Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 5—Income Taxes (Continued) FIN 48 In the first quarter of 2008, the Company adopted FIN 48.
Upon adoption of FIN 48, the Company’s cumulative effect of a change in accounting principle resulted in an increase to retained earnings of $11 million.
The Company had historically classified interest and penalties and unrecognized tax benefits as current liabilities.
Beginning with the adoption of FIN 48, the Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated Balance Sheet.
The total amount of gross unrecognized tax benefits as of the date of adoption of FIN 48 was $475 million, of which $209 million, if recognized, would affect the Company’s effective tax rate.
As of September 27, 2008, the total amount of gross unrecognized tax benefits was $506 million, of which $253 million, if recognized, would affect the Company’s effective tax rate.
The Company’s total gross unrecognized tax benefits are classified as non-current liabilities in the Consolidated Balance Sheet.
The aggregate changes in the balance of gross unrecognized tax benefits, which excludes interest and penalties, for the fiscal year ended September 27, 2008, is as follows (in millions):
## Table 0 ##
The Company’s policy to include interest and penalties related to unrecognized tax benefits within the provision for income taxes did not change as a result of adopting FIN 48.
As of the date of adoption, the Company had accrued $203 million for the gross interest and penalties relating to unrecognized tax benefits.
As of September 27, 2008, the total amount of gross interest and penalties accrued was $219 million, which is classified as non-current liabilities in the Consolidated Balance Sheet.
In 2008, the Company recognized interest expense in connection with tax matters of $16 million.
The Company is subject to taxation and files income tax returns in the U. S.  federal jurisdiction and in many state and foreign jurisdictions.
For U. S.  federal income tax purposes, all years prior to 2002 are closed.
The years 2002-2003 have been examined by the Internal Revenue Service (the “IRS”) and disputed issues have been taken to administrative appeals.
The IRS is currently examining the 2004-2006 years.
In addition, the Company is also subject to audits by state, local, and foreign tax authorities.
In major states and major foreign jurisdictions, the years subsequent to 1988 and 2000, respectively, generally remain open and could be subject to examination by the taxing authorities.
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations.
However, the outcome of tax audits cannot be predicted with certainty.
If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.
Although timing of the resolution and/or closure of audits is highly uncertain, the Company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the next 12 months.
Detail of our mortgage loans held for investment and the related allowance at April 30, 2008 and 2007 is as follows:
## Table 1 ##
We recorded a provision for loan losses on our mortgage loans held for investment of $42.0 million during fiscal year 2008, compared to $3.6 million in 2007.
Our loan loss provision increased significantly during 2008 as a result of declining collateral values due to declining residential home prices and increasing delinquencies occurring in our portfolio.
Our loan loss reserve as a percent of mortgage loans was 4.49%, or $45.4 million, at April 30, 2008, compared to 0.25%, or $3.4 million, at April 30, 2007.
Other revenues increased $19.2 million, primarily due to increases in fees received in connection with the H&R Block Prepaid Emerald MasterCard?
program.
Non-interest expenses increased $22.8 million from the prior year, primarily due to additional expenses associated with the H&R Block Prepaid Emerald MasterCard?
program and the Emerald Advance lines of credit.
Pretax income for fiscal year 2008 was $11.5 million compared to prior year income of $23.1 million.
CORPORATE, ELIMINATIONS AND INCOME TAXES ON CONTINUING OPERATIONS FISCAL 2009 COMPARED TO FISCAL 2008 – The pretax loss recorded in our corporate operations for fiscal year 2009 was $136.0 million compared to $151.0 million in the prior year.
The decreased loss was primarily due to severance-related costs of $11.3 million recorded in the prior year, coupled with benefits in the current year resulting from the cost reduction program implemented in fiscal year 2008.
Our effective tax rate for continuing operations was 38.9% for fiscal year 2009 compared to 39.3% in the prior year.
FISCAL 2008 COMPARED TO FISCAL 2007 – The pretax loss recorded in our corporate operations for fiscal year 2008 was $151.0 million compared to $158.7 million in 2007.
The decreased loss was primarily due to a decline in interest expense, which resulted from increased allocation of interest expense to our discontinued mortgage operations.
Our effective tax rate for continuing operations was 39.3% for fiscal year 2008 compared to 41.1% in 2007.
The decrease was primarily due to decreases in our state effective rates and releases of valuation allowances.
DISCONTINUED OPERATIONS Effective November 1, 2008, we sold HRBFA to Ameriprise.
HRBFA and its direct corporate parent are presented as discontinued operations in the consolidated financial statements for all periods presented.
Our discontinued operations also include our former mortgage loan origination and servicing business, as well as three smaller lines of business previously reported in our Business Services segment.
FISCAL 2009 COMPARED TO FISCAL 2008 – The pretax loss of our discontinued operations for fiscal year 2009 was $47.6 million compared to a loss of $1.2 billion in the prior year.
The loss from discontinued operations for the prior year period included significant losses from our former mortgage loan businesses, including losses relating to loan repurchase obligations of $582.4 million and impairments of residual interests of $137.8 million.
Net of applicable tax benefits, the loss from discontinued operations for fiscal year 2009 was $27.4 million compared to a loss of $754.6 million in the prior year.
Our effective tax rate for discontinued operations was 42.5% and 35.3% for the fiscal years 2009 and 2008, respectively.
Our effective tax rate increased primarily due to a tax benefit recorded in conjunction with the sale of HRBFA.
FISCAL 2008 COMPARED TO FISCAL 2007 – The pretax loss of our discontinued operations for fiscal year 2008 was $1.2 billion, which was essentially flat compared to fiscal year 2007.
The loss from discontinued operations for both periods included significant losses from our former mortgage loans businesses.
NOTE 14: INTEREST INCOME AND INTEREST EXPENSE The following table shows the components of interest income and expense of our continuing operations.
Operating interest expense is included in cost of other revenues, and interest expense on acquisition debt is included in other income (expense), net on our consolidated statements of operations.
## Table 2 ##
NOTE 15: FAIR VALUE On May 1, 2008, we adopted Statement of Financial Accounting Standards No.157, “Fair Value Measurements” (SFAS 157).
SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure requirements for fair value measurements.
We elected to defer the application of SFAS 157 for nonfinancial assets and nonfinancial liabilities until fiscal year 2010, as provided for by FASB Staff Position FAS 157-2, “Effective Date of FASB Statement No.157” (FSP 157-2).
We adopted FASB Staff Position No.115-2 and 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (FSP 115-2), which provides guidance on determining other-than-temporary impairments for debt securities, as of April 30, 2009.
The adoption of these pronouncements did not have a material impact on our consolidated results of operations or financial position.
FAIR VALUE HIERARCHY – SFAS 157 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value into three broad levels, considering the relative reliability of the inputs, as follows:  Level 1 – Quoted prices in active markets for identical assets or liabilities.
An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
 Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.
 Level 3 – Valuation is modeled using significant inputs that are unobservable in the market.
These unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability.
ESTIMATION OF FAIR VALUE – The following is a description of the valuation methodologies used for assets and liabilities measured at fair value and the general classification of these instruments pursuant to the fair value hierarchy.
 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 and as such, would be classified as Level 1.
If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics, discounted cash flows or other pricing models.
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.
 Residual interests in securitizations – Determination of the fair value of residual interests in securitizations requires the use of unobservable inputs.
We value these securities using a discounted cash flow approach that incorporates expectations of prepayment speeds and expectations of delinquencies and losses.
Risk-adjusted discount rates are based on quotes from third-party sources.
These assets are classified as Level 3.
 Impaired mortgage loans held for investment – The fair value of impaired mortgage loans held for investment are generally based on the lower of (1) the amortized cost adjusted for charge-offs, net of allowance for loan losses, deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans

<table><tr><td>Balance as of September 30, 2007</td><td>$475</td></tr><tr><td>Increases related to tax positions taken during a prior period</td><td>27</td></tr><tr><td>Decreases related to tax positions taken during a prior period</td><td>-70</td></tr><tr><td>Increases related to tax positions taken during the current period</td><td>85</td></tr><tr><td>Decreases related to settlements with taxing authorities</td><td>—</td></tr><tr><td>Decreases related to expiration of statute of limitations</td><td>-11</td></tr><tr><td>Balance as of September 27, 2008</td><td>$506</td></tr></table>
<table><tr><td></td><td>Outstanding Principal Balance</td><td>Loan Loss Allowance</td><td>% 30-Days Past Due</td><td>Average FICO</td></tr><tr><td>As of April 30, 2008:</td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased from SCC</td><td>$683,889</td><td>$43,769</td><td>17.53%</td><td>664</td></tr><tr><td>All other</td><td>320,751</td><td>1,632</td><td>2.07%</td><td>721</td></tr><tr><td></td><td>$1,004,640</td><td>$45,401</td><td>11.71%</td><td>682</td></tr><tr><td>As of April 30, 2007:</td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased from SCC</td><td>$1,010,028</td><td>$3,341</td><td>4.70%</td><td>710</td></tr><tr><td>All other</td><td>340,864</td><td>107</td><td>0.50%</td><td>731</td></tr><tr><td></td><td>$1,350,892</td><td>$3,448</td><td>3.86%</td><td>719</td></tr></table>
<table><tr><td>Year Ended April 30,</td><td> 2009</td><td>2008</td><td>2007</td></tr><tr><td>Interest income:</td><td></td><td></td><td></td></tr><tr><td>Mortgage loans, net</td><td>$46,396</td><td>$74,895</td><td>$53,396</td></tr><tr><td>Emerald Advance lines of credit</td><td>91,019</td><td>45,339</td><td>–</td></tr><tr><td>Investment securities</td><td>4,896</td><td>12,143</td><td>8,174</td></tr><tr><td>Other</td><td>12,205</td><td>19,181</td><td>11,682</td></tr><tr><td></td><td>$154,516</td><td>$151,558</td><td>$73,252</td></tr><tr><td>Operating interest expense:</td><td></td><td></td><td></td></tr><tr><td>Borrowings</td><td>$83,193</td><td>$56,482</td><td>$43,378</td></tr><tr><td>Deposits</td><td>14,069</td><td>42,878</td><td>32,128</td></tr><tr><td>FHLB advances</td><td>5,113</td><td>6,008</td><td>836</td></tr><tr><td></td><td>102,375</td><td>105,368</td><td>76,342</td></tr><tr><td>Interest expense – acquisition debt</td><td>1,653</td><td>2,019</td><td>46,920</td></tr><tr><td>Total interest expense</td><td>$104,028</td><td>$107,387</td><td>$123,262</td></tr></table>

Question: In the year with largest amount of Purchased from SCC of Loan Loss Allowance in Table 1, what's the increasing rate of Investment securities in Table 2?
Answer: 0.48556