HR Block 2015 Annual Report Download

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2015 ANNUAL REPORT

Table of contents

  • Page 1
    2015 ANNUAL REPORT

  • Page 2
    ... tax returns Q Helped clients obtain more than $50 billion in tax refunds, credits and other government benefits Q Had a retail office within 5 miles of most Americans Q Issued 2.0 million H&R Block Emerald Prepaid MasterCards® with $8.3 billion in total deposits Tax return preparation services...

  • Page 3
    ... and growing way...tax fraud. Specifically, there are two areas in which our industry has seen significant trends over the past several years; tax identity theft and Earned Income Tax Credit fraud. H&R Block has been advocating for actions to address tax fraud for several years. Now, meaningful...

  • Page 4
    ...POM sales, as the two products complement each other nicely. In addition, we successfully increased H&R Block Emerald Prepaid MasterCard® usage and average deposits. This is the continuation of a multi-year effort, which has resulted in a 40% increase in revenue per card since 2012. Internationally...

  • Page 5
    2015 FORM 10 -K

  • Page 6
    ...Identification No.) One H&R Block Way, Kansas City, Missouri 64105 (Address of principal executive offices, including zip code) (816) 854-3000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange...

  • Page 7
    2015 FORM 10-K AND ANNUAL REPORT TABLE OF CONTENTS INTRODUCTION AND FORWARD-LOOKING STATEMENTS PART I ITEM 1. ITEM 1A. ITEM 1B. ITEM 2. ITEM 3. ITEM 4. ITEM 5. ITEM 6. ITEM 7. BUSINESS RISK FACTORS UNRESOLVED STAFF COMMENTS PROPERTIES LEGAL PROCEEDINGS MINE SAFETY DISCLOSURES PART II MARKET FOR ...

  • Page 8
    ..., digital do-it-yourself (DIY) tax solutions and other services and products related to income tax return preparation to the general public primarily in the United States (U.S.) and its territories, Canada and Australia. This segment also offers retail banking services in the U.S. through H&R Block...

  • Page 9
    ... and its territories, Canada, and Australia. Major revenue sources include fees earned for tax preparation and related services performed at company-owned retail tax offices, royalties from franchisees, sales of desktop tax preparation software, fees for online tax preparation services and fees from...

  • Page 10
    ... Emerald Advance® lines of credit (EAs), H&R Block Emerald Prepaid MasterCard®, our Peace of Mind® Extended Service Plan (POM), Tax Identity ShieldSM (TIS), and, for our Canadian clients, a refund discount (Cash Back®) program. Refund Transfers. RTs, formerly known as refund anticipation checks...

  • Page 11
    ... on a tax return filed through H&R Block and access to services to help restore their tax identity if necessary. Cash Back® Refund Discount Program. During the tax season, our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA), for a fee. The fee charged...

  • Page 12
    ... chartered under the Home Owner's Loan Act, as amended (HOLA). Our Holding Companies are SLHCs because they control HRB Bank. The following is a general description of certain U.S. federal banking statutes and regulations that apply to HRB Bank and our Holding Companies. H&R Block, Inc. | 2015 Form...

  • Page 13
    ... Act (the Dodd-Frank Act) was signed into law on July 21, 2010. This federal statute made extensive changes to the laws regulating federal savings banks, their holding companies and other financial services companies. The Dodd-Frank Act requires various federal agencies to adopt many new rules...

  • Page 14
    ... financial statements for discussion of dividends paid by HRB Bank. In July 2013, the federal banking agencies issued final rules to implement changes that would increase the capital requirements for federal savings banks, including HRB Bank. The OCC has issued final capital regulations and the new...

  • Page 15
    ... Internal Revenue Code. Under either test, HRB Bank is required to maintain a significant portion of its assets in residential housing related loans and investments. Any institution that fails to meet the QTL test is immediately subject to certain restrictions on its operations, unless it 8 2015...

  • Page 16
    ... terms generally ranging from one to 20 years. EMPLOYEES AND EXECUTIVE OFFICERS We had approximately 2,200 regular full-time employees as of April 30, 2015. Our business is dependent on the availability of a seasonal workforce, including tax professionals, and our ability to hire, train, and...

  • Page 17
    ... 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...

  • Page 18
    ... tax return preparation services. Commercial tax return preparers are highly competitive with regard to price and service. In the DIY category, options include the use of traditional paper forms and various forms of digital electronic assistance, including online, mobile, and desktop software...

  • Page 19
    ...which we operate. In the U.S., the IRS generally requires a tax return preparer to obtain the prior written consent of the taxpayer to use or disclose the taxpayer's information for certain purposes other than tax return preparation. In addition, other regulations require financial service providers...

  • Page 20
    ... stolen information obtained through hacking, phishing, and other means of identity theft in order to electronically file fraudulent federal and state tax returns. As a result, an increasing number of taxpayers must complete additional forms and go through additional steps in order to report to...

  • Page 21
    ... of tax returns and make the pre-populated return a more tangible possibility. In 2011, the U.S. Department of the Treasury completed a prepaid debit card pilot program designed to facilitate the refund process. HRB Bank also provides this type of service through its H&R Block Emerald Prepaid...

  • Page 22
    ... with BofI. In connection with the closing of the P&A Transaction, HRB Bank will convert into a national banking association, merge with and into Block Financial, surrender its bank charter, and cease to operate as a separate legal entity. At that time, our Holding Companies would no longer be...

  • Page 23
    ...refund amounts to which such clients may be entitled. From time to time, we review and enhance our quality controls for preparing accurate tax returns, but there can be no assurance that we will be able to prevent all inaccuracies. Any significant delays in launching our tax service and 16 2015 Form...

  • Page 24
    ...major defects or launch delays, or failure to anticipate changes in governmental processes for accepting tax filings and related forms, may lead to loss of clients and revenue, negative publicity, client and employee dissatisfaction, a deterioration in our business relationships with our franchisees...

  • Page 25
    ... requirements that could reduce the demand for these products, could have a material adverse impact on our business and our consolidated financial position, results of operations, and cash flows. Our access to liquidity may be negatively impacted as disruptions in credit markets occur, if credit...

  • Page 26
    ... value and fair value at the time of sale. In addition to mortgage loans, we also extend secured and unsecured credit to other clients, including providing EAs to our tax clients. We may incur significant losses on credit we extend, which in turn could reduce our profitability. Our business depends...

  • Page 27
    ... financial position, results of operations, and cash flows. Our financial success depends in significant part on our ability to maintain sound business relationships with our franchisees. The support of our franchisees is also critical for the success of our marketing programs and any new...

  • Page 28
    ... state securities law and common law fraud based on alleged materially inaccurate or misleading disclosures, arising out of the activities of such underwriters or depositors in their sale of RMBSs or mortgage loans. Based on information currently available to SCC, it believes that the 20 lawsuits in...

  • Page 29
    ... adverse effect on our business and our consolidated financial position, results of operations and cash flows. In addition, in certain limited instances, H&R Block guaranteed amounts as outlined in the above risk factor. ITEM 1B. UNRESOLVED STAFF COMMENTS None. 22 2015 Form 10-K | H&R Block, Inc.

  • Page 30
    ... STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET INFORMATION AND HOLDERS - H&R Block's common stock is traded on the New York Stock Exchange (NYSE) under the symbol HRB. On May 29, 2015, there were 18,789 shareholders of record and the closing stock price on the NYSE was $31.73...

  • Page 31
    ... 2015, 2014 and 2013 are discussed in Item 7. The data set forth below should be read in conjunction with Item 7 and the consolidated financial statements in Item 8. During fiscal year 2012, we sold our previously reported Business Services segment and recorded a loss on the sale. April 30, Revenues...

  • Page 32
    ... retail banking services and other services. Tax returns are either prepared by H&R Block tax professionals (in company-owned or franchise offices or virtually via the internet) or prepared and filed by our clients through H&R Block tax software, either online or using our desktop software or mobile...

  • Page 33
    ... reported Business Services segment and discontinued mortgage operations. Tax Services - Operating Statistics Year ended April 30, TAX RETURNS PREPARED : (in 000s) United States: Company-owned operations Franchise operations Total assisted returns Desktop Online Free File Alliance Total tax software...

  • Page 34
    ... - Financial Results Year ended April 30, (in 000s) Tax Services Tax preparation fees: U.S. assisted International U.S. DIY Royalties Revenues from refund transfers Revenues from Emerald Card® Revenues from Peace of Mind® Extended Service Plan Interest and fee income on Emerald Advance Other...

  • Page 35
    ... revenues declined $23.4 million, or 7.4%, almost entirely due to acquisitions of franchisee businesses during the fiscal year. Return counts in our company-owned offices, excluding returns prepared in those offices acquired during fiscal year 2015, declined 4.6%. International tax preparation fees...

  • Page 36
    ... - Financial Results Year ended April 30, (in 000s) Tax Services Tax preparation fees: U.S. assisted International U.S. DIY Royalties Revenues from refund transfers Revenues from Emerald Card® Revenues from Peace of Mind® Extended Service Plan Interest and fee income on Emerald Advance Other...

  • Page 37
    ... the free 1040EZ offer. International tax preparation fees decreased $20.7 million, or 9.4%, due primarily to unfavorable exchange rates and extension of the Canadian tax season to May 5th. U.S. DIY revenue increased $17.2 million, or 9.1%, primarily due to tax software product enhancements and...

  • Page 38
    ... adjustment and may require material adjustment. See Item 8, note 1 to the consolidated financial statements, which discusses accounting policies we have selected when there are acceptable alternatives and new or proposed accounting standards that may affect our financial reporting in the future...

  • Page 39
    ...provisions of $16 million in fiscal year 2015, $25 million in fiscal year 2014 and $40 million in fiscal year 2013. If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC...

  • Page 40
    ... tax valuation allowances, our effective tax rate increased 0.2% and 1.5% in fiscal years 2015 and 2014, respectively. NEW ACCOUNTING PRONOUNCEMENTS See Item 8, note 1 to the consolidated financial statements for a discussion of recently issued accounting pronouncements. H&R Block, Inc. | 2015 Form...

  • Page 41
    ... businesses. Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from January through April. Therefore, we require the use of cash to fund losses from May through December, and typically rely on available cash balances from the prior...

  • Page 42
    ...billion. In connection with the closing we intend to liquidate the available-for-sale (AFS) securities held by HRB Bank, which totaled $435 million at April 30, 2015. See additional discussion in Item 1, under "Business," and in Item 8, note 2 to the consolidated financial statements. See additional...

  • Page 43
    ...and returned capital of $250.0 million during fiscal year 2015. HRB Bank did not pay any dividends during fiscal years 2014 or 2013. As of April 30, 2015, we also held investments, primarily mortgage backed securities, with a carrying value of $441.7 million which we classified as available for sale...

  • Page 44
    ... not limited to, commercial income tax return preparers, income tax courses, the electronic filing of income tax returns, the offering of RTs, loan originations and assistance in loan originations, mortgage lending, privacy, consumer protection, franchising, sales methods and banking. We determine...

  • Page 45
    ... and intangible assets Severance Professional fees related to HRB Bank transaction Losses (gains) on AFS securities Loss on extinguishment of debt Gain on sales of tax offices/businesses Tax effect of adjustments $ 2015 Income $ 486,744 $ 2014 EBITDA 940,108 $ 2013 Income 500,097 $ EBITDA 874...

  • Page 46
    ... related interest yields and rates for fiscal years 2015, 2014 and 2013: (dollars in 000s) Year ended April 30, Average Balance Interest-earning assets: Mortgage loans, net Federal funds sold Credit cards Emerald Advance AFS securities FHLB stock Cash and due from banks $ 249,586 738 12,428 92,649...

  • Page 47
    ... of HRB Bank's mortgage loan portfolio and information on delinquent loans: (in 000s) As of April 30, Residential real estate mortgages Home equity lines of credit $ Loans and TDRs on non-accrual Loans past due 90 days or more Total TDRs Interest income recorded on nonaccrual loans $ $ 2015 245,063...

  • Page 48
    ... table shows HRB Bank's average deposit balances and the average rate paid on those deposits for fiscal years 2015, 2014 and 2013: (dollars in 000s) Year ended April 30, 2015 Average Balance Money market and savings Interest-bearing checking accounts IRAs Certificates of deposit Non-interest-bearing...

  • Page 49
    ... anticipated yields. CUSTOMER DEPOSITS - HRB Bank's liabilities consist primarily of transactional deposit relationships, such as H&R Block Emerald Prepaid MasterCard® accounts and checking accounts. Other liabilities typically include money market accounts and certificates of deposit. Money market...

  • Page 50
    ... is not included in the analysis below. (in 000s) Carrying Value As of April 30, 2015: Mortgage loans held for investment Mortgage-backed securities As of April 30, 2014: Mortgage loans held for investment Mortgage-backed securities $ 268,428 427,824 $ 4,032 22,816 $ 3,798 17,264 $ (4,737) $ (27,037...

  • Page 51
    ... maintains an extensive program of internal audits and requires members of management to certify financial information within their scope of management. Our system of internal control over financial reporting also includes formal policies and procedures, including a Code of Business Ethics and...

  • Page 52
    ...(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated June 17, 2015 expressed an unqualified opinion on the Company's internal control over financial reporting. /s/ Deloitte & Touche Kansas City, Missouri June 17, 2015 H&R Block, Inc. | 2015 Form...

  • Page 53
    ... statement schedule as of and for the year ended April 30, 2015 of the Company and our report dated June 17, 2015 expressed an unqualified opinion on those financial statements and financial statement schedule. /s/ Deloitte & Touche Kansas City, Missouri June 17, 2015 46 2015 Form 10-K | H&R Block...

  • Page 54
    ... INCOME Year ended April 30, REVENUES: Service revenues Royalty, product and other revenues Interest income OPERATING EXPENSES: Cost of revenues: Compensation and benefits Occupancy and equipment Provision for bad debt and loan losses Depreciation and amortization Other Selling, general and...

  • Page 55
    ...tax assets and income taxes receivable Prepaid expenses and other current assets Investments in available-for-sale securities Total current assets Mortgage loans held for investment, less allowance for loan...accompanying notes to consolidated financial statements. 48 2015 Form 10-K | H&R Block, Inc.

  • Page 56
    ... on available-for-sale securities Principal payments on mortgage loans held for investment, net Capital expenditures Payments made for business acquisitions, net of cash acquired Proceeds from notes receivable Franchise loans funded Payments received on franchise loans Surrender of company-owned...

  • Page 57
    ... comprehensive loss Stock-based compensation Stock-based awards exercised or vested Acquisition of treasury shares Other Cash dividends declared - $0.80 per share Balances as of April 30, 2015 See accompanying notes to consolidated financial statements. 50 2015 Form 10-K | H&R Block, Inc.

  • Page 58
    ... of mortgage loans held for investment, H&R Block Emerald Advance® lines of Credit (EAs), loans made to franchisees, and amounts due under our refund discount program in Canada (Cash Back®). H&R Block Emerald Advance® lines of credit. EAs are typically offered to clients in our offices from...

  • Page 59
    ... the loan, we revoke franchise rights, write off the remaining balance of the loan and refranchise the territory or begin operating it as company-owned. Cash Back® receivables. During the tax season, our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA...

  • Page 60
    ... and filing of tax returns, both in offices and through our online programs, fees earned on refund transfers (RTs), interchange income associated with our H&R Block Emerald Prepaid MasterCard® program and fees associated with our Peace of Mind® Extended Service Plan (POM). Service revenues are...

  • Page 61
    ... percentages of franchise revenues, are recorded in the period in which the services are provided to the customer. Revenue from the sale of desktop software is recognized when the product is sold to the end user. Rebates, slotting fees and other incentives paid in connection with these sales are...

  • Page 62
    ... deposit liabilities transferred and the cash payment we make. During fiscal year 2015, our month-end deposit balances ranged from approximately $440 million to approximately $1.7 billion. In connection with the closing we intend to liquidate the available-for-sale (AFS) securities held by HRB Bank...

  • Page 63
    ... years 2015, 2014 and 2013, respectively, as the effect would be antidilutive. NOTE 4: RECEIVABLES Receivables consist of the following: (in 000s) As of April 30, Loans to franchisees Receivables for tax preparation and related fees Cash Back® receivables Emerald Advance lines of credit Royalties...

  • Page 64
    ... 000s) Credit Quality Indicator - Year of origination: 2015 2014 2013 and prior Revolving loans $ $ 7,367 218 2,202 14,034 23,821 As of April 30, 2015 and 2014, $18.7 million and $20.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively...

  • Page 65
    ... Balance as of the end of the year $ 2015 11,272 $ (10) 1,393 (4,769) 7,886 $ 2014 14,314 8,271 4,040 $ (15,353) 11,272 $ Detail of the aging of the mortgage loans in our portfolio as of April 30, 2015 is as follows: (in 000s) Less than 60 Days Past Due Purchased from SCC All other $ (1) 60...

  • Page 66
    ...tested goodwill for impairment in the fourth quarter of fiscal year 2015, and did not identify any impairment. Components of the intangible assets of our Tax Services segment are as follows: (in 000s) As of April 30, Gross Carrying Amount Reacquired franchise rights Customer relationships Internally...

  • Page 67
    NOTE 9: CUSTOMER BANKING DEPOSITS The components of customer banking deposits as of April 30, 2015 and 2014 and the related interest expense recorded during the periods are as follows: (in 000s) April 30, 2015 Outstanding Balance Short-term: Money-market deposits Savings deposits Checking deposits: ...

  • Page 68
    ... we believe market participants would use in pricing the asset. Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Our investments in AFS securities are carried at fair value on...

  • Page 69
    ... mortgage loans held for investment is generally based on the net present value of discounted cash flows for TDR loans or the appraised value of the underlying collateral for all other loans. Impaired and TDR loans are required to be remeasured at least annually, based on HRB Bank's loan policy...

  • Page 70
    .... Customer banking deposits - The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, checking, money market and savings accounts, is equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits is estimated by discounting...

  • Page 71
    ... units and other forms of equity to employees, non-employee directors and consultants. Stock-based compensation expense of our continuing operations totaled $26.1 million, $20.1 million and $15.3 million in fiscal years 2015, 2014 and 2013, respectively, net of related tax benefits of $9.9 million...

  • Page 72
    ...volatility Expected term Dividend yield Risk-free interest rate Weighted-average fair value $ 26.25% 4 years 2.62% 1.43% 5.18 $ 30.89% - 31.57% 4 years 2.77% - 2.87% 1.06% - 1.31% 5.57 $ 29.69% - 31.43% 4 - 5 years 4.18% - 5.21% 0.61% - 0.75% 2.79 2015 2014 2013 H&R Block, Inc. | 2015 Form 10-K 65

  • Page 73
    ... for H&R Block, Inc. and selected comparable companies. The dividend yield is calculated based on the current dividend and the market price of our common stock on the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve in effect on the grant date. Both...

  • Page 74
    ... decrease in the current year benefit of uncertain tax positions. The benefit from uncertain tax positions for all years resulted from settlements and new information concerning prior year positions. The net loss from discontinued operations for fiscal years 2015, 2014 and 2013 totaled $13.1 million...

  • Page 75
    ...expenses Deferred revenue Allowance for credit losses and related reserves Internally-developed software Valuation allowance Current Deferred and stock-based compensation Deferred revenue Net operating loss carry-forward Federal tax benefits related to state unrecognized tax benefits Other Valuation...

  • Page 76
    ... level or through the appeals process. In December 2014, the IRS completed their audit of our 2011 and 2012 federal income tax returns. We recorded the impact of the federal audit and the settlements with several state tax authorities during fiscal year 2015, reducing uncertain tax benefits...

  • Page 77
    ...-owned offices, commercial insurance is purchased in excess of the self-insured retentions. We accrue estimated losses for self-insured retentions using actuarial models and assumptions based on historical loss experience. For POM in franchise offices, during fiscal year 2015 we deferred revenue of...

  • Page 78
    ... to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of April 30, 2015 and 2014, we accrued liabilities of $8.9 million and $23.7 million, respectively, for such litigation addressed in this note. H&R Block, Inc. | 2015 Form 10-K 71

  • Page 79
    ... the Company's control, and the indeterminate damages sought in some of these matters. On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of...

  • Page 80
    ...as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, the plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach...

  • Page 81
    ... nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or desktop tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The...

  • Page 82
    ...G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and...

  • Page 83
    ...On June 11, 2015, the New York Court of Appeals, New York's highest appellate court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and...

  • Page 84
    ... material adverse impact on our business and our consolidated financial position, results of operations and cash flows. If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of...

  • Page 85
    ... denominator in accordance with current regulatory capital rules. Block Financial may make capital contributions to HRB Bank to help HRB Bank meet its capital requirements. Block Financial made no such capital contributions in fiscal years 2015, 2014 or 2013. A return of capital or dividend paid by...

  • Page 86
    ... software, fees for online tax preparation services, fees from RTs, fees related to H&R Block Emerald Prepaid MasterCard® and interest and fees from EAs. Our international operations contributed $231.7 million, $232.2 million and $249.0 million in revenues for fiscal years 2015, 2014 and 2013...

  • Page 87
    ... reportable segment is as follows: (in 000s) Year ended April 30, REVENUES : Tax preparation fees: U.S. assisted International U.S. DIY Royalties Revenues from refund transfers Revenues from Emerald Card® Revenues from Peace of Mind® Extended Service Plan Interest and fee income on Emerald Advance...

  • Page 88
    ... income tax return preparation and related services and products are earned during this period. As a result, we generally operate at a loss through a majority of the fiscal year. Revenues and earnings for the third and fourth quarters of fiscal year 2014 were impacted by an IRS filing delay, which...

  • Page 89
    ... fiscal years 2014 and 2013 has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption. CONDENSED CONSOLIDATING INCOME STATEMENTS Year ended April 30, 2015 Total revenues Cost of revenues Selling, general and administrative...

  • Page 90
    ... 15. Year ended April 30, 2013 Total revenues Cost of revenues (1) Selling, general and administrative Total operating expenses Other income Interest expense on external borrowings (1) Other expenses Income (loss) from continuing operations before taxes (benefit) Income taxes (benefit) Net income...

  • Page 91
    ... As of April 30, 2015 Cash & cash equivalents Cash & cash equivalents - restricted Receivables, net Deferred tax assets and income taxes receivable Prepaid expenses and other current assets Investments in available-for-sale securities Total current assets Mortgage loans held for investment, net...

  • Page 92
    As of April 30, 2014 Cash & cash equivalents Cash & cash equivalents - restricted Receivables, net Deferred tax assets and income taxes receivable Prepaid expenses and other current assets Investments in available-for-sale securities Total current assets Mortgage loans held for investment, net ...

  • Page 93
    ... Year ended April 30, 2015 Net cash provided by operating activities: Cash flows from investing: Purchases of AFS securities Sales, maturities and payments received on AFS securities Mortgage loans held for investment, net Capital expenditures Payments for business acquisitions, net Franchise loans...

  • Page 94
    Year ended April 30, 2014 Net cash provided by operating activities: Cash flows from investing: Purchases of AFS securities Sales, maturities and payments received on AFS securities Mortgage loans held for investment, net Capital expenditures Payments for business acquisitions, net Proceeds from ...

  • Page 95
    ... 30, 2013 Net cash provided by (used in) operating activities: Cash flows from investing: Purchases of AFS securities Sales, maturities and payments received on AFS securities Mortgage loans held for investment, net Capital expenditures Payments for business acquisitions, net Franchise loans funded...

  • Page 96
    ...COSO), using the 2013 framework. Based on our assessment, management concluded that, as of April 30, 2015, the Company's internal control over financial reporting was effective based on the criteria set forth by COSO. The Company's external auditors that audited the consolidated financial statements...

  • Page 97
    ... AND SERVICES The information called for by this item is contained in our definitive proxy statement filed pursuant to Regulation 14A not later than 120 days after April 30, 2015, in the section entitled "Audit Fees," and is incorporated herein by reference. PART IV ITEM 15. EXHIBITS AND FINANCIAL...

  • Page 98
    ... behalf by the undersigned, thereunto duly authorized. H&R BLOCK, INC. /s/ William C. Cobb William C. Cobb President and Chief Executive Officer June 17, 2015 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of...

  • Page 99
    ... Company and the Bank of New York, filed as Exhibit 4(a) to the Company's current report on Form 8-K filed April 17, 2000, file number 1-6089, is incorporated herein by reference. Officer's Certificate, dated October 26, 2004, in respect of 5.125% Notes due 2014 of Block Financial Corporation, filed...

  • Page 100
    ...10-Q for the quarter ended July 31, 2011, file number 1-6089, is incorporated herein by reference. * H&R Block Deferred Compensation Plan for Executives, as amended and restated on November 9, 2012, filed as Exhibit 10.4 to the Company's quarterly report on Form 10-Q for the quarter ended October 31...

  • Page 101
    ... Agent, filed as Exhibit 10.1 to the Company's current report on Form 8-K filed August 20, 2012, file number 1-6089, is incorporated herein by reference. Advances, Pledge and Security Agreement dated April 17, 2006, between H&R Block Bank and the Federal Home Loan Bank of Des Moines, filed...

  • Page 102
    ...on Form 8-K filed October 23, 2014, file number 1-6089, is incorporated herein by reference. Letter Agreement among H&R Block Bank, Block Financial LLC, and BofI Federal Bank, effective February 12, 2015, filed as Exhibit 10.1 to the Company's current report on Form 8-K filed February 13, 2015, file...

  • Page 103
    ...Touche LLP 1100 Walnut Street, Suite 3300 Kansas City, Missouri 64106-2129 Common Stock Traded on the New York Stock Exchange Ticker symbol: HRB Form 10-K Requests Upon request, we will furnish, without charge, to our shareowners a copy of our 2015 Form 10-K as filed with the Securities and Exchange...

  • Page 104
    H&R BLOCK, INC. One H&R Block Way Kansas City, MO 64105 816.854.3000 www.hrblock.com