HR Block 2009 Annual Report Download - page 60

Accrued but unpaid interest on deposits totaled $0.2 million and $0.1 million at April 30, 2009 and 2008,
respectively.
Time deposit accounts totaling $6.9 million were in excess of Federal Deposit Insurance Corporation (FDIC)
insured limits at April 30, 2009, and mature as follows:
(in 000s)
Three months or less $ 1,019
Three to six months 1,760
Six to twelve months 1,719
Over twelve months 2,448
$ 6,946
NOTE 9: LONG-TERM DEBT
The components of long-term debt are as follows:
April 30, 2009 2008
(in 000s)
Senior Notes, 7.875%, due January 2013 $ 599,539 $ 599,414
Senior Notes, 5.125%, due October 2014 398,706 398,471
Acquisition obligations, due from May 2009 to May 2015 30,658 28,398
Capital lease obligations 12,001 12,514
Other obligations – 273
1,040,904 1,039,070
Less: Current portion (8,782) (7,286)
$ 1,032,122 $ 1,031,784
At April 30, 2009, we maintained $2.0 billion in revolving credit facilities to support commercial paper issuance
and for general corporate purposes. These unsecured committed lines of credit (CLOCs), and any outstanding
borrowings thereunder, have a maturity date of August 2010, bear interest in a range of LIBOR plus 14 to 45 basis
points per annum and an annual facility fee in a range of 6 to 15 basis points per annum, based on our credit ratings.
These lines are subject to various affirmative and negative covenants, including (1) a minimum net worth covenant
requiring us to maintain at least $650.0 million of net worth on the last day of any fiscal quarter, (2) limits on our
indebtedness and (3) a requirement that we reduce the aggregate outstanding principal amount of short-term debt,
as defined in the agreement, to $200.0 million or less for a minimum period of thirty consecutive days during the
period from March 1 to June 30 of each year (the “Clean-down requirement”). At April 30, 2009, we were in
compliance with these covenants and had net worth of $1.4 billion. We had no balance outstanding under the
CLOCs at April 30, 2009 or 2008.
Lehman Brothers Bank, FSB (Lehman) is a participating lender in our $2.0 billion CLOCs, with a $50.0 million
credit commitment. In September 2008, Lehman’s parent company declared bankruptcy. Since then, Lehman has
not honored any funding requests under these facilities, thereby effectively reducing our available liquidity under
our CLOCs to $1.95 billion. We do not expect this change to have a material impact on our liquidity or consolidated
financial statements.
On January 11, 2008, we issued $600.0 million of 7.875% Senior Notes under our shelf registration. The Senior
Notes are due January 15, 2013 and are not redeemable by the bondholders prior to maturity. The net proceeds of
this transaction were used to repay a $500.0 million facility, with the remaining proceeds used for working capital
and general corporate purposes. As of April 30, 2009, we had $250.0 million remaining under our shelf registration
for additional debt issuances.
On October 26, 2004, we issued $400.0 million of 5.125% Senior Notes under a shelf registration statement. The
Senior Notes are due October 30, 2014 and are not redeemable by the bondholders prior to maturity. The net
proceeds of this transaction were used to repay $250.0 million in 6
3
⁄ 4 % Senior Notes that were due in November
2004. The remaining proceeds were used for working capital, capital expenditures, repayment of other debt and
other general corporate purposes.
We had obligations related to various acquisitions of $30.7 million and $28.4 million at April 30, 2009 and 2008,
respectively, which are due from May 2009 to May 2015.
We have a capitalized lease obligation of $12.0 million at April 30, 2009, that is collateralized by land and
buildings. The obligation is due in 12 years.
We entered into a committed line of credit agreement with HSBC Finance Corporation effective January 14, 2009
for use as a funding source for the purchase of RAL participations. This line provided funding totaling $2.5 billion
56 H&R BLOCK 2009 Form 10K