HR Block 2007 Annual Report Download - page 40

EMPLOYEES –
We have approximately 15,000 regular full-time employees. The highest
number of persons we employed during the fiscal year ended April 30,
2007, including seasonal employees, was approximately 136,600.
AVAILABILITY OF REPORTS AND OTHER INFORMATION –
Our annual report on Form 10-K, quarterly reports on Form 10-Q, Incorporation of H&R Block, Inc., (2) The Amended and Restated
current reports on Form 8-K, and all amendments to those reports filed Bylaws of H&R Block, Inc., (3) The H&R Block, Inc. Corporate
with or furnished to the SEC are available, free of charge, through our Governance Guidelines, (4) the H&R Block, Inc. Code of Business
website at www.hrblock.com as soon as reasonably practicable after Ethics and Conduct, (5) the H&R Block, Inc. Audit Committee Charter,
such reports are electronically filed with or furnished to the SEC. The (6) the H&R Block, Inc. Governance and Nominating Committee
public may read and copy any materials we file with the SEC at the Charter, and (7) the H&R Block, Inc. Compensation Committee Charter.
SEC’s Public Reference Room at 100 F Street, NE, Washington, DC If you would like a printed copy of any of these corporate governance
20549. The public may obtain information on the operation of the Public documents, please send your request to the Office of the Secretary,
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC H&R Block, Inc., One H&R Block Way, Kansas City, Missouri 64105.
maintains a website at ww.sec.gov that contains reports, proxy and Information contained on our website does not constitute any part of
information statements and other information regarding issuers that file this report.
electronically with the SEC.
Copies of the following corporate governance documents are posted
on our website: (1) The Amended and Restated Articles of
ITEM 1A. RISK FACTORS
In this report, and from time to time throughout the year, we share our attention from federal and state governments. The IRS generally
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expectations for the Company’s future performance. The following prohibits the use or disclosure by tax return preparers of taxpayers’
explains the critical risk factors impacting our business and reasons information without the prior written consent of the taxpayer. In
actual results may differ from our expectations. This discussion does addition, other regulations require financial service providers to adopt
not intend to be a comprehensive list and there may be other risks and and disclose consumer privacy policies and provide consumers with a
factors that may have an effect on our business. reasonable opportunity to opt-out of having personal information
LIQUIDITY AND CAPITAL –We use capital primarily to fund working disclosed to unaffiliated third parties for marketing purposes. Although
capital requirements, pay dividends, repurchase shares of our common we have established security procedures to protect against identity
stock and acquire businesses. We are also dependent on commercial theft, breaches of our clients’ privacy may occur. To the extent the
paper issuances and/or lines of credit to fund RAL participations and measures we have taken prove to be insufficient or inadequate, we may
seasonal working capital needs. A disruption in such markets could become subject to litigation or administrative sanctions, which could
adversely affect our access to these funds. To meet our future financing result in significant fines, penalties or damages and harm to our brand
needs, we may issue additional debt or equity securities. and reputation.
LITIGATION –We are involved in lawsuits in the normal course of our In addition, changes in these federal and state regulatory
business related to RALs, our POM guarantee program, electronic filing requirements could result in more stringent requirements and could
of tax returns, Express IRAs, losses incurred by customers in their result in a need to change business practices, including how information
investment accounts, mortgage lending activities, business valuation is disclosed. These changes could have a material adverse effect on our
services and other matters. Adverse outcomes related to litigation could business, financial condition and results of operations, and our ability to
result in substantial damages and could adversely affect our results of access the capital markets.
operations. Negative public opinion can also result from our actual or INTERNAL CONTROL CERTIFICATION –We have documented and
alleged conduct in such claims, possibly damaging our reputation and tested our internal control procedures in accordance with various SEC
adversely affecting the market price of our stock. See Item 3, ‘‘Legal rules governing Section 404 of the Sarbanes-Oxley Act (SOX 404).
Proceedings’’ for additional information. SOX 404 requires us to assess the effectiveness of our internal controls
PRIVACYOF CLIENT INFORMATION –Privacy concerns relating toover financial reporting annually, and obtain an opinion on the
the disclosure of consumer financial information have drawn increased effectiveness of our internal controls from our Independent Registered
H&R BLOCK 2007 Form 10K