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H&R Block, Inc. | 2016 Form 10-K 75
Year ended April 30, 2014
H&R Block, Inc.
(Guarantor)
Block Financial
(Issuer)
Other
Subsidiaries Eliminations
Consolidated
H&R Block
Net cash provided by operating activities: $ — $ 35,034 $ 774,547 $ — $ 809,581
Cash flows from investing:
Purchases of AFS securities — (45,158) — — (45,158)
Sales, maturities and payments received on
AFS securities — 106,873 228 — 107,101
Mortgage loans held for investment, net — 46,664 — — 46,664
Capital expenditures — (75) (146,936) — (147,011)
Payments for business acquisitions, net — — (68,428) — (68,428)
Proceeds from notes receivable — — 64,865 — 64,865
Franchise loans funded — (63,960) — — (63,960)
Payments received on franchise loans — 87,220 — — 87,220
Intercompany borrowings (payments) — 33,497 (196,840) 163,343 —
Other, net — 19,746 9,651 — 29,397
Net cash provided by (used in) investing
activities — 184,807 (337,460) 163,343 10,690
Cash flows from financing:
Repayments of short-term borrowings — (316,000) — — (316,000)
Proceeds from short-term borrowings — 316,000 — — 316,000
Customer banking deposits, net — (165,575) — 1,623 (163,952)
Dividends paid (218,980) — — — (218,980)
Repurchase of common stock (6,106) — — — (6,106)
Proceeds from exercise of stock options 28,246 — — — 28,246
Intercompany borrowings (payments) 196,840 — (33,497) (163,343) —
Other, net — — (4,138) — (4,138)
Net cash used in financing activities — (165,575) (37,635) (161,720) (364,930)
Effects of exchange rate changes on cash — — (17,618) — (17,618)
Net increase in cash — 54,266 381,834 1,623 437,723
Cash - beginning of the year — 558,110 1,192,197 (2,723) 1,747,584
Cash - end of the year $ — $ 612,376 $ 1,574,031 $ (1,100) $ 2,185,307
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
include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple
error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusions of