HR Block 2015 Annual Report Download - page 16

H&R Block, Inc. | 2015 Form 10-K 9
requalifies as a QTL. These restrictions also include limitations on paying dividends. Failure to meet the QTL test is a
statutory violation subject to enforcement action. As of April 30, 2015, 2014 and 2013, HRB Bank met the QTL test.
Insurance of Accounts. HRB Bank is subject to certain regulations issued by the Federal Deposit Insurance
Corporation (FDIC), which insures the deposits of HRB Bank to the maximum extent permitted by law. This regulation
of HRB Bank is intended for the protection of its depositors.
The FDIC insures HRB Bank's deposit accounts. The FDIC assesses deposit insurance premiums on each FDIC-insured
institution based on its capital, supervisory ratings, and other factors.
Transactions with Affiliates. Transactions between HRB Bank and its affiliates are required to be on terms at least
as favorable to HRB Bank as transactions with non-affiliates, and certain covered transactions are restricted to a
percentage of HRB Bank's capital.
Federal Home Loan Bank System. HRB Bank is a member of the Federal Home Loan Bank of Des Moines (FHLB),
which serves as a reserve or central bank for its members and makes loans or advances to its members. As of April 30,
2015 and 2014, HRB Bank had no outstanding advances from the FHLB.
Consumer Financial Protection Bureau. The Dodd-Frank Act created the CFPB to administer and, in some cases,
enforce U.S. federal consumer protection laws and expanded the role of state regulators with respect to 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 19 to the consolidated financial statements for
additional discussion of regulatory requirements.
FOREIGN REGULATIONS – We are also subject to a variety of other regulations in various foreign markets, including
anti-corruption laws and regulations concerning privacy, data protection and data retention. Foreign regulations and
laws potentially affecting our business are evolving rapidly. We rely on external counsel in the countries in which we
do business to advise us regarding compliance with applicable laws and regulations. As our international operations
grow, we continue to develop and enhance our internal legal and operational compliance programs that guide our
businesses in complying with laws and regulations applicable in the countries in which we do business.
SERVICE MARKS, TRADEMARKS AND PATENTS
We have made a practice of offering our services and products under service marks and trademarks and of securing
registration for many of these marks 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. The initial duration of U.S.
federal trademark registrations is 10 years. Most U.S. federal registrations can be renewed perpetually at 10-year
intervals and remain enforceable so long as the marks continue to be used.
We hold a small but growing patent portfolio that we believe is important to our overall competitive position,
although we are not materially dependent on any one patent or particular group of patents in our portfolio at this
time.
Our patents have remaining 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 supervise these
employees. The highest number of persons we employed during the fiscal year ended April 30, 2015, including these
seasonal employees, was approximately 98,600.