Condensed Consolidating Financial Statements

12 Months Ended

Apr. 30, 2011

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

NOTE 23: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

BFC is an indirect, wholly-owned consolidated subsidiary of the Company. BFC is the Issuer and the Company is the Guarantor of the Senior Notes issued on January 11, 2008 and October 26, 2004, the CLOCs and other indebtedness issued from time to time. These condensed consolidating financial statements have been prepared using the equity method of accounting. Earnings of subsidiaries are, therefore, reflected in the Company's investment in subsidiaries account. The elimination entries eliminate investments in subsidiaries, related stockholders' equity and other intercompany balances and transactions.

CONDENSED CONSOLIDATING INCOME STATEMENTS

(in 000s)

H&R Block, Inc.

BFC

Other

Consolidated

Year Ended April 30, 2011

(Guarantor)

(Issuer)

Subsidiaries

Elims

H&R Block

Total revenues

–

251,521

3,522,775

–

3,774,296

Cost of revenues

–

277,099

2,137,491

–

2,414,590

Selling, general and administrative

–

31,914

662,222

–

694,136

Total expenses

–

309,013

2,799,713

–

3,108,726

Operating income (loss)

–

(57,492

)

723,062

–

665,570

Other income, net

677,025

5,503

5,952

(677,025

)

11,455

Income (loss) from continuing operations before taxes (benefit)

677,025

(51,989

)

729,014

(677,025

)

677,025

Income taxes (benefit)

257,620

(27,774

)

285,394

(257,620

)

257,620

Net income (loss) from continuing operations

419,405

(24,215

)

443,620

(419,405

)

419,405

Net loss from discontinued operations

(13,295

)

(12,417

)

(878

)

13,295

(13,295

)

Net income (loss)

406,110

(36,632

)

442,742

(406,110

)

406,110



	H&R Block, Inc.			BFC			Other						Consolidated
Year Ended April 30, 2010	(Guarantor)			(Issuer)			Subsidiaries			Elims			H&R Block



Total revenues	$	–		$	271,704		$	3,602,721		$	(93	)	$	3,874,332


Cost of revenues		–			257,245			2,210,868			(117	)		2,467,996
Selling, general and administrative		–			36,946			594,646			(93	)		631,499


Total expenses		–			294,191			2,805,514			(210	)		3,099,495


Operating income (loss)		–			(22,487	)		797,207			117			774,837
Other income, net		784,135			5,644			3,771			(784,252	)		9,298


Income (loss) from continuing operations before taxes (benefit)		784,135			(16,843	)		800,978			(784,135	)		784,135
Income taxes (benefit)		295,189			(6,368	)		301,557			(295,189	)		295,189


Net income (loss) from continuing operations		488,946			(10,475	)		499,421			(488,946	)		488,946
Net loss from discontinued operations		(9,704	)		(5,276	)		(4,428	)		9,704			(9,704	)


Net income (loss)	$	479,242		$	(15,751	)	$	494,993		$	(479,242	)	$	479,242


	H&R Block, Inc.			BFC			Other					Consolidated
Year Ended April 30, 2009	(Guarantor)			(Issuer)			Subsidiaries		Elims			H&R Block



Total revenues	$	–		$	251,758		$	3,834,880	$	(3,061	)	$	4,083,577


Cost of revenues		–			278,789			2,317,439		(10	)		2,596,218
Selling, general and administrative		–			66,230			582,812		(552	)		648,490


Total expenses		–			345,019			2,900,251		(562	)		3,244,708


Operating income (loss)		–			(93,261	)		934,629		(2,499	)		838,869
Other income (expense), net		839,370			(5,992	)		6,461		(839,338	)		501


Income (loss) from continuing operations before taxes (benefit)		839,370			(99,253	)		941,090		(841,837	)		839,370
Income taxes (benefit)		326,315			(40,386	)		367,660		(327,274	)		326,315


Net income (loss) from continuing operations		513,055			(58,867	)		573,430		(514,563	)		513,055
Net loss from discontinued operations		(27,382	)		(29,176	)		–		29,176			(27,382	)


Net income (loss)	$	485,673		$	(88,043	)	$	573,430	$	(485,387	)	$	485,673

CONDENSED CONSOLIDATING BALANCE SHEETS

(in 000s)

H&R Block, Inc.

BFC

Other

Consolidated

April 30, 2011

(Guarantor)

(Issuer)

Subsidiaries

Elims

H&R Block

Cash & cash equivalents

–

616,238

1,061,656

(50

)

1,677,844

Cash & cash equivalents – restricted

–

9,522

38,861

–

48,383

Receivables, net

102,011

390,191

–

492,290

Mortgage loans held for investment, net

–

485,008

–

485,008

Intangible assets and goodwill, net

–

1,214,164

–

1,214,164

Investments in subsidiaries

2,699,555

–

(2,699,555

)

Other assets

13,613

469,461

807,166

–

1,290,240

Total assets

2,713,256

1,682,240

3,512,070

(2,699,605

)

5,207,961

Customer deposits

–

852,270

–

(50

)

852,220

Long-term debt

–

998,965

50,789

–

1,049,754

FHLB borrowings

–

25,000

–

25,000

Other liabilities

178

(26,769

)

1,858,004

–

1,831,413

Net intercompany advances

1,263,504

24,173

(1,287,677

)

–

Stockholders' equity

1,449,574

(191,399

)

2,890,954

(2,699,555

)

1,449,574

Total liabilities and stockholders' equity

2,713,256

1,682,240

3,512,070

(2,699,605

)

5,207,961



	H&R Block, Inc.		BFC			Other						Consolidated
April 30, 2010	(Guarantor)		(Issuer)			Subsidiaries			Elims			H&R Block


Cash & cash equivalents	$	–	$	702,021		$	1,102,135		$	(111	)	$	1,804,045
Cash & cash equivalents – restricted		–		6,160			28,190			–			34,350
Receivables, net		57		105,192			412,737			–			517,986
Mortgage loans held for investment, net		–		595,405			–			–			595,405
Intangible assets and goodwill, net		–		–			1,207,879			–			1,207,879
Investments in subsidiaries		3,276,597		–			231			(3,276,597	)		231
Other assets		19,014		332,782			722,626			–			1,074,422


Total assets	$	3,295,668	$	1,741,560		$	3,473,798		$	(3,276,708	)	$	5,234,318


Customer deposits	$	–	$	852,666		$	–		$	(111	)	$	852,555
Long-term debt		–		998,605			36,539			–			1,035,144
FHLB borrowings		–		75,000			–			–			75,000
Other liabilities		48,775		153,154			1,629,060			–			1,830,989
Net intercompany advances		1,806,263		(431,696	)		(1,374,567	)		–			–
Stockholders' equity		1,440,630		93,831			3,182,766			(3,276,597	)		1,440,630


Total liabilities and stockholders' equity	$	3,295,668	$	1,741,560		$	3,473,798		$	(3,276,708	)	$	5,234,318

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(in 000s)

H&R Block, Inc.

BFC

Other

Consolidated

Year Ended April 30, 2011

(Guarantor)

(Issuer)

Subsidiaries

Elims

H&R Block

Net cash provided by (used in) operating activities:

9,683

(153,471

)

656,291

–

512,503

Cash flows from investing:

Purchases of AFS securities

–

(138,824

)

–

(138,824

)

Maturities and payments received on AFS securities

–

16,690

107

–

16,797

Mortgage loans held for investment, net

–

58,471

–

58,471

Purchases of property & equipment

–

(33

)

(62,926

)

–

(62,959

)

Payments for business acquisitions, net

–

(54,171

)

–

(54,171

)

Proceeds from sales of businesses, net

–

71,083

–

71,083

Loans made to franchisees

–

(92,455

)

–

(92,455

)

Repayments from franchisees

–

57,552

–

57,552

Net intercompany advances

459,755

–

(459,755

)

–

Other, net

–

21,556

12,793

–

34,349

Net cash provided by (used in) investing activities

459,755

(77,043

)

(33,114

)

(459,755

)

(110,157

)

Cash flows from financing:

Repayments of commercial paper

–

(4,818,766

)

–

(4,818,766

)

Proceeds from commercial paper

–

4,818,766

–

4,818,766

Repayments of other borrowings

–

(50,000

)

–

(50,000

)

Customer banking deposits, net

–

(11,501

)

–

(11,440

)

Dividends paid

(186,802

)

–

(186,802

)

Repurchase of common stock

(283,534

)

–

(283,534

)

Proceeds from stock options

424

–

424

Net intercompany advances

–

206,722

(666,477

)

459,755

–

Other, net

474

(490

)

(3,023

)

–

(3,039

)

Net cash provided by (used in) financing activities

(469,438

)

144,731

(669,500

)

459,816

(534,391

)

Effects of exchange rates on cash

–

5,844

–

5,844

Net increase (decrease) in cash

–

(85,783

)

(40,479

)

(126,201

)

Cash – beginning of the year

–

702,021

1,102,135

(111

)

1,804,045

Cash – end of the year

–

616,238

1,061,656

(50

)

1,677,844


	H&R Block, Inc.			BFC			Other						Consolidated
Year Ended April 30, 2010	(Guarantor)			(Issuer)			Subsidiaries			Elims			H&R Block


Net cash provided by operating activities:	$	21,252		$	16,698		$	549,519		$	–		$	587,469


Cash flows from investing:
Purchases of AFS securities		–			(365	)		(5,000	)		–			(5,365	)
Sales and maturities of AFS securities		–			14,639			1,119			–			15,758
Mortgage loans held for investment, net		–			72,832			–			–			72,832
Purchases of property & equipment		–			–			(90,515	)		–			(90,515	)
Payments for business acquisitions		–			–			(10,539	)		–			(10,539	)
Proceeds from sales of businesses, net		–			–			66,623			–			66,623
Loans made to franchisees		–			(89,664	)		–			–			(89,664	)
Repayments from franchisees		–			40,710			–			–			40,710
Net intercompany advances		415,591			–			–			(415,591	)		–
Other, net		–			73,493			(41,980	)		–			31,513


Net cash provided by (used in) investing activities		415,591			111,645			(80,292	)		(415,591	)		31,353


Cash flows from financing:
Repayments of commercial paper		–			(1,406,013	)		–			–			(1,406,013	)
Proceeds from commercial paper		–			1,406,013			–			–			1,406,013
Repayments of other borrowings		–			(4,267,727	)		(46	)		–			(4,267,773	)
Proceeds from other borrowings		–			4,242,727			–			–			4,242,727
Customer banking deposits, net		–			11,428			–			6,111			17,539
Dividends paid		(200,899	)		–			–			–			(200,899	)
Repurchase of common stock		(254,250	)		–			–			–			(254,250	)
Proceeds from stock options		16,682			–			–			–			16,682
Net intercompany advances		–			354,617			(770,208	)		415,591			–
Other, net		1,624			(8,717	)		(28,051	)		–			(35,144	)


Net cash provided by (used in) financing activities		(436,843	)		332,328			(798,305	)		421,702			(481,118	)


Effects of exchange rates on cash		–			–			11,678			–			11,678


Net increase (decrease) in cash		–			460,671			(317,400	)		6,111			149,382
Cash – beginning of the year		–			241,350			1,419,535			(6,222	)		1,654,663


Cash – end of the year	$	–		$	702,021		$	1,102,135		$	(111	)	$	1,804,045


	H&R Block, Inc.			BFC			Other						Consolidated
Year Ended April 30, 2009	(Guarantor)			(Issuer)			Subsidiaries			Elims			H&R Block


Net cash provided by (used in) operating activities:	$	3,835		$	(13,225	)	$	1,033,829		$	–		$	1,024,439


Cash flows from investing:
Purchases of AFS securities		–			(875	)		(4,217	)		–			(5,092	)
Sales and maturities of AFS securities		–			8,417			6,658			–			15,075
Mortgage loans held for investment, net		–			91,329			–			–			91,329
Purchases of property & equipment		–			(43	)		(97,837	)		–			(97,880	)
Payments for business acquisitions		–			–			(293,805	)		–			(293,805	)
Proceeds from sales of businesses, net		–			–			18,865			–			18,865
Net intercompany advances		73,820			–			–			(73,820	)		–
Investing cash flows of discontinued operations		–			255,066			–			–			255,066
Other, net		–			10,056			11,946			–			22,002


Net cash provided by (used in) investing activities		73,820			363,950			(358,390	)		(73,820	)		5,560


Cash flows from financing:
Repayments of short-term borrowings		–			(4,762,294	)		–			–			(4,762,294	)
Proceeds from short-term borrowings		–			4,733,294			–			–			4,733,294
Customer banking deposits, net		–			69,932			–			(5,575	)		64,357
Dividends paid		(198,685	)		–			–			–			(198,685	)
Acquisition of treasury shares		(106,189	)		–			–			–			(106,189	)
Proceeds from issuance of common stock		141,415			–			–			–			141,415
Proceeds from stock options		71,594			–			–			–			71,594
Net intercompany advances		–			(199,032	)		125,212			73,820			–
Financing cash flows of discontinued operations		–			4,783			–			–			4,783
Other, net		14,210			9,331			(12,049	)		–			11,492


Net cash provided by (used in) financing activities		(77,655	)		(143,986	)		113,163			68,245			(40,233	)


Net increase in cash		–			206,739			788,602			(5,575	)		989,766
Cash – beginning of the year		–			34,611			630,933			(647	)		664,897


Cash – end of the year	$	–		$	241,350		$	1,419,535		$	(6,222	)	$	1,654,663

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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