agreements containing cross-default provisions.
Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations.
The mandatory convertible preferred stock underlying the depositary shares issued in connection with the financing of the Bard transaction may adversely affect the market price of BD common stock.
The market price of BD common stock is likely to be influenced by the mandatory convertible preferred stock underlying the depositary shares issued in connection with the financing for the Bard transaction.
The market price of BD common stock could become more volatile and could be depressed by: ?
investors’ anticipation of the potential resale in the market of a substantial number of additional shares of BD common stock received upon conversion of the mandatory convertible preferred stock; ?
possible sales of BD common stock by investors who view the mandatory convertible preferred stock as a more attractive means of equity participation in BD than owning shares of BD common stock; and ?
hedging or arbitrage trading activity that may develop involving the mandatory convertible preferred stock and BD common stock.
Item 1B.
Unresolved Staff Comments.
None.
Item 2.
Properties.
BD’s executive offices are located in Franklin Lakes, New Jersey.
As of October 31, 2018, BD owned or leased 380 facilities throughout the world, comprising approximately 24,658,363 square feet of manufacturing, warehousing, administrative and research facilities.
The U. S.  facilities, including those in Puerto Rico, comprise approximately 8,619,099 square feet of owned and 4,407,539 square feet of leased space.
The international facilities comprise approximately 8,484,223 square feet of owned and 3,147,502 square feet of leased space.
Sales offices and distribution centers included in the total square footage are also located throughout the world.
Operations in each of BD’s business segments are conducted at both U. S.  and international locations.
Particularly in the international marketplace, facilities often serve more than one business segment and are used for multiple purposes, such as administrative/sales, manufacturing and/or warehousing/distribution.
BD generally seeks to own its manufacturing facilities, although some are leased.
The following table summarizes property information by business segment.
## Table 0 ##
(a) Facilities used by more than one business segment.
BD believes that its facilities are of good construction and in good physical condition, are suitable and adequate for the operations conducted at those facilities, and are, with minor exceptions, fully utilized and operating at normal capacity.
The U. S.  facilities are located in Alabama, Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, D. C. , Washington, Wisconsin and Puerto Rico.
The following table summarizes the key metrics related to our loan servicing business:
## Table 1 ##
Loan servicing revenues increased $34.4 million, or 8.6%, compared to the prior year.
The increase reflects higher late fee income on delinquent loans.
This increase was partially offiset by a reduction in our average servicing potfolio, which decreased 11.2%, to $67.2 billion.
The annualized rate eamed on our entire servicing portfolio was 37 basis points for the current year, compared to 38 basis points in the prior year.
Total expenses for the fiscal year ended April 30, 2007 increased $326.4 million, or 33.3%, over the prior year.
Cost of services increased $28.5 million primarily as a result of higher amortization of MSRs, partially offset by reductions in compensation and occupancy expenses resulting from our mortgage restructuring activities.
Cost of other revenues decreased $149.1 million, primarily due to our ongoing restructuring plans.
As a result, compensation and benefits declined $116.7 million and other expenses declined $27.4 million.
In conjunction with our agreement to sell 0OMC, we recorded impairments during the fourth quarter of fiscal year 2007.
The purchase price will be calculated as the fair value of the adjusted tangible net assets of OOMC (as defined by the agreement) at closing less $300.0 million.
At April 30, 2007, we valued our assets and liabilities held for sale at estimated fair value at closing, less costs to sell, of $1.1 billion which resulted in an impairment charge of $345.8 million, including the full impairment of goodwill of $152.5 million.
Because conditions may change during the period prior to closing, the adjusted tangible net assets of the business at the closing date may be significantly different than the estimated value we have reported as of April 30, 2007.
Any changes could change the final impairment amount recorded at closing.
See discussion of additional conditions of the sale in Item 1A, under“Potential Sale Transaction.
Selling, general and administrative expenses increased $96.1 million due primarily to severestructuring plans, coupled with retention bonuses and higher consulting expenses.
See additional discussion of the restructuring charge in Item 8, note 20 to the consolidated financial stat ements.
The pretax loss for the year ended April 30, 2007 was $1.2 billion compared to income of $316.9 million in the prior year.
The loss from discontinued operations for fiscal year 2007 of $808.0 million is net of tax benefits of $425.0 million, and includes income tax benefits related to OOMC totaling $374.6 million.
Income taxes for discontinued operations also induded one-time benefits of $162 million related to permanent deductions for the tax basis of investments in two subsidiaries that were abandoned during the year.
Assets of discontinued operations held for sale includes deferred tax assets of $393.6 million, net of the related valuation allowance, and deferred tax liabilities of $94.0 million as of April 30, 2007.
In addition, we recorded a valuation allowance of $55.8 million, which primarily relates to deferred tax assets for capital losses and basis differences in certain state jurisdictions.
Deferred tax assets of $183.2 million relate to certain residual assets.
Although the tax position associated with these deferred tax assets is more likely than not of being sustained, there is a level of uncertainty associated with the amount of benefit.
We believe the net deferred tax asset at April 30, 2007 is, more likely than not, realizable.
rance costs in connection with our ongoing FISCAL 2006 COMPAREDI TO FISCAL 2005 - Revenues from discontinued operations increased $244 million, or 1.9%, over fiscal year 2005.
Revenues increased as a result of higher loan servicing revenues and gains on derivatives, partially offset by lower margins on mortgage loans sold and lower accretion.
Despite a 31.5% increase in loan origination volume, gains on sales of mortgage loans decreased $163.0 million, primarily as a result of moderating demand by loan buyers and rising two-year swap rates.
Market interest rates, based on the two-year swap, increased from an average of 3.32% last year to 4.63% in the current year.
However, our WAC increased only 51 basis points, up to 7.87% from 7.36% in the prior year.
Due to competitive market conditions, we were unable to align our WAC with increases in market rates.
Because of poor alignment of our WAC with market rates and increases in our funding costs, our loan sale premium declined 135 basis points, to 1.42% from 2.77% in the prior year.
In fiscal year 2006, we also increased our loss reserves above our normal loss accrual, primarily related to repurchase activity for loans sold related to early payment defaults, which reduced gains on sales of mortgage loans.
The initial value of MSRs recorded in fiscal year 2006 increased to 61 basis points from 44 basis points in the prior year, which resulted in an increase of $113.0 million in gains on sales of mortgage loans.
These increases were primarily due to higher origination volumes, average loan size and interest rates， coupled with updated valuation assumptions.
During fiscal year 2006 we updated our assumptions used to value our MSRs.
The assumptions were updated primarily to reflect
The following is an example of a hypothetical gain on sale note 20 to our consolidated financial statements under ‘‘Commitments calculation:
## Table 2 ##
Variations in the assumptions we use affect the estimated fair values and the reported net gains on sales.
Gains on sales of mortgage loans ■34 totaled $102.0 million and $648.7 million for fiscal years 2007 and 2006, respectively.
Our repurchase reserves relate to potential losses that could be incurred related to the repurchase of sold loans or indemnification of losses as a result of early payment defaults or breaches of other representations and warranties customary to the mortgage banking industry.
Loans are repurchased due to a combination of factors, including delinquency and other violations of representations and warranties.
In whole loan sale transactions, we guarantee the first payment to the purchaser.
If this payment is not collected, it is referred to as an early payment default.
For early payment default-related losses, the amount of losses we expect to incur depends primarily on the frequency of early payment defaults, the rate at which defaulted loans subsequently become current on payments ("cure rate"), the propensity of the buyer of the loans to demand recourse under the loan sale agreement and the severity of loss incurred on loans which have been repurchased.
The frequency of early payment defaults, cure rates and loss severity may vary depending on the creditworthiness of the borrower and economic factors such as home price appreciation and interest rates.
To the extent actual losses related to repurchase activity are different from our estimates, the fair value of our repurchase reserves will increase or decrease.
See Item 8, note 20 to our consolidated financial statements under“Commitments and Contingencies. "
During the year ended April 30, 2007, we experienced higher early payment defaults, resulting in an increase in actual and expected loan repurchase activity.
As a result, we recorded total loss provisions of $388.7 million during fiscal year 2007 compared to $73.6 million in the prior year.
Loss provisions recorded in the current year consist of $238.8 million recorded on loans sold during the current year and $149.9 million related to loans sold in the prior year.
At April 30, 2007, we assumed that substantially all loans that failed to make timely payments according to contractual early payment default provisions will be repurchased, and that approximately 5% of loans will be repurchased from sales that have not yet reached the contractual date upon which repurchases can be determined.
Based on historical experience and review of current early payment default, cure rate and loss severity trends, we assumed an average 20% loss severity for loans on which we hold a first lien position.
During fiscal year 2007, we increased our estimated loss severity for on-balance sheet loans from an average of 15% to 20%.
Based on our analysis as of April 30, 2007, we estimated our liability for repurchases to be $38.4 million.
The sensitivity of the repurchase reserve to 10% and 20% adverse changes in loss assumptions is $14.4 million and $28.8 million, respectively.
VALUATION OF RESIDUAL INTERESTS - We use discounted cash flow models to determine the estimated fair values of our residual interests.
We develop our assumptions for expected credit losses, prepayment speeds, discount rates and interest rates based on historical experience.
Variations in our assumptions could materially affect the estimated fair values, which may require us to record impairments or unrealized gains.
In addition, variations will also affect the amount of residual interest accretion recorded on a monthly basis.
We recorded $13.8 million in net write-downs in other comprehensive income and $168.9 million in impairments in the income statement related to these residual interests during fiscal year 2007 as actual performance differed from our assumptions.
See Item 8, note 1 to our consolidated financial statements for our methodology used in valuing residual interests.
Available-for.
-sale (AFS) residual interests valued at $903 million and $159.1 million were recorded as of April 30, 2007 and 2006, respectively.
Residual interests classified as trading securities totaled $72.7 million at April 30, 2007.
We had no trading residual interests at April 30, 2006.
See Item 8, note 20 to our consolidated financial statements for current assumptions and a sensitivity analysis of those assumptions.
See Item 7A for additional sensitivity analysis related to interest rates.
VALUATION OF MORTGAGE SERVICING RIGHTS - MSRs are recorded when we sell loans to third parties with the servicing of those loans retained.
At the time of the loan sale, we determine and record on our balance sheet the allocated historical cost of the MSRs attributable to loans sold, as illustrated above.
These MSRs are amortized over the
underlying the residual interests and MSRs, thereby generally reducing their fair value.
The fair value of MsRs generally increases in a rising rate environment, although MSRs are recorded at the lower of cost or market value.
Reductions in the fair value of these assets impact earnings through impairment charges based on individual risk stratas.
See Item 7， " Critical Accounting Policies" and Item 8， note 20 to our consolidated financial statements for further sensitivity analysis of other msr valuation assumptions The sensitivities of certain financial instruments to changes in interest rates as of April 30, 2007 and 2006 are presented below.
The following table represents hypothetical instantaneous and sustained parallel shifts in interest rates and should not be relied on as an indicator of future expected results.
## Table 3 ##
Carrying Value at April 30, 2006
## Table 4 ##
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA DISCUSSION OF FINAN CIAL RESPONSIBILITY We at H&R Block are guided by our core values of client focus, integrity, excellence, respect and teamwork.
These values govern the manner in which we serve clients and each other.
and are embedded in the execution and delivery of our responsibilities to our shareholders.
H&R Blocks Management is responsible for the integrity and objectivity of the information contained in this document Management is responsible for the consistency of reporting this information and for ensuring that accounting principles generally accepted in the United States are used In discharging this responsibility, Management maintains an extensive program of internal audits and requires the management teams of our individual subsidiaries to certify their respective financial infomation.
Our system of internal control over financial reporting also includes formal policies and procedures, including a Code of Business Ethics and Conduct program designed to encourage and assist all employees and directors in living up to high standards of integrity The Audit Committee of the Board of Directors, composed solely of outside and independent directors, meets periodically wit management, the independent auditors and the chief internal auditor to review matters relating to our financial statements, internal audit activities, internal accounting controls and non-audit services provided by the independent auditors.
The independent auditors and the chief internal auditor have full access to the audit committee and meet, both with and without management present, to discuss the scope and results of their audits, including internal control, audit and financial matters KPMG LLP audited our consolidated financial statements.
Their audits were conducted in accordance with the standards of the public Company Accounting Oversight Board （United States）。
adoption of SFAS 123R, awards granted to employees who are of retirement age, or reach retirement age at least one year after the grant date but prior to the end of the service period of the award, are expensed over the shorter of the two periods.
Options are granted at a price equal to the fair market value of our common stock on the grant date and have a contractual term of ten years.
Our 1999 Stock Option Plan for Seasonal Employees provides for awards of nonqualifed options to certain employees.
These awards are granted to seasonal employees in our Tax Services segment and entitle the holder to the right to purchase shares of common stock as the award vests, typically over a two-year period.
We measure the fair value of options on the grant date using the Black Scholes option valuation model We expense the grant-date fair value， net of estimated forfeitures, over the service period.
Options are granted at a price equal to the fair market value of our common stock on the grant date, are exercisable during September through November in each of the two years following the calendar year of the grant and have a contractual term of 29 months.
Our 1989 Stock Option Plan for Outside Directors provides for awards of nonqualified options to outside directors.
These awards entitle the A summary of options for the year ended April 30, 2007 is as follows: holder to the right to purchase shares of common stock.
We measure the fair value of options on the grant date using the Black Scholes option valuation modeL These aw ards vest immediately upon issuance and are therefore fully expensed on the grant date.
Options are granted at a price equal to the fair market value of our common stock on the grant date and have a contractual term of ten years.
Our 2000 Employee Stock Purchase Plan (ESPP) provides employees the option to purchase shares of our Common Stock through payroll deductions.
The purchase price of the stock is 90% of the lower of either the fair market value of our Common Stock on the first trading day within the Option Period or on the last trading day of the Option Period.
The Option Periods are six-month periods beginning on January 1 and July 1 each year.
We measure the fair value of options on the grant date utilizing the Black Scholes option valuation model in accordance with FASB Technical Bulletin 97-1, “Accounting under Statement 123 for Certain Employee Stock Purchase Plans with a Look-Back Option. "
The fair value of the option incudes the value of the 10% discount and the look-back feature.
We expense the grant-date fair value over the six- month vesting period.

<table><tr><td>Sites</td><td>Corporate</td><td>BD Life Sciences</td><td>BD Medical</td><td>BD Interventional</td><td>Mixed(a)</td><td>Total</td></tr><tr><td>Leased</td><td>20</td><td>21</td><td>81</td><td>86</td><td>83</td><td>291</td></tr><tr><td>Owned</td><td>6</td><td>23</td><td>31</td><td>23</td><td>6</td><td>89</td></tr><tr><td>Total</td><td>26</td><td>44</td><td>112</td><td>109</td><td>89</td><td>380</td></tr><tr><td>Square feet</td><td>2,281,986</td><td>3,958,668</td><td>10,946,766</td><td>4,651,903</td><td>2,819,040</td><td>24,658,363</td></tr></table>
<table><tr><td></td><td colspan="2">(dollars in 000s)</td></tr><tr><td>Year Ended April 30,</td><td>2007</td><td>2006</td></tr><tr><td>Average servicing portfolio:</td><td></td><td></td></tr><tr><td>With related MSRs</td><td>$63,870,378</td><td>$56,521,595</td></tr><tr><td>Without related MSRs</td><td>3,314,538</td><td>19,106,863</td></tr><tr><td></td><td>$67,184,916</td><td>$75,628,458</td></tr><tr><td>Ending servicing portfolio:</td><td></td><td></td></tr><tr><td>With related MSRs</td><td>$63,927,976</td><td>$62,910,568</td></tr><tr><td>Without related MSRs</td><td>3,069,073</td><td>10,471,509</td></tr><tr><td></td><td>$66,997,049</td><td>$73,382,077</td></tr><tr><td>Number of loans serviced</td><td>384,156</td><td>441,981</td></tr><tr><td>Average delinquency rate</td><td>9.77%</td><td>5.16%</td></tr><tr><td>Weighted average FICO score</td><td>621</td><td>621</td></tr><tr><td>WAC of portfolio</td><td>8.08%</td><td>7.58%</td></tr><tr><td>Carrying value of MSRs</td><td>253,067</td><td>272,472</td></tr></table>
<table><tr><td></td><td colspan="2">(in 000s)</td></tr><tr><td>Acquisition cost of underlying mortgage loans</td><td></td><td>$1,000,000</td></tr><tr><td>Fair values:</td><td></td><td></td></tr><tr><td>Net proceeds:</td><td></td><td></td></tr><tr><td>Cash received</td><td>$999,000</td><td></td></tr><tr><td>Less repurchase reserves</td><td>-4,000</td><td>$995,000</td></tr><tr><td>Beneficial interest in Trusts</td><td></td><td>20,000</td></tr><tr><td>MSRs</td><td></td><td>7,000</td></tr><tr><td></td><td></td><td>$1,022,000</td></tr><tr><td>Computation of gain on sale:</td><td></td><td></td></tr><tr><td>Net proceeds</td><td></td><td>$995,000</td></tr><tr><td>Less allocated cost ($995,000 / $1,022,000 x $1,000,000)</td><td></td><td>973,581</td></tr><tr><td>Recorded gain on sale</td><td></td><td>$21,419</td></tr><tr><td>Recorded beneficial interest in Trusts($20,000 / $1,022,000 x $1,000,000)</td><td></td><td>$19,570</td></tr><tr><td>Recorded value of MSRs ($7,000 / $1,022,000 x $1,000,000)</td><td></td><td>$6,849</td></tr><tr><td>Recorded liability for repurchase reserves</td><td></td><td>$4,000</td></tr></table>
<table><tr><td></td><td>Carrying Value at</td><td colspan="6">Basis Point Change</td></tr><tr><td></td><td>April 30, 2007</td><td>-300</td><td>-200</td><td>-100</td><td>+100</td><td>+200</td><td>+300</td></tr><tr><td>Mortgage loans held for investment</td><td>$1,358,222</td><td>$39,634</td><td>$32,444</td><td>$22,129</td><td>$-29,013</td><td>$-60,262</td><td>$-98,526</td></tr><tr><td>Mortgage loans held for sale</td><td>222,810</td><td>13,414</td><td>8,883</td><td>4,399</td><td>-4,277</td><td>-8,207</td><td>-10,977</td></tr><tr><td>Residual interests in securitizations – AFS</td><td>90,283</td><td>4,460</td><td>434</td><td>-516</td><td>1,488</td><td>2,248</td><td>681</td></tr><tr><td>Residual interests in securitizations – trading</td><td>72,691</td><td>-5,572</td><td>-3,697</td><td>-1,759</td><td>1,277</td><td>1,865</td><td>1,676</td></tr><tr><td>Beneficial interest in Trusts – trading</td><td>41,057</td><td>61,977</td><td>39,922</td><td>18,411</td><td>-16,898</td><td>-32,325</td><td>-49,512</td></tr><tr><td>Mortgage-backed securities</td><td>35,084</td><td>-45</td><td>-62</td><td>-35</td><td>-5</td><td>-829</td><td>-2,303</td></tr><tr><td>Fixed-income – trading (net)</td><td>10,924</td><td>3,003</td><td>1,763</td><td>871</td><td>-805</td><td>-1,522</td><td>-2,129</td></tr><tr><td>Interest rate swaps</td><td>10,774</td><td>-169,120</td><td>-111,369</td><td>-55,007</td><td>53,688</td><td>106,090</td><td>157,240</td></tr><tr><td>Investments at captive insurance subsidiary</td><td>9,568</td><td>1,328</td><td>859</td><td>417</td><td>-394</td><td>-766</td><td>-1,118</td></tr><tr><td>Put options on Eurodollar futures</td><td>1,212</td><td>-1,212</td><td>-1,211</td><td>-1,136</td><td>5,015</td><td>13,283</td><td>21,989</td></tr></table>
<table><tr><td></td><td>Carrying Value at</td><td colspan="6">Basis Point Change</td></tr><tr><td></td><td>April 30, 2006</td><td>-300</td><td>-200</td><td>-100</td><td>+100</td><td>+200</td><td>+300</td></tr><tr><td>Mortgage loans held for investment</td><td>$407,538</td><td>$16,285</td><td>$10,885</td><td>$5,485</td><td>$-5,301</td><td>$-9,592</td><td>$-15,020</td></tr><tr><td>Mortgage loans held for sale</td><td>236,399</td><td>9,253</td><td>6,113</td><td>3,057</td><td>-3,146</td><td>-6,356</td><td>-8,866</td></tr><tr><td>Beneficial interest in Trusts – trading</td><td>188,014</td><td>298,013</td><td>199,029</td><td>100,039</td><td>-103,365</td><td>-189,389</td><td>-270,970</td></tr><tr><td>Residual interests in securitizations – AFS</td><td>159,058</td><td>32,692</td><td>13,543</td><td>4,795</td><td>-8,798</td><td>-17,931</td><td>-21,232</td></tr><tr><td>Fixed-income – trading (net)</td><td>15,609</td><td>4,323</td><td>2,617</td><td>1,174</td><td>-1,359</td><td>-2,368</td><td>-3,274</td></tr><tr><td>Interest rate swaps</td><td>8,831</td><td>-523,639</td><td>-344,606</td><td>-170,090</td><td>165,791</td><td>327,397</td><td>484,929</td></tr><tr><td>Investments at captive insurance subsidiary</td><td>8,508</td><td>1,260</td><td>814</td><td>395</td><td>-372</td><td>-723</td><td>-1,054</td></tr><tr><td>Put options on Eurodollar futures</td><td>3,282</td><td>-3,282</td><td>-3,273</td><td>-2,935</td><td>12,389</td><td>28,256</td><td>44,673</td></tr><tr><td>Forward loan sale commitments</td><td>1,961</td><td>-158,345</td><td>-105,563</td><td>-52,782</td><td>52,782</td><td>105,563</td><td>158,345</td></tr></table>

Question: What is the sum of Mortgage loans held for sale of Basis Point Change.2, and Residual interests in securitizations – AFS of Basis Point Change.4 ?
Answer: 22330