HR Block 2011 Annual Report Download

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Annual Report
2011
NEVER
SETTLE
FOR
LESSSM

Table of contents

  • Page 1
    Never Settle For leSS SM 2011 Annual Report

  • Page 2
    ...every 5 earned Income tax Credits employs nearly 100,000 highly trained tax professionals 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
    ... only. (2) Excludes Federal Home Loan Bank borrowings and deposits. Total Tax Returns Prepared (millions) U.S. Tax Market Share (%) 2010 2011 24.6 24.0 23.9 24.5 18.0 18.6 16.4 15.6 23.2 13.0 11.7 2007 2008 2009 2010 2011 Assisted Do-it-yourself Total H&R Block 2011 Annual Report 1

  • Page 4
    ... of these filers migrate to more complex tax returns within two years. Thanks to the program's success, we now have a solid pipeline of new and younger clients, and the word-of-mouth referrals they generate. William C. Cobb President and Chief Executive Officer 2 H&R Block 2011 Annual Report

  • Page 5
    ...Financial Services: H&R Block Bank played a key role in this year's success and helped mitigate the loss of Refund Anticipation Loans. The bank processed nearly 6 million RACs and approximately 2.3 million Emerald Cards with $8 billion in total deposits. The Emerald Card is a convenient and low-cost...

  • Page 6
    ... and Investment Manager GFP, L.P. New York, NY William C. Cobb President and Chief Executive Officer H&R Block, Inc. Kansas City, MO Bruce C. Rohde Managing Partner Romar Capital Group Omaha, NE Alan M. Bennett Retired President and Chief Executive Officer H&R Block, Inc. Kansas City, MO Len...

  • Page 7
    2011 Form 10-K

  • Page 8
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  • Page 9
    ... 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 on which registered Common Stock...

  • Page 10
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  • Page 11
    ... Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services PART IV Exhibits and Financial...

  • Page 12
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  • Page 13
    ... offices, fees for tax-related services, sales of tax preparation software, online tax preparation fees, 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 (EAs). HRB Bank also offers...

  • Page 14
    ... Internal Revenue Service (IRS) estimate of total individual income tax returns filed during the fiscal year 2011 tax season. This compares to 15.6% in the 2010 tax season and 15.8% in the 2009 tax season. See Item 7 for further discussion of changes in the number of tax returns prepared. FRANCHISES...

  • Page 15
    ... used for everyday purchases, bill payments and ATM withdrawals anywhere MasterCard» is accepted. Additional funds can be added to the card account year-round through direct deposit or at participating retail locations. The H&R Block Prepaid Emerald MasterCard» is issued by HRB Bank. Peace of Mind...

  • Page 16
    ... digital tax solutions businesses compete with a number of companies. Based on tax return volumes, Intuit, Inc. is the largest supplier of tax preparation software and online tax preparation services. Many other companies offer digital and online services. Price and marketing competition for digital...

  • Page 17
    ... 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 18
    ... peak revenues occurring during January through April. COMPETITIVE CONDITIONS - The tax and consulting 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...

  • Page 19
    ... Committee Charter. If you would 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...

  • Page 20
    ... statements for additional information. SCC is subject to potential investigations and lawsuits stemming from its discontinued mortgage operations, which may result in significant financial losses. Although SCC terminated its mortgage loan origination activities and sold its loan servicing business...

  • Page 21
    ... do not perform in accordance with their contractual agreements. These events could potentially result in financial losses or other damages. We utilize internally developed processes, internal and external information and technological systems to manage our operations. We are exposed to risk of loss...

  • Page 22
    ...Federal 1040EZ forms in fiscal year 2011. Government tax authorities and direct competitors may elect to expand free offerings in the future. Intense price competition, including offers of free service, could result in a loss of market share, lower revenues or lower margins. See tax returns prepared...

  • Page 23
    ... fees charged by payment card issuers for transactions in which a person uses a debit or general-use prepaid card, and enforcement of a new statutory requirement that such fees be reasonable and proportional to the actual cost of the transaction to the issuer; and 11 H&R BLOCK 2011 Form 10K

  • Page 24
    ... Canada. Our Australian executive offices are located in a leased office in Thornleigh, New South Wales. Our Australian tax offices are operated under leases throughout Australia. HRB Bank is headquartered and its single branch location is located in our corporate headquarters. RSM's executive...

  • Page 25
    ...On December 7, 2009, a lawsuit was filed in the Circuit Court of Cook County, Illinois (2010-L-014920) against M&P, RSM and H&R Block styled Ronald R. Peterson ex rel. Lancelot Investors Fund, L.P., et al. v. McGladrey & Pullen LLP, et al. The case was removed to the United States District Court for...

  • Page 26
    ..., Western District of Missouri, filed January 25, 2010) (alleging failure to compensate tax professionals nationwide for off-season training). A class was certified in the Lemus case in December 2010 (consisting of tax professionals who worked in company-owned offices in California from 2007 to 2010...

  • Page 27
    ...are also party to claims and lawsuits that we consider to be ordinary, routine litigation incidental to our business, including claims and lawsuits (collectively, "Other Claims") concerning the preparation of customers' income tax returns, the fees charged customers for various products and services...

  • Page 28
    ... financial statements. A summary of our purchases of H&R Block common stock during the fourth quarter of fiscal year 2011 is as follows: (in 000s, except per share amounts) Total Number of Shares Purchased(1) February 1 - February 28 March 1 - March 31 April 1 - April 30 (1) Average Price...

  • Page 29
    ... Services ITEM 6. SELECTED FINANCIAL DATA We derived the selected consolidated financial data presented below as of and for each of the five years in the period ended April 30, 2011, from our audited consolidated financial statements. Results of operations of fiscal years 2011, 2010 and 2009...

  • Page 30
    ... AND RESULTS OF OPERATIONS Our subsidiaries provide tax preparation, retail banking and various business advisory and consulting services. We are the only major company offering a full range of software, online and in-office tax preparation solutions to individual tax clients. OVERVIEW A summary of...

  • Page 31
    ... retail tax returns prepared. Tax Services - Financial Results Year Ended April 30, Tax preparation fees Royalties Fees from refund anticipation checks Interest income on Emerald Advance Fees from Emerald Card activities Fees from Peace of Mind guarantees Loan participation fees and related revenue...

  • Page 32
    ... in tax returns prepared in existing franchise offices. Interest income on EAs 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 being offered to both...

  • Page 33
    BUSINESS SERVICES This segment consists of RSM McGladrey, Inc. (RSM), a national firm offering tax, consulting and accounting services, and capital market services to middle-market companies. Business Services - Operating Results Year Ended April 30, Tax services Business consulting Accounting ...

  • Page 34
    ... in fiscal year 2009, to 6.8% in fiscal year 2010, primarily due to poor results in our capital markets business and a reduction of revenue in our core businesses. CORPORATE, ELIMINATIONS AND INCOME TAXES ON CONTINUING OPERATIONS Corporate operating losses include interest income from U.S. passive...

  • Page 35
    ... the counterparty's consent to SCC's sale of its mortgage servicing business in 2008. We have no remaining payment obligations under this indemnity agreement. While SCC uses the best information available to it in estimating its liability, assessing the likelihood that claims will be asserted...

  • Page 36
    ... representations and warranties liability. In reality, changes in one assumption may result in changes in other assumptions, which may or may not counteract the sensitivity. While SCC uses the best information available to it in estimating its liability, assessing the likelihood that claims will be...

  • Page 37
    ...statements. INCOME TAXES - Income taxes are accounted for using the asset and liability approach under U.S. GAAP. We calculate our current and deferred tax provision for the fiscal year based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed...

  • Page 38
    ....2 million, $10.5 million and $293.8 million during fiscal years 2011, 2010 and 2009, respectively. In July 2010 our Business Services segment acquired Caturano, a Boston-based accounting firm, and cash used in investing activities includes payments totaling $32.6 million related to this acquisition...

  • Page 39
    ... both the financing of sales of tax offices and franchisee draws under our Franchise Equity Lines of Credit (FELCs). Discontinued Operations. In fiscal year 2009, we sold our financial advisor business for proceeds of $304.0 million. CASH FROM FINANCING ACTIVITIES - Changes in cash used in financing...

  • Page 40
    ... Stable Short-term P-2 A-2 R-2 (high) April 30, 2010 Long-term Baa1 BBB BBB (high) Outlook Stable Positive Positive At April 30, 2011, we maintained a CLOC agreement to support commercial paper issuances, general corporate purposes or for working capital needs. This facility provides funding up...

  • Page 41
    ... to, commercial income tax return preparers, income tax courses, the electronic filing of income tax returns, the offering of RACs, the facilitation of RALs, loan originations and assistance in loan originations, mortgage lending, privacy, consumer protection, franchising, sales methods, banking...

  • Page 42
    ... fiscal years 2011, 2010 and 2009: (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 Total HRB Bank assets...

  • Page 43
    ... AND SUMMARY OF LOAN LOSS EXPERIENCE - The following table shows the composition of HRB Bank's mortgage loan portfolio as of April 30, 2011, 2010, 2009, 2008 and 2007, and information on delinquent loans: (in 000s) As of April 30, Residential real estate mortgages Home equity lines of credit Loans...

  • Page 44
    ... Net return on equity Equity to assets ratio 2011 2.36% 5.43% 30.81% 2010 2.12% 21.04% 28.83% 2009 (1.03)% (6.67)% 12.44% During fiscal year 2009, HRB Bank shared the revenues and expenses of the H&R Block Prepaid MasterCard» program with an affiliate, and as a result, transferred revenues and...

  • Page 45
    ... consolidated financial results, although such changes do affect the year-to-year comparability of the operating results in U.S. dollars of our international businesses. We estimate a 10% change in foreign exchange rates by itself would impact consolidated net income in fiscal years 2011 and 2010 by...

  • Page 46
    ... registered public accounting firm, have issued an audit report on the effectiveness of the Company's internal control over financial reporting. William C. Cobb President and Chief Executive Officer Jeffrey T. Brown Senior Vice President and Chief Financial Officer 34 H&R BLOCK 2011 Form 10K

  • Page 47
    ... - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated June 23, 2011 expressed an unqualified opinion on the Company's internal control over financial reporting. Kansas City, Missouri June 23, 2011 H&R BLOCK 2011 Form 10K 35

  • Page 48
    ..., 2011 expressed an unqualified opinion on those financial statements and included an explanatory paragraph regarding the Company's adoption of an accounting standard related to consolidation of variable interest entities on May 1, 2010. Kansas City, Missouri June 23, 2011 36 H&R BLOCK 2011 Form...

  • Page 49
    ... COMPREHENSIVE INCOME 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...

  • Page 50
    ...: 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 Federal Home Loan Bank borrowings Total current liabilities Long-term debt Federal Home Loan Bank borrowings...

  • Page 51
    ..., wages and payroll taxes Accrued income taxes Other noncurrent liabilities Other, net Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Available-for-sale securities: Purchases of available-for-sale securities Maturities of and payments received on available-for-sale...

  • Page 52
    ... (12,786) Cash dividends declared - Cash dividends paid - $0.60 per share - Balances at April 30, 2010 431,391 Net income - Unrealized translation gain - Change in net unrealized gain (loss) on available-for-sale securities - Stock-based compensation - Shares issued for: Option exercises - Nonvested...

  • Page 53
    ... refund anticipation loans (RALs) and loans made to franchisees. Emerald Advance lines of credit. EAs are offered to clients in tax offices from late November through midJanuary, currently in an amount not to exceed $1,000. If the borrower meets certain criteria as agreed in the loan terms, the line...

  • Page 54
    .... Loan fees and certain direct loan origination costs are deferred and the net fee or cost is recognized in interest income over the life of the related loan. Unearned income, premiums and discounts on purchased loans are amortized or accreted into income over the estimated life of the loan using...

  • Page 55
    ... income using the interest method, adjusted for anticipated prepayments where applicable. We update our estimates of expected cash flows periodically and recognize changes in calculated effective yields as appropriate. Held-to-Maturity. Our investment in the stock of the Federal Home Loan Bank...

  • Page 56
    ... the estimated useful life of the assets using the straight-line method. COMMERCIAL PAPER - During the year we issued commercial paper to finance temporary liquidity needs and various financial activities. There was no commercial paper outstanding at April 30, 2011 or 2010. MORTGAGE LOAN REPURCHASE...

  • Page 57
    ... services are performed and amounts are earned. ½ Revenues associated with our H&R Block Prepaid Emerald MasterCard» program consist of interchange income from the use of debit cards and fees from the use of ATM networks. Interchange income is a fee paid by a merchant bank to the card-issuing bank...

  • Page 58
    ...costs of continuing operations for fiscal years 2011, 2010 and 2009 totaled $264.2 million, $254.8 million and $249.2 million, respectively. GAINS ON SALES OF TAX OFFICES - We periodically sell company-owned tax offices to franchisees. These sales can be financed by franchisees through loans offered...

  • Page 59
    ... our consolidated financial statements. NOTE 2: BUSINESS COMBINATIONS AND DISPOSALS Effective July 20, 2010, our Business Services segment acquired certain non-attest assets and liabilities of Caturano & Company, Inc. (Caturano), a Boston-based accounting firm, for an aggregate purchase price of $40...

  • Page 60
    ... as purchases with cash payments totaling $19.1 million, $10.3 million and $12.6 million, respectively. Operating results of the acquired businesses, which are not material, are included in the consolidated income statements since the date of acquisition. During fiscal years 2011, 2010 and 2009 we...

  • Page 61
    ...: (in 000s) As of April 30, Business Services receivables Loans to franchisees Receivables for tax preparation and related fees Emerald Advance lines of credit Royalties from franchisees Tax client receivables related to RALs Other Allowance for doubtful accounts 2011 $ 281,847 62,181 38,930 31...

  • Page 62
    ... 35,239 12,191 4 65,041 $ 67,466 $ 112,475 Activity in the allowance for doubtful accounts for the years ended April 30, 2011, 2010 and 2009 is as follows: (in 000s) Emerald Advance Tax Client Loans Lines of Credit Receivables - RALs to Franchisees Balance as of May 1, 2008 Provision Recoveries...

  • Page 63
    ... indicators at April 30, 2011 include the following: (in 000s) Credit Quality Indicators Occupancy status: Owner occupied Non-owner occupied Documentation level: Full documentation Limited documentation Stated income No documentation Internal risk rating: High Medium Low Purchased from SCC $ 249...

  • Page 64
    ... loans is as follows: (in 000s) As of April 30, Portion of total allowance for loan losses allocated to impaired loans and TDR loans: Based on collateral value method Based on discounted cash flow method 2011 2010 $ 69,794 11,055 $ 80,849 $ 68,696 8,915 $ 77,611 52 H&R BLOCK 2011 Form 10K

  • Page 65
    Information related to activities of our non-performing assets is as follows: (in 000s) For the Year Ended April 30, Average impaired loans: Purchased from SCC All other 2011 $ 252,673 37,082 $ 289,755 2010 2009 $ 307,351 $ 216,391 Interest income on impaired loans: Purchased from SCC All ...

  • Page 66
    ... amount payable on demand at the reporting date. The estimated fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities. ½ Long-term borrowings and FHLB borrowings - The...

  • Page 67
    ...,008) $ 345,470 During fiscal years 2011 and 2010, we received $6.5 million and $10.3 million, respectively, for tax incentives from certain government agencies related to our corporate headquarters building, which was recorded as a reduction of original cost. Property and equipment included above...

  • Page 68
    ... statements of income. We recorded a $15.0 million impairment in our Business Services segment in fiscal year 2010, related to RSM EquiCo, due to declining revenues and profitability. We recorded a $2.2 million goodwill impairment in our Tax Services segment in fiscal year 2009, which was a result...

  • Page 69
    ... customer banking deposits at April 30, 2011 and 2010 and the related interest expense recorded during the periods are as follows: (in 000s) April 30, Outstanding Balance Short-term: Money-market deposits Savings deposits Checking deposits: Interest-bearing Non-interest-bearing IRAs and other time...

  • Page 70
    ... common stock, without par value, at a price of $17.50 per share in a registered direct offering through subscription agreements with selected institutional investors. We received net proceeds of $141.4 million, after deducting placement agent fees and other offering expenses. Proceeds were used for...

  • Page 71
    ... million and $26.6 million in fiscal years 2011, 2010 and 2009, 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 $0.5 million, $1.6 million and $8.6 million...

  • Page 72
    ... cost related to these options. The cost is expected to be recognized over a weighted-average period of two years. We utilize the Black-Scholes option valuation model to value our options on the grant date. We typically estimate the expected volatility using our historical stock price data...

  • Page 73
    ... Change in tax rate resulting from: State income taxes, net of federal income tax benefit Permanent differences Uncertain tax positions Net decrease in valuation allowance Other Effective tax rate 2011 35.0% 4.5% (0.3)% 1.1% (1.3)% (0.9)% 38.1% 2010 35.0% 3.8% (0.5)% 0.9% (1.0)% (0.6)% 37.6% 2009 35...

  • Page 74
    ... effective tax rate for discontinued operations was 39.4%, 45.1% and 42.5% for fiscal years 2011, 2010 and 2009, respectively. As of April 30, 2011, we have a capital loss deferred tax asset (DTA) of $147 million. The majority of this capital loss DTA resulted from the sale of our brokerage business...

  • Page 75
    ... in cost of revenues on our consolidated statements of income. (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 $ 2011 24,693 94,300 1,609 13,551 $ 2010 31,877...

  • Page 76
    ... services, information technology, office space, non-professional staff, and other infrastructure in exchange for market rate fees from M&P. In addition, the agreement allows for professional staff to be sub-contracted between RSM and M&P at market rates. During fiscal years 2011 and 2010...

  • Page 77
    ... 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 the transaction, the City purchased equipment by issuing $31.0 million in Industrial Revenue Bonds due in...

  • Page 78
    ... purchase or disposition of businesses; (2) penalties and interest assessed by federal and state taxing authorities in connection with tax returns prepared for clients; (3) indemnification of our directors and officers; and (4) third-party claims relating to various arrangements in the normal course...

  • Page 79
    ...agreement dated April 2008 with a specific counterparty in exchange for a full and complete release of such party's ability to assert representation and warranty claims. The indemnity agreement was given as part of obtaining the counterparty's consent to SCC's sale of its mortgage servicing business...

  • Page 80
    ... financial statements. RAL LITIGATION - We have been named in multiple lawsuits as defendants in litigation regarding our refund anticipation loan program in past years. All of those lawsuits have been settled or otherwise resolved, except for one. The sole remaining case is a putative class action...

  • Page 81
    ... various SCC related entities and H&R Block, Inc. related entities, arising out of Federal Home Loan Bank's (FHLB's) purchase of mortgage-backed securities. Plaintiff asserts claims for rescission and damages under state securities law and for common law negligent 69 H&R BLOCK 2011 Form 10K

  • Page 82
    ..., Western District of Missouri, filed January 25, 2010) (alleging failure to compensate tax professionals nationwide for off-season training). A class was certified in the Lemus case in December 2010 (consisting of tax professionals who worked in company-owned offices in California from 2007 to 2010...

  • Page 83
    ... Bank maintaining a leverage capital ratio of 12% immediately after payment and on a continual basis. HRB Bank paid dividends and returned of capital of $262.5 million during fiscal year 2011, comprised of $37.5 million in REO properties and loans and $225.0 million in cash. H&R BLOCK 2011 Form 10K...

  • Page 84
    ...fees from refund anticipation checks (RACs), prior year 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 also offers traditional banking services including checking and savings accounts...

  • Page 85
    ... 22: QUARTERLY FINANCIAL DATA (UNAUDITED) (in 000s, except per share amounts) Fiscal Year 2011 Revenues Income (loss) from continuing operations before taxes (benefit) Income taxes (benefit) Net income (loss) from continuing operations Net income (loss) from discontinued operations Net income (loss...

  • Page 86
    ...406,110 Year Ended April 30, 2010 Total revenues Cost of revenues Selling, general and administrative Total expenses Operating income (loss) Other income, net Income (loss) from continuing operations before taxes (benefit) Income taxes (benefit) Net income (loss) from continuing operations Net loss...

  • Page 87
    ... 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 loss from...

  • Page 88
    ... Repurchase of common stock Proceeds from stock options Net intercompany advances Other, net Net cash provided by (used in) financing activities Effects of exchange rates on cash Net increase (decrease) in cash Cash - beginning of the year Cash - end of the year $ H&R Block, Inc. (Guarantor) $ 9,683...

  • Page 89
    ...paid Repurchase of common stock Proceeds from stock options Net intercompany advances Other, net Net cash provided by (used in) financing activities Effects of exchange rates on cash Net increase (decrease) in cash Cash - beginning of the year Cash - end of the year H&R Block, Inc. (Guarantor) $ 21...

  • Page 90
    ... from sales of businesses, net 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, net...

  • Page 91
    ...TaxACT digital tax preparation solutions. The Amendment addresses, among other things, each party's respective obligations regarding the civil antitrust lawsuit instituted by the United States Department of Justice (the "DOJ") to block the transaction (the "DOJ Action") and the extension of the date...

  • Page 92
    ... and employees, including our chief executive officer, chief financial officer, principal accounting officer and persons performing similar functions. A copy of the code of business ethics and conduct is available on our website at www.hrblock.com. We intend to provide information on our website...

  • Page 93
    ... section titled "Review of Related Person Transactions," and in the section titled "Corporate Governance," and is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES The information called for by this item is contained in our definitive proxy statement filed pursuant to...

  • Page 94
    ... BLOCK, INC. William C. Cobb President and Chief Executive Officer (as of May 16, 2011) Alan M. Bennett President and Chief Executive Officer (until May 16, 2011) June 23, 2011 June 23, 2011 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below...

  • Page 95
    ... Long-Term Executive Compensation Plan Award Agreement for Stock Options, filed as part of Exhibit 10.1 to the Company's quarterly report on Form 10-Q for the quarter ended July 31, 2010, file number 1-6089, is incorporated herein by reference. H&R Block Deferred Compensation Plan for Executives, as...

  • Page 96
    ...file number 1-6089, is incorporated herein by reference.** 10.28 Credit and Guarantee Agreement dated as of March 4, 2010, among Block Financial LLC, H&R Block, Inc., each lender from time to time party thereto, and Bank of America, N.A., filed as Exhibit 10.36 to the company's annual report on Form...

  • Page 97
    ... herein by reference. 10.31 Governance and Operations Agreement dated as of February 3, 2010 among RSM McGladrey, Inc., H&R Block, Inc. and McGladrey & Pullen LLP, filed as Exhibit 10.43 to the company's annual report on Form 10-K for the fiscal year ended April 30, 2010, file number 1-6089, is...

  • Page 98
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  • Page 99
    ... Street, Suite 3300 Kansas City, Missouri 64106-2129 Common Stock traded on the New York Stock exchange ticker symbol: HrB Annual Report Design by Curran & Connors, Inc. / www.curran-connors.com Upon request, we will furnish without charge to our shareowners a copy of our 2011 Form 10-K as filed...

  • Page 100
    t H&R BLOCK, INC. One H&R Block Way Kansas City, MO 64105 816.854.3000 w w w. h r b l o c k . c o m