <td align="right">$</td> <td align="right">20,649</td> <td align="right">$</td> <td align="right">42,243</td> <td align="right">$</td> <td align="right">41,225</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Deposits</td> <td align="right"> </td> <td align="right">1,608</td> <td align="right"> </td> <td align="right">1,947</td> <td align="right"> </td> <td align="right">3,264</td> <td align="right"> </td> <td align="right">3,870</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">FHLB advances</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">151</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">396</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">302</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">792</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">22,873</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">22,992</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">45,809</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">45,887</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="10" align="center">(dollars in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">% of Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">% of Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Adjustable-rate loans</td> <td align="right">$</td> <td align="right">311,218</td> <td align="left"> </td> <td align="right">58</td> <td align="left">%</td> <td align="right">$</td> <td align="right">333,828</td> <td align="left"> </td> <td align="right">58</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Fixed-rate loans</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">226,536</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42</td> <td style="border-bottom: #000000 1px solid;" align="left">%</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">239,146</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42</td> <td style="border-bottom: #000000 1px solid;" align="left">%</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="right">537,754</td> <td align="left"> </td> <td align="right">100</td> <td align="left">%</td> <td align="right"> </td> <td align="right">572,974</td> <td align="left"> </td> <td align="right">100</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Unamortized deferred fees and costs</td> <td align="right"> </td> <td align="right">3,762</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="right">4,121</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: Allowance for loan losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(91,379</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(92,087</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">450,137</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">485,008</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="22%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">145,493</td> <td align="right">$</td> <td align="right">143,358</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">23,079</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,106</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">168,572</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">157,464</td></tr> <tr valign="bottom"><td align="left">TDRs:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right"> </td> <td align="right">3,055</td> <td align="right"> </td> <td align="right">2,849</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">893</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">329</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,948</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,178</td></tr> <tr valign="bottom"><td align="left">Total non-accrual loans</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">172,520</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">160,642</td></tr></table> </div> <div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="26%"> </td> <td width="13%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="74%" colspan="12" align="center">(in 000s)</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td rowspan="2" width="20%" colspan="2" align="center">Less than 60 Days Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">60 – 89 Days Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">90+ Days Past Due (1)</td> <td rowspan="2" width="11%" colspan="2" align="center">Total Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">Current</td> <td rowspan="2" width="10%" colspan="2" align="center">Total</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td></tr> <tr valign="bottom"><td width="26%" align="left">Purchased from SCC</td> <td width="13%" align="right">$</td> <td width="7%" align="right">27,296</td> <td width="2%" align="right">$</td> <td width="9%" align="right">6,614</td> <td width="2%" align="right">$</td> <td width="9%" align="right">139,761</td> <td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="9%" align="right">173,671</td> <td width="2%" align="right">$</td> <td width="9%" align="right">163,018</td> <td width="2%" align="right">$</td> <td width="8%" align="right">336,689</td></tr> <tr valign="bottom"><td width="26%" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">9,683</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">801</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">20,826</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">31,310</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">169,755</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">201,065</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">36,979</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">7,415</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">160,587</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" width="9%" align="right">204,981</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">332,773</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="8%" align="right">537,754</td></tr></table></div>   (1) No loans past due 90 days or more are still accruing interest. </div> </div> <div> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="12%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(dollars in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Outstanding Principal Balance</td> <td colspan="4" align="center">Loan Loss Allowance</td> <td rowspan="2" colspan="2" align="center">% 30 + Days Past Due</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">% of Principal</td></tr> <tr valign="bottom"><td align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">336,689</td> <td align="right">$</td> <td align="right">78,517</td> <td align="right">23.3</td> <td align="right">%</td> <td align="right">44.7</td> <td align="right">%</td></tr> <tr valign="bottom"><td align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,862</td> <td style="border-bottom: #000000 1px solid;" align="right">6.4</td> <td style="border-bottom: #000000 1px solid;" align="right">%</td> <td style="border-bottom: #000000 1px solid;" align="right">11.7</td> <td style="border-bottom: #000000 1px solid;" align="right">%</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,379</td> <td style="border-bottom: #000000 3px double;" align="right">17.0</td> <td style="border-bottom: #000000 3px double;" align="right">%</td> <td style="border-bottom: #000000 3px double;" align="right">32.4</td> <td style="border-bottom: #000000 3px double;" align="right">%</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="7%"> </td> <td width="8%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Portfolio Balance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Related Allowance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Portfolio Balance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Related Allowance</td></tr> <tr valign="bottom"><td align="center">Pooled (less than 60 days past due)</td> <td align="right">$</td> <td align="right">276,447</td> <td align="right">$</td> <td align="right">10,076</td> <td style="text-indent: 7px;" align="right">$</td> <td align="right">304,325</td> <td align="right">$</td> <td align="right">11,238</td></tr> <tr valign="bottom"><td align="left">Impaired:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Individually (TDRs)</td> <td align="right"> </td> <td align="right">89,351</td> <td align="right"> </td> <td align="right">8,576</td> <td align="right"> </td> <td align="right">106,328</td> <td align="right"> </td> <td align="right">11,056</td></tr> <tr valign="bottom"><td align="center">Individually (60 days or more past due)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">171,956</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,727</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">162,321</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">69,793</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,379</td> <td style="border-bottom: #000000 3px double; text-indent: 7px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">572,974</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">92,087</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="68%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Average impaired loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">226,880</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">35,525</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">262,405</td> <td align="right">$</td> <td align="right">320,371</td></tr> <tr valign="bottom"><td align="left">Interest income on impaired loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">3,076</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">238</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,314</td> <td align="right">$</td> <td align="right">3,353</td></tr> <tr valign="bottom"><td align="left">Interest income on impaired loans recognized on a cash basis on</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="center">non-accrual status:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">2,973</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">224</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,197</td> <td align="right">$</td> <td align="right">3,146</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="9%"> </td> <td width="11%"> </td> <td width="11%"> </td> <td width="13%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Credit Quality Indicator – Year of origination:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2011</td> <td align="left">$</td> <td align="right">24,829</td> <td style="text-indent: 8px;" align="left">$</td> <td align="center">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2010</td> <td align="left"> </td> <td align="right">4,950</td> <td align="left"> </td> <td align="right">85</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2009</td> <td align="left"> </td> <td align="right">4,930</td> <td align="left"> </td> <td align="right">2,122</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2008 and prior</td> <td align="left"> </td> <td align="right">2,072</td> <td align="left"> </td> <td align="right">4,986</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Revolving loans</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">10,897</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">—</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,678</td> <td style="border-bottom: #000000 3px double; text-indent: 8px;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">7,193</td></tr></table> </div> <div> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="9%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loans to franchisees</td> <td align="left">$</td> <td align="right">67,594</td> <td align="left"> </td> <td align="right">$</td> <td align="right">62,181</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Receivables for tax preparation and related fees</td> <td align="left"> </td> <td align="right">34,561</td> <td align="left"> </td> <td align="right"> </td> <td align="right">38,930</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Emerald Advance lines of credit</td> <td align="left"> </td> <td align="right">29,929</td> <td align="left"> </td> <td align="right"> </td> <td align="right">31,645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Royalties from franchisees</td> <td align="left"> </td> <td align="right">5,389</td> <td align="left"> </td> <td align="right"> </td> <td align="right">11,645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Tax client receivables related to RALs</td> <td align="left"> </td> <td align="right">1,933</td> <td align="left"> </td> <td align="right"> </td> <td align="right">2,412</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">37,068</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">131,302</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="right">176,474</td> <td align="left"> </td> <td align="right"> </td> <td align="right">278,115</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Allowance for doubtful accounts</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(48,412</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(47,943</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">128,062</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">230,172</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table> </div> <div> <div> Seasonality of Business 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.</div> </div> 159562000 11469000 148093000 74983000 9379000 65604000 200665000 14339000 186326000 108012000 6444000 101568000 8000000 3370000 14700000 11800000 1.00 1.00 3200000 4000000000 6300000000 2900000000

230172000

102011000

88000

128073000

128062000

105082000

33000

22947000

458911000

135858000

550982000

581069000

578655000

609439000

11233000

4359000

7826000

812666000

799270000

24997000

47943000

43543000

4400000

48412000

42482000

5930000

92087000

69793000

11056000

11238000

91379000

12862000

72727000

8576000

10076000

78517000

-86000

-88000

22354000

13546000

8300000

4200000

10500000

5400000

15600000

13000000

5289453000

1682240000

-2699605000

2713256000

3593562000

3976513000

1465114000

-2122179000

2132707000

2500871000

3048087000

1685404000

900328000

729153000

900328000

729153000

166305000

163282000

157970000

5312000

3023000

304442000

302434000

297157000

5277000

2008000

1058000

1179000

4219000

4467000

297157000

300664000

304442000

2008000

2029000

166917000

163836000

158177000

5659000

3081000

308339000

306310000

300664000

5646000

2029000

806000

748000

401000

347000

58000

4106000

4085000

3716000

369000

21000

-194000

-209000

163836000

306310000

<div> 5. Investments in Available-for-Sale Securities The amortized cost and fair value of securities classified as available-for-sale (AFS) held at October 31, 2011 and April 30, 2011 are summarized below: <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="17%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="18" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="9" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Gross Unrealized Gains</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Gross Unrealized Losses (1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Fair Value</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Amortized Cost</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Gross Unrealized Gains</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="3" align="center">Gross Unrealized Losses (1)</td> <td style="border-bottom: #000000 1px solid;" rowspan="3" colspan="2" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Short-term:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right">$</td> <td align="right">2,008</td> <td align="right">$</td> <td align="right">21</td> <td align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">2,029</td> <td align="right">$</td> <td align="right">3,023</td> <td align="right">$</td> <td align="right">58</td> <td align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">3,081</td></tr> <tr valign="bottom"><td align="left">Long-term:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="center">securities</td> <td align="right"> </td> <td align="right">297,157</td> <td align="right"> </td> <td align="right">3,716</td> <td align="right"> </td> <td align="right">(209</td> <td align="right">)</td> <td align="right"> </td> <td align="right">300,664</td> <td align="right"> </td> <td align="right">157,970</td> <td align="right"> </td> <td align="right">401</td> <td align="right"> </td> <td align="right">(194</td> <td align="right">)</td> <td align="right"> </td> <td align="right">158,177</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,277</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">369</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,646</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,312</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">347</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,659</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">302,434</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,085</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(209</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">306,310</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">163,282</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">748</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(194</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">163,836</td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">304,442</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">4,106</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(209</td> <td style="border-bottom: #000000 3px double;" align="right">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">166,305</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">806</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(194</td> <td style="border-bottom: #000000 3px double;" align="right">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">166,917</td></tr></table></div>   (1) At October 31, 2011 and April 30, 2011, we had no investments that had been in a continuous loss position for more than twelve months.</div>      We did not record any other-than-temporary impairments of AFS securities during the three or six months ended October 31, 2011. During the three and six months ended October 31, 2010, we recorded other-than-temporary impairments of AFS securities totaling $0.1 million and $0.3 million, respectively, as a result of an assessment that it was probable we would not collect all amounts due or an assessment that we would not be able to hold the investments until potential recovery of market value. <div>     Contractual maturities of AFS debt securities at October 31, 2011, occur at varying dates over the next 30 years, and are set forth in the table below.</div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="3%"> </td> <td width="34%"> </td> <td width="3%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost Basis</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left">Maturing in:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Less than one year</td> <td align="right">$</td> <td align="right">2,008</td> <td align="right">$</td> <td align="right">2,029</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Two to five years</td> <td align="right"> </td> <td align="right">4,219</td> <td align="right"> </td> <td align="right">4,467</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Six to ten years</td> <td align="right"> </td> <td align="right">1,058</td> <td align="right"> </td> <td align="right">1,179</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Beyond</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">297,157</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">300,664</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">304,442</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td></tr></table></div> </div>

<div> <div class="MetaData"> Basis of Presentation The condensed consolidated balance sheet as of October 31, 2011, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended October 31, 2011 and 2010, and the condensed consolidated statements of cash flows for the six months ended October 31, 2011 and 2010 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, 2011 and for all periods presented have been made. See below for discussion of our presentation of discontinued operations.      "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.      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 statements and notes thereto included in our April 30, 2011 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2011 or for the year then ended, are derived from our April 30, 2011 Annual Report to Shareholders on Form 10-K.</div> </div>

11000000

8700000

287500000

405000000

409193000

35019000

33715000

0.0800

0.080

43773000

42144000

0.100

0.925

0.971

1804045000

702021000

-111000

1102135000

959746000

810258000

-11000

149499000

1677844000

616238000

-50000

1061656000

572611000

380692000

-280000

192199000

-844299000

108237000

100000

-952636000

-1105233000

-235546000

-230000

-869457000

39990000

<div> 11. Commitments and Contingencies 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 align="left"> <table border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="3%"> </td> <td width="22%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance, beginning of period</td> <td align="right">$</td> <td align="right">140,603</td> <td align="left"> </td> <td align="right">$</td> <td align="right">141,542</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Amounts deferred for new guarantees issued</td> <td align="right"> </td> <td align="right">1,331</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,422</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Revenue recognized on previous deferrals</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(46,073</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(48,358</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance, end of period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">95,861</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">94,606</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div>        In addition to amounts accrued for our POM guarantee, we had accrued $11.8 million and $14.7 million at October 31, 2011 and April 30, 2011, respectively, related to our standard guarantee which is included with our standard tax preparation services. The following table summarizes certain of our other contractual obligations and commitments: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="12%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Franchise Equity Lines of Credit – undrawn</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">commitment</td> <td align="left">$</td> <td align="right">34,162</td> <td align="right">$</td> <td align="right">37,695</td></tr> <tr valign="bottom"><td align="left">Media advertising purchase obligation</td> <td align="left"> </td> <td align="right">9,690</td> <td align="right"> </td> <td align="right">9,498</td></tr></table></div>   <div> </div>      We have recorded liabilities totaling $8.7 million and $11.0 million as of October 31, 2011 and April 30, 2011, respectively, in conjunction with contingent payments related to recent acquisitions of our continuing operations, with the short-term amount recorded in accounts payable, accrued expenses and deposits and the long-term portion included in other noncurrent liabilities. Our estimate is based on current financial conditions. Should actual results differ materially from our assumptions, the potential payments will differ from the above estimate.      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, 2011. <div> Variable Interests We evaluated our financial interests in variable interest entities (VIEs) as of October 31, 2011 and determined that there have been no significant changes related to those financial interests.</div> Discontinued Operations – Mortgage Operations SCC, previously known as Option One Mortgage Corporation, ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. The sale of servicing assets did not include the sale of any mortgage loans.      In connection with the sale of loans and/or residential mortgage-backed securities (RMBS), SCC made certain representations and warranties, including, but not limited to, representations relating to matters such as ownership of the loan, validity of lien securing the loan, and the loan's compliance with SCC's underwriting criteria. Representations and warranties in whole loan sale transactions to institutional investors included a "knowledge qualifier" which limits SCC liability for borrower fraud to those instances where SCC had knowledge of the fraud at the time the loans were sold. In the event that there is a breach of a representation and warranty and such breach materially and adversely affects the value of a mortgage loan, SCC may be obligated to repurchase a loan or otherwise indemnify certain parties for losses incurred as a result of loan liquidation. Generally, these representations and warranties are not subject to a stated term, but would be subject to statutes of limitation applicable to the contractual provisions.      Claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination, borrower fraud and credit exceptions without sufficient compensating factors. Claims received since May 1, 2008 are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="16%"> </td> <td width="3%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="3%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in millions)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td colspan="2" align="center">Fiscal Year</td> <td colspan="8" align="center">Fiscal Year 2010</td> <td colspan="8" align="center">Fiscal Year 2011</td> <td colspan="6" align="center">Fiscal Year 2012</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2009</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q4</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" colspan="2" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Q4</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Q2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Total</td></tr> <tr valign="bottom"><td align="left">Loan Origination Year:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">2005</td> <td align="right">$</td> <td align="right">62</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">15</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">6</td> <td align="right">$</td> <td align="right">1</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">1</td> <td align="right">$</td> <td style="text-indent: 1px;" align="right">—</td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">85</td></tr> <tr valign="bottom"><td align="left">2006</td> <td align="right"> </td> <td align="right">217</td> <td align="right"> </td> <td align="right">2</td> <td align="right"> </td> <td align="right">57</td> <td align="right"> </td> <td align="right">4</td> <td align="right"> </td> <td align="right">45</td> <td align="right"> </td> <td align="right">100</td> <td align="right"> </td> <td align="right">15</td> <td align="right"> </td> <td align="right">29</td> <td align="right"> </td> <td align="right">50</td> <td align="right"> </td> <td align="right">29</td> <td align="right"> </td> <td align="right">130</td> <td align="right"> </td> <td align="right">678</td></tr> <tr valign="bottom"><td align="left">2007</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">153</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">353</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">546</td></tr> <tr valign="bottom"><td align="left">Total</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">432</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">6</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">83</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">11</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">45</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">109</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">21</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">33</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">55</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">31</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">483</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,309</td></tr></table></div>   Note: The table above excludes amounts related to an indemnity agreement dated April 2008, which is discussed below.      SCC received $483 million in claims in the second quarter of fiscal year 2012, the majority of which were asserted by a private-label securitization trustee on behalf of bondholders ($385 million) and by a monoline insurer ($84 million). The nature of the claims and the loans to which they relate, including loan vintage, loan performance characteristics, and alleged breaches of representations and warranties, is consistent with claims received in prior periods.      For claims received, reviewed and determined to be valid or otherwise settled, SCC has complied with its obligations by either repurchasing the mortgage loans or related collateral, or providing for the reimbursement of losses in connection with liquidated collateral, or reaching other settlements. SCC has denied approximately 85% of all claims reviewed, excluding resolution reached under other settlements. Counterparties could reassert claims that SCC has denied. Of claims determined to be valid, approximately 22% resulted in loan repurchases and 78% resulted in indemnification or settlement payments. Losses on loan repurchase, indemnification and settlement payments totaled approximately $120 million for the period May 1, 2008 through October 31, 2011. Loss severity rates on repurchases and indemnification have approximated 58% and SCC has not observed any material trends related to average losses. Repurchased loans are considered held for sale and are included in prepaid expenses and other current assets on the condensed consolidated balance sheets. The net balance of all mortgage loans held for sale by SCC was $11.8 million at October 31, 2011.      SCC generally has 60 to 120 days to respond to representation and warranty claims and performs a loan-by-loan review of all repurchase claims during this time. Claims totaling approximately $537 million remained subject to review as of October 31, 2011. Approximately $46 million of claims under review represent a reassertion of previously denied claims.      All claims asserted against SCC since May 1, 2008 relate to loans originated during calendar years 2005 through 2007, of which, approximately 90% relate to loans originated in calendar years 2006 and 2007. During calendar year 2005 through 2007, SCC originated approximately $84 billion in loans, of which less than 1% were sold to government sponsored entities. SCC is not subject to loss on loans that have been paid in full, repurchased, or were sold without recourse.      The majority of claims asserted since May 1, 2008, which have been determined by SCC to represent a valid breach of its representations and warranties, relate to loans that became delinquent within the first two years following the origination of the mortgage loan. SCC believes the longer a loan performs prior to an event of default, the less likely the default will be related to a breach of a representation and warranty. Loans originated in 2005, 2006 and 2007 which defaulted in the first two years totaled $4.0 billion, $6.3 billion and $2.9 billion, respectively, at October 31, 2011. <div>      SCC estimates losses relating to representation and warranty claims by estimating loan repurchase and indemnification obligations on both known claims and projections of future claims. Projections of future claims are based on an analysis that includes a review of valid claims and loss severities by counterparty, the terms and provisions of related agreements, the historical experience under repurchase and indemnification obligations related to breaches of representations and warranties and third-party activity, which includes inquiries from various third-parties, loan file access by third parties, and repurchase demands. SCC's methodology for calculating this liability also includes an assessment of the probability that individual counterparties (private label securitization trustees on behalf of bondholders, monoline insurers and whole-loan purchasers) will assert future claims.      SCC has recorded a liability for estimated contingent losses related to representation and warranty claims as of October 31, 2011, of $142.9 million, which represents SCC's best estimate of the probable loss that may occur. During the quarter, SCC observed increased third-party activity. SCC recorded additional loss provisions as a result of this increased activity. During the prior year, payments totaling $49.8 million were made under an indemnity agreement dated April 2008 with a specific counterparty in exchange for a full and complete release of such party's ability to assert representation and warranty claims. The indemnity agreement was given as part of obtaining the counterparty's consent to SCC's sale of its mortgage servicing business in 2008. We have no remaining payment obligations under this indemnity agreement.</div>      The recorded liability represents SCC's estimate of losses from future claims where assertion of a claim and a related contingent loss are both deemed probable. Because the rate at which future claims may be deemed valid and actual loss severity rates may differ significantly from historical experience, SCC is not able to estimate reasonably possible loss outcomes in excess of its current accrual. A 1% increase in both assumed validity rates and loss severities would result in losses beyond SCC's accrual of approximately $28 million. This sensitivity is hypothetical and is intended to provide an indication of the impact of a change in key assumptions on the representations and warranties liability. In reality, changes in one assumption may result in changes in other assumptions, which may or may not counteract the sensitivity.      While SCC uses the best information available to it in estimating its liability, assessing the likelihood that claims will be asserted in the future and estimating probable losses are inherently difficult to estimate and require considerable management judgment. To the extent that the volume of asserted claims, the level of valid claims, the counterparties asserting claims, the nature of claims, or the value of residential home prices differ in the future from current estimates, future losses may be greater than the current estimates and those differences may be significant.      A rollforward of our liability for losses on repurchases for the six months ended October 31, 2011 and 2010 is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="60%"> </td> <td width="3%"> </td> <td width="14%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance at beginning of period:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to repurchase and indemnifications</td> <td align="right">$</td> <td align="right">126,260</td> <td align="left"> </td> <td align="right">$</td> <td align="right">138,415</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">49,785</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">126,260</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">188,200</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Changes:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Provision for estimated losses</td> <td align="right"> </td> <td align="right">20,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Losses on repurchase and indemnifications</td> <td align="right"> </td> <td align="right">(3,337</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(3,344</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments under indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(134</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr><td colspan="7"> </td></tr> <tr valign="bottom"><td align="left">Balance at end of period:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to repurchase and indemnifications</td> <td align="right"> </td> <td align="right">142,923</td> <td align="left"> </td> <td align="right"> </td> <td align="right">135,071</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Amount related to indemnity agreement dated April 2008</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">49,651</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">142,923</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">184,722</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div> </div>

<div> <table border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="12%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Franchise Equity Lines of Credit – undrawn</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">commitment</td> <td align="left">$</td> <td align="right">34,162</td> <td align="right">$</td> <td align="right">37,695</td></tr> <tr valign="bottom"><td align="left">Media advertising purchase obligation</td> <td align="left"> </td> <td align="right">9,690</td> <td align="right"> </td> <td align="right">9,498</td></tr></table> </div>

0.30

0.15

0.30

0.15

0.01

800000000

412440599

399397099

4124000

3994000

130000

-238993000

-103986000

-323696000

-150057000

0.63

<div> 16. Condensed Consolidating Financial Statements Block Financial LLC (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 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 class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="55%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left">Condensed Consolidating Statements of Operations</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Three months ended</td> <td width="1%" align="center"> </td> <td width="7%" align="center">H&R Block, Inc.</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">BFC</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">Other</td> <td width="1%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center"> </td> <td width="1%" align="center"> </td> <td width="7%" align="center">Consolidated</td> <td width="1%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="55%" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" width="7%" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">17,560</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">111,634</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">$</td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">129,194</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Cost of revenues</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">36,978</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">190,635</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="7%" align="right">227,613</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">6,444</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">101,568</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">108,012</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" width="55%" align="left">Total expenses</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">43,422</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">292,203</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">—</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">335,625</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Operating loss</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="7%" align="right">(25,862 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(180,569</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">—</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(206,431 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(203,929</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">3,065 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right"> (563</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">203,929</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">2,502 </td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="55%" align="left">Loss from continuing operations before tax benefit</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(203,929</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(22,797 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(181,132</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">203,929</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(203,929 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(80,916</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(15,063 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(65,853</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">80,916</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(80,916 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net loss from continuing operations</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(123,013</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(7,734 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(115,279</td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td width="7%" align="right">123,013</td> <td width="1%" align="right"> </td> <td width="7%" align="right">(123,013 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(18,711</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(19,066 </td> <td width="1%" align="right">)</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">355</td> <td width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">18,711</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">(18,711 </td> <td width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="55%" align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(26,800</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(114,924</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">(141,724</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">)</td></tr></table></div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="3%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left">Three months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">17,320</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">102,270</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">119,590</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">35,959</td> <td align="left"> </td> <td align="right"> </td> <td align="right">196,016</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">231,975</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,379</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">65,604</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">74,983</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">45,338</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">261,620</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">306,958</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(28,018</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(159,350</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(187,368</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(183,516</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,890</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,038</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">183,516</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,852</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(183,516</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(23,128</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(160,388</td> <td align="left">)</td> <td align="right"> </td> <td align="right">183,516</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(183,516</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(72,072</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(7,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(64,418</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,072</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(72,072</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(111,444</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(15,474</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(95,970</td> <td align="left">)</td> <td align="right"> </td> <td align="right">111,444</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(111,444</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,395</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,330</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,725</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,395</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,395</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(109,049</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(16,804</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(92,245</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">109,049</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(109,049</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="3%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr><td colspan="16"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">39,333</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">190,484</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">229,817</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">74,640</td> <td align="left"> </td> <td align="right"> </td> <td align="right">365,557</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">440,197</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,339</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">186,326</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">200,665</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">88,979</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">551,883</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">640,862</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(49,646</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(361,399</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(411,045</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(404,530</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">6,346</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">169</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">404,530</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">6,515</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(404,530</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(43,300</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(361,230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">404,530</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(404,530</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(162,362</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(16,913</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(145,449</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">162,362</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(162,362</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(242,168</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(26,387</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(215,781</td> <td align="left">)</td> <td align="right"> </td> <td align="right">242,168</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(242,168</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(74,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(20,703</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(53,951</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">74,654</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(74,654</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(316,822</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(47,090</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(269,732</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">316,822</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(316,822</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="4%" align="center"> </td> <td width="6%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Total revenues</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">38,320</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">181,105</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">219,425</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cost of revenues</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">74,987</td> <td align="left"> </td> <td align="right"> </td> <td align="right">382,663</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">457,650</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Selling, general and administrative</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11,469</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">148,093</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">159,562</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="center">Total expenses</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">86,456</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">530,756</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">617,212</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Operating loss</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(48,136</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(349,651</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">(397,787</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Other income (expense), net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(390,667</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,272</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,848</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">390,667</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,120</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss from continuing operations before tax benefit</td> <td align="left"> </td> <td align="right">(390,667</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(42,864</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(347,803</td> <td align="left">)</td> <td align="right"> </td> <td align="right">390,667</td> <td align="right"> </td> <td align="right">(390,667</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Income tax benefit</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(151,415</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(15,495</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(135,920</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">151,415</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(151,415</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations</td> <td align="left"> </td> <td align="right">(239,252</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(27,369</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(211,883</td> <td align="left">)</td> <td align="right"> </td> <td align="right">239,252</td> <td align="right"> </td> <td align="right">(239,252</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(478</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,334</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,856</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">478</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(478</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(239,730</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(31,703</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(208,027</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">239,730</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(239,730</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div> </div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="4%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Condensed Consolidating Balance Sheets</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td style="text-indent: 4px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents</td> <td align="left">$</td> <td style="text-indent: 5px;" align="left">—</td> <td align="right">$</td> <td align="right">380,692</td> <td align="left"> </td> <td align="right">$</td> <td align="right">192,199</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(280</td> <td align="left">)</td> <td align="right">$</td> <td align="right">572,611</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents – restricted</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">922</td> <td align="left"> </td> <td align="right"> </td> <td align="right">36,602</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,524</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left"> </td> <td style="text-indent: 6px;" align="left">33</td> <td align="right"> </td> <td align="right">105,082</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,947</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">128,062</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">450,137</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">450,137</td></tr> <tr valign="bottom"><td align="left">Intangible assets and goodwill, net</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">700,509</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">700,509</td></tr> <tr valign="bottom"><td align="left">Investments in subsidiaries</td> <td align="left"> </td> <td align="left">2,121,899</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">516</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(2,121,899</td> <td align="left">)</td> <td align="right"> </td> <td align="right">516</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">729,153</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">729,153</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="left">10,775</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">528,281</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">818,945</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,358,001</td></tr> <tr valign="bottom"><td align="right">Total assets</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,132,707</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,465,114</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,500,871</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,122,179</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,976,513</td></tr> <tr valign="bottom"><td align="left">Customer deposits</td> <td align="left">$</td> <td style="text-indent: 5px;" align="left">—</td> <td align="right">$</td> <td align="right">723,598</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(280</td> <td align="left">)</td> <td align="right">$</td> <td align="right">723,318</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">999,145</td> <td align="left"> </td> <td align="right"> </td> <td align="right">40,786</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,039,931</td></tr> <tr valign="bottom"><td align="left">Commercial paper borrowings</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">39,990</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">39,990</td></tr> <tr valign="bottom"><td align="left">FHLB borrowings</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">25,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">25,000</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">199,030</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">199,030</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td align="left"> </td> <td style="text-indent: 5px;" align="left">191</td> <td align="right"> </td> <td align="right">(127,614</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,213,845</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,086,422</td></tr> <tr valign="bottom"><td align="left">Net intercompany advances</td> <td align="left"> </td> <td align="left">1,269,694</td> <td align="right"> </td> <td align="right">24,060</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,293,754</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td align="left">Stockholders' equity</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left">862,822</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(219,065</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,340,964</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,121,899</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">862,822</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total liabilities and stockholders' equity</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,132,707</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,465,114</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,500,871</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,122,179</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,976,513</td></tr></table></div>   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="32%"> </td> <td width="4%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="8%" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td style="text-indent: 4px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">April 30, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents</td> <td align="left">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">616,238</td> <td align="left"> </td> <td align="right">$</td> <td align="right">1,061,656</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(50</td> <td align="left">)</td> <td align="right">$</td> <td align="right">1,677,844</td></tr> <tr valign="bottom"><td align="left">Cash & cash equivalents – restricted</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">9,522</td> <td align="left"> </td> <td align="right"> </td> <td align="right">38,861</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">48,383</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left"> </td> <td align="right">88</td> <td align="right"> </td> <td align="right">102,011</td> <td align="left"> </td> <td align="right"> </td> <td align="right">128,073</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">230,172</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment, net</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">485,008</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right"> —</td> <td align="left"> </td> <td align="right"> </td> <td align="right">485,008</td></tr> <tr valign="bottom"><td align="left">Intangible assets and goodwill, net</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">709,491</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">709,491</td></tr> <tr valign="bottom"><td align="left">Investments in subsidiaries</td> <td align="left"> </td> <td align="right">2,699,555</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">32</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(2,699,555</td> <td align="left">)</td> <td align="right"> </td> <td align="right">32</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">900,328</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">900,328</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">13,613</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">469,461</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">755,121</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,238,195</td></tr> <tr valign="bottom"><td align="right">Total assets</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,713,256</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,682,240</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,593,562</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,699,605</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,289,453</td></tr> <tr valign="bottom"><td align="left">Customer deposits</td> <td align="left">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">852,270</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">(50</td> <td align="left">)</td> <td align="right">$</td> <td align="right">852,220</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">998,965</td> <td align="left"> </td> <td align="right"> </td> <td align="right">41,119</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,040,084</td></tr> <tr valign="bottom"><td align="left">FHLB borrowings</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">25,000</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">25,000</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td align="left"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">241,562</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">241,562</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td align="left"> </td> <td align="right">178</td> <td align="right"> </td> <td align="right">(26,769</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,707,604</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,681,013</td></tr> <tr valign="bottom"><td align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">1,263,504</td> <td align="right"> </td> <td align="right">24,173</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,287,677</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td align="left">Stockholders' equity</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,449,574</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(191,399</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,890,954</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,699,555</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,449,574</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total liabilities and stockholders' equity</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,713,256</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">1,682,240</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,593,562</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(2,699,605</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,289,453</td></tr></table></div> </div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="28%"> </td> <td width="2%"> </td> <td width="11%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Condensed Consolidating Statements of Cash Flows</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="right"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 3px;" align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) operating</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">activities:</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">5,821</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(40,451</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(547,998</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(582,628</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from investing:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchases of available-for-sale</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">securities</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(155,159</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(155,159</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans originated for</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">investment, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,978</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">22,978</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchase property & equipment</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(94</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(40,416</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(40,510</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments made for business</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">acquisitions, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(8,164</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(8,164</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from sale of businesses, net</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,036</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">37,036</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans made to franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(27,682</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(27,682</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments from franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">7,447</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">7,447</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="right"> </td> <td align="right">266,274</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(266,274</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">28,300</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,634</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">36,934</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) investing</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">activities</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">266,274</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(124,210</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,910</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(266,274</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(127,120</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from financing:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments of commercial paper</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(37,989</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(37,989</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from commercial paper</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,979</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,979</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer banking deposits</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(129,055</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(129,285</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Dividends paid</td> <td align="right"> </td> <td align="right">(91,446</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(91,446</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repurchase of common stock</td> <td align="right"> </td> <td align="right">(180,222</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(180,222</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from exercise of stock</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">options, net</td> <td align="right"> </td> <td align="right">(430</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(430</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">17,228</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(283,502</td> <td align="left">)</td> <td align="right"> </td> <td align="right">266,274</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">952</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,012</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(28,057</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net cash used in financing activities</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(272,095</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(70,885</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(312,514</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">266,044</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(389,450</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effects of exchange rates on cash</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,035</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,035</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net decrease in cash</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(235,546</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(869,457</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(230</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(1,105,233</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash – beginning of period</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">616,238</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,061,656</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(50</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,677,844</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cash – end of period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">380,692</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">192,199</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(280</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">572,611</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="4%" align="center"> </td> <td width="8%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="10%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="7%" align="center"> </td> <td width="2%" align="center"> </td> <td width="2%" align="center"> </td> <td width="9%" align="center"> </td> <td width="2%" align="center"> </td></tr> <tr valign="bottom"><td align="left">Six months ended</td> <td align="center"> </td> <td align="center">H&R Block, Inc.</td> <td align="center"> </td> <td align="center"> </td> <td align="center">BFC</td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 3px;" align="center">Other</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Consolidated</td> <td align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">October 31, 2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Guarantor)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(Issuer)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Subsidiaries</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Elims</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">H&R Block</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Net cash used in operating activities:</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(46,961</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(15,379</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(485,661</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left">$</td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">$</td> <td style="border-bottom: #000000 1px solid;" align="right">(548,001</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from investing:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans originated for</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">investment, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">30,829</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">30,829</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchase property & equipment</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(35,005</td> <td align="left">)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(35,005</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Payments made for business</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">acquisitions, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(43,310</td> <td align="left">)</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(43,310</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from sale of businesses, net</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">58,834</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">58,834</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans made to franchisees</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(64,851</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(64,851</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments from franchisees</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">8,673</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">8,673</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">423,572</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">(423,572</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">15,941</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,254</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">28,195</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) investing</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">activities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">423,572</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(9,408</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(7,227</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(423,572</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(16,635</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash flows from financing:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repayments of commercial paper</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(75,000</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(75,000</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from commercial paper</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">114,490</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">114,490</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer banking deposits</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">76,923</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">100</td> <td align="left"> </td> <td align="right"> </td> <td align="right">77,023</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Dividends paid</td> <td align="left"> </td> <td align="right">(95,068</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(95,068</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Repurchase of common stock</td> <td align="left"> </td> <td align="right">(283,470</td> <td align="left">)</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(283,470</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Proceeds from exercise of stock</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 10px;" align="left">options, net</td> <td align="left"> </td> <td align="right">1,493</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,493</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Net intercompany advances</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">15,851</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(439,423</td> <td align="left">)</td> <td align="left"> </td> <td align="right">423,572</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other, net</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">434</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">760</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(22,546</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(21,352</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net cash provided by (used in) financing</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">activities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(376,611</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">133,024</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(461,969</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">423,672</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(281,884</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Effects of exchange rates on cash</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,221</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">2,221</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net increase (decrease) in cash</td> <td align="left"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">108,237</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(952,636</td> <td align="left">)</td> <td align="left"> </td> <td align="right">100</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(844,299</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Cash – beginning of period</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">702,021</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,102,135</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(111</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,804,045</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Cash – end of period</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">810,258</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">149,499</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(11</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">959,746</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div></div> </div>

457650000

74987000

382663000

231975000

35959000

196016000

440197000

74640000

365557000

227613000

36978000

190635000

617212000

86456000

530756000

306958000

45338000

261620000

640862000

88979000

551883000

335625000

43422000

292203000

852220000

852270000

-50000

723318000

723598000

-280000

1040084000

998965000

41119000

1039931000

999145000

40786000

557000

30735000

141542000

94606000

140603000

95861000

1422000

1331000

<div> <table border="0" cellspacing="0"> <tr><td width="52%"> </td> <td width="3%"> </td> <td width="22%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance, beginning of period</td> <td align="right">$</td> <td align="right">140,603</td> <td align="left"> </td> <td align="right">$</td> <td align="right">141,542</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Amounts deferred for new guarantees issued</td> <td align="right"> </td> <td align="right">1,331</td> <td align="left"> </td> <td align="right"> </td> <td align="right">1,422</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Revenue recognized on previous deferrals</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(46,073</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(48,358</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance, end of period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">95,861</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">94,606</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table> </div>

-48358000

-46073000

733887000

36881000

18468000

33124000

16652000

6600000

2100000

26600000

24100000

327000

5708000

-18472000

-22949000

<div> <div class="MetaData"> Discontinued Operations – Recent Events In August 2011, our Board of Directors approved a non-binding letter of intent to sell substantially all assets of RSM McGladrey, Inc. (RSM) to McGladrey and Pullen LLP (M&P) and, on November 30, 2011, the sale of RSM was completed. At closing we received cash proceeds totaling $475.0 million, a short-term receivable of $34.0 million and a note in the principal amount of $54.0 million. The final purchase price is subject to further post-closing adjustments. M&P also assumed substantially all liabilities of RSM, including contingent payments and lease obligations. We have indemnified M&P for certain litigation matters and certain obligations related primarily to previously sold RSM subsidiaries. In the first quarter we recorded an $85.4 million impairment of goodwill in connection with the sale of RSM. The net loss ultimately resulting from the divestiture of RSM will be based on post-closing adjustments to the purchase price, as well as the additional realization of tax benefits related to the sale. In the first quarter, we also announced we were evaluating strategic alternatives for RSM EquiCo, Inc. (EquiCo), and recorded a $14.3 million impairment of goodwill related to this business. <div> <div> As of October 31, 2011, the results of operations of these businesses are presented as discontinued operations and the assets and liabilities of the businesses being sold are presented as held-for-sale in the condensed consolidated financial statements. All periods presented in our condensed consolidated balance sheets and statements of operations have been reclassified to reflect our discontinued operations. See additional information in note 12.</div></div></div> </div>

262118000

215817000

67088000

67947000

475000000

81492000

50209000

412094000

299896000

327000

5708000

-118169000

-22949000

92579000

87324000

-478000

2395000

-74654000

-18711000

13661000

14926000

31585000

31024000

52022000

49833000

378109000

203088000

365928000

199042000

-0.77

-0.36

-1.05

-0.47

2221000

-6035000

208748000

46588000

19800000

32000

-2699555000

2699555000

32000

516000

-2121899000

2121899000

516000

<div> <table border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="17%"> </td> <td width="13%"> </td> <td width="4%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Estimated</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment</td> <td align="right">$</td> <td align="right">450,137</td> <td align="right">$</td> <td align="right">271,634</td></tr> <tr valign="bottom"><td align="left">Deposits</td> <td align="right"> </td> <td align="right">733,887</td> <td align="right"> </td> <td align="right">735,264</td></tr> <tr valign="bottom"><td align="left">Long-term borrowings</td> <td align="right"> </td> <td align="right">1,039,931</td> <td align="right"> </td> <td align="right">1,076,256</td></tr> <tr valign="bottom"><td align="left">FHLB advances</td> <td align="right"> </td> <td align="right">25,000</td> <td align="right"> </td> <td align="right">24,997</td></tr></table> </div>

<div> <div align="left"> <div> 6. Assets and Liabilities Measured at Fair Value We use the following valuation methodologies for assets and liabilities measured at fair value and the general classification of these instruments pursuant to the fair value hierarchy. <ul> <li>Available-for-sale securities – Available-for-sale securities are carried at fair value on a recurring basis. When available, fair value is based on quoted prices in an active market for identical securities and as such, would be classified as Level 1. If quoted market prices are not available, we use a third-party pricing service to determine fair value and classify the securities as Level 2. The service's pricing model is based on market data and utilizes available trade, bid and other market information for similar securities. Available-for-sale securities that we classify as Level 2 include certain agency and non-agency mortgage-backed securities, U.S. states and political subdivisions debt securities and other debt and equity securities. </li> <li>Real estate owned – REO includes foreclosed properties securing mortgage loans. Foreclosed assets are adjusted to fair value less costs to sell upon transfer of the loans to REO. Fair value is generally based on independent market prices or appraised values of the collateral. Subsequent holding period losses and losses arising from the sale of REO are expensed as incurred. Because our REO is valued based on significant inputs that are unobservable in the market and our own estimates of assumptions that we believe market participants would use in pricing the asset, these assets are classified as Level 3. </li> <li>Impaired mortgage loans held for investment – The fair value of impaired mortgage loans held for investment is generally based on the net present value of discounted cash flows for TDR loans or the appraised value of the underlying collateral for all other loans. These loans are classified as Level 3. </li></ul>      The following table presents for each hierarchy level the assets that were remeasured at fair value on both a recurring and non-recurring basis during the six months ended October 31, 2011 and 2010 and the gains (losses) on those remeasurements: <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(dollars in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Gain (loss)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed securities</td> <td align="right">$</td> <td align="right">300,664</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">300,664</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">3,507</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right"> </td> <td align="right">7,675</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">7,675</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">390</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Non-recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">REO</td> <td align="right"> </td> <td align="right">16,918</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">16,918</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(485</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impaired mortgage loans held for investment</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">114,394</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">114,394</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,672</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">439,651</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">131,312</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(3,260</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr> <tr valign="bottom"><td align="left">As a percentage of total assets</td> <td align="right"> </td> <td align="right">11.1</td> <td align="left">%</td> <td align="right"> </td> <td align="right">— %</td> <td align="right"> </td> <td align="right">7.8</td> <td align="left">%</td> <td align="right"> </td> <td align="right">3.3</td> <td align="left">%</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr><td colspan="15"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2010: (1)</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed securities</td> <td align="right">$</td> <td align="right">20,945</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">20,945</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">38</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right"> </td> <td align="right">8,937</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">8,937</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">550</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Trust preferred security</td> <td align="right"> </td> <td align="right">21</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">21</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,575</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Non-recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">REO</td> <td align="right"> </td> <td align="right">27,112</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">27,112</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,275</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impaired mortgage loans held for investment</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">103,079</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">103,079</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(5,955</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">160,094</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">29,903</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">130,191</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(8,217</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr> <tr valign="bottom"><td align="left">As a percentage of total assets</td> <td align="right"> </td> <td align="right">3.7</td> <td align="left">%</td> <td align="right"> </td> <td align="right">— %</td> <td align="right"> </td> <td align="right">0.7</td> <td align="left">%</td> <td align="right"> </td> <td align="right">3.0</td> <td align="left">%</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr></table></div>   (1) Prior year amounts have been restated to include only impaired mortgage loans and REO that were remeasured during the quarter and the gain (loss) on those remeasurements.</div>      There were no changes to the unobservable inputs used in determining the fair values of our level 2 and level 3 financial assets. The following methods were used to determine the fair values of our other financial instruments: <ul> <li>Cash equivalents, accounts receivable, investment in Federal Home Loan Bank (FHLB) stock, accounts payable, accrued liabilities, commercial paper borrowings and the current portion of long-term debt – The carrying values reported in the balance sheet for these items approximate fair market value due to the relative short-term nature of the respective instruments. </li> <li>Mortgage loans held for investment – The fair value of mortgage loans held for investment is generally determined using market pricing sources based on origination channel and performance characteristics. </li> <li>Deposits – The estimated fair value of demand deposits is the amount payable on demand at the reporting date. The estimated fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities. </li> <li>Long-term borrowings and FHLB borrowings – The fair value of borrowings is based on rates currently available to us for obligations with similar terms and maturities, including current market yields on our Senior Notes. </li></ul> The carrying amounts and estimated fair values of our financial instruments at October 31, 2011 are as follows: <table border="0" cellspacing="0"> <tr><td width="53%"> </td> <td width="17%"> </td> <td width="13%"> </td> <td width="4%"> </td> <td width="10%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Estimated</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left">Mortgage loans held for investment</td> <td align="right">$</td> <td align="right">450,137</td> <td align="right">$</td> <td align="right">271,634</td></tr> <tr valign="bottom"><td align="left">Deposits</td> <td align="right"> </td> <td align="right">733,887</td> <td align="right"> </td> <td align="right">735,264</td></tr> <tr valign="bottom"><td align="left">Long-term borrowings</td> <td align="right"> </td> <td align="right">1,039,931</td> <td align="right"> </td> <td align="right">1,076,256</td></tr> <tr valign="bottom"><td align="left">FHLB advances</td> <td align="right"> </td> <td align="right">25,000</td> <td align="right"> </td> <td align="right">24,997</td></tr></table></div></div> </div>

<div> <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(dollars in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 1</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 2</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Level 3</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Gain (loss)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed securities</td> <td align="right">$</td> <td align="right">300,664</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">300,664</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">3,507</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right"> </td> <td align="right">7,675</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">7,675</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">390</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Non-recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">REO</td> <td align="right"> </td> <td align="right">16,918</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">16,918</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(485</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impaired mortgage loans held for investment</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">114,394</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">114,394</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(6,672</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">439,651</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">131,312</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(3,260</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr> <tr valign="bottom"><td align="left">As a percentage of total assets</td> <td align="right"> </td> <td align="right">11.1</td> <td align="left">%</td> <td align="right"> </td> <td align="right">— %</td> <td align="right"> </td> <td align="right">7.8</td> <td align="left">%</td> <td align="right"> </td> <td align="right">3.3</td> <td align="left">%</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr><td colspan="15"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2010: (1)</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage-backed securities</td> <td align="right">$</td> <td align="right">20,945</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">20,945</td> <td align="left"> </td> <td align="right">$</td> <td align="right">—</td> <td align="left"> </td> <td align="right">$</td> <td align="right">38</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Municipal bonds</td> <td align="right"> </td> <td align="right">8,937</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">8,937</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">550</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Trust preferred security</td> <td align="right"> </td> <td align="right">21</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">21</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,575</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Non-recurring:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">REO</td> <td align="right"> </td> <td align="right">27,112</td> <td align="left"> </td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="left"> </td> <td align="right"> </td> <td align="right">27,112</td> <td align="left"> </td> <td align="right"> </td> <td align="right">(1,275</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impaired mortgage loans held for investment</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">103,079</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">103,079</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(5,955</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">160,094</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">29,903</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">130,191</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(8,217</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr> <tr valign="bottom"><td align="left">As a percentage of total assets</td> <td align="right"> </td> <td align="right">3.7</td> <td align="left">%</td> <td align="right"> </td> <td align="right">— %</td> <td align="right"> </td> <td align="right">0.7</td> <td align="left">%</td> <td align="right"> </td> <td align="right">3.0</td> <td align="left">%</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr></table></div>   (1) Prior year amounts have been restated to include only impaired mortgage loans and REO that were remeasured during the quarter and the gain (loss) on those remeasurements.</div> </div>

25000000

160094000

29903000

130191000

439651000

308339000

131312000

3178000

329000

2849000

3948000

893000

3055000

160642000

172520000

85294000

8505000

9961000

600000

41076000

3093000

22059000

92265000

9635000

12022000

700000

43730000

3733000

22445000

360636000

14700000

214330000

1325000

87624000

19201000

23456000

354371000

14700000

214330000

1325000

81428000

19201000

23387000

275342000

6195000

204369000

725000

46548000

16108000

1397000

262106000

5065000

202308000

625000

37698000

15468000

942000

17400000

10000000

15800000

10600000

14000000

-1575000

38000

550000

3507000

390000

120000000

434151000

438403000

9329000

<div> 7. Goodwill and Intangible Assets Changes in the carrying amount of the goodwill of our continuing operations, which is included in our Tax Services segment, for the six months ended October 31, 2011 consist of the following: <table border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="4%"> </td> <td width="26%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Balance at April 30, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Goodwill</td> <td align="right">$</td> <td align="right">459,039</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Accumulated impairment losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(24,888</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">434,151</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Changes:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Acquisitions</td> <td align="right"> </td> <td align="right">9,329</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Disposals and foreign currency changes</td> <td align="right"> </td> <td align="right">(820)</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impairments</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,257</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance at October 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Goodwill</td> <td align="right"> </td> <td align="right">467,548</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Accumulated impairment losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,145</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">438,403</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table>      In the current period, we decided to discontinue service under our ExpressTax brand. As a result, we recorded an impairment of the reporting unit's goodwill, which totaled $4.3 million.      We test goodwill and other indefinite-life intangible assets for impairment annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value. Intangible assets of our continuing operations consist of the following: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="14" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Accumulated</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Accumulated</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Net</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">Net</td></tr> <tr valign="bottom"><td align="left">Tax Services:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer relationships</td> <td align="right">$</td> <td align="right">81,428</td> <td align="right">$</td> <td align="right">(43,730</td> <td align="left">)</td> <td align="right">$</td> <td align="right">37,698</td> <td align="right">$</td> <td align="right">87,624</td> <td align="right">$</td> <td align="right">(41,076</td> <td align="left">)</td> <td align="right">$</td> <td align="right">46,548</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Noncompete agreements</td> <td align="right"> </td> <td align="right">23,387</td> <td align="right"> </td> <td align="right">(22,445</td> <td align="left">)</td> <td align="right"> </td> <td align="right">942</td> <td align="right"> </td> <td align="right">23,456</td> <td align="right"> </td> <td align="right">(22,059</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,397</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Reacquired franchise rights</td> <td align="right"> </td> <td align="right">214,330</td> <td align="right"> </td> <td align="right">(12,022</td> <td align="left">)</td> <td align="right"> </td> <td align="right">202,308</td> <td align="right"> </td> <td align="right">214,330</td> <td align="right"> </td> <td align="right">(9,961</td> <td align="left">)</td> <td align="right"> </td> <td align="right">204,369</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Franchise agreements</td> <td align="right"> </td> <td align="right">19,201</td> <td align="right"> </td> <td align="right">(3,733</td> <td align="left">)</td> <td align="right"> </td> <td align="right">15,468</td> <td align="right"> </td> <td align="right">19,201</td> <td align="right"> </td> <td align="right">(3,093</td> <td align="left">)</td> <td align="right"> </td> <td align="right">16,108</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased technology</td> <td align="right"> </td> <td align="right">14,700</td> <td align="right"> </td> <td align="right">(9,635</td> <td align="left">)</td> <td align="right"> </td> <td align="right">5,065</td> <td align="right"> </td> <td align="right">14,700</td> <td align="right"> </td> <td align="right">(8,505</td> <td align="left">)</td> <td align="right"> </td> <td align="right">6,195</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Trade name</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,325</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(700</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">625</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,325</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(600</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">725</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">354,371</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(92,265</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">262,106</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">360,636</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(85,294</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">275,342</td></tr></table></div>      Amortization of intangible assets of our continuing operations for the three and six months ended October 31, 2011 was $5.4 and $10.5 million respectively. Additionally, we recorded an impairment of customer relationships of $4.0 million, related to the discontinuation of our ExpressTax brand, as discussed above. Amortization of intangible assets of our continuing operations for the three and six months ended October 31, 2010 was $4.2 and $8.3 million respectively. Estimated amortization of intangible assets for fiscal years 2012 through 2016 is $17.4 million, $15.8 million, $14.0 million, $10.6 million and $10.0 million, respectively. </div>

459039000

467548000

24888000

29145000

85400000

4257000

4300000

14300000

4257000

320371000

262405000

35525000

226880000

3353000

3314000

238000

3076000

3146000

3197000

224000

2973000

80849000

9116000

71733000

81303000

8838000

72465000

268649000

36588000

209414000

59235000

232061000

29027000

7561000

180387000

51674000

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35542000

206637000

54670000

225765000

26241000

9301000

180396000

45369000

4000000

-390667000

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-328979000

390667000

-390667000

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-183516000

-23128000

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183516000

-183516000

-160388000

-404530000

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-61081000

-343449000

404530000

-404530000

-361230000

-203929000

-22797000

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-173966000

203929000

-203929000

-181132000

-239252000

-27369000

239252000

-239252000

-211883000

-111444000

-15474000

111444000

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-95970000

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-26387000

242168000

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-123013000

-7734000

123013000

-123013000

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-0.77

-0.36

-0.80

-0.41

-0.77

-0.36

-0.80

-0.41

-0.77

-0.36

-0.80

-0.41

-478000

-4334000

478000

-478000

3856000

2395000

-1330000

-2395000

2395000

3725000

-74654000

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74654000

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18711000

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355000

-0.25

-0.06

<div> 8. Income Taxes We file a consolidated federal income tax return in the United States and file tax returns in various state and foreign jurisdictions. The U.S. Federal consolidated tax returns for the years 1999 through 2009 are currently under examination by the Internal Revenue Service, with the 1999-2007 years currently at the appellate level. Federal returns for 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.      We had gross unrecognized tax benefits of $158.0 million and $154.8 million at October 31, 2011 and April 30, 2011, respectively. The gross unrecognized tax benefits increased $3.2 million net in the current year, due to accruals of tax on positions related to prior years partially offset by statute of limitations expirations and settlements with taxing authorities. Except as noted below, we have classified the liability for unrecognized tax benefits, including corresponding accrued interest, as long-term at October 31, 2011, and included this amount in other noncurrent liabilities on the condensed consolidated balance sheet.      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 gross amount of reserves for previously unrecognized tax benefits may decrease by $16.8 million within twelve months of October 31, 2011. 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. </div>

103803000

122832000

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151415000

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72072000

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162362000

-162362000

-145449000

-80916000

-15063000

80916000

-80916000

-65853000

805000

3313000

-43515000

-4238000

77023000

-129285000

77023000

76923000

100000

-129285000

-129055000

-230000

275342000

262106000

45887000

41225000

3870000

792000

22992000

20649000

1947000

396000

45809000

42243000

3264000

302000

22873000

21114000

1608000

151000

20654000

12848000

7806000

10497000

6525000

3972000

20261000

10812000

9449000

9921000

5151000

4770000

30933000

27748000

<div> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="3%"> </td> <td width="34%"> </td> <td width="3%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Cost Basis</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Fair Value</td></tr> <tr valign="bottom"><td align="left">Maturing in:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Less than one year</td> <td align="right">$</td> <td align="right">2,008</td> <td align="right">$</td> <td align="right">2,029</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Two to five years</td> <td align="right"> </td> <td align="right">4,219</td> <td align="right"> </td> <td align="right">4,467</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Six to ten years</td> <td align="right"> </td> <td align="right">1,058</td> <td align="right"> </td> <td align="right">1,179</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Beyond</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">297,157</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">300,664</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">304,442</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">308,339</td></tr></table> </div>

21000

20945000

8937000

21000

20945000

8937000

300664000

7675000

300664000

7675000

3839879000

3113691000

5289453000

1682240000

-2699605000

2713256000

3593562000

3976513000

1465114000

-2122179000

2132707000

2500871000

2337980000

1781588000

241562000

199030000

241562000

199030000

93535000

87567000

92087000

91379000

47678000

7193000

24829000

4950000

2072000

4930000

10897000

85000

4986000

2122000

572974000

162321000

106328000

304325000

537754000

201065000

332773000

246467000

30537000

44129000

216621000

171956000

89351000

136885000

201065000

199804000

36979000

160587000

172412000

365342000

276447000

336689000

7415000

204981000

145912000

21830000

12808000

20515000

201065000

73927000

127138000

169755000

163018000

9683000

27296000

20826000

139761000

100555000

8707000

31321000

196106000

136885000

199804000

98485000

238204000

801000

6614000

31310000

173671000

46800000

44400000

485008000

450137000

<div> <div> <div> 3. Receivables Short-term receivables of our continuing operations consist of the following: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="51%"> </td> <td width="9%"> </td> <td width="15%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loans to franchisees</td> <td align="left">$</td> <td align="right">67,594</td> <td align="left"> </td> <td align="right">$</td> <td align="right">62,181</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Receivables for tax preparation and related fees</td> <td align="left"> </td> <td align="right">34,561</td> <td align="left"> </td> <td align="right"> </td> <td align="right">38,930</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Emerald Advance lines of credit</td> <td align="left"> </td> <td align="right">29,929</td> <td align="left"> </td> <td align="right"> </td> <td align="right">31,645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Royalties from franchisees</td> <td align="left"> </td> <td align="right">5,389</td> <td align="left"> </td> <td align="right"> </td> <td align="right">11,645</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Tax client receivables related to RALs</td> <td align="left"> </td> <td align="right">1,933</td> <td align="left"> </td> <td align="right"> </td> <td align="right">2,412</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">37,068</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">131,302</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="left"> </td> <td align="right">176,474</td> <td align="left"> </td> <td align="right"> </td> <td align="right">278,115</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Allowance for doubtful accounts</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(48,412</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(47,943</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">128,062</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">230,172</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div>        The short-term portion of Emerald Advance lines of credit (EAs), tax client receivables related to refund anticipation loans (RALs) and loans made to franchisees is included in receivables, while the long-term portion is included in other assets in the condensed consolidated financial statements. These amounts are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="15%"> </td> <td width="12%"> </td> <td width="5%"> </td> <td width="16%"> </td> <td width="5%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td> <td rowspan="2" colspan="2" align="center">Loans to Franchisees</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="center">As of October 31, 2011:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Short-term</td> <td align="left">$</td> <td align="right">29,929</td> <td align="left">$</td> <td align="right">1,933</td> <td align="left">$</td> <td align="right">67,594</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Long-term</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">17,749</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,260</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">130,280</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,678</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">7,193</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">197,874</td></tr> <tr valign="bottom"><td align="center">As of April 30, 2011:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Short-term</td> <td align="left">$</td> <td align="right">31,645</td> <td align="left">$</td> <td align="right">2,412</td> <td align="left">$</td> <td align="right">62,181</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Long-term</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">21,619</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,855</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">110,420</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">53,264</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">8,267</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">172,601</td></tr></table></div>        We review the credit quality of our EA receivables and tax client receivables related to RALs based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of October 31, 2011, by year of origination, are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="9%"> </td> <td width="11%"> </td> <td width="11%"> </td> <td width="13%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Credit Quality Indicator – Year of origination:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2011</td> <td align="left">$</td> <td align="right">24,829</td> <td style="text-indent: 8px;" align="left">$</td> <td align="center">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2010</td> <td align="left"> </td> <td align="right">4,950</td> <td align="left"> </td> <td align="right">85</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2009</td> <td align="left"> </td> <td align="right">4,930</td> <td align="left"> </td> <td align="right">2,122</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">2008 and prior</td> <td align="left"> </td> <td align="right">2,072</td> <td align="left"> </td> <td align="right">4,986</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Revolving loans</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">10,897</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">—</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,678</td> <td style="border-bottom: #000000 3px double; text-indent: 8px;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">7,193</td></tr></table></div>      As of October 31, 2011 and April 30, 2011, $44.4 million and $46.8 million, respectively, of EAs were on non-accrual status and classified as impaired, or more than 60 days past due. All tax client receivables related to RALs are considered impaired.      Loans made to franchisees totaled $197.9 million at October 31, 2011, and consisted of $146.3 million in term loans made to finance the purchase of franchises and $51.6 million in revolving lines of credit made to existing franchisees primarily for the purpose of funding their off-season needs. The allowance for doubtful accounts for continuing operations consists of the following: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="54%"> </td> <td width="12%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="12%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Allowance related to:</td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Emerald Advance lines of credit</td> <td align="right">$</td> <td align="right">5,930</td> <td align="right">$</td> <td align="right">4,400</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax client receivables related to RALs</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Loans to franchisees</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">—</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other receivables</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42,482</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">43,543</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">48,412</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,943</td></tr></table></div>   Activity in the allowance for doubtful accounts for the six months ended October 31, 2011 and 2010 is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="8%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="7%"> </td> <td width="5%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="13" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td> <td rowspan="2" colspan="3" align="center">Loans to Franchisees</td> <td rowspan="2" colspan="3" align="center">All Other</td> <td rowspan="2" colspan="3" align="center">Total</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">Balance as of April 30, 2011</td> <td align="right">$</td> <td align="right">4,400</td> <td align="right">$</td> <td style="text-indent: 3px;" align="right">—</td> <td style="text-indent: 4px;" align="right">$</td> <td align="right">—</td> <td align="right"> </td> <td align="right">$</td> <td align="right">43,543</td> <td align="right"> </td> <td align="right">$</td> <td align="right">47,943</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="right"> </td> <td align="right">1,530</td> <td align="right"> </td> <td style="text-indent: 3px;" align="right">—</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right"> </td> <td align="right">828</td> <td align="right"> </td> <td align="right"> </td> <td align="right">2,358</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,889</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,889</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td></tr> <tr valign="bottom"><td align="left">Balance as of October 31, 2011</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">5,930</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">42,482</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">48,412</td> <td style="border-bottom: #000000 3px double;" align="right"> </td></tr> <tr valign="bottom"><td align="left">Balance as of April 30, 2010</td> <td align="right">$</td> <td align="right">35,239</td> <td align="right">$</td> <td align="right">12,191</td> <td style="text-indent: 4px;" align="right">$</td> <td align="right">4</td> <td align="right"> </td> <td align="right">$</td> <td align="right">43,723</td> <td align="right"> </td> <td align="right">$</td> <td align="right">91,157</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Provision</td> <td align="right"> </td> <td align="right">1,120</td> <td align="right"> </td> <td style="text-indent: 6px;" align="right">2</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right"> </td> <td align="right">984</td> <td align="right"> </td> <td align="right"> </td> <td align="right">2,106</td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,526</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,530</td> <td style="border-bottom: #000000 1px solid;" align="right">)</td></tr> <tr valign="bottom"><td align="left">Balance as of October 31, 2010</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">36,359</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">12,193</td> <td style="border-bottom: #000000 3px double; text-indent: 4px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">—</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">43,181</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,733</td> <td style="border-bottom: #000000 3px double;" align="right"> </td></tr></table></div>        There were no changes to our methodology related to the calculation of our allowance for doubtful accounts during the six months ended October 31, 2011.</div></div> </div>

-239146000

-226536000

-333828000

-311218000

1039931000

1039527000

1009196000

1076256000

188200000

138415000

49785000

49651000

135071000

126260000

142923000

70600000

84400000

-134000

49800000

20000000

104000000

41500000

29252000

25577000

19532000

15961000

<div> <div> 4. Mortgage Loans Held for Investment and Related Assets The composition of our mortgage loan portfolio as of October 31, 2011 and April 30, 2011 is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="34%"> </td> <td width="2%"> </td> <td width="17%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="10" align="center">(dollars in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="5" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">% of Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">% of Total</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Adjustable-rate loans</td> <td align="right">$</td> <td align="right">311,218</td> <td align="left"> </td> <td align="right">58</td> <td align="left">%</td> <td align="right">$</td> <td align="right">333,828</td> <td align="left"> </td> <td align="right">58</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Fixed-rate loans</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">226,536</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42</td> <td style="border-bottom: #000000 1px solid;" align="left">%</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">239,146</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">42</td> <td style="border-bottom: #000000 1px solid;" align="left">%</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="right">537,754</td> <td align="left"> </td> <td align="right">100</td> <td align="left">%</td> <td align="right"> </td> <td align="right">572,974</td> <td align="left"> </td> <td align="right">100</td> <td align="left">%</td></tr> <tr valign="bottom"><td align="left">Unamortized deferred fees and costs</td> <td align="right"> </td> <td align="right">3,762</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="right">4,121</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Less: Allowance for loan losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(91,379</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(92,087</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">450,137</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">485,008</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr></table></div>        Our loan loss allowance as a percent of mortgage loans was 17.0% at October 31, 2011, compared to 16.1% at April 30, 2011.      Activity in the allowance for loan losses for the six months ended October 31, 2011 and 2010 is as follows: <div align="left"> <table style="width: 786px; height: 184px;" border="0" cellspacing="0"> <tr><td width="77%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td></tr> <tr valign="bottom"><td width="77%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="20%" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" width="77%" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="9%" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 2px;" width="9%" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="center"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Balance, beginning of the period</td> <td width="1%" align="right">$</td> <td width="9%" align="right">92,087</td> <td width="1%" align="right"> </td> <td width="1%" align="right">$</td> <td width="9%" align="right">93,535</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Provision</td> <td width="1%" align="right"> </td> <td width="9%" align="right">12,750</td> <td width="1%" align="right"> </td> <td width="1%" align="right"> </td> <td width="9%" align="right">16,300</td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Recoveries</td> <td width="1%" align="right"> </td> <td width="9%" align="right">88</td> <td width="1%" align="left"> </td> <td width="1%" align="right"> </td> <td width="9%" align="right">86 </td> <td width="1%" align="right"> </td></tr> <tr valign="bottom"><td width="77%" align="left">Charge-offs</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(13,546</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="left">)</td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">(22,354 </td> <td style="border-bottom: #000000 1px solid;" width="1%" align="right">)</td></tr> <tr valign="bottom"><td width="77%" align="left">Balance, end of the period</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">91,379</td> <td style="border-bottom: #000000 3px double;" width="1%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="1%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">87,567</td> <td style="border-bottom: #000000 3px double;" width="1%" align="right"> </td></tr></table></div>      When determining our allowance for loan losses, we evaluate loans less than 60 days past due on a pooled basis, while loans we consider impaired, including those loans more than 60 days past due or modified as troubled debt restructurings (TDRs), are evaluated individually. The balance of these loans and the related allowance is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="7%"> </td> <td width="8%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Portfolio Balance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Related Allowance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Portfolio Balance</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Related Allowance</td></tr> <tr valign="bottom"><td align="center">Pooled (less than 60 days past due)</td> <td align="right">$</td> <td align="right">276,447</td> <td align="right">$</td> <td align="right">10,076</td> <td style="text-indent: 7px;" align="right">$</td> <td align="right">304,325</td> <td align="right">$</td> <td align="right">11,238</td></tr> <tr valign="bottom"><td align="left">Impaired:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Individually (TDRs)</td> <td align="right"> </td> <td align="right">89,351</td> <td align="right"> </td> <td align="right">8,576</td> <td align="right"> </td> <td align="right">106,328</td> <td align="right"> </td> <td align="right">11,056</td></tr> <tr valign="bottom"><td align="center">Individually (60 days or more past due)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">171,956</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">72,727</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">162,321</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">69,793</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,379</td> <td style="border-bottom: #000000 3px double; text-indent: 7px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">572,974</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">92,087</td></tr></table></div>        Our portfolio includes loans originated by Sand Canyon Corporation (SCC) and purchased by H&R Block Bank (HRB Bank) which constitute 63% of the total loan portfolio at October 31, 2011. We have experienced higher rates of delinquency and have greater exposure to loss with respect to this segment of our loan portfolio. Our remaining loan portfolio totaled $201.1 million and is characteristic of a prime loan portfolio, and we believe subject to a lower loss exposure. Detail of our mortgage loans held for investment and the related allowance at October 31, 2011 is as follows: Credit quality indicators at October 31, 2011 include the following: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="12%"> </td> <td width="11%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="15%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(dollars in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Outstanding Principal Balance</td> <td colspan="4" align="center">Loan Loss Allowance</td> <td rowspan="2" colspan="2" align="center">% 30 + Days Past Due</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">% of Principal</td></tr> <tr valign="bottom"><td align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">336,689</td> <td align="right">$</td> <td align="right">78,517</td> <td align="right">23.3</td> <td align="right">%</td> <td align="right">44.7</td> <td align="right">%</td></tr> <tr valign="bottom"><td align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,862</td> <td style="border-bottom: #000000 1px solid;" align="right">6.4</td> <td style="border-bottom: #000000 1px solid;" align="right">%</td> <td style="border-bottom: #000000 1px solid;" align="right">11.7</td> <td style="border-bottom: #000000 1px solid;" align="right">%</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">91,379</td> <td style="border-bottom: #000000 3px double;" align="right">17.0</td> <td style="border-bottom: #000000 3px double;" align="right">%</td> <td style="border-bottom: #000000 3px double;" align="right">32.4</td> <td style="border-bottom: #000000 3px double;" align="right">%</td></tr></table></div>   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="40%"> </td> <td width="16%"> </td> <td width="13%"> </td> <td width="4%"> </td> <td width="11%"> </td> <td width="5%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Credit Quality Indicators</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Purchased from SCC</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">All Other</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Total Portfolio</td></tr> <tr valign="bottom"><td align="left">Occupancy status:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Owner occupied</td> <td align="right">$</td> <td align="right">238,204</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">127,138</td> <td align="right">$</td> <td align="right">365,342</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Non-owner occupied</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">98,485</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">73,927</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">172,412</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr> <tr valign="bottom"><td align="left">Documentation level:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Full documentation</td> <td align="right">$</td> <td align="right">100,555</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">145,912</td> <td align="right">$</td> <td align="right">246,467</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Limited documentation</td> <td align="right"> </td> <td align="right">8,707</td> <td align="right"> </td> <td align="right">21,830</td> <td align="right"> </td> <td align="right">30,537</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Stated income</td> <td align="right"> </td> <td align="right">196,106</td> <td align="right"> </td> <td align="right">20,515</td> <td align="right"> </td> <td align="right">216,621</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">No documentation</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,321</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">12,808</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">44,129</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr> <tr valign="bottom"><td align="left">Internal risk rating:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">High</td> <td align="right">$</td> <td align="right">136,885</td> <td style="text-indent: 1px;" align="right">$</td> <td align="right">—</td> <td align="right">$</td> <td align="right">136,885</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Medium</td> <td align="right"> </td> <td align="right">199,804</td> <td align="right"> </td> <td align="right">—</td> <td align="right"> </td> <td align="right">199,804</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Low</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">201,065</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">336,689</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">201,065</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">537,754</td></tr></table></div>        Loans given our internal risk rating of "high" are generally originated by SCC, have no documentation or are stated income and are non-owner occupied. Loans given our internal risk rating of "medium" are generally full documentation or stated income, with loan-to-value at origination of more than 80% and have credit scores at origination below 700. Loans given our internal risk rating of "low" are generally full documentation, with loan-to-value at origination of less than 80% and have credit scores greater than 700.      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.   Detail of the aging of the mortgage loans in our portfolio that are past due as of October 31, 2011 is as follows: <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="26%"> </td> <td width="13%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td style="border-bottom: #000000 1px solid;" width="74%" colspan="12" align="center">(in 000s)</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td rowspan="2" width="20%" colspan="2" align="center">Less than 60 Days Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">60 – 89 Days Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">90+ Days Past Due (1)</td> <td rowspan="2" width="11%" colspan="2" align="center">Total Past Due</td> <td rowspan="2" width="11%" colspan="2" align="center">Current</td> <td rowspan="2" width="10%" colspan="2" align="center">Total</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td></tr> <tr valign="bottom"><td width="26%" align="left">Purchased from SCC</td> <td width="13%" align="right">$</td> <td width="7%" align="right">27,296</td> <td width="2%" align="right">$</td> <td width="9%" align="right">6,614</td> <td width="2%" align="right">$</td> <td width="9%" align="right">139,761</td> <td width="2%" align="right">$</td> <td style="text-indent: 1px;" width="9%" align="right">173,671</td> <td width="2%" align="right">$</td> <td width="9%" align="right">163,018</td> <td width="2%" align="right">$</td> <td width="8%" align="right">336,689</td></tr> <tr valign="bottom"><td width="26%" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" width="13%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="7%" align="right">9,683</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">801</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">20,826</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">31,310</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="9%" align="right">169,755</td> <td style="border-bottom: #000000 1px solid;" width="2%" align="right"> </td> <td style="border-bottom: #000000 1px solid;" width="8%" align="right">201,065</td></tr> <tr valign="bottom"><td width="26%" align="left"> </td> <td style="border-bottom: #000000 3px double;" width="13%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="7%" align="right">36,979</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">7,415</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">160,587</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double; text-indent: 1px;" width="9%" align="right">204,981</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="9%" align="right">332,773</td> <td style="border-bottom: #000000 3px double;" width="2%" align="right">$</td> <td style="border-bottom: #000000 3px double;" width="8%" align="right">537,754</td></tr></table></div>   (1) No loans past due 90 days or more are still accruing interest. </div> Information related to our non-accrual loans is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="47%"> </td> <td width="22%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">145,493</td> <td align="right">$</td> <td align="right">143,358</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">23,079</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,106</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">168,572</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">157,464</td></tr> <tr valign="bottom"><td align="left">TDRs:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right"> </td> <td align="right">3,055</td> <td align="right"> </td> <td align="right">2,849</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">893</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">329</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,948</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,178</td></tr> <tr valign="bottom"><td align="left">Total non-accrual loans</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">172,520</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">160,642</td></tr></table></div>   Information related to impaired loans is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="29%"> </td> <td width="6%"> </td> <td width="11%"> </td> <td width="7%"> </td> <td width="14%"> </td> <td width="2%"> </td> <td width="11%"> </td> <td width="6%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="8" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Portfolio Balance With Allowance</td> <td rowspan="2" colspan="2" align="center">Portfolio Balance With No Allowance</td> <td rowspan="2" colspan="2" align="center">Total Portfolio Balance</td> <td rowspan="2" colspan="2" align="center">Related Allowance</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left">As of October 31, 2011:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">180,396</td> <td align="right">$</td> <td align="right">45,369</td> <td align="right">$</td> <td align="right">225,765</td> <td align="right">$</td> <td align="right">72,465</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">26,241</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,301</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">35,542</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,838</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">206,637</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">54,670</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">261,307</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">81,303</td></tr> <tr valign="bottom"><td align="left">As of April 30, 2011:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC (1)</td> <td align="right">$</td> <td align="right">180,387</td> <td align="right">$</td> <td align="right">51,674</td> <td align="right">$</td> <td align="right">232,061</td> <td align="right">$</td> <td align="right">71,733</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other (1)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">29,027</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,561</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">36,588</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,116</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">209,414</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">59,235</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">268,649</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">80,849</td></tr></table></div>   (1) Classification of amounts as of April 30, 2011 has been restated to conform to the current period presentation. Information related to the allowance for impaired loans is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="60%"> </td> <td width="8%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Portion of total allowance for loan losses allocated to</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 3px;" align="left">impaired loans and TDR loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Based on collateral value method</td> <td align="right">$</td> <td align="right">72,727</td> <td align="right">$</td> <td align="right">69,794</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Based on discounted cash flow method</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,576</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">11,055</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">81,303</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">80,849</td></tr></table></div> Information related to activities of our non-performing assets is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="68%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="3%"> </td> <td width="11%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Average impaired loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">226,880</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">35,525</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">262,405</td> <td align="right">$</td> <td align="right">320,371</td></tr> <tr valign="bottom"><td align="left">Interest income on impaired loans:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">3,076</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">238</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,314</td> <td align="right">$</td> <td align="right">3,353</td></tr> <tr valign="bottom"><td align="left">Interest income on impaired loans recognized on a cash basis on</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="center">non-accrual status:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased from SCC</td> <td align="right">$</td> <td align="right">2,973</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">All other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">224</td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">3,197</td> <td align="right">$</td> <td align="right">3,146</td></tr></table></div>        Our real estate owned (REO) includes loans accounted for as in-substance foreclosures of $6.2 million and $7.7 million at October 31, 2011 and April 30, 2011, respectively. Activity related to our real estate owned is as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="3%"> </td> <td width="28%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance, beginning of the period</td> <td align="right">$</td> <td align="right">19,532</td> <td align="left"> </td> <td align="right">$</td> <td align="right">29,252</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Additions</td> <td align="right"> </td> <td align="right">4,438</td> <td align="left"> </td> <td align="right"> </td> <td align="right">11,185</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Sales</td> <td align="right"> </td> <td align="right">(6,303</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(12,784</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Writedowns</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,706</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,076</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance, end of the period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">15,961</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">25,577</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table></div></div> </div>

-12784000

-6303000

11185000

4438000

-2076000

-1706000

-281884000

133024000

423672000

-376611000

-461969000

-389450000

-70885000

266044000

-272095000

-312514000

-16635000

-9408000

-423572000

423572000

-7227000

-127120000

-124210000

-266274000

266274000

-2910000

-548001000

-15379000

-46961000

-485661000

-582628000

-40451000

5821000

-547998000

-239730000

-31703000

239730000

-239730000

-208027000

-109049000

-16804000

109049000

-109049000

-92245000

-316822000

-47090000

316822000

-316822000

-269732000

-141724000

-26800000

141724000

-141724000

-114924000

-239245000

-111418000

-242344000

-123075000

7120000

5272000

390667000

-390667000

1848000

3852000

4890000

183516000

-183516000

-1038000

6515000

6346000

404530000

-404530000

169000

2502000

3065000

203929000

-203929000

-563000

278115000

31645000

62181000

131302000

38930000

11645000

2412000

176474000

29929000

67594000

37068000

34561000

5389000

1933000

31645000

62181000

2412000

29929000

67594000

1933000

21619000

110420000

5855000

17749000

130280000

5260000

53264000

172601000

8267000

47678000

197874000

7193000

146300000

51600000

-397787000

-48136000

-349651000

-187368000

-28018000

-159350000

-411045000

-49646000

-361399000

-206431000

-25862000

-180569000

1238195000

469461000

13613000

755121000

1358001000

528281000

10775000

818945000

900328000

729153000

627731000

576283000

1376000

5396000

-8754000

-9238000

-639000

-333000

1880000

905000

64204000

30973000

67060000

31899000

<div> 9. Interest Income and Expense The following table shows the components of interest income and expense of our continuing operations: <table border="0" cellspacing="0"> <tr><td width="37%"> </td> <td width="16%"> </td> <td width="9%"> </td> <td width="4%"> </td> <td width="9%"> </td> <td width="3%"> </td> <td width="8%"> </td> <td width="3%"> </td> <td width="7%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="3" align="center">Three months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">Six months ended October 31,</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td></tr> <tr valign="bottom"><td align="left">Interest income:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Mortgage loans, net</td> <td align="right">$</td> <td align="right">5,151</td> <td align="right">$</td> <td align="right">6,525</td> <td align="right">$</td> <td align="right">10,812</td> <td align="right">$</td> <td align="right">12,848</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Other</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">4,770</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,972</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">9,449</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">7,806</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">9,921</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">10,497</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">20,261</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">20,654</td></tr> <tr valign="bottom"><td align="left">Interest expense:</td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td> <td align="right"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Borrowings</td> <td align="right">$</td> <td align="right">21,114</td> <td align="right">$</td> <td align="right">20,649</td> <td align="right">$</td> <td align="right">42,243</td> <td align="right">$</td> <td align="right">41,225</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Deposits</td> <td align="right"> </td> <td align="right">1,608</td> <td align="right"> </td> <td align="right">1,947</td> <td align="right"> </td> <td align="right">3,264</td> <td align="right"> </td> <td align="right">3,870</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">FHLB advances</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">151</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">396</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">302</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">792</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">22,873</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">22,992</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">45,809</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">45,887</td></tr></table> </div>

1681013000

-26769000

178000

1707604000

1086422000

-127614000

191000

1213845000

462372000

322907000

17416000

9253000

16553000

9290000

300000

100000

-30829000

-22978000

-28195000

-36934000

95068000

91446000

155159000

43310000

8164000

35005000

40510000

94000

40416000

169548000

91157000

43723000

35239000

4000

12191000

91733000

43181000

36359000

12193000

47943000

43543000

4400000

48412000

42482000

5930000

2106000

984000

1120000

2000

2358000

828000

1530000

-1530000

-1526000

-4000

-1889000

42000000

58834000

37036000

-21352000

760000

434000

-22546000

-28057000

952000

3000

-29012000

114490000

77979000

1493000

-430000

255298000

257870000

16300000

12750000

33.6

<div> <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="4%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td colspan="5" align="center">Three months ended October 31,</td> <td align="center"> </td> <td align="center"> </td> <td colspan="4" align="center">Six months ended October 31,</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Revenues:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax Services</td> <td align="left">$</td> <td align="right">121,018</td> <td align="left"> </td> <td align="right"> </td> <td align="left">$</td> <td align="right">110,921</td> <td align="left"> </td> <td align="right">$</td> <td align="right">212,443</td> <td align="left"> </td> <td align="right">$</td> <td align="right">202,566</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Corporate</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,176</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,669</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">17,374</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">16,859</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">129,194</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">119,590</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">229,817</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">219,425</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Pretax income (loss):</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax Services</td> <td align="left">$</td> <td align="right">(173,966</td> <td align="left">)</td> <td align="right">$</td> <td colspan="2" align="right">(154,355</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(343,449</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(328,979</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Corporate</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,963</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,161</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(61,081</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(61,688</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="right">Loss from continuing operations before tax benefit</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(203,929</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" colspan="2" align="right">(183,516</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(404,530</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(390,667</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table> </div>

<div> 10. Regulatory Requirements HRB Bank files its regulatory Thrift Financial Report (TFR) on a calendar quarter basis with the Office of Thrift Supervision (OTS). In July 2011, as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Reform Act), the responsibility and authority of the OTS moved to the Office of the Comptroller of the Currency (OCC). HRB Bank will continue to file TFR reports with the OCC through December 31, 2011. Beginning March 31, 2012, HRB Bank will file Reports of Condition and Income (Call Report) with the OCC quarterly. Additionally, H&R Block, Inc. as the bank holding company, is now regulated by the Federal Reserve Bank. The following table sets forth HRB Bank's regulatory capital requirements, as calculated in its TFR: <div class="MetaData"> <div align="left"> <table border="0" cellspacing="0"> <tr><td width="33%"> </td> <td width="2%"> </td> <td width="15%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(dollars in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="3" colspan="4" align="center">Actual</td> <td rowspan="3" colspan="4" align="center">For Capital Adequacy Purposes</td> <td rowspan="3" colspan="4" align="center">To Be Well Capitalized Under Prompt Corrective Action Provisions</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">Ratio</td></tr> <tr valign="bottom"><td align="left">As of September 30, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total risk-based capital ratio (1)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">409,193</td> <td align="right">97.1</td> <td align="left">%</td> <td align="right">$</td> <td align="right">33,715</td> <td align="right">8.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">42,144</td> <td align="right">10.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 risk-based capital ratio (2)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">95.8</td> <td align="left">%</td> <td align="right"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td> <td align="left">$</td> <td align="right">25,287</td> <td align="right">6.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 capital ratio (leverage) (3)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">35.6</td> <td align="left">%</td> <td align="right">$</td> <td align="right">136,150</td> <td align="right">12.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">56,729</td> <td align="right">5.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tangible equity ratio (4)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">403,638</td> <td align="right">35.6</td> <td align="left">%</td> <td align="right">$</td> <td align="right">17,019</td> <td align="right">1.5</td> <td align="left">%</td> <td align="left"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td></tr> <tr><td colspan="13"> </td></tr> <tr valign="bottom"><td align="left">As of March 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Total risk-based capital ratio (1)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">405,000</td> <td align="right">92.5</td> <td align="left">%</td> <td align="right">$</td> <td align="right">35,019</td> <td align="right">8.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">43,773</td> <td align="right">10.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 risk-based capital ratio (2)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">91.2</td> <td align="left">%</td> <td align="right"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td> <td align="left">$</td> <td align="right">26,264</td> <td align="right">6.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tier 1 capital ratio (leverage) (3)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">22.8</td> <td align="left">%</td> <td align="right">$</td> <td align="right">209,758</td> <td align="right">12.0</td> <td align="left">%</td> <td align="left">$</td> <td align="right">87,399</td> <td align="right">5.0</td> <td align="left">%</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tangible equity ratio (4)</td> <td align="right">$</td> <td style="text-indent: 1px;" align="left">399,187</td> <td align="right">22.8</td> <td align="left">%</td> <td align="right">$</td> <td align="right">26,220</td> <td align="right">1.5</td> <td align="left">%</td> <td align="left"> </td> <td align="right">N/A</td> <td align="right">N/A</td> <td align="left"> </td></tr></table></div>   <div align="left"> <table class="MetaData" border="0" cellspacing="0"> <tr><td width="2%"> </td> <td width="3%"> </td> <td width="94%"> </td></tr> <tr valign="bottom"><td align="right">(1</td> <td align="left">)</td> <td class="MetaData" align="left">Total risk-based capital divided by risk-weighted assets.</td></tr> <tr valign="bottom"><td align="right">(2</td> <td align="left">)</td> <td class="MetaData" align="left">Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets.</td></tr> <tr valign="bottom"><td align="right">(3</td> <td align="left">)</td> <td class="MetaData" align="left">Tier 1 (core) capital divided by adjusted total assets.</td></tr> <tr valign="bottom"><td align="right">(4</td> <td align="left">)</td> <td class="MetaData" align="left">Tangible capital divided by tangible assets.</td></tr></table></div></div>   As of October 31, 2011, HRB Bank's leverage ratio was 33.6%. </div>

-24173000

-1263504000

1287677000

-24060000

-1269694000

1293754000

-75000000

-37989000

48383000

9522000

38861000

37524000

922000

36602000

2658103000

2080162000

219425000

38320000

181105000

119590000

17320000

102270000

229817000

39333000

190484000

129194000

17560000

111634000

120764000

61859000

108659000

61438000

181355000

99840000

193003000

109983000

<div> <table border="0" cellspacing="0"> <tr><td width="35%"> </td> <td width="15%"> </td> <td width="12%"> </td> <td width="5%"> </td> <td width="16%"> </td> <td width="5%"> </td> <td width="8%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="6" align="center">(in 000s)</td></tr> <tr valign="bottom"><td align="left"> </td> <td rowspan="2" colspan="2" align="center">Emerald Advance Lines of Credit</td> <td rowspan="2" colspan="2" align="center">Tax Client Receivables - RALs</td> <td rowspan="2" colspan="2" align="center">Loans to Franchisees</td></tr> <tr valign="bottom"><td align="left"> </td></tr> <tr valign="bottom"><td align="center">As of October 31, 2011:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Short-term</td> <td align="left">$</td> <td align="right">29,929</td> <td align="left">$</td> <td align="right">1,933</td> <td align="left">$</td> <td align="right">67,594</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Long-term</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">17,749</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,260</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">130,280</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">47,678</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">7,193</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">197,874</td></tr> <tr valign="bottom"><td align="center">As of April 30, 2011:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Short-term</td> <td align="left">$</td> <td align="right">31,645</td> <td align="left">$</td> <td align="right">2,412</td> <td align="left">$</td> <td align="right">62,181</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Long-term</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">21,619</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">5,855</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">110,420</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">53,264</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">8,267</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">172,601</td></tr></table> </div>

<div> 12. Discontinued Operations As of October 31, 2011, the assets and liabilities of RSM and EquiCo are being presented as held-for-sale and the results of operations of these businesses are presented as discontinued operations in the condensed consolidated financial statements.  The major classes of assets and liabilities reported as held-for-sale are as follows:   <div align="left"> <table border="0" cellspacing="0"> <tr><td width="59%"> </td> <td width="10%"> </td> <td width="17%"> </td> <td width="3%"> </td> <td width="9%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left">Receivables, net</td> <td align="left">$</td> <td align="right">215,817</td> <td align="left">$</td> <td align="right">262,118</td></tr> <tr valign="bottom"><td align="left">Prepaid expenses and other current assets</td> <td align="left"> </td> <td align="right">61,357</td> <td align="left"> </td> <td align="right">67,854</td></tr> <tr valign="bottom"><td align="left">Property and equipment, net</td> <td align="left"> </td> <td align="right">49,833</td> <td align="left"> </td> <td align="right">52,022</td></tr> <tr valign="bottom"><td align="left">Intangible assets, net</td> <td align="left"> </td> <td align="right">87,324</td> <td align="left"> </td> <td align="right">92,579</td></tr> <tr valign="bottom"><td align="left">Goodwill</td> <td align="left"> </td> <td align="right">299,896</td> <td align="left"> </td> <td align="right">412,094</td></tr> <tr valign="bottom"><td align="left">Other assets</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">14,926</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">13,661</td></tr> <tr valign="bottom"><td align="left">Assets held for sale</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">729,153</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">900,328</td></tr> <tr valign="bottom"><td align="left">Accounts payable, accrued expenses and deposits</td> <td align="left">$</td> <td align="right">67,947</td> <td align="left">$</td> <td align="right">67,088</td></tr> <tr valign="bottom"><td align="left">Accrued salaries, wages and payroll taxes</td> <td align="left"> </td> <td align="right">39,009</td> <td align="left"> </td> <td align="right">48,290</td></tr> <tr valign="bottom"><td align="left">Long-term debt</td> <td align="left"> </td> <td align="right">10,841</td> <td align="left"> </td> <td align="right">13,107</td></tr> <tr valign="bottom"><td align="left">Deferred tax liability</td> <td align="left"> </td> <td align="right">50,209</td> <td align="left"> </td> <td align="right">81,492</td></tr> <tr valign="bottom"><td align="left">Other liabilities</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,024</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">31,585</td></tr> <tr valign="bottom"><td align="left">Liabilities held for sale</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">199,030</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">241,562</td></tr></table></div>   The results of operations of our discontinued operations are as follows: <div align="left"> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="3%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="2" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td colspan="4" align="center">Three months ended October 31,</td> <td colspan="6" align="center">Six months ended October 31,</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Revenues</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">199,042</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">203,088</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">365,928</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" colspan="2" align="right">378,109</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Income (loss) from operations before impairment and</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">income tax benefit</td> <td align="left">$</td> <td align="right">(22,949</td> <td align="left">)</td> <td align="left">$</td> <td align="right">5,708</td> <td align="right">$</td> <td align="right">(18,472</td> <td align="left">)</td> <td align="right"> </td> <td align="left">$</td> <td align="right">327</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Impairment of goodwill</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(99,697</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Pretax income (loss)</td> <td align="left"> </td> <td align="right">(22,949</td> <td align="left">)</td> <td align="left"> </td> <td align="right">5,708</td> <td align="left"> </td> <td align="right">(118,169</td> <td align="left">)</td> <td align="right"> </td> <td align="left"> </td> <td align="right">327</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Income tax expense (benefit)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,238</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">3,313</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(43,515</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">805</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Net income (loss) from discontinued operations</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(18,711</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">2,395</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(74,654</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(478</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table></div>        During fiscal year 2008, we exited our mortgage business. Our discontinued operations also include pretax losses related to our mortgage business of $24.1 million and $26.6 million for the three and six months ended October 31, 2011, respectively, and $2.1 million and $6.6 million for the three and six months ended October 31, 2010, respectively.      For income tax purposes, the sale of RSM may result in a taxable gain, a portion of which could be capital in character. To the extent all or a portion of the tax gain is determined to be capital, it would be offset up to our existing capital loss carry forwards. In order to determine the amount of such gain, the purchase price will be allocated among the assets sold and liabilities assumed. Capital gains resulting from the sale would allow us to release additional portions of the valuation allowance on capital loss deferred tax assets. The amount of valuation allowance release has not yet been determined, but would result in a tax benefit recorded to discontinued operations and could have a material impact on our results of operations in the third quarter. In the second quarter, no benefit or expense was recorded relating to the RSM transaction because the sale of RSM had not yet closed. </div>

<div> <table border="0" cellspacing="0"> <tr><td width="43%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s, except per share amounts)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td colspan="4" align="center">Three months ended October 31,</td> <td align="center"> </td> <td align="center"> </td> <td colspan="4" align="center">Six months ended October 31,</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations attributable to shareholders</td> <td align="right">$</td> <td align="right">(123,013</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(111,444</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(242,168</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(239,252</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Amounts allocated to participating securities (nonvested shares)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">62</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(26</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">176</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(7</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Net loss from continuing operations attributable to common</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td align="center">shareholders</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(123,075</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(111,418</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(242,344</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(239,245</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Basic weighted average common shares</td> <td align="right"> </td> <td align="right">299,895</td> <td align="left"> </td> <td align="right"> </td> <td align="right">306,804</td> <td align="left"> </td> <td align="right"> </td> <td align="right">302,693</td> <td align="left"> </td> <td align="right"> </td> <td align="right">313,247</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Potential dilutive shares</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">—</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Dilutive weighted average common shares</td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">299,895</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">306,804</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">302,693</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="right">313,247</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Loss per share from continuing operations:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Basic</td> <td align="right">$</td> <td align="right">(0.41</td> <td align="left">)</td> <td align="right">$ </td> <td style="text-indent: 1px;" align="right"> (0.36</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(0.80</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(0.77</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Diluted</td> <td align="right"> </td> <td align="right">(0.41</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(0.36</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(0.80</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(0.77</td> <td align="left">)</td></tr></table> </div>

<div> <table border="0" cellspacing="0"> <tr><td width="27%"> </td> <td width="2%"> </td> <td width="12%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="7%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="6%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" colspan="14" align="center">(in 000s)</td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">As of</td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">October 31, 2011</td> <td style="border-bottom: #000000 1px solid;" colspan="7" align="center">April 30, 2011</td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center">Gross</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="right"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Accumulated</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td> <td style="text-indent: 1px;" align="center">Carrying</td> <td align="center"> </td> <td align="center">Accumulated</td> <td align="center"> </td> <td align="center"> </td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Net</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 1px;" align="center">Amount</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">Amortization</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid; text-indent: 3px;" align="center">Net</td></tr> <tr valign="bottom"><td align="left">Tax Services:</td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Customer relationships</td> <td align="right">$</td> <td align="right">81,428</td> <td align="right">$</td> <td align="right">(43,730</td> <td align="left">)</td> <td align="right">$</td> <td align="right">37,698</td> <td align="right">$</td> <td align="right">87,624</td> <td align="right">$</td> <td align="right">(41,076</td> <td align="left">)</td> <td align="right">$</td> <td align="right">46,548</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Noncompete agreements</td> <td align="right"> </td> <td align="right">23,387</td> <td align="right"> </td> <td align="right">(22,445</td> <td align="left">)</td> <td align="right"> </td> <td align="right">942</td> <td align="right"> </td> <td align="right">23,456</td> <td align="right"> </td> <td align="right">(22,059</td> <td align="left">)</td> <td align="right"> </td> <td align="right">1,397</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Reacquired franchise rights</td> <td align="right"> </td> <td align="right">214,330</td> <td align="right"> </td> <td align="right">(12,022</td> <td align="left">)</td> <td align="right"> </td> <td align="right">202,308</td> <td align="right"> </td> <td align="right">214,330</td> <td align="right"> </td> <td align="right">(9,961</td> <td align="left">)</td> <td align="right"> </td> <td align="right">204,369</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Franchise agreements</td> <td align="right"> </td> <td align="right">19,201</td> <td align="right"> </td> <td align="right">(3,733</td> <td align="left">)</td> <td align="right"> </td> <td align="right">15,468</td> <td align="right"> </td> <td align="right">19,201</td> <td align="right"> </td> <td align="right">(3,093</td> <td align="left">)</td> <td align="right"> </td> <td align="right">16,108</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Purchased technology</td> <td align="right"> </td> <td align="right">14,700</td> <td align="right"> </td> <td align="right">(9,635</td> <td align="left">)</td> <td align="right"> </td> <td align="right">5,065</td> <td align="right"> </td> <td align="right">14,700</td> <td align="right"> </td> <td align="right">(8,505</td> <td align="left">)</td> <td align="right"> </td> <td align="right">6,195</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Trade name</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,325</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(700</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">625</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">1,325</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(600</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">725</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">354,371</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(92,265</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">262,106</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">360,636</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(85,294</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">275,342</td></tr></table> </div>

<div> <table border="0" cellspacing="0"> <tr><td width="65%"> </td> <td width="4%"> </td> <td width="26%"> </td> <td width="4%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Balance at April 30, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Goodwill</td> <td align="right">$</td> <td align="right">459,039</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Accumulated impairment losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(24,888</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">434,151</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Changes:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Acquisitions</td> <td align="right"> </td> <td align="right">9,329</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Disposals and foreign currency changes</td> <td align="right"> </td> <td align="right">(820)</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Impairments</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(4,257</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance at October 31, 2011:</td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Goodwill</td> <td align="right"> </td> <td align="right">467,548</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Accumulated impairment losses</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,145</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">438,403</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table> </div>

<div> 13. Litigation and Related Contingencies We are a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.      Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.      We establish liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. It is possible that some of the matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at October 31, 2011. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such charges are likely to have a material adverse effect on our consolidated results of operations. As of October 31, 2011, we have accrued $84.4 million, including obligations under indemnifications, compared to $70.6 million at April 30, 2011. Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, we are able to estimate a reasonably possible range of loss. As of October 31, 2011, we estimate the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be approximately $0 to $104 million. Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Litigation and Claims Pertaining to Discontinued Mortgage Operations Although mortgage loan origination activities were terminated and the loan servicing business was sold during fiscal year 2008, SCC and HRB remain subject to investigations, claims and lawsuits pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These investigations, claims and lawsuits include actions by state and federal regulators, municipalities, third party indemnitees, 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, fraud, rights to indemnification, and violations of securities laws, the Truth in Lending Act, Equal Credit Opportunity Act and the Fair Housing Act. Given the non-prime mortgage environment, the number of these investigations, claims and lawsuits has increased over historical experience and is likely to continue to increase. The amounts claimed in these investigations, claims and lawsuits are substantial in some instances, and the ultimate resulting liability is difficult to predict and thus cannot be reasonably estimated. In the event of unfavorable outcomes, the amounts that may be required to be paid in the discharge of liabilities or settlements could be substantial and could have a material impact on our consolidated results of operations.      On February 1, 2008, a class action lawsuit was filed in the United States District Court for the District of Massachusetts against SCC and other related entities styled Cecil Barrett, et al. v. Option One Mortgage Corp., et al. (Civil Action No. 08-10157-RWZ). Plaintiffs allege discriminatory practices relating to the origination of mortgage loans in violation of the Fair Housing Act and Equal Credit Opportunity Act, and seek declaratory and injunctive relief in addition to actual and punitive damages. The court dismissed H&R Block, Inc. from the lawsuit for lack of personal jurisdiction. In March 2011, the court issued an order certifying a class, which defendants sought to appeal. On August 24, 2011, the First Circuit Court of Appeals declined to hear the appeal, noting that the district court could reconsider its certification decision in light of a recent ruling by the United States Supreme Court in an unrelated matter. SCC has filed a motion to decertify the class, which remains pending. A portion of our loss contingency accrual is related to this lawsuit for the amount of loss that we consider probable and estimable. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated results of operations.      On December 9, 2009, a putative class action lawsuit was filed in the United States District Court for the Central District of California against SCC and H&R Block, Inc. styled Jeanne Drake, et al. v. Option One Mortgage Corp., et al. (Case No. SACV09-1450 CJC). Plaintiffs allege breach of contract, promissory fraud, intentional interference with contractual relations, wrongful withholding of wages and unfair business practices in connection with the failure to pay severance benefits to employees when their employment transitioned to American Home Mortgage Servicing, Inc. in connection with the sale of certain assets and operations of Option One. Plaintiffs seek to recover severance benefits of approximately $8 million, interest and attorney's fees, in addition to penalties and punitive damages on certain claims. On September 2, 2011, the court granted summary judgment in favor of the defendants on all claims. Plaintiffs have filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable nor have we established a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated results of operations.      On October 15, 2010, the Federal Home Loan Bank of Chicago filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC related entities and H&R Block, Inc. related entities, arising out of FHLB's purchase of mortgage-backed securities. Plaintiff asserts claims for rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $42 million remains outstanding. Plaintiffs agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, have filed motions to dismiss, which are pending. We have not concluded that a loss related to this matter is probable nor have we established a loss contingency related to this matter. We believe the claims in this case are without merit and we intend to defend them vigorously. There can be no assurances, however, as to its outcome or its impact on our consolidated results of operations.      SCC or its subsidiaries entered into indemnification agreements with certain third parties that sold or underwrote the sale of securities. Some of those third parties are defendants in lawsuits where various parties are seeking damages and other remedies based on the activities of such third parties in the sale of RMBS, including in some instances, SCC securitizations. SCC has received claims from some of these third parties for indemnification against losses, including defense costs, that those third parties might incur as a result of these lawsuits. We have not concluded that a loss related to this matter is probable nor have we established a loss contingency related to this matter. Employment-Related Claims and Litigation We have been named in several wage and hour class action lawsuits throughout the country, including Alice Williams v. H&R Block Enterprises LLC, Case No.RG08366506 (Superior Court of California, County of Alameda, filed January 17, 2008) (alleging improper classification of office managers in California); Arabella Lemus v. H&R Block Enterprises LLC, et al., Case No. CGC-09-489251 (United States District Court, Northern District of California, filed June 9, 2009) (alleging failure to timely pay compensation to tax professionals in California); Delana Ugas v. H&R Block Enterprises LLC, et al., Case No. BC417700 (United States District Court, Central District of California, filed July 13, 2009) (alleging failure to compensate tax professionals in California for all hours worked and to provide meal periods); and Barbara Petroski v. H&R Block Eastern Enterprises, Inc., et al., Case No. 10-CV-00075 (United States District Court, Western District of Missouri, filed January 25, 2010) (alleging failure to compensate tax professionals nationwide for off-season training).      A class was certified in the Lemus case in December 2010 (consisting of tax professionals who worked in company-owned offices in California from 2007 to 2010); in the Williams case in March 2011 (consisting of office managers who worked in company-owned offices in California from 2004 to 2011); and in the Ugas case in August 2011 (consisting of tax professionals who worked in company-owned offices in California from 2006 to 2011). In Petroski, a conditional class was certified under the Fair Labor Standards Act in March 2011 (consisting of tax professionals nationwide who worked in company-owned offices and who were not compensated for certain training courses occurring on or after April 15, 2007). Two classes were also certified under state law in California and New York (consisting of tax professionals who worked in company-owned offices in those states). A trial date has been set in the Williams case for April 30, 2012.      The plaintiffs in the wage and hour class action lawsuits seek actual damages, pre-judgment interest and attorneys' fees, in addition to statutory penalties under state and federal law, which could equal up to 30 days of wages per tax season for class members who worked in California. A portion of our loss contingency accrual is related to these lawsuits for the amount of loss that we consider probable and estimable. We believe we have meritorious defenses to the claims in these lawsuits and intend to defend them vigorously. The amounts claimed in these matters are substantial in some instances and the ultimate liability with respect to these matters is difficult to predict. There can be no assurances as to the outcome of these cases or their impact on our consolidated results of operations, individually or in the aggregate. RAL Litigation <div> We have been named in a putative class action styled Sandra J. Basile, et al. v. H&R Block, Inc., et al., 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 allege inadequate disclosures with respect to the RAL product and assert claims for violation of consumer protection statutes, negligent misrepresentation, breach of fiduciary duty, common law fraud, usury, and violation of the Truth In Lending Act. 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. An appellate court subsequently reversed the decertification decision. We are appealing the reversal. We have not concluded that a loss related to this matter is probable nor have we accrued a loss contingency related to this matter. 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.</div> Express IRA Litigation We have one remaining lawsuit regarding our former Express IRA product. That case was filed on January 2, 2008 by the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) and is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages. 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.      Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations. Litigation and Claims Pertaining to the Discontinued Operations of RSM McGladrey EquiCo, its parent and certain of its subsidiaries and affiliates, are parties to a class action filed on July 11, 2006 and styled Do Right's Plant Growers, et al. v. RSM EquiCo, Inc., et al. (the "RSM Parties"), Case No. 06 CC00137, in the California Superior Court, Orange County. The complaint contains allegations relating to business valuation services provided by EquiCo, including allegations of fraud, conversion 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. To avoid the cost and inherent risk associated with litigation, the parties reached an agreement to settle the case for a maximum payment of $41.5 million, although the actual cost of the settlement will depend on the number of valid claims submitted by class members. The California Superior Court granted final approval of the settlement on October 20, 2011. We previously recorded a liability for our best estimate of the expected loss.      At the closing of the sale of RSM, we indemnified M&P for certain litigation matters and certain obligations related primarily to previously sold RSM subsidiaries. Other In October 2010, we signed a definitive merger agreement to acquire all of the outstanding shares of 2SS Holdings, Inc. ("2SS"), developer of TaxACT digital tax preparation solutions, for $287.5 million in cash. In May 2011, the United States Department of Justice (DOJ) filed a civil antitrust lawsuit in the U.S. district court in Washington, D.C., (Case No. 1:11-cv-00948) against H&R Block and 2SS styled United States v. H&R Block, Inc., 2SS Holdings, Inc., and TA IX L.P., to block our proposed acquisition of 2SS. On October 31, 2011, the court granted the DOJ's motion for a permanent injunction to block the transaction. The defendants did not file an appeal. On November 14, 2011, the parties agreed to terminate the merger agreement.      In addition, 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. 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 impact on our consolidated results of operations.      We are also 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 impact on our consolidated results of operations. </div>

<div> 15. Accounting Pronouncements In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2011-08, "Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment." Under the amendments in this guidance, an entity may consider qualitative factors before applying Step 1 of the goodwill impairment assessment, but may no longer be permitted to carry forward estimates of a reporting unit's fair value from a prior year when specific criteria are met. These amendments are effective for goodwill impairment tests performed in fiscal years beginning after December 15, 2011. Early adoption is permitted. We are currently evaluating the effect of this guidance on our condensed consolidated financial statements.      In June 2011, the FASB issued Accounting Standards Update 2011-05, "Comprehensive Income (Topic 220): Statement of Comprehensive Income." Under the amendments in this guidance, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. The amendments in this guidance do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. These amendments are effective for fiscal years beginning after December 15, 2011. Early adoption is permitted. We elected to adopt this guidance as of May 1, 2011, and it did not have an effect on our presentation of comprehensive income in our condensed consolidated financial statements.      In April 2011, the FASB issued Accounting Standards Update 2011-02, "Receivables (Topic 310) – A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring." This guidance assists in determining if a loan modification qualifies as a TDR and requires that creditors must determine that a concession has been made and the borrower is having financial difficulties. We adopted this guidance as of May 1, 2011. We did not identify any new TDRs attributable to this new guidance and it did not have a material effect on our condensed consolidated financial statements.      In October 2009, the FASB issued Accounting Standards Update 2009-13, "Revenue Recognition (Topic 605) –Multiple-Deliverable Revenue Arrangements." 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. 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 new multiple-deliverable revenue arrangements. We adopted this guidance as of May 1, 2011 and it did not have a material effect on our condensed consolidated financial statements.      In December 2010, the FASB issued Accounting Standards Update 2010-28, "Intangibles – Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts." The amendments affect reporting units whose carrying amount is zero or negative, and require performance of Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists. In determining whether it is more likely than not that a goodwill impairment exists, a reporting unit would consider whether there are any adverse qualitative factors indicating that an impairment may exist. The qualitative factors are consistent with existing guidance. The reporting unit would evaluate if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We adopted this guidance as of May 1, 2011 and it did not have a material effect on our condensed consolidated financial statements.      In December 2010, the FASB issued Accounting Standards Update 2010-29, "Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations." The amendments in this guidance specify that if a public entity presents comparative financial statements, the entity would disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. Additionally, disclosures should be accompanied by a narrative description about the nature and amount of material, nonrecurring pro forma adjustments. We adopted this guidance as of May 1, 2011 and it did not have a material effect on our condensed consolidated financial statements. </div>

<div> <table border="0" cellspacing="0"> <tr><td width="46%"> </td> <td width="3%"> </td> <td width="28%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="11%"> </td> <td width="3%"> </td></tr> <tr valign="bottom"><td align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td style="border-bottom: #000000 1px solid;" align="left">Six months ended October 31,</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Balance, beginning of the period</td> <td align="right">$</td> <td align="right">19,532</td> <td align="left"> </td> <td align="right">$</td> <td align="right">29,252</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Additions</td> <td align="right"> </td> <td align="right">4,438</td> <td align="left"> </td> <td align="right"> </td> <td align="right">11,185</td> <td align="left"> </td></tr> <tr valign="bottom"><td align="left">Sales</td> <td align="right"> </td> <td align="right">(6,303</td> <td align="left">)</td> <td align="right"> </td> <td align="right">(12,784</td> <td align="left">)</td></tr> <tr valign="bottom"><td align="left">Writedowns</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(1,706</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(2,076</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="left">Balance, end of the period</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">15,961</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">25,577</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr></table> </div>

<div> 14. Segment Information Results of our continuing operations by reportable operating segment are as follows: <table border="0" cellspacing="0"> <tr><td width="38%"> </td> <td width="4%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="10%"> </td> <td width="2%"> </td> <td width="2%"> </td> <td width="9%"> </td> <td width="2%"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" colspan="4" align="center">(in 000s)</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td align="center"> </td> <td colspan="5" align="center">Three months ended October 31,</td> <td align="center"> </td> <td align="center"> </td> <td colspan="4" align="center">Six months ended October 31,</td> <td align="center"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2011</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center"> </td> <td style="border-bottom: #000000 1px solid;" align="center">2010</td> <td style="border-bottom: #000000 1px solid;" align="center"> </td></tr> <tr valign="bottom"><td align="left">Revenues:</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax Services</td> <td align="left">$</td> <td align="right">121,018</td> <td align="left"> </td> <td align="right"> </td> <td align="left">$</td> <td align="right">110,921</td> <td align="left"> </td> <td align="right">$</td> <td align="right">212,443</td> <td align="left"> </td> <td align="right">$</td> <td align="right">202,566</td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Corporate</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,176</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">8,669</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">17,374</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">16,859</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td></tr> <tr valign="bottom"><td align="left"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">129,194</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right"> </td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">119,590</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">229,817</td> <td style="border-bottom: #000000 3px double;" align="left"> </td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">219,425</td> <td style="border-bottom: #000000 3px double;" align="left"> </td></tr> <tr valign="bottom"><td align="left">Pretax income (loss):</td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td> <td align="right"> </td> <td align="left"> </td> <td align="left"> </td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Tax Services</td> <td align="left">$</td> <td align="right">(173,966</td> <td align="left">)</td> <td align="right">$</td> <td colspan="2" align="right">(154,355</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(343,449</td> <td align="left">)</td> <td align="right">$</td> <td align="right">(328,979</td> <td align="left">)</td></tr> <tr valign="bottom"><td style="text-indent: 6px;" align="left">Corporate</td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,963</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="left"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(29,161</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(61,081</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td> <td style="border-bottom: #000000 1px solid;" align="right"> </td> <td style="border-bottom: #000000 1px solid;" align="right">(61,688</td> <td style="border-bottom: #000000 1px solid;" align="left">)</td></tr> <tr valign="bottom"><td align="right">Loss from continuing operations before tax benefit</td> <td style="border-bottom: #000000 3px double;" align="left">$</td> <td style="border-bottom: #000000 3px double;" align="right">(203,929</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" colspan="2" align="right">(183,516</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(404,530</td> <td style="border-bottom: #000000 3px double;" align="left">)</td> <td style="border-bottom: #000000 3px double;" align="right">$</td> <td style="border-bottom: #000000 3px double;" align="right">(390,667</td> <td style="border-bottom: #000000 3px double;" align="left">)</td></tr></table>      As of October 31, 2011, the results of operations of our previously reported Business Services segment are presented as discontinued operations in the condensed consolidated statements of operations. All periods presented have been reclassified to reflect our discontinued operations. See notes 1 and 12 for additional information. </div>

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<div> 1. Summary of Significant Accounting Policies <div class="MetaData"> Basis of Presentation The condensed consolidated balance sheet as of October 31, 2011, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended October 31, 2011 and 2010, and the condensed consolidated statements of cash flows for the six months ended October 31, 2011 and 2010 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, 2011 and for all periods presented have been made. See below for discussion of our presentation of discontinued operations.      "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.      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 statements and notes thereto included in our April 30, 2011 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2011 or for the year then ended, are derived from our April 30, 2011 Annual Report to Shareholders on Form 10-K.</div> <div> Management Estimates 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, valuation allowances based on future taxable income, reserves for uncertain tax positions, credit losses on receivable balances and related matters. Estimates have been prepared on the basis of the most current and best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.</div> <div> Seasonality of Business 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.</div> <div class="MetaData"> Discontinued Operations – Recent Events In August 2011, our Board of Directors approved a non-binding letter of intent to sell substantially all assets of RSM McGladrey, Inc. (RSM) to McGladrey and Pullen LLP (M&P) and, on November 30, 2011, the sale of RSM was completed. At closing we received cash proceeds totaling $475.0 million, a short-term receivable of $34.0 million and a note in the principal amount of $54.0 million. The final purchase price is subject to further post-closing adjustments. M&P also assumed substantially all liabilities of RSM, including contingent payments and lease obligations. We have indemnified M&P for certain litigation matters and certain obligations related primarily to previously sold RSM subsidiaries. In the first quarter we recorded an $85.4 million impairment of goodwill in connection with the sale of RSM. The net loss ultimately resulting from the divestiture of RSM will be based on post-closing adjustments to the purchase price, as well as the additional realization of tax benefits related to the sale. In the first quarter, we also announced we were evaluating strategic alternatives for RSM EquiCo, Inc. (EquiCo), and recorded a $14.3 million impairment of goodwill related to this business. <div> <div> As of October 31, 2011, the results of operations of these businesses are presented as discontinued operations and the assets and liabilities of the businesses being sold are presented as held-for-sale in the condensed consolidated financial statements. All periods presented in our condensed consolidated balance sheets and statements of operations have been reclassified to reflect our discontinued operations. See additional information in note 12.</div></div></div> </div>

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Prior year amounts have been restated to include only impaired mortgage loans and REO that were remeasured during the quarter and the gain (loss) on those remeasurements. At October 31, 2011 and April 30, 2011, we had no investments that had been in a continuous loss position for more than twelve months. Total risk-based capital divided by risk-weighted assets. Classification of amounts as of April 30, 2011 has been restated to conform to the current period presentation. No loans past due 90 days or more are still accruing interest. Tangible capital divided by tangible assets. Tier 1 (core) capital divided by adjusted total assets. Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets.