HR Block 2005 Annual Report Download - page 100

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CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS
A summary of our obligations to make future payments as of April 30, 2005 is as follows:
(in 000s)
Less Than After
Total 1 Year 1 – 3 Years 4 – 5 Years 5 Years
Debt $ 897,046 $ 45 $ 498,916 $ 91 $ 397,994
Long-term obligation to government 213,360 106,680 106,680 – –
Acquisition payments 38,022 25,159 12,863 – –
Pension obligation assumed 15,929 2,625 4,545 3,698 5,061
Capital lease obligation 13,550 341 730 997 11,482
Operating leases 708,611 229,768 313,264 124,945 40,634
Total contractual cash obligations $ 1,886,518 $ 364,618 $ 936,998 $ 129,731 $ 455,171
In October 2004, we issued $400.0 million of 5.125% Senior result of our failure to file this Form 10-K by the SEC’s prescribed
Notes, due 2014. The Senior Notes are not redeemable by the due date, we may be unable to issue any debt securities under the
bondholders prior to maturity. The net proceeds of this shelf registration statement for a period of twelve months. We
transaction were used to repay the $250.0 million in 63/4% Senior intend to seek an adjustment of the filing date for this Form 10-K
Notes, which were due November 1, 2004. The remaining as permitted under SEC rules. If such request is granted, we
proceeds were used for working capital, capital expenditures, would regain the ability to issue debt securities under our shelf
repayment of other debt and other general corporate purposes. registration statement, although at this time the Company has no
In April 2000, we issued $500.0 million of 81/2% Senior Notes, intention of doing so.
due 2007. The Senior Notes are not redeemable prior to maturity. In connection with our acquisition of the non-attest assets of
The net proceeds of this transaction were used to repay a portion M&P in August 1999, we assumed certain pension liabilities
of the short-term borrowings that initially funded the acquisition related to M&P’s retired partners. We make payments in varying
of OLDE. amounts on a monthly basis, which are included in other
Future payments related to Business Services acquisitions and noncurrent liabilities.
capital lease obligations are included in long-term debt on our Operating leases, although requiring future cash payments, are
consolidated balance sheets. Our debt to total capital ratio was not included in our consolidated balance sheets.
32.4% at April 30, 2005, compared with 31.1% at April 30, 2004.
As of April 30, 2005 we had $850 million remaining under our
shelf registration statement for additional debt issuances. As a
A summary of our commitments as of April 30, 2005, which may or may not require future payments, expire as follows:
(in 000s)
Less Than After
Total 1 Year 1 - 3 Years 4 - 5 Years 5 Years
Commitments to fund mortgage loans $ 3,931,926 $ 3,931,926 $ – $ – $ –
Commitments to sell mortgage loans 8,707,000 8,707,000 – – –
Pledged securities 44,609 44,609 – – –
Commitment to fund M&P 75,000 75,000 – – –
Franchise Equity Lines of Credit 68,949 20,122 20,476 28,351 –
Mortgage loan repurchase obligations 41,233 41,233 – – –
Construction of new building 143,116 103,505 39,611 – –
Other commercial commitments 8,219 5,221 2,500 458 40
Total commercial commitments $ 13,020,052 $ 12,928,616 $ 62,587 $ 28,809 $ 40
See discussion of commitments in Item 8, note 17 to our consolidated financial statements.
H&R BLOCK 2005 Form 10K
38