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NOTE 10: CUSTOMER BANKING DEPOSITS
The components of customer banking deposits at April 30, 2011 and 2010 and the related interest expense recorded
during the periods are as follows:
Outstanding
Balance
Interest
Expense
Outstanding
Balance
Interest
Expense
April 30, 2011 2010
(in 000s)
Short-term:
Money-market deposits $ 164,734 $ 2,168 $ 195,220 $ 1,871
Savings deposits 11,030 107 12,460 128
Checking deposits:
Interest-bearing 6,947 94 24,190 83
Non-interest-bearing 279,296 – 200,096 –
286,243 94 224,286 83
IRAs and other time deposits:
Due in one year 49,003 60,349
IRAs 341,210 360,240
390,213 6,119 420,589 8,092
$ 852,220 $ 8,488 $ 852,555 $ 10,174
Long-term:
Due in two years $ 7,939 $ 12,479
Due in three years 3,717 6,079
Due in four years 16 3,105
Due in five years 61
$ 11,678 $ – $ 21,664 $ –
Accrued but unpaid interest on deposits totaled $0.2 million at April 30, 2011 and 2010.
Time deposit accounts totaling $7.3 million were in excess of Federal Deposit Insurance Corporation (FDIC)
insured limits at April 30, 2011, and mature as follows:
(in 000s)
Three months or less $ 480
Three to six months 2,929
Six to twelve months 2,011
Over twelve months 1,883
$ 7,303
NOTE 11: LONG-TERM DEBT
The components of long-term debt are as follows:
As of April 30, 2011 2010
(in 000s)
Senior Notes, 7.875%, due January 2013 $ 599,788 $ 599,664
Senior Notes, 5.125%, due October 2014 399,177 398,941
Acquisition obligations, due from May 2011 to December 2022 43,273 28,701
Capital lease obligations 10,953 11,526
1,053,191 1,038,832
Less: Current portion (3,437) (3,688)
$ 1,049,754 $ 1,035,144
On March 4, 2010, we entered into a committed line of credit (CLOC) agreement to support commercial paper
issuances, general corporate purposes or for working capital needs. This facility provides funding up to $1.7 billion
and matures July 31, 2013. This facility bears interest at an annual rate of LIBOR plus 1.30% to 2.80% or PRIME plus
.30% to 1.80% (depending on the type of borrowing) and includes an annual facility fee of .20% to .70% of the
committed amounts, based on our credit ratings. Covenants in this facility include: (1) maintenance of a minimum
net worth of $650.0 million on the last day of any fiscal quarter; and (2) reduction of the aggregate outstanding
principal amount of short-term debt, as defined in the agreement, to $200.0 million or less for thirty consecutive
days during the period March 1 to June 30 of each year (“Clean-down requirement”). At April 30, 2011, we were in
H&R BLOCK 2011 Form 10K 57