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90 2014 Form 10-K | H&R Block, Inc.
Year ended April 30, 2012 H&R Block, Inc.
(Guarantor) Block Financial
(Issuer) Other
Subsidiaries Eliminations Consolidated
H&R Block
Net cash provided by operating activities: $ 33,046 $ 15,144 $ 313,859 $ — $ 362,049
Cash flows from investing:
Purchases of AFS securities — (256,173) — — (256,173)
Maturities and payments received on AFS
securities — 63,291 3,091 — 66,382
Mortgage loans held for investment, net — 49,142 — — 49,142
Capital expenditures — (153) (82,304) — (82,457)
Payments for business acquisitions, net — — (15,258) — (15,258)
Proceeds from sales of businesses, net — — 560,499 — 560,499
Franchise loans funded — (46,246) — — (46,246)
Payments received on franchise loans — 56,591 — — 56,591
Intercompany borrowings (payments) (1) — 55,721 (344,000) 288,279 —
Other, net — 11,785 7,602 — 19,387
Net cash provided by (used in) investing
activities — (66,042) 129,630 288,279 351,867
Cash flows from financing:
Repayments of short-term borrowings — (664,167) — — (664,167)
Proceeds from short-term borrowings — 664,167 — — 664,167
Repayments of FHLB borrowings — (25,000) — — (25,000)
Customer banking deposits, net — (25,298) — (793) (26,091)
Dividends paid (208,801) — — — (208,801)
Repurchase of common stock (180,592) — — — (180,592)
Proceeds from exercise of stock options 12,275 — — — 12,275
Intercompany borrowings (payments) (1) 344,000 — (55,721) (288,279) —
Other, net 72 105 (17,030) — (16,853)
Net cash provided by (used in) financing
activities (33,046) (50,193) (72,751) (289,072) (445,062)
Effects of exchange rate changes on cash — — (2,364) — (2,364)
Net increase (decrease) in cash — (101,091) 368,374 (793) 266,490
Cash - beginning of the year — 616,238 1,061,656 (50) 1,677,844
Cash - end of the year $ — $ 515,147 $ 1,430,030 $ (843) $ 1,944,334
(1) Amounts have been restated, including the presentation of intercompany borrowings (payments) as either investing or financing activities.
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