HR Block 2012 Annual Report Download - page 71

Time deposit accounts totaling $5.4 million were in excess of Federal Deposit Insurance Corporation (FDIC)
insured limits at April 30, 2012, and mature as follows:
(in 000s)
Three months or less $ 2,253
Three to six months 770
Six to twelve months 1,821
Over twelve months 594
$ 5,438
NOTE 9: LONG-TERM DEBT
The components of long-term debt are as follows:
(in 000s)
As of April 30, 2012 2011
Senior Notes, 7.875%, due January 2013 $ 599,913 $ 599,788
Senior Notes, 5.125%, due October 2014 399,412 399,177
Acquisition obligation, due June 2012 30,831 30,166
Capital lease obligations 10,393 10,953
1,040,549 1,040,084
Less: Current portion (631,434) (557)
$ 409,115 $ 1,039,527
We maintain 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 0.30% to
1.80% (depending on the type of borrowing) and includes an annual facility fee of 0.20% to 0.70% of the
committed amounts (based on our credit ratings). Covenants in this facility include: (1) maintenance of a
minimum equity of $500.0 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 CLOC agreement, to $200.0 million or less for
thirty consecutive days during the period from March 1 to June 30 of each year. At April 30, 2012, we were in
compliance with these covenants and had net worth of $1.3 billion. We had no balance outstanding under the
CLOC at April 30, 2012 or 2011.
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. These Senior Notes are included in current portion of long-term debt in
the consolidated balance sheet at April 30, 2012 due to their contractual maturity in January 2013.
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.
We have a capitalized lease obligation of $10.4 million at April 30, 2012, that is collateralized by land and
buildings. The obligation is due in 11 years.
The aggregate payments required to retire long-term debt are $631.4 million, $0.7 million, $400.2 million, $0.8
million, $0.8 million and $6.6 million in fiscal years 2013, 2014, 2015, 2016, 2017 and beyond, respectively.
HRB Bank is a member of the FHLB of Des Moines, which extends credit to member banks based on eligible
collateral. At April 30, 2012, HRB Bank had FHLB advance capacity of $334.2 million. At April 30, 2012, we had
no balance outstanding on this facility. Mortgage loans held for investment of $297.1 million and AFS securities
of $121.4 million serve as eligible collateral and are used to determine total capacity.
H&R BLOCK 2012 Form 10K 57