UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (date of earliest event reported): May 17, 2010
H&R BLOCK, INC.
(Exact name of registrant as specified in charter)
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| Missouri
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1-6089
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44-0607856 |
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(Commission File Number)
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(I.R.S. Employer
Identification Number) |
One H&R Block Way, Kansas City, MO 64105
(Address of Principal Executive Offices) (Zip Code)
(816) 854-3000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
Item 2.05. Costs Associated with Exit or Disposal Activities.
On May 17, 2010, various subsidiaries of H&R Block, Inc. (the “Company”) began implementing a
cost-savings program in order to decrease operating expenses. As part of this program,
approximately 400 positions throughout the organization are being eliminated. The Company
also closed approximately 400 underperforming offices out of its network of 11,000 retail tax
locations. The Company expects to substantially complete the workforce reduction by the end of the
fiscal quarter ending July 31, 2010.
The Company expects to incur an estimated pre-tax charge related to severance costs under the
program of approximately $28 million, most of which will be incurred in the fiscal quarter ending
July 31, 2010. Approximately $25 million of this estimated pre-tax charge will result in future
cash expenditures.
Item 7.01 Regulation FD Disclosure.
On May 19, 2010, the Company issued a press release regarding the cost-savings program. A copy of
the Company’s press release is furnished and not filed pursuant to Item 7.01 as Exhibit 99.1 to
this Current Report on Form 8-K.
This Current Report on Form 8-K contains forward-looking statements including, without limitation,
the estimated pre-tax charge related to the cost-savings program. These forward-looking statements
are based upon the Company’s current expectations and there can be no assurance that such
expectations will prove to be correct. Because forward-looking statements involve risks and
uncertainties and speak only as of the date on which they are made, the Company’s actual results
could differ materially from these statements. These risks and uncertainties relate to, among other
things, the timing of the implementation of the cost-savings program, uncertainties regarding the
Company’s ability to attract and retain clients; meet its prepared returns targets; uncertainties
and potential contingent liabilities arising from our former mortgage loan origination and
servicing business; uncertainties in the residential mortgage market and its impact on loan loss
provisions; uncertainties pertaining to the commercial debt market; competitive factors; the
Company’s effective income tax rate; litigation; uncertainties regarding the level of share
repurchases; and changes in market, economic, political or regulatory conditions. Information
concerning these risks and uncertainties is contained in Item 1A of the Company’s 2009 annual
report on Form 10-K and in other filings by the Company with the Securities and Exchange
Commission. The Company does not undertake any duty to update any forward-looking statements,
whether as a result of new information, future events, or otherwise.