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H&R Block, Inc. | 2014 Form 10-K 61
NOTE 9: CUSTOMER BANKING DEPOSITS
The components of customer banking deposits as of April 30, 2014 and 2013 and the related interest expense recorded
during the periods are as follows:
(in 000s)
April 30, 2014 2013
Outstanding
Balance Interest
Expense Outstanding
Balance Interest
Expense
Short-term:
Money-market deposits $ 24,870 $ 1,228 $ 188,939 $ 1,827
Savings deposits 7,611 66 18,608 138
Checking deposits:
Interest-bearing 189 7 1,941 21
Non-interest-bearing 429,992 — 391,654 —
430,181 7 393,595 21
IRAs and other time deposits:
Due in one year 3,054 18,529
IRAs 304,069 316,793
307,123 808 335,322 3,674
$ 769,785 $ 2,109 $ 936,464 $ 5,660
Long-term:
Due in two years $ 166 $ 1,436
Due in three years 7106
Due in four years 315 13
Due in five years 15 312
$ 503 $ — $ 1,867 $ —
NOTE 10: LONG-TERM DEBT
The components of long-term debt are as follows:
(in 000s)
As of April 30, 2014 2013
Senior Notes, 5.500%, due November 2022 $ 497,612 $ 497,330
Senior Notes, 5.125%, due October 2014 399,882 399,648
Capital lease obligation, due over the next 9 years 8,980 9,702
906,474 906,680
Less: Current portion (400,637) (722)
$ 505,837 $ 905,958
UNSECURED COMMITTED LINE OF CREDIT – In August 2012, we entered into a five-year, $1.5 billion unsecured
committed line of credit governed by a Credit and Guarantee Agreement (2012 CLOC). The 2012 CLOC bears interest
at an annual rate of LIBOR plus an applicable rate ranging from 0.750% to 1.45% or PRIME plus an applicable rate
ranging from 0.000% to 0.450% (depending on the type of borrowing and our then current credit ratings) and includes
an annual facility fee ranging from 0.125% to 0.300% of the committed amounts (also depending on our then current
credit ratings). The 2012 CLOC is subject to various conditions, triggers, events or occurrences that could result in
earlier termination and contains customary representations, warranties, covenants and events of default, including,
without limitation: (1) a covenant requiring the Company to maintain a debt-to-EBITDA ratio calculated on a
consolidated basis of no greater than (a) 3.50 for the fiscal quarters ending on April 30, July 31, and October 31 of
each year and (b) 3.75 for the fiscal quarter ending on January 31 of each year; (2) a covenant requiring us to maintain
an interest coverage (EBITDA-to-interest expense) ratio calculated on a consolidated basis of no less than 2.50 as of
the last date of any fiscal quarter; and (3) covenants restricting our ability to incur additional debt, incur liens, merge