Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jul. 31, 2011


Condensed Consolidating Statements of Operations													(in 000s)
Three months ended	H&R Block, Inc.				BFC			Other					Consolidated
July 31, 2011	(Guarantor)				(Issuer)			Subsidiaries			Elims		H&R Block
Total revenues	$	-		$	21,773		$	245,861		$	-	$	267,634
Cost of revenues		-			37,662			319,338			-		357,000
Selling, general and administrative		-			7,895			199,968			-		207,863
Total expenses		-			45,557			519,306			-		564,863
Operating loss		-			(23,784	)		(273,445	)		-		(297,229	)
Other income (expense), net		(293,142	)		3,281			806			293,142		4,087
Loss from continuing
operations before tax benefit		(293,142	)		(20,503	)		(272,639	)		293,142		(293,142	)
Income tax benefit		(119,699	)		(1,850	)		(117,849	)		119,699		(119,699	)
Net loss from continuing operations		(173,443	)		(18,653	)		(154,790	)		173,443		(173,443	)
Net loss from discontinued
operations		(1,655	)		(1,637	)		(18	)		1,655		(1,655	)
Net loss	$	(175,098	)	$	(20,290	)	$	(154,808	)	$	175,098	$	(175,098	)


Three months ended	H&R Block, Inc.				BFC			Other					Consolidated
July 31, 2010	(Guarantor)				(Issuer)			Subsidiaries			Elims		H&R Block
Total revenues	$	-		$	21,000		$	253,474		$	-	$	274,474
Cost of revenues		-			39,028			328,988			-		368,016
Selling, general and administrative		-			2,090			114,939			-		117,029
Total expenses		-			41,118			443,927			-		485,045
Operating loss		-			(20,118	)		(190,453	)		-		(210,571	)
Other income (expense), net		(207,317	)		382			2,872			207,317		3,254
Loss from continuing
operations before tax benefit		(207,317	)		(19,736	)		(187,581	)		207,317		(207,317	)
Income tax benefit		(79,679	)		(7,841	)		(71,838	)		79,679		(79,679	)
Net loss from continuing operations		(127,638	)		(11,895	)		(115,743	)		127,638		(127,638	)
Net loss from discontinued
operations		(3,043	)		(3,004	)		(39	)		3,043		(3,043	)
Net loss	$	(130,681	)	$	(14,899	)	$	(115,782	)	$	130,681	$	(130,681	)


Condensed Consolidating Balance Sheets														(in 000s)
		H&R Block, Inc.			BFC			Other						Consolidated
July 31, 2011		(Guarantor)			(Issuer)			Subsidiaries			Elims			H&R Block
Cash & cash equivalents		$	-	$	413,141		$	599,595		$	(27	)	$	1,012,709
Cash & cash equivalents – restricted			-		849			43,553			-			44,402
Receivables, net			-		224,573			104,815			-			329,388
Mortgage loans held for investment			-		466,663			-			-			466,663
Intangible assets and goodwill, net			-		-			1,102,646			-			1,102,646
Investments in subsidiaries			2,478,748		-			94			(2,478,748	)		94
Other assets			12,474		299,379			1,040,297			-			1,352,150
Total assets	$	2,491,222		$	1,404,605		$	2,891,000		$	(2,478,775	)	$	4,308,052
Customer deposits		$	-	$	666,295		$	-		$	(27	)	$	666,268
Long-term debt			-		999,055			20,376			-			1,019,431
FHLB borrowings			-		25,000			-			-			25,000
Other liabilities			214		(132,742	)		1,496,004			-			1,363,476
Net intercompany advances			1,257,131		40,201			(1,297,332	)		-			-
Stockholders' equity			1,233,877		(193,204	)		2,671,952			(2,478,748	)		1,233,877
Total liabilities and
stockholders' equity	$	2,491,222		$	1,404,605		$	2,891,000		$	(2,478,775	)	$	4,308,052


		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			88		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			-			32			(2,699,555	)		32
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


Condensed Consolidating Statements of Cash Flows														(in 000s)
Three months ended	H&R Block, Inc.				BFC			Other						Consolidated
July 31, 2011	(Guarantor)				(Issuer)			Subsidiaries			Elims			H&R Block
Net cash provided by (used in)
operating activities:	$	2,048		$	(22,900	)	$	(373,697	)	$	-		$	(394,549	)
Cash flows from investing:
Purchases of available-for-sale securities		-			(39,275	)		-			-			(39,275	)
Mortgage loans originated for
investment, net		-			11,192			-			-			11,192
Purchase property & equipment		-			(54	)		(10,899	)		-			(10,953	)
Payments made for business
acquisitions, net		-			-			(3,457	)		-			(3,457	)
Proceeds from sale of businesses, net		-			-			21,230			-			21,230
Loans made to franchisees		-			(16,477	)		-			-			(16,477	)
Repayments from franchisees		-			5,320			-			-			5,320
Net intercompany advances		44,084			-			-			(44,084	)		-
Other, net		-			12,031			6,136			-			18,167
Net cash provided by (used in)
investing activities		44,084			(27,263	)		13,010			(44,084	)		(14,253	)
Cash flows from financing:
Customer banking deposits		-			(186,268	)		-			23			(186,245	)
Dividends paid		(45,894	)		-			-			-			(45,894	)
Repurchase of common stock		(2,002	)		-			-			-			(2,002	)
Proceeds from exercise of
stock options		1,762			-			-			-			1,762
Net intercompany advances		-			33,312			(77,396	)		44,084			-
Other, net		2			22			(24,940	)		-			(24,916	)
Net cash used in financing activities		(46,132	)		(152,934	)		(102,336	)		44,107			(257,295	)
Effects of exchange rates on cash		-			-			962			-			962
Net decrease in cash		-			(203,097	)		(462,061	)		23			(665,135	)
Cash – beginning of period		-			616,238			1,061,656			(50	)		1,677,844
Cash – end of period	$	-		$	413,141		$	599,595		$	(27	)	$	1,012,709


Three months ended	H&R Block, Inc.				BFC			Other						Consolidated
July 31, 2010	(Guarantor)				(Issuer)			Subsidiaries			Elims			H&R Block
Net cash provided by (used in)
operating activities:	$	22,849		$	(43,301	)	$	(327,799	)	$	-		$	(348,251	)
Cash flows from investing:
Mortgage loans originated for
investment, net		-			17,618			-			-			17,618
Purchase property & equipment		-			-			(8,634	)		-			(8,634	)
Payments made for business
acquisitions, net		-			-			(33,226	)		-			(33,226	)
Proceeds from sale of businesses, net		-			-			26,387			-			26,387
Loans made to franchisees		-			(33,720	)		-			-			(33,720	)
Repayments from franchisees		-			6,724			-			-			6,724
Net intercompany advances		188,324			-			-			(188,324	)		-
Other, net		-			40,668			(21,820	)		-			18,848
Net cash provided by (used in)
investing activities		188,324			31,290			(37,293	)		(188,324	)		(6,003	)
Cash flows from financing:
Customer banking deposits		-			(121,166	)		-			(235	)		(121,401	)
Dividends paid		(48,692	)		-			-			-			(48,692	)
Repurchase of common stock		(164,369	)		-			-			-			(164,369	)
Proceeds from exercise of
stock options		1,500			-			-			-			1,500
Net intercompany advances		-			35,507			(223,831	)		188,324			-
Other, net		388			176			(16,551	)		-			(15,987	)
Net cash used in financing activities		(211,173	)		(85,483	)		(240,382	)		188,089			(348,949	)
Effects of exchange rates on cash		-			-			(2,232	)		-			(2,232	)
Net decrease in cash		-			(97,494	)		(607,706	)		(235	)		(705,435	)
Cash – beginning of period		-			702,021			1,102,135			(111	)		1,804,045
Cash – end of period	$	-		$	604,527		$	494,429		$	(346	)	$	1,098,610