The one other thing I found in the annual report that troubled me was this line from the section on the regulatory environment of their bank:
"In addition, the FDIC has authority to require H&R Block, Inc. to reimburse it for losses it incurs in connection with the failure of HRB Bank or with the FDIC's provision of assistance to a banking subsidiary that is in danger of failure."
I didn't think that parent companies were financially liable for the failure of bank subsidiaries. Not that this seems likely, but it is an extra risk to keep in mind.
My sense is that HRB probably is a pretty good value at these levels. I'll probably buy in if there's a pullback.