HR Block 2013 Annual Report Download - page 15

8 H&R Block 2013 Form 10-K
by January 1, 2015. However, the Federal Reserve announced on November 9, 2012 that the implementation would
be postponed beyond January 1, 2013 to an unspecified date.
The proposed rules also add a requirement for a minimum capital conservation buffer of 2.5% of risk-weighted
assets, which would be incremental to each of the above ratios except for the leverage ratio. If implemented as proposed,
the conservation buffer would be phased in, starting at 0.625% on January 1, 2016, increasing by that amount each
year until fully implemented effective January 1, 2019. The capital conservation buffer would result in the following
minimum ratios: (1) a common equity Tier 1 risk-based capital ratio of 7.0%; (2) a Tier 1 risk-based capital ratio of
8.5%; and (3) a total risk-based capital ratio of 10.5%. Failure to maintain a conservation buffer would result in
restrictions on capital distributions, which includes dividends and share repurchase activity, and certain discretionary
cash bonus payments to executive officers.
The deadline for comment on the proposed rules was October 22, 2012, and numerous banking associations, industry
groups, and individual companies provided comments on the proposed rules to the regulators. We filed a comment
letter asking the Federal Reserve to follow the Collins Amendment, which includes provisions that defer the effective
date for new minimum capital requirements for SLHCs until July 21, 2015, and make the proposed capital requirements
for SLHCs effective no earlier than such date. The regulators are in the process of reviewing the comments before
publishing final capital requirements.
If such regulations are implemented as proposed, banks and their holding companies, including our Holding
Companies, will be subject to higher minimum capital requirements and will be required to hold a greater amount of
equity than currently required. The regulations ultimately applicable to our Holding Companies may be substantially
different from the proposed regulations. We will continue to monitor the rulemaking process for any modifications or
clarifications that may be made prior to finalization. There is no assurance that the proposed rules will be adopted in
their current form, what changes may be made prior to adoption, when the final rules will be effective, or how the final
rules would ultimately affect our business.
As discussed in Item 1A, “Risk Factors,” we are in the process of evaluating alternative means of ceasing to be an
SLHC, in which case we would no longer be subject to regulation by the Federal Reserve as an SLHC.
Consumer Financial Protection Bureau. The Dodd-Frank Act created the new CFPB with the power to
administer and enforce federal financial consumer protection laws. The CFPB may issue regulations that apply to HRB
Bank, and to our non-bank subsidiaries that provide consumer financial services and products. The CFPB may examine,
and take enforcement actions against, our non-bank subsidiaries. See Item 1A for further information on the CFPB.
See Item 7, under “Regulatory Environment” and Item 8, note 21 to the consolidated financial statements for
additional discussion of regulatory requirements.
SERVICE MARKS, TRADEMARKS AND PATENTS
We have made a practice of selling our services and products under service marks and trademarks and of obtaining
protection for these by all available means including, but not limited to, registration of our service marks and trademarks
in the U.S. and other countries where our services and products are marketed. We consider these service marks and
trademarks, in the aggregate, to be of material importance to our business, particularly our businesses providing services
and products under the “H&R Block” brand.
We have no registered patents material to our business.
EMPLOYEES
We had approximately 2,200 regular full-time employees as of April 30, 2013. The highest number of persons we
employed during the fiscal year ended April 30, 2013, including seasonal employees, was approximately 80,700.
AVAILABILITY OF REPORTS AND OTHER INFORMATION
Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to
those reports filed with or furnished to the SEC are available, free of charge, through our website at www.hrblock.com
as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC. The public
may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE,
Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling