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CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
A summary of our obligations to make future payments as of April 30, 2007 is as follows:
(in 000s)
Less Than After
Total 1 Year1–3 Years 4–5Years 5Years
Commercial paper and other short-term borrowings $1,567,082 $1,567,082 $–$–$–
Customer deposits 1,129,263 1,052,409 613 279 75,962
Debt502,236 –104,000 –398,236
Media advertising purchase obligation 37,749 20,589 17,160 – –
Acquisition payments 13,964 8,907 4,148 818 91
Retirement obligation assumed 12,861 2,177 4,463 4,0372,184
Capital lease obligation 12,911 397 1,032 1,091 10,391
Operating leases 870,225 256,555 377,484 158,405 77,781
Total contractual cash obligations $4,146,291 $2,908,116 $508,900 $164,630 $564,645
Short-term borrowings are used to finance temporary liquidity needs As of April 30, 2007, we had $850.0 million remaining under our shelf
and various financial activities. Our short-term borrowings at April 30, registration for additional debt issuances.
2007 totaled $1.6 billion, and consisted of $1.0 billion in commercial On November 1, 2006 we entered into an agreement to purchase
paper, $500.0 million drawn on a new credit facility and $75.0 million in $57.2 million in media advertising between November 1, 2006 and
FHLB advances. June 30, 2009. During the current year, we purchased $19.4 million in
In April 2007, we obtained a $500.0 million credit facility to provide advertising for our retail tax business, leaving a remaining commitment
funding for the $500.0 million of 8
1
/
2
% Senior Notes which were due of $37.7 million at April 30, 2007.
April 16, 2007. This facility matures on December 20, 2007. In connection with our acquisition of the non-attest assets of M&P in
In October 2004, we issued $400.0 million of 5.125% Senior Notes, due August 1999, we assumed certain retirement liabilities related to M&P’s
2014. The Senior Notes are not redeemable by the bondholders prior to partners. We make payments in varying amounts on a monthly basis,
m42
maturity. The net proceeds of this transaction were used to repay the which are included in other noncurrent liabilities.
$250.0 million in 6
3
/
4
% Senior Notes, which were due November 1, 2004. Operating leases, although requiring future cash payments, are not
The remaining proceeds were used for working capital, capital included in our consolidated balance sheets.
expenditures, repayment of other debt and other general corporate
purposes.
A summary of our commitments as of April 30, 2007, which may or may not require future payments, expire as follows:
(in 000s)
Less Than After
Total 1 Year1- 3 Years 4- 5 Years 5Years
Commitments to fund mortgage loans $2,374,938 $2,374,938 $–$–$–
Franchise Equity Lines of Credit 79,628 25,553 31,316 22,489 270
Commitment to fund M&P 75,000 75,000 –––
Pledged securities 47,048 47,048 –––
Contingent acquisition payments 19,891 5,486 6,330 8,075 –
Other commercial commitments 5,653 1,724 3,447 482 –
Total commercial commitments $2,602,158 $2,529,749 $41,093 $ 31,046 $270
See discussion of commitments in Item 8, note 18 to our consolidated financial statements.
H&R BLOCK 2007 Form 10K