HR Block 2012 Annual Report Download - page 99

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Year ended April 30, 2010
H&R Block, Inc.
(Guarantor)
Block Financial
(Issuer)
Other
Subsidiaries Eliminations
Consolidated
H&R Block
Net cash provided by operating activities: $ 21,252 $ 16,698 $ 549,519 $ – $ 587,469
Cash flows from investing:
Purchases of AFS securities – (365) (5,000) – (5,365)
Sales and maturities of AFS securities – 14,639 1,119 – 15,758
Mortgage loans held for investment, net – 72,832 – – 72,832
Purchases of property & equipment – – (90,515) – (90,515)
Payments for business acquisitions – – (10,539) – (10,539)
Proceeds from sales of businesses, net – – 66,623 – 66,623
Loans made to franchisees – (89,664) – – (89,664)
Repayments from franchisees – 40,710 – – 40,710
Net intercompany advances 415,591 – – (415,591) –
Other, net – 73,493 (41,980) – 31,513
Net cash provided by (used in) investing activities 415,591 111,645 (80,292) (415,591) 31,353
Cash flows from financing:
Repayments of commercial paper – (1,406,013) – – (1,406,013)
Proceeds from commercial paper – 1,406,013 – – 1,406,013
Repayments of other borrowings – (4,267,727) (46) – (4,267,773)
Proceeds from other borrowings – 4,242,727 – – 4,242,727
Customer banking deposits, net – 11,428 – 6,111 17,539
Dividends paid (200,899) – – – (200,899)
Repurchase of common stock (254,250) – – – (254,250)
Proceeds from stock options 16,682 – – – 16,682
Net intercompany advances – 354,617 (770,208) 415,591 –
Other, net 1,624 (8,717) (28,051) – (35,144)
Net cash provided by (used in) financing activities (436,843) 332,328 (798,305) 421,702 (481,118)
Effects of exchange rates on cash – – 11,678 – 11,678
Net increase (decrease) in cash – 460,671 (317,400) 6,111 149,382
Cash – beginning of the year – 241,350 1,419,535 (6,222) 1,654,663
Cash – end of the year $ – $ 702,021 $1,102,135 $ (111) $ 1,804,045
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There were no disagreements or reportable events requiring disclosure pursuant to Item 304(b) of Regulation S-K.
ITEM 9A. CONTROLS AND PROCEDURES
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – We have established disclosure controls
and procedures (Disclosure Controls) to ensure that information required to be disclosed in the Company’s
reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and
reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms.
Disclosure Controls are also designed to ensure that such information is accumulated and communicated to
management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure. Our Disclosure Controls were designed to provide reasonable
assurance that the controls and procedures would meet their objectives. Our management, including the Chief
Executive Officer and Chief Financial Officer, does not expect that our Disclosure Controls will prevent all
error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable
assurance of achieving the designed control objectives and management is required to apply its judgment in
evaluating the cost-benefit relationship of possible controls and procedures. Because of the inherent limitations
in all control systems, no evaluation of controls can provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been detected. These inherent limitations include the
realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple
error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by
collusions of two or more people or by management override of the control. Because of the inherent limitations
in a cost-effective, maturing control system, misstatements due to error or fraud may occur and not be detected.
H&R BLOCK 2012 Form 10K
85