HR Block 2007 Annual Report Download - page 95

The components of intangible assets of continuing operations are as follows:
(in 000s)
April 30, 2007 2006
Gross Gross
Carrying Accumulated Carrying Accumulated
AmountAmortization Net AmountAmortization Net
Tax Services:
Customer relationships $39,347 $ (14,654) $24,693 $27,257 $ (10,842) $16,415
Noncompete agreements 21,237 (18,279) 2,958 18,879 (17,686) 1,193
Unpatented technology 12,500 –12,500 –––
Trade name 1,025 –1,025 –––
Business Services:
Customer relationships 142,315 (90,900) 51,415 144,093 (80,174) 63,919
Noncompete agreements 31,352 (15,524) 15,828 31,960 (14,148) 17,812
Trade name –amortizing 3,290 (2,430)860 4,050 (1,823) 2,227
Trade name –non-amortizing 55,637 (4,868) 50,769 55,637 (4,868) 50,769
Consumer Financial Services:
Customer relationships 293,000 (271,635) 21,365 293,000 (235,010) 57,990
$599,703 $(418,290) $181,413 $574,876 $(364,551) $210,325
Amortization of intangible assets of continuing operations for the years ended April 30, 2007, 2006 and 2005 was $56.6 million, $62.5 million and
$60.8 million, respectively. Estimated amortization of intangible assets for fiscal years 2008, 2009, 2010, 2011 and 2012 is $40.0 million, $16.7 million,
$14.1 million, $12.6 million and $9.8 million, respectively.
NOTE 8: COMMERCIAL PAPER AND OTHER SHORT-TERM BORROWINGS
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Short-term borrowings are used to finance temporary liquidity needs We entered into a $3.0 billion line of credit agreement with HSBC
and various financial activities. The components of short-term Finance Corporation effective January 2, 2007 through the earlier of
borrowings as of April 30, 2007 are as follows: June 30, 2007 or the date of repayment, for use as a funding source for
(dollars in 000s)
the purchase of RAL participations. This line was subject to various
OutstandingWeighted-Average covenants that were similar to our primary unsecured CLOCs, and was
Balance Interest Rate
secured by our RAL participations. All borrowings on this facility were
Commercial paper, due May 31, 2007 $992,082 5.47% repaid as of April 30, 2007 and the facility is now closed.
Credit facility, due December 20, 2007 500,000 5.67%
We entered into a $300.0 million committed line of credit agreement
FHLB advances, due May 7, 2007 75,000 5.31%
with BNP Paribas for the period January 2 through February 23, 2007 to
$1,567,082
cover our peak liquidity needs. This line was subject to various
covenants that were similar to those of our primary unsecured CLOCs.
At April 30, 2007, we maintained $2.0 billion in back-up credit This facility expired in February 2007.
facilities to support the commercial paper program and for general We maintain a revolving credit facility in an amount not to exceed
corporate purposes. These unsecured committed lines of credit $225.0 million (Canadian) in Canada to support a commercial paper
(CLOCs) have a maturity date of August 2010 and an annual facility fee program with varying borrowing levels throughout the year, reaching its
of eight and one-half basis points per annum. These lines are subject to peak during February and March for the Canadian tax season. There
various affirmative and negative covenants, including (1) a minimum was no balance outstanding on this facility at April 30, 2007.
net worth covenant and limits on our indebtedness and (2) a In April 2007, we obtained a $500.0 million credit facility to provide
requirement that we reduce the aggregate outstanding principal amount funding for the $500.0 million of 81/2% Senior Notes which were due
of short-term debt, as defined in the agreement, to $200.0 million or less April 16, 2007. This facility matures on December 20, 2007. The facility
for a minimum period of thirty consecutive days during the period from was fully drawn at closing and is subject to various covenants that are
March 1 to June 30 of each year (the ‘‘Cleandown Requirement’’). We similar to our primary CLOCs.
obtained a waiver of the Cleandown Requirement for 2007. There was
no balance outstanding on these lines at April 30, 2007.
H&R BLOCK 2007 Form 10K