HR Block 2010 Annual Report Download - page 69

At April 30, 2010, customer banking deposits totaling $21.7 million have a maturity of greater than one year and
are included in other noncurrent liabilities on our consolidated balance sheet.
Accrued but unpaid interest on deposits totaled $0.2 million at April 30, 2010 and 2009.
Time deposit accounts totaling $9.0 million were in excess of Federal Deposit Insurance Corporation (FDIC)
insured limits at April 30, 2010, and mature as follows:
(in 000s)
Three months or less $ 509
Three to six months 1,140
Six to twelve months 5,275
Over twelve months 2,087
$ 9,011
NOTE 10: LONG-TERM DEBT
The components of long-term debt are as follows:
As of April 30, 2010 2009
(in 000s)
Senior Notes, 7.875%, due January 2013 $ 599,664 $ 599,539
Senior Notes, 5.125%, due October 2014 398,941 398,706
Acquisition obligations, due from May 2010 to May 2015 28,701 30,658
Capital lease obligations 11,526 12,001
1,038,832 1,040,904
Less: Current portion (3,688) (8,782)
$ 1,035,144 $ 1,032,122
On March 4, 2010, we entered into a new committed line of credit (CLOC) agreement to support commercial
paper issuances, general corporate purposes or for working capital needs, and terminated the previous CLOCs.
The new facility provides funding up to $1.7 billion and matures July 31, 2013. The new 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
the new facility are substantially similar to those in the previous CLOCs including: (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, 2010, 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, 2010 or 2009.
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.
On October 26, 2004, we issued $400.0 million of 5.125% Senior Notes under our shelf registration. 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.
As of April 30, 2010, we had $250.0 million remaining under our shelf registration for additional debt issuances.
We have obligations related to various acquisitions of $28.7 million and $30.7 million at April 30, 2010 and 2009,
respectively, which are due from May 2010 to May 2015.
We have a capitalized lease obligation of $11.5 million at April 30, 2010, that is collateralized by land and
buildings. The obligation 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 to $120.0 million thereafter through June 30, 2010. The line is subject
to covenants similar to those in the CLOC, but secured by RAL participation interests. All borrowings on this
facility were repaid as of April 30, 2010 and the facility is now closed.
The aggregate payments required to retire long-term debt are $3.7 million, $26.0 million, $0.7 million,
$600.4 million, $399.8 million and $8.2 million in fiscal years 2011, 2012, 2013, 2014, 2015 and beyond, respectively.
H&R BLOCK 2010 Form 10K 53