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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended June 30, 2009
OR
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-6089
H&R Block, Inc. 2000 Employee Stock Purchase Plan
(Full title of the Plan)
H&R Block, Inc.
One H&R Block Way
Kansas City, Missouri 64105
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office)
Table of Contents
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Reports of Independent Registered Public Accounting Firms |
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1 - 2 |
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Financial Statements |
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Statements of Financial Position as of June 30, 2009 and 2008 |
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3 |
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Statements of Income and Changes in Plan Equity for the
Years Ended June 30, 2009, 2008 and 2007 |
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4 |
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Notes to Financial Statements |
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5 - 7 |
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Signature |
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8 |
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Exhibits |
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Consents of Independent Registered Public Accounting Firms |
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9 - 10 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Compensation Committee of the Board of Directors
of H&R Block, Inc. and the Participants of the
H&R Block, Inc. 2000 Employee Stock Purchase Plan
We have audited the accompanying statements of financial position of the H&R Block, Inc. 2000
Employee Stock Purchase Plan (the Plan) as of June 30, 2009 and 2008, and the related statements
of income and changes in plan equity for the years then ended. These financial statements are the
responsibility of the Plans management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Plan is not required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Plans internal control
over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the financial
position of the Plan as of June 30, 2009 and 2008, and the results of its operations for the years
then ended in conformity with accounting principles generally accepted in the United States of
America.
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/s/ Deloitte & Touche, LLP
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Kansas City, Missouri |
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September 24, 2009 |
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1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Compensation Committee of the Board of Directors
of H&R Block, Inc. and the Participants of the
H&R Block, Inc. 2000 Employee Stock Purchase Plan:
We have audited the accompanying statement of income and changes in plan equity of the H&R Block,
Inc. 2000 Employee Stock Purchase Plan (the Plan) for the year ended June 30, 2007. This financial
statement is the responsibility of the Plans management. Our responsibility is to express an
opinion on the financial statement based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (United States). These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statement is free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statement. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in all material
respects, the income and changes in plan equity of the H&R Block, Inc. 2000 Employee Stock Purchase
Plan for the year ended June 30, 2007 in conformity with U.S. generally accepted accounting
principles.
Kansas City, Missouri
September 4, 2007
2
H&R BLOCK, INC. 2000 EMPLOYEE STOCK PURCHASE PLAN
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2009 AND 2008
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As of June 30, |
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2009 |
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2008 |
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Assets Cash |
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$ |
27,769 |
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$ |
28,668 |
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Liabilities Payable to participants |
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27,769 |
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28,668 |
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Plan equity |
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Total liabilities & plan equity |
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$ |
27,769 |
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$ |
28,668 |
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The accompanying notes are an integral part of these financial statements.
3
H&R BLOCK, INC. 2000 EMPLOYEE STOCK PURCHASE PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED JUNE 30, 2009, 2008, AND 2007
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Year Ended June 30, |
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2009 |
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2008 |
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2007 |
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Participant contributions |
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$ |
4,839,302 |
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$ |
6,868,681 |
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$ |
9,091,602 |
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Participant withdrawals |
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(699,591 |
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(407,207 |
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(432,802 |
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Disbursement to purchase common
stock of H&R Block, Inc. |
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(4,139,711 |
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(6,461,474 |
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(8,658,800 |
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Net additions |
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Plan equity at beginning of year |
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Plan equity at end of year |
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$ |
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$ |
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$ |
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The accompanying notes are an integral part of these financial statements.
4
H&R BLOCK, INC. 2000 EMPLOYEE STOCK PURCHASE PLAN
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009, 2008, and 2007
1. Description of the Plan
General
The following is a brief description of the H&R Block, Inc. 2000 Employee Stock Purchase Plan
(the Plan). The Plan is designed to encourage and assist employees of the subsidiaries of
H&R Block, Inc. (the Company) to acquire an equity interest in the Company through the
purchase of shares of the Companys common stock. For purposes of the Plan, a Subsidiary is
any corporation or other entity in which the Company owns, directly or indirectly, stock
possessing fifty percent or more of the total combined voting power of all classes of stock.
Participants should refer to the Plan document for a more complete description of the Plan.
The Plan was adopted by the Board of Directors of the Company on June 28, 2000 and by the
shareholders at its Annual Meeting on September 13, 2000.
Common stock for the Plan is issued directly from the Companys authorized but unissued shares
or treasury shares. The aggregate number of shares that may be issued under the Plan cannot
exceed 12.0 million.
Fidelity Management Trust Company (Fidelity) is the recordkeeper for the Plan.
Eligibility
An employee of a participating subsidiary of the Company is eligible to participate in the Plan
if the employee has been continuously employed by a participating subsidiary for at least
twelve months. In addition, employees must be customarily employed at least 20 hours per week
and at least five months in any calendar year.
Employees who, immediately upon the grant of an option, own directly or indirectly, or hold
options or rights to acquire, an aggregate of 5% or more of the total combined voting power or
value of all outstanding shares of all classes of the Companys or any Subsidiarys stock are
not eligible to participate.
Each eligible employee may enroll in the Plan as of the first day of an Option Period during
open enrollment, which ends at least 15 days prior to the commencement of such Option Period.
The Option Periods are six-month periods beginning on July 1 and January 1 of each year and
ending on December 31 and June 30 of each year, respectively.
Contributions
A Plan participant can contribute from 1% to 10% of the participants compensation, as such
term is defined in the Plan, through after-tax payroll deductions during the Option Period.
Participants may not increase or decrease their withholding percentage during an Option Period.
In addition to these limits, a participant cannot accrue at a rate that exceeds $25,000 for
the calendar year, as measured by the fair market value of shares (as determined in the case of
each such share as of the first day of an Option Period) as set forth by Internal Revenue Code
of 1986 (the Code) Section 423. The Company holds
contributions until the end of the Option Period, at which point the Company issues shares for
the contributions received.
5
During the Plan year ended June 30, 2007, contributions received in excess of the $25,000 limit
were carried forward and applied to future option periods. During the Plan years ended June
30, 2009 and 2008, contributions received in excess of the $25,000 limit were refunded to
participants as soon as administratively practicable. No interest is paid or accrued on the
participants payroll deductions. Participant payroll deductions held by the Company until the
end of the Option Period are used for general corporate purposes.
Participant Withdrawals
A participant may not withdraw from the Plan at any time during an Option Period. A
participant will continue to participate in the Plan unless the participant elects to withdraw
during an open enrollment period. Participants who terminate their employment with the Company
and its subsidiaries are not eligible to continue participation in the Plan. Upon termination
of employment or death, any accumulated contributions during an Option Period are distributed
to the employee or beneficiary, without interest, by the Company.
As of June 30, 2009 and 2008, there was a liability of $27,769 and $28,668, respectively, due
to participants who withdrew from the Plan or who reached the $25,000 limit as described above;
however such amounts were not paid to participants until after the Plan year.
Stock Purchase Provisions
On the first day of the Option Period (Grant Date), eligible employees are granted the option
to purchase shares of the Companys common stock. On the last day of the Option Period
(Purchase Date), the Company issues common stock to the participants. The purchase price per
share of common stock issued by the Company is 90% of the lower of either the fair market value
of the Companys common stock on the Grant Date or the Purchase Date. Fair market value is
determined using the closing price of the Companys common stock as listed on the New York
Stock Exchange. The fair value of the stock purchased for the years ended June 30, 2009, 2008,
and 2007 was $4.6 million, $7.2 million, and $9.6 million, respectively. All shares issued
under the Plan may not be sold, transferred or assigned for a period of six months after the
Purchase Date.
Shares purchased pursuant to the Plan and purchase price per share for common stock during the
two Option Periods is as follows:
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Shares |
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Purchase |
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For the year ended |
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Option Period |
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Purchased |
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Price |
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June 30, 2009 |
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07/01/08 12/31/08 |
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99,875 |
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$ |
19.41 |
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01/01/09 06/30/09 |
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141,916 |
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15.51 |
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June 30, 2008 |
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07/01/07 12/31/07 |
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194,211 |
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$ |
16.71 |
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01/01/08 06/30/08 |
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192,012 |
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16.75 |
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June 30, 2007 |
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07/01/06 12/31/06 |
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202,876 |
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$ |
20.74 |
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01/01/07 06/30/07 |
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213,216 |
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20.88 |
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6
Plan Administration
The Plan is administered by the Companys Board of Directors.
Plan Expenses
Administrative expenses of the Plan are paid by the Company.
Plan Termination
Although the Board of Directors of the Company has not expressed any intent to do so, it has
the right to terminate the Plan at any time. In the event the Plan is terminated, the Board of
Directors may elect to restrict the purchase of shares under the Plan during the Option Period
in which the Plan was terminated. If such right is exercised, all funds contributed to the
Plan that have not been used to purchase shares will be returned without interest to the
participants.
2. Summary of Significant Accounting Policies
The accompanying financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America. Disbursements to purchase
common stock are recorded when common stock is allocated to participants at 90% of the lower of
either the fair market value of the Companys common stock on the Grant Date or the Purchase
Date. Cash represents contributions from participants who withdrew during the Plan year or who
reached the $25,000 limit as described above, but were not paid to participants until after the
Plan year-end.
In May 2009, Financial Accounting Standards Board (FASB) issued guidance on subsequent events
that sets forth the period after the balance sheet date during which a reporting entity should
evaluate events or transactions that may occur for potential recognition or disclosure in the
financial statements, the circumstances under which an entity should recognize events or
transactions occurring after the balance sheet date in its financial statements and the
disclosures that an entity should make about events or transactions that occurred after the
balance sheet date. This guidance is effective for interim or annual financial periods ending
after June 15, 2009. We adopted this guidance without a material impact on our consolidated
financial statements.
3. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, and changes therein and disclosure of
contingent assets and liabilities. Actual results could differ from those estimates.
4. Federal Income Tax Status
The Plan is intended to constitute an employee stock purchase plan within the meaning of
Section 423 of the Code. Issuance of shares under this Plan is not intended to result in
taxable income to participants in the Plan based on provisions of the Code. Accordingly, the
Plan is designed to be exempt from income taxes. The Company believes that the Plan has been
operated in accordance with the Code and therefore no provision for income taxes has been
reflected in the accompanying financial statements.
7
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons
who administer the employee benefit plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
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H&R Block, Inc. 2000 Employee
Stock Purchase Plan
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Jeffrey T. Brown |
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Vice President and
Corporate Controller
H&R Block, Inc. |
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September 24, 2009 |
8
exv23w1
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-42736 on Form S-8 of
our report dated September 24, 2009, appearing in this Annual Report on Form 11-K of the H&R Block,
Inc. 2000 Employee Stock Purchase Plan for the year ended June 30, 2009.
/s/ Deloitte & Touche, LLP
Kansas City, Missouri
September 24, 2009
9
exv23w2
Exhibit 23.2
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Compensation Committee of the Board of Directors of
H&R Block, Inc. 2000 Employee Stock Purchase Plan:
We consent to the incorporation by reference of our report in the Registration Statement (No.
333-42736) on Form S-8 of H&R Block, Inc. of our report dated September 4, 2007, with respect to
the statement of income and changes in plan equity for the year ended June 30, 2007, of the H&R
Block, Inc. 2000 Employee Stock Purchase Plan, which report appears in the June 30, 2009 annual
report on Form 11-K of the H&R Block, Inc. 2000 Employee Stock Purchase Plan.
Kansas City, Missouri
September 24, 2009
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