fiscal year 2012 . ( 2 ) calculated as net tax preparation fees divided by retail tax returns prepared . replace_table_token_0_th h & r block 2011 form 10k 19 fiscal 2011 compared to fiscal 2010  tax services ' revenues decreased $ 62.9 million , or 2.1 % , compared to the prior year . tax preparation fees decreased $ 77.1 million , or 3.9 % , due primarily to the sale of company-owned offices to franchisees and the loss of certain clients as a result of not having a ral offering in our tax offices this year . although we believe we gained clients through the free federal ez filing we began offering this year , that increase did not have a significant impact on our revenues . royalties increased $ 28.6 million , or 10.4 % , primarily due to the conversion of 280 company-owned offices into franchises . fees earned on racs increased $ 94.1 million , or 107.5 % , primarily due to an increase in the number of racs issued as a portion of our clients chose to receive their refunds via rac , as an alternative to a ral . rals were historically offered to our clients by hsbc . in december 2010 , hsbc terminated its contract with us based on restrictions placed on hsbc by its regulator and , therefore , rals were not offered this tax season . current year revenues of $ 17.2 million include the recognition of net deferred fees from hsbc . this compares with revenues resulting from loans participations and related fees in the prior year of $ 146.2 million . interest income earned on eas increased $ 16.4 million , or 21.1 % , over the prior year primarily due to an increase in loan volume , which resulted from offering the product to a wider client base . other revenue increased $ 14.9 million , or 6.9 % , primarily due to an increase in online revenues . total expenses increased $ 37.0 million , or 1.8 % , compared to the prior year . compensation and benefits decreased $ 12.7 million , or 1.3 % , primarily due to lower commission-based wages due to conversions to franchise offices , reduced headcount and related payroll taxes . this decline was partially offset by severance costs and related payroll taxes of $ 27.4 million . occupancy costs declined $ 25.6 million , or 6.2 % , due to office closures and cost-saving initiatives . bad debt expense increased $ 34.3 million , or 32.8 % , primarily due to increased volumes on eas , as well as a decline in tax returns prepared for those clients . during the current year , we recorded a $ 22.7 million impairment of goodwill in our redgear reporting unit , as discussed in item 8 , note 9 to the consolidated financial statements . other expenses increased $ 15.7 million , or 6.0 % , primarily due to incremental litigation expenses recorded in the current year . pretax income for fiscal year 2011 decreased $ 99.9 million , or 11.5 % , from 2010. as a result of the declines in revenues and higher expenses , primarily bad debt expense and goodwill impairment , pretax margin for the segment decreased to 26.4 % from 29.2 % in fiscal year 2010. fiscal 2010 compared to fiscal 2009  tax services ' revenues decreased $ 156.8 million , or 5.0 % , compared to fiscal year 2009. tax preparation fees decreased $ 162.8 million , or 7.6 % , due to a 10.3 % decrease in u.s. retail tax returns prepared in company-owned offices , partially offset by a 0.6 % increase in the net average fee per u.s. retail tax return . adjusting for the effect of company-owned offices sold to franchisees during fiscal year 2010 , the decline in tax returns prepared in company-owned offices was 6.7 % from fiscal 2009 to 2010. the 6.7 % decrease in u.s. retail tax returns prepared in company-owned offices is primarily due to the following factors : § tax returns filed with the irs declined 1.7 % . § lower employment levels disproportionately impacted our key client segments . fourth quarter 2009 unemployment levels ranged from 15-30 % , far in excess of national unemployment levels for key client segments . § we closed certain under-performing offices and exited offices serving clients in wal-mart locations . we believe that tax returns prepared declined by approximately 1 % ( net of client retention through other office locations ) as a result of these office closures . royalties increased $ 20.0 million , or 7.8 % , due to the conversion of 267 company-owned offices into franchises , partially offset by a decline in tax returns prepared in existing franchise offices . interest income on eas decreased $ 13.1 million , or 14.4 % . this decline was primarily a result of lower loan volumes due to these lines of credit only being offered to prior year tax clients in fiscal year 2010 , while being offered to both prior and new clients in fiscal year 2009. total expenses decreased $ 97.1 million , or 4.4 % , compared to fiscal year 2009. total compensation and benefits decreased $ 41.1 million , or 3.9 % , primarily as a result of lower commission-based wages due to the decline in the number of tax returns prepared . bad debt expense decreased $ 7.3 million , or 6.5 % , primarily as a result of lower ea and ral volumes , and more restrictive underwriting criteria . depreciation and amortization expenses increased $ 13.9 million , or 17.5 % , primarily as a result of amortization of intangible assets , related to the november 2008 acquisition of our last major independent franchise operator . other expenses decreased $ 31.4 million , or 10.7 % , primarily as a result of lower legal expenses . story_separator_special_tag 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 . 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 combination of reviewing repurchase demands and actual defaults and loss severities , inquiries from various third-parties , the terms and provisions of related agreements and the historical rate of repurchase and indemnification obligations related to breaches of representations and warranties . scc 's methodology for calculating this liability considers the likelihood that individual counterparties will assert future claims . scc recorded a liability for estimated contingent losses related to representation and warranty claims of $ 126.3 million as of april 30 , 2011. actual losses charged against this reserve during fiscal year 2011 totaled $ 61.9 million , which included payments totaling $ 49.8 million 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 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 $ 16 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 . although net losses on settled claims since may 1 , 2008 have been within initial loss estimates , 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 . see item 8 , note 18 to our consolidated financial statements . litigation  it is our policy to routinely assess the likelihood of any adverse judgments or outcomes related to legal matters , as well as ranges of probable losses . a determination of the amount of the reserves required , if any , 24 h & r block 2011 form 10k for these contingencies is made after analysis of each known issue and an analysis of historical experience . therefore , we have recorded reserves related to certain legal matters for which we believe it is probable that a loss will be incurred and the range of such loss can be estimated . with respect to other matters , we have concluded that a loss is only reasonably possible or remote , or is not estimable and , therefore , no liability is recorded . assessing the likely outcome of pending litigation , including the amount of potential loss , if any , is highly subjective . our judgments regarding likelihood of loss and our estimates of probable loss amounts may differ from actual results due to difficulties in predicting the outcome of jury trials , arbitration hearings , settlement discussions and related activity , predicting the outcome of class certification actions and various other uncertainties . due to the number of claims which are periodically asserted against us , and the magnitude of damages sought in those claims , actual losses in the future may significantly exceed our current estimates . see item 8 , note 19 to our consolidated financial statements . valuation of goodwill  the evaluation of goodwill for impairment is a critical accounting estimate due both to the magnitude of our goodwill balances , and the judgment involved in determining the fair value of our reporting units . goodwill balances totaled $ 846.2 million as of april 30 , 2011 and $ 840.4 million as of april 30 , 2010. 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 . our goodwill impairment analysis is based on a discounted cash flow approach and market comparables . this analysis , at the reporting unit level , requires significant management judgment with respect to revenue and expense forecasts , anticipated changes in working capital and the selection and application of an appropriate discount rate . changes in projections or assumptions could materially affect our estimate of reporting unit fair values . the use of different assumptions would increase or decrease estimated discounted

cash from operating activities  cash provided by operations , which consists primarily of cash received from customers , decreased $ 75.0 million from fiscal year 2010. cash payments for representation and warranty obligations of our discontinued mortgage business totaled $ 61.9 million in fiscal year 2011 , compared to $ 18.4 million in fiscal year 2010 and $ 36.5 million in fiscal year 2009. restricted cash . we hold certain cash balances that are restricted as to use . cash and cash equivalents  restricted totaled $ 48.4 million at april 30 , 2011 , and primarily consisted of cash held by our captive insurance subsidiary that will be used to pay claims . cash from investing activities  changes in cash provided by investing activities primarily relate to the following : purchases of available-for-sale securities . during fiscal year 2011 , hrb bank purchased $ 138.8 million in mortgage-backed securities for regulatory purposes . see additional discussion in item 8 , note 4 to the consolidated financial statements . mortgage loans held for investment . we received net proceeds of $ 58.5 million , $ 72.8 million and $ 91.3 million on our mortgage loans held for investment in fiscal years 2011 , 2010 and 2009 , respectively . purchases of property and equipment . total cash paid for property and equipment was $ 63.0 million , $ 90.5 million and $ 97.9 million for fiscal years 2011 , 2010 and 2009 , respectively . business acquisitions . total cash paid for acquisitions was $ 54.2 million , $ 10.5 million and $ 293.8 million during fiscal years 2011 , 2010 and 2009 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash from operating activities  cash provided by operations , which consists primarily of cash received from customers , decreased $ 75.0 million from fiscal year 2010. cash payments for representation and warranty obligations of our discontinued mortgage business totaled $ 61.9 million in fiscal year 2011 , compared to $ 18.4 million in fiscal year 2010 and $ 36.5 million in fiscal year 2009. restricted cash . we hold certain cash balances that are restricted as to use . cash and cash equivalents  restricted totaled $ 48.4 million at april 30 , 2011 , and primarily consisted of cash held by our captive insurance subsidiary that will be used to pay claims . cash from investing activities  changes in cash provided by investing activities primarily relate to the following : purchases of available-for-sale securities . during fiscal year 2011 , hrb bank purchased $ 138.8 million in mortgage-backed securities for regulatory purposes . see additional discussion in item 8 , note 4 to the consolidated financial statements . mortgage loans held for investment . we received net proceeds of $ 58.5 million , $ 72.8 million and $ 91.3 million on our mortgage loans held for investment in fiscal years 2011 , 2010 and 2009 , respectively . purchases of property and equipment . total cash paid for property and equipment was $ 63.0 million , $ 90.5 million and $ 97.9 million for fiscal years 2011 , 2010 and 2009 , respectively . business acquisitions . total cash paid for acquisitions was $ 54.2 million , $ 10.5 million and $ 293.8 million during fiscal years 2011 , 2010 and 2009 , respectively .
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 Suspicious Activity Report : fiscal year 2012 . ( 2 ) calculated as net tax preparation fees divided by retail tax returns prepared . replace_table_token_0_th h & r block 2011 form 10k 19 fiscal 2011 compared to fiscal 2010  tax services ' revenues decreased $ 62.9 million , or 2.1 % , compared to the prior year . tax preparation fees decreased $ 77.1 million , or 3.9 % , due primarily to the sale of company-owned offices to franchisees and the loss of certain clients as a result of not having a ral offering in our tax offices this year . although we believe we gained clients through the free federal ez filing we began offering this year , that increase did not have a significant impact on our revenues . royalties increased $ 28.6 million , or 10.4 % , primarily due to the conversion of 280 company-owned offices into franchises . fees earned on racs increased $ 94.1 million , or 107.5 % , primarily due to an increase in the number of racs issued as a portion of our clients chose to receive their refunds via rac , as an alternative to a ral . rals were historically offered to our clients by hsbc . in december 2010 , hsbc terminated its contract with us based on restrictions placed on hsbc by its regulator and , therefore , rals were not offered this tax season . current year revenues of $ 17.2 million include the recognition of net deferred fees from hsbc . this compares with revenues resulting from loans participations and related fees in the prior year of $ 146.2 million . interest income earned on eas increased $ 16.4 million , or 21.1 % , over the prior year primarily due to an increase in loan volume , which resulted from offering the product to a wider client base . other revenue increased $ 14.9 million , or 6.9 % , primarily due to an increase in online revenues . total expenses increased $ 37.0 million , or 1.8 % , compared to the prior year . compensation and benefits decreased $ 12.7 million , or 1.3 % , primarily due to lower commission-based wages due to conversions to franchise offices , reduced headcount and related payroll taxes . this decline was partially offset by severance costs and related payroll taxes of $ 27.4 million . occupancy costs declined $ 25.6 million , or 6.2 % , due to office closures and cost-saving initiatives . bad debt expense increased $ 34.3 million , or 32.8 % , primarily due to increased volumes on eas , as well as a decline in tax returns prepared for those clients . during the current year , we recorded a $ 22.7 million impairment of goodwill in our redgear reporting unit , as discussed in item 8 , note 9 to the consolidated financial statements . other expenses increased $ 15.7 million , or 6.0 % , primarily due to incremental litigation expenses recorded in the current year . pretax income for fiscal year 2011 decreased $ 99.9 million , or 11.5 % , from 2010. as a result of the declines in revenues and higher expenses , primarily bad debt expense and goodwill impairment , pretax margin for the segment decreased to 26.4 % from 29.2 % in fiscal year 2010. fiscal 2010 compared to fiscal 2009  tax services ' revenues decreased $ 156.8 million , or 5.0 % , compared to fiscal year 2009. tax preparation fees decreased $ 162.8 million , or 7.6 % , due to a 10.3 % decrease in u.s. retail tax returns prepared in company-owned offices , partially offset by a 0.6 % increase in the net average fee per u.s. retail tax return . adjusting for the effect of company-owned offices sold to franchisees during fiscal year 2010 , the decline in tax returns prepared in company-owned offices was 6.7 % from fiscal 2009 to 2010. the 6.7 % decrease in u.s. retail tax returns prepared in company-owned offices is primarily due to the following factors : § tax returns filed with the irs declined 1.7 % . § lower employment levels disproportionately impacted our key client segments . fourth quarter 2009 unemployment levels ranged from 15-30 % , far in excess of national unemployment levels for key client segments . § we closed certain under-performing offices and exited offices serving clients in wal-mart locations . we believe that tax returns prepared declined by approximately 1 % ( net of client retention through other office locations ) as a result of these office closures . royalties increased $ 20.0 million , or 7.8 % , due to the conversion of 267 company-owned offices into franchises , partially offset by a decline in tax returns prepared in existing franchise offices . interest income on eas decreased $ 13.1 million , or 14.4 % . this decline was primarily a result of lower loan volumes due to these lines of credit only being offered to prior year tax clients in fiscal year 2010 , while being offered to both prior and new clients in fiscal year 2009. total expenses decreased $ 97.1 million , or 4.4 % , compared to fiscal year 2009. total compensation and benefits decreased $ 41.1 million , or 3.9 % , primarily as a result of lower commission-based wages due to the decline in the number of tax returns prepared . bad debt expense decreased $ 7.3 million , or 6.5 % , primarily as a result of lower ea and ral volumes , and more restrictive underwriting criteria . depreciation and amortization expenses increased $ 13.9 million , or 17.5 % , primarily as a result of amortization of intangible assets , related to the november 2008 acquisition of our last major independent franchise operator . other expenses decreased $ 31.4 million , or 10.7 % , primarily as a result of lower legal expenses . story_separator_special_tag 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 . 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 combination of reviewing repurchase demands and actual defaults and loss severities , inquiries from various third-parties , the terms and provisions of related agreements and the historical rate of repurchase and indemnification obligations related to breaches of representations and warranties . scc 's methodology for calculating this liability considers the likelihood that individual counterparties will assert future claims . scc recorded a liability for estimated contingent losses related to representation and warranty claims of $ 126.3 million as of april 30 , 2011. actual losses charged against this reserve during fiscal year 2011 totaled $ 61.9 million , which included payments totaling $ 49.8 million 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 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 $ 16 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 . although net losses on settled claims since may 1 , 2008 have been within initial loss estimates , 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 . see item 8 , note 18 to our consolidated financial statements . litigation  it is our policy to routinely assess the likelihood of any adverse judgments or outcomes related to legal matters , as well as ranges of probable losses . a determination of the amount of the reserves required , if any , 24 h & r block 2011 form 10k for these contingencies is made after analysis of each known issue and an analysis of historical experience . therefore , we have recorded reserves related to certain legal matters for which we believe it is probable that a loss will be incurred and the range of such loss can be estimated . with respect to other matters , we have concluded that a loss is only reasonably possible or remote , or is not estimable and , therefore , no liability is recorded . assessing the likely outcome of pending litigation , including the amount of potential loss , if any , is highly subjective . our judgments regarding likelihood of loss and our estimates of probable loss amounts may differ from actual results due to difficulties in predicting the outcome of jury trials , arbitration hearings , settlement discussions and related activity , predicting the outcome of class certification actions and various other uncertainties . due to the number of claims which are periodically asserted against us , and the magnitude of damages sought in those claims , actual losses in the future may significantly exceed our current estimates . see item 8 , note 19 to our consolidated financial statements . valuation of goodwill  the evaluation of goodwill for impairment is a critical accounting estimate due both to the magnitude of our goodwill balances , and the judgment involved in determining the fair value of our reporting units . goodwill balances totaled $ 846.2 million as of april 30 , 2011 and $ 840.4 million as of april 30 , 2010. 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 . our goodwill impairment analysis is based on a discounted cash flow approach and market comparables . this analysis , at the reporting unit level , requires significant management judgment with respect to revenue and expense forecasts , anticipated changes in working capital and the selection and application of an appropriate discount rate . changes in projections or assumptions could materially affect our estimate of reporting unit fair values . the use of different assumptions would increase or decrease estimated discounted

