HR Block 2010 Annual Report Download

Download and view the complete annual report

Please find the complete 2010 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Annual Report
2010
Get It Right

Table of contents

  • Page 1
    Get It Right Annual Report 2010

  • Page 2
    ...Earned Income Tax Credits n Employs more than 100,000 highly trained tax professionals n In addition to retail tax offices in the U.S., Canada and Australia, and its H&R Block At Homeâ„¢ software and online solutions, the company offers business services through RSM McGladrey and financial products...

  • Page 3
    ... the second highest level of profit from our tax segment in the Company's history. We also increased net worth, free cash and liquidity, reduced our net mortgage loan portfolio by $150 million, created a new long-term operating structure for McGladrey, generated a total shareholder return of more...

  • Page 4
    ... reload locations. For our clients, many of whom do not have traditional bank accounts, the Emerald Card can function as a bank in their wallet by allowing direct deposits and money transfers. Other prepaid debit card companies have recently shown attractive levels of growth and potential market...

  • Page 5
    ... 10 5 Tax Services revenues this year were down 5% compared to the $3.132 billion we generated during 2009, but off only about 3% compared to 2008. While many observers focus heavily on the number of tax returns prepared as a measure of the health of the business, tax revenues, not the number of...

  • Page 6
    ...clients ultimately upgrade to a fee-paying product. However, we offer a capable free service because we believe that every American taxpayer should have the option if they wish to prepare their taxes using one of our online programs without charge. Whether it is because of a very simple tax position...

  • Page 7
    ... $16 $11 Note: Restated for the adoption of the xtwo-class" method, except for fiscal years prior to 2006. 20 RSM McGladrey 2001-2010 Our business services unit, RSM McGladrey, has shown strong growth over the past decade. H&R Block's revenues from RSM grew 123% from $386 million in 2001 to $860...

  • Page 8
    ...continue to improve our service levels to enhance the client experience and drive higher retention rates. n Settlement products: H&R Block will continue to have the industry's best-in-class financial settlement products this year. These products, such as refund anticipation loans, have been impacted...

  • Page 9
    ... requirements for years. As other independent preparers struggle to meet these new requirements, we will be there to help clients with their tax preparation and settlement product needs. n Digital: Our marketing efforts this past tax season led to a 25 percent increase in our website visits, but...

  • Page 10
    ... 2010 Annual Report board of directors CLOCKWISE FROM TOP LEFT: n RICHARD C. BREEDEN Chairman of the Board, H&R Block, Inc. Chairman and Chief Executive Officer Breeden Capital Management LLC Greenwich, CT n THOMAS M. BLOCH President University Academy Kansas City, MO n BRUCE C. ROHDE Managing...

  • Page 11
    2010 Form 10-K

  • Page 12
    (This page intentionally left blank.)

  • Page 13
    ...Identification No.) One H&R Block Way, Kansas City, Missouri 64105 (Address of principal executive offices, including zip code) (816) 854-3000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange...

  • Page 14

  • Page 15
    ...Matters and Issuer Purchases of Equity Securities Item 6. Selected Financial Data Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 7A. Quantitative and Qualitative Disclosures About Market Risk Item 8. Financial Statements and Supplementary Data Item...

  • Page 16
    (This page intentionally left blank.)

  • Page 17
    ... also in Canada and Australia. This segment also offers the H&R Block Prepaid Emerald MasterCard» and Emerald Advance lines of credit through H&R Block Bank (HRB Bank), along with other retail banking services. Our Business Services segment consists of RSM McGladrey, Inc. (RSM), a national tax and...

  • Page 18
    ...services, sales of tax preparation and other software, online tax preparation fees, participation in refund anticipation loans (RALs), refund anticipation checks (RACs), fees from activities related to H&R Block Prepaid Emerald MasterCard», and interest and fees from Emerald Advance lines of credit...

  • Page 19
    ..., data imports from money management software and tax preparation software, calculations, completion of the appropriate tax forms, error checking and electronic filing. Our software products may be purchased through third-party retail stores, direct mail or online. Online Tax Preparation. We offer...

  • Page 20
    ...in offices, online and via our software, we are one of the largest providers of direct tax return preparation and electronic filing services in the U.S. We also believe we operate the largest tax return preparation businesses in Canada and Australia. Our digital tax solutions businesses compete with...

  • Page 21
    ... refund-discounting program in Canada. These laws have not materially affected our international operations. HRB Bank is subject to regulation, supervision and examination by the Office of Thrift Supervision (OTS), the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC). All savings...

  • Page 22
    ... business is highly competitive. The principal methods of competition are price, service and reputation for quality. There are a substantial number of accounting firms offering similar services at the international, national, regional and local levels. As our focus is on middle-market businesses...

  • Page 23
    ... like a printed copy of any of these corporate governance documents, please send your request to the Office of the Secretary, H&R Block, Inc., One H&R Block Way, Kansas City, Missouri 64105. Information contained on our website does not constitute any part of this report. 7 H&R BLOCK 2010 Form 10K

  • Page 24
    ... the use or disclosure by tax return preparers of taxpayers' information without the prior written consent of the taxpayer. In addition, other regulations require financial service providers to adopt and disclose consumer privacy policies and provide consumers with a reasonable opportunity to "opt...

  • Page 25
    ...and filing such tax returns. The adoption of any measures that significantly simplify tax return preparation or otherwise reduce the need for a third-party tax return preparer could reduce demand for our services, causing our revenues or results of operations to decline. Governmental regulations and...

  • Page 26
    ... filing, RALs and other related services to the public. Commercial tax return preparers and electronic filers are highly competitive with regard to price and service. Our digital tax solutions businesses also compete with in-office tax preparation services and a number of online and software...

  • Page 27
    ... operations, which may result in significant financial losses. Although SCC terminated its mortgage loan origination activities and sold its loan servicing business during fiscal year 2008, it remains subject to investigations, claims and lawsuits pertaining to its loan origination and servicing...

  • Page 28
    ... Our Canadian executive offices are located in a leased office in Calgary, Alberta. Our Canadian tax offices are operated under leases throughout Canada. HRB Bank is headquartered and its single branch location is located in our corporate headquarters. RSM's executive offices are located in leased...

  • Page 29
    .... Express IRA Marketing Litigation (Case No. 06-1786-MD-RED) in the United States District Court for the Western District of Missouri. To avoid the cost and inherent risk associated with litigation, we reached an agreement to settle these cases and the New York Attorney General action. The federal...

  • Page 30
    ...Supreme Court of California on September 30, 2009. A trial date has been set for January 2011. The certified class consists of RSM EquiCo's U.S. clients who signed platform agreements and for whom RSM EquiCo did not ultimately market their business for sale. The fees paid to RSM EquiCo in connection...

  • Page 31
    ... results of operations. OTHER CLAIMS AND LITIGATION - We have been named in several wage and hour class action lawsuits throughout the country, respectively styled Alice Williams v. H&R Block Enterprises LLC, Case No.RG08366506 (Superior Court of California, County of Alameda, filed January...

  • Page 32
    ... remaining information called for by this item relating to "Securities Authorized for Issuance under Equity Compensation Plans" is reported in Item 8, note 13 to our consolidated financial statements. A summary of our purchases of H&R Block common stock during the fourth quarter of fiscal year 2010...

  • Page 33
    ... services. We are the only major company offering a full range of software, online and in-office tax preparation solutions to individual tax clients. Effective May 1, 2009, we realigned certain segments of our business to reflect a new management reporting structure. The operations of HRB Bank...

  • Page 34
    ... in expenses related to arbitration proceedings and other litigation. Consolidated Results of Operations Data Year Ended April 30, (in 000s, except per share amounts) 2010 2009 2008 REVENUES: Tax Services Business Services Corporate and eliminations $ 2,975,252 860,349 38,731 $ 3,874,332...

  • Page 35
    ... Tax Services - Financial Results Year Ended April 30, Tax preparation fees Royalties Loan participation fees and related revenue Fees from Emerald Card activities Interest income on Emerald Advance Fees from Peace of Mind guarantees Other Total revenues Compensation and benefits: Field wages Other...

  • Page 36
    ... in tax returns prepared in existing franchise offices. Interest income on Emerald Advance lines of credit decreased $13.1 million, or 14.4%. This decline was primarily a result of lower loan volumes due to these lines of credit only being offered to prior year tax clients in fiscal year 2010, while...

  • Page 37
    ... 2009. BUSINESS SERVICES This segment offers tax and consulting services, wealth management and capital market services to middlemarket companies. Business Services - Operating Results Year Ended April 30, Tax services Business consulting Accounting services Capital markets Leased employee revenue...

  • Page 38
    ... result, capital markets revenues decreased $32.9 million, or 64.4%, from fiscal year 2008 primarily due to a 57.4% decline in the number of transactions closed. Leased employee revenue decreased due to a change in organizational structure between the businesses we acquired from American Express Tax...

  • Page 39
    ...also include our former mortgage loan origination and servicing business, as well as three smaller lines of business previously reported in our Business Services segment. FISCAL 2010 COMPARED TO FISCAL 2009 - The net loss from discontinued operations for fiscal year 2010 was $9.7 million compared to...

  • Page 40
    ... pool, as we are no longer originating or purchasing new mortgage loans, and we believe that factor, over time, will limit variability in our loss estimates. MORTGAGE LOAN REPURCHASE OBLIGATION - SCC is obligated to repurchase loans sold or securitized in the event of a breach of representations...

  • Page 41
    ...business consist principally of the development and sale of commercial tax preparation software. The estimated fair value of this reporting unit exceeded its carrying value by approximately 8% at April 30, 2010. See Item 8, note 8 to our consolidated financial statements. 25 H&R BLOCK 2010 Form 10K

  • Page 42
    ... from operations, cash from customer deposits, issuances of common stock and debt. We use capital primarily to fund working capital, pay dividends, repurchase treasury shares and acquire businesses. Our operations are highly seasonal and therefore generally require the use of cash to fund operating...

  • Page 43
    ... tax offices to franchisees for proceeds of $16.9 million. The majority of these sales were financed through Franchise Equity Lines of Credit (FELCs). The increase in the lines of credit is also included in investing activities. Discontinued Operations. In fiscal year 2009, we sold our financial...

  • Page 44
    ... and timing of any future cash settlements cannot be predicted with reasonable certainty, the estimated unrecognized tax position liability has been excluded from the table above. See Item 8, note 14 to the consolidated financial statements for additional information. 28 H&R BLOCK 2010 Form 10K

  • Page 45
    ... not limited to, commercial income tax return preparers, income tax courses, the electronic filing of income tax returns, the facilitation of RALs, loan originations and assistance in loan originations, mortgage lending, privacy, consumer protection, franchising, sales methods, banking, accountants...

  • Page 46
    ... yields and rates for fiscal years 2010, 2009 and 2008: (dollars in 000s) Year Ended April 30, Average Balance Interest-earning assets: Mortgage loans, net Federal funds sold Emerald Advance (1) Available-for-sale investment securities FHLB stock Cash and due from banks Non-interest-earning assets...

  • Page 47
    ...HRB Bank's investment portfolio at April 30, 2010: (dollars in 000s) Less Than One Year Cost Basis Mortgage-backed securities Federal funds sold FHLB stock Trust preferred security $ 23,026 2,338 6,033 1,854 $ 33,251 Balance Due $ - 2,338 - - Average Yield -% 0.1% -% -% After Ten Years Balance Due...

  • Page 48
    ...% 4.74% Money market and savings Interest-bearing checking accounts IRAs Certificates of deposit Non-interest-bearing deposits RATIOS - The following table shows certain of HRB Bank's key ratios for fiscal years 2010, 2009 and 2008: Year Ended April 30, Pretax return on assets Net return on equity...

  • Page 49
    ...securities. HRB Bank's liabilities consist primarily of transactional deposit relationships, such as prepaid debit card accounts and checking accounts. Other liabilities include money market accounts, certificates of deposit and collateralized borrowings from the FHLB. Money market accounts re-price...

  • Page 50
    ...) (510) Carrying Value at April 30, 2009 Mortgage loans held for investment Mortgage-backed securities $ 744,899 26,793 Basis Point Change Ϫ300 $ 115,319 803 Ϫ200 $ 76,202 727 Ϫ100 $ 33,253 398 +100 $ (28,847) (1,188) +200 $ (58,293) (1,675) +300 $ (85,922) (1,906) 34 H&R BLOCK 2010 Form 10K

  • Page 51
    ... accounting firm, have issued an audit report on the effectiveness of the Company's internal control over financial reporting. Russell P. Smyth President and Chief Executive Officer Jeffrey T. Brown Vice President, Interim Chief Financial Officer and Corporate Controller H&R BLOCK 2010 Form 10K...

  • Page 52
    ... H&R Block, Inc. Kansas City, Missouri We have audited the accompanying consolidated balance sheets of H&R Block, Inc. and subsidiaries (the "Company") as of April 30, 2010 and 2009, and the related consolidated statements of operations and comprehensive income (loss), stockholders' equity, and cash...

  • Page 53
    ...dated June 28, 2010 expressed an unqualified opinion on those financial statements and financial statement schedule and included an explanatory paragraph regarding the Company's adoption of an accounting standard for uncertainty in income taxes on May 1, 2007. June 28, 2010 H&R BLOCK 2010 Form 10K...

  • Page 54
    ... INCOME (LOSS) Year Ended April 30, REVENUES: Service revenues Product and other revenues Interest income OPERATING EXPENSES: Cost of revenues Selling, general and administrative Operating income Other income, net Income from continuing operations before income taxes Income taxes Net income from...

  • Page 55
    ...: Customer banking deposits Accounts payable, accrued expenses and other current liabilities Accrued salaries, wages and payroll taxes Accrued income taxes Current portion of long-term debt Current Federal Home Loan Bank borrowings Total current liabilities Long-term debt Long-term Federal Home Loan...

  • Page 56
    ... Customer banking deposits, net Dividends paid Repurchase of common stock, including shares surrendered Proceeds from issuance of common stock, net Proceeds from exercise of stock options Net cash provided by (used in) financing activities of discontinued operations Other, net Net cash used...

  • Page 57
    CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common Stock Shares Balances at May 1, 2007 Remeasurement of uncertain tax positions upon adoption of new accounting standard Net loss Unrealized translation loss Change in net unrealized gain (loss) on available-for-sale securities Stock-based ...

  • Page 58
    ... offer: tax return preparation; tax and consulting services to business clients; certain retail banking services; tax preparation and related software; and refund anticipation loans (RALs) offered by third-party lending institutions. Tax preparation services are also provided in Canada and Australia...

  • Page 59
    .... Loan fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income over the lives of the related loans. Unearned income, premiums and discounts on purchased loans are amortized or accreted into income over the estimated life of the loan using...

  • Page 60
    ... with software developed or purchased for internal use. These costs are typically amortized over 36 months using the straight-line method. Substantially all of the operations of our subsidiaries are conducted in leased premises. For all lease agreements, including those with escalating rent payments...

  • Page 61
    ... online tax preparation revenues are recorded when a completed return is filed or accepted by the customer. ½ POM revenues are deferred and recognized over the term of the guarantee, based on historical and actual payment of claims. ½ Revenues for services rendered in connection with the Business...

  • Page 62
    ... our fiscal year 2011. The adoption of this guidance will not have a material effect on our consolidated financial statements, but will require additional disclosures in our quarterly and annual filings. In June 2009, the FASB issued guidance, under Topic 860 - Transfers and Servicing. This guidance...

  • Page 63
    ... Tax Services segment and is deductible for tax purposes. During fiscal years 2010, 2009 and 2008, we made other acquisitions, which were accounted for as purchases with cash payments totaling $10.3 million, $12.6 million and $21.4 million, respectively. Operating results of the acquired businesses...

  • Page 64
    ...2009 is as follows: (in 000s) Year Ended April 30, Balance at beginning of the year Provision Recoveries Charge-offs Balance at end of the year 2010 $ 84,073 47,750 88 (38,376) $ 93,535 2009 $ 45,401 63,897 54 (25,279) $ 84,073 2008 $ 3,448 42,004 999 (1,050) $45,401 48 H&R BLOCK 2010 Form 10K

  • Page 65
    ... on quoted prices in an active market and as such, would be classified as Level 1. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics, discounted cash flows or other pricing models. Available-for-sale securities that we...

  • Page 66
    ... of certain impaired loans held for investment is primarily based on the appraised value of the underlying collateral less estimated selling costs. ½ IRAs and other time deposits - The fair value is calculated based on the discounted value of contractual cash flows. ½ Long-term debt - The fair...

  • Page 67
    ..., 2010. Operating activities of the business consist principally of the development and sale of commercial tax preparation software. The estimated fair value of this reporting unit exceeded its carrying value by approximately 8% at April 30, 2010. If revenues or pretax results of this reporting unit...

  • Page 68
    ... 9: CUSTOMER BANKING DEPOSITS The components of customer banking deposits at April 30, 2010 and 2009 are as follows: (in 000s) April 30, Outstanding Balance Money-market deposits Savings deposits Checking deposits: Interest-bearing Non-interest-bearing IRAs and other time deposits: Due in one year...

  • Page 69
    ... is due in 11 years. Effective January 12, 2010, we entered into a $2.5 billion committed line of credit agreement with HSBC Bank USA, National Association (HSBC) for the purchase of RAL participations. This line was available up to its facility limit through March 30, 2010 and then only up...

  • Page 70
    ... million and $40.4 million in fiscal years 2010, 2009 and 2008, respectively. Accounting standards require excess tax benefits from stock-based compensation to be included as a financing activity in the statements of cash flows. As a result, we classified $1.6 million, $8.6 million and $3.2 million...

  • Page 71
    ... to estimate the options expected term and our forfeiture rate. The dividend yield is calculated based on the current dividend and the market price of our common stock on the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve 55 H&R BLOCK 2010 Form 10K

  • Page 72
    ... of income from continuing operations upon which domestic and foreign income taxes have been provided are as follows: (in 000s) Year Ended April 30, Domestic Foreign 2010 $ 745,912 38,223 $ 784,135 2009 $ 815,614 23,756 $ 839,370 2008 $ 700,162 34,909 $ 735,071 56 H&R BLOCK 2010 Form 10K

  • Page 73
    ... of continuing operations is as follows: Year Ended April 30, U.S. statutory tax rate Change in tax rate resulting from: State income taxes, net of federal income tax benefit Permanent differences Uncertain tax position liabilities Net decrease in valuation allowance Other Effective tax rate 2010 35...

  • Page 74
    ...to prior years Additions based on tax positions related to the current year Reductions related to settlements with tax authorities Expiration of statute of limitations Foreign currency translation Balance, end of the year 2010 $ 124,605 12,957 (2,427) 3,314 (8,545) (1,061) 924 $ 129,767 2009 $ 137...

  • Page 75
    ... in cost of other revenues on our consolidated statements of operations. (in 000s) Year Ended April 30, Interest income: Mortgage loans, net Emerald Advance lines of credit Investment securities Other Interest expense: Borrowings Deposits FHLB advances $ 2010 31,877 77,891 2,318 10,319 $ 2009 46...

  • Page 76
    ... in the number of plan participants and an aging employee base. During fiscal year 2006, we entered into a transaction with the City of Kansas City, Missouri, to provide us with sales and property tax savings on the furniture, fixtures and equipment for our corporate headquarters facility. Under...

  • Page 77
    ... RSM and M&P have operated in what is known as an "alternative practice structure" (APS). Through the APS, RSM and M&P are able to offer clients a full-range of attest and non-attest services in full compliance with applicable accountancy regulations. An administrative services agreement between RSM...

  • Page 78
    ..., we reached an agreement to settle this case and the civil actions described below. Details regarding the settlement are below. Subsequent to the filing of the New York Attorney General action, a number of civil actions were filed against HRBFA and us concerning the Express IRA product, the first...

  • Page 79
    .... Express IRA Marketing Litigation (Case No. 06-1786-MD-RED) in the United States District Court for the Western District of Missouri. To avoid the cost and inherent risk associated with litigation, we reached an agreement to settle these cases and the New York Attorney General action. The federal...

  • Page 80
    ... results of operations. OTHER CLAIMS AND LITIGATION - We have been named in several wage and hour class action lawsuits throughout the country, respectively styled Alice Williams v. H&R Block Enterprises LLC, Case No.RG08366506 (Superior Court of California, County of Alameda, filed January...

  • Page 81
    ... plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated. Some of these investigations, claims and lawsuits pertain to RALs, the electronic filing of customers' income tax returns, the POM guarantee program, and other products and services. We believe...

  • Page 82
    ... franchise retail tax offices, fees for tax-related services, sales of tax preparation and other software, online tax preparation fees, participation in RALs, fees from activities related to H&R Block Prepaid Emerald MasterCard», and interest and fees from Emerald Advance lines of credit. HRB Bank...

  • Page 83
    Information concerning the Company's operations by reportable segment is as follows: (in 000s) Year Ended April 30, REVENUES : Tax Services Business Services Corporate INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES : Tax Services Business Services Corporate...,722 H&R BLOCK 2010 Form 10K 67

  • Page 84
    ... FINANCIAL DATA (UNAUDITED) (in 000s, except per share amounts) Fiscal Year 2010 Revenues Income (loss) from continuing operations before taxes (benefit) Income taxes (benefit) Net income (loss) from continuing operations Net loss from discontinued operations Net income (loss) Basic earnings...

  • Page 85
    ... and other indebtedness issued from time to time. These condensed consolidating financial statements have been prepared using the equity method of accounting. Earnings of subsidiaries are, therefore, reflected in the Company's investment in subsidiaries account. The elimination entries eliminate...

  • Page 86
    Year Ended April 30, 2009 Total revenues Cost of revenues Selling, general and administrative Total expenses Operating income (loss) Other income (expense), net Income (loss) from continuing operations before taxes (benefit) Income taxes (benefit) Net income (loss) from continuing operations Net ...

  • Page 87
    ...Payments for business acquisitions Net intercompany advances Other, net Net cash provided by (used in) investing activities Cash flows from financing: Repayments of commercial paper Proceeds from commercial paper Repayments of other borrowings Proceeds from other borrowings Customer banking deposits...

  • Page 88
    ... Payments for business acquisitions Net intercompany advances Investing cash flows of discontinued operations Other, net Net cash provided by (used in) investing activities Cash flows from financing: Repayments of short-term borrowings Proceeds from short-term borrowings Customer banking deposits...

  • Page 89
    ...30, 2010, the Company's internal control over financial reporting was effective based on the criteria set forth by COSO. The Company's external auditors who audited the consolidated financial statements included in Item 8, Deloitte & Touche LLP, an independent registered public accounting firm, have...

  • Page 90
    ... for by this item is contained in our definitive proxy statement filed pursuant to Regulation 14A not later than 120 days after April 30, 2010, in the section titled "Employee Agreements, Change-of-Control and Other Arrangements" and is incorporated herein by reference. 74 H&R BLOCK 2010 Form 10K

  • Page 91
    ... "Consolidated Balance Sheets," "Consolidated Statements of Cash Flows" and "Consolidated Statements of Stockholders' Equity." 2. "Financial Statement Schedule II - Valuation and Qualifying Accounts" with the related Reports of Independent Registered Public Accounting Firms. These will be filed with...

  • Page 92
    ... Chief Financial Officer and Corporate Controller (principal financial officer and principal accounting officer) L. Edward Shaw, Jr. Director Thomas M. Bloch Director Len J. Lauer Director Christianna Wood Director Alan M. Bennett Director David B. Lewis Director 76 H&R BLOCK 2010 Form 10K

  • Page 93
    ... herein by reference. The H&R Block Executive Performance Plan (as amended), filed as Exhibit 10.6 to the company's annual report on Form 10-K for the fiscal year ended April 30, 2006, file number 1-6089, is incorporated herein by reference. The H&R Block, Inc. 2000 Employee Stock Purchase Plan, as...

  • Page 94
    ... report on Form 10-Q for the quarter ended January 31, 2009, file number 1-6089, is incorporated herein by reference.** 10.26 Second Amended and Restated HSBC Refund Anticipation Loan Participation Agreement dated as of January 12, 2010 among Block Financial LLC, HSBC Bank USA, National Association...

  • Page 95
    ..., RSM McGladrey, Inc., HRB Business Services, Inc., and H&R Block, Inc., filed as Exhibit 10.37 to the company's annual report on Form 10-K for the fiscal year ended April 30, 2009, file number 1-6089, is incorporated herein by reference. 10.42 Amended and Restated Administrative Services Agreement...

  • Page 96
    (This page intentionally left blank.)

  • Page 97
    (This page intentionally left blank.)

  • Page 98
    (This page intentionally left blank.)

  • Page 99
    ... and Exchange Commission. Requests should be directed by telephone to Investor Relations, 1.800.859.9220, option 5, or by mail to One H&R Block Way, Kansas City, Missouri 54105. For more information about H&R Block, visit our Web site at www.hrblock.com Annual Report Design by Curran & Connors, Inc...

  • Page 100
    H&R BLOCK, INC. n 2010 Annual Report H&R BLOCK, INC. One H&R Block Way Kansas City, MO 64105 816.854.3000 www.hrblock.com