
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss)													(in 000s)
Three months ended July 31, 2012	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	21,929		$	74,616		$	(56	)	$	96,489

Cost of revenues		—			34,942			158,538			(56	)		193,424
Selling, general and administrative		—			7,640			67,838			—			75,478

Total expenses		—			42,582			226,376			(56	)		268,902

Operating loss		—			(20,653	)		(151,760	)		—			(172,413	)
Other income (expense), net		(169,269	)		1,324			1,820			169,269			3,144

Loss from continuing operations before tax benefit		(169,269	)		(19,329	)		(149,940	)		169,269			(169,269	)
Income tax benefit		(63,619	)		(8,255	)		(55,364	)		63,619			(63,619	)

Net loss from continuing operations		(105,650	)		(11,074	)		(94,576	)		105,650			(105,650	)
Net income (loss) from discontinued operations		(1,791	)		(2,111	)		320			1,791			(1,791	)

Net loss		(107,441	)		(13,185	)		(94,256	)		107,441			(107,441	)
Other comprehensive income (loss)		(4,795	)		135			(4,930	)		4,795			(4,795	)

Comprehensive loss	$	(112,236	)	$	(13,050	)	$	(99,186	)	$	112,236		$	(112,236	)


Three months ended July 31, 2011	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	21,773		$	78,850		$	—		$	100,623

Cost of revenues		—			37,662			174,922			—			212,584
Selling, general and administrative		—			7,895			84,758			—			92,653

Total expenses		—			45,557			259,680			—			305,237

Operating loss		—			(23,784	)		(180,830	)		—			(204,614	)
Other income (expense), net		(200,601	)		3,281			732			200,601			4,013

Loss from continuing operations before tax benefit		(200,601	)		(20,503	)		(180,098	)		200,601			(200,601	)
Income tax benefit		(81,446	)		(1,850	)		(79,596	)		81,446			(81,446	)

Net loss from continuing operations		(119,155	)		(18,653	)		(100,502	)		119,155			(119,155	)
Net loss from discontinued operations		(55,943	)		(1,637	)		(54,306	)		55,943			(55,943	)

Net loss		(175,098	)		(20,290	)		(154,808	)		175,098			(175,098	)
Other comprehensive income		1,459			922			537			(1,459	)		1,459

Comprehensive loss	$	(173,639	)	$	(19,368	)	$	(154,271	)	$	173,639		$	(173,639	)


Condensed Consolidating Balance Sheets												(in 000s)
As of July 31, 2012	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	342,859		$	598,336		$	(1,324	)	$	939,871
Cash & cash equivalents – restricted		—		859			42,250			—			43,109
Receivables, net		—		91,335			25,022			—			116,357
Mortgage loans held for investment		—		386,759			—			—			386,759
Intangible assets and goodwill, net		—		—			691,226			—			691,226
Investments in subsidiaries		957,349		—			641			(957,349	)		641
Other assets		7,734		591,132			817,448			—			1,416,314

Total assets	$	965,083	$	1,412,944		$	2,174,923		$	(958,673	)	$	3,594,277

Customer deposits	$	—	$	649,702		$	—		$	(1,324	)	$	648,378
Long-term debt		—		999,415			10,219			—			1,009,634
Other liabilities		248		(116,097	)		1,206,441			—			1,090,592
Net intercompany advances		119,162		105,832			(224,994	)		—			—
Stockholders' equity		845,673		(225,908	)		1,183,257			(957,349	)		845,673

Total liabilities and stockholders' equity	$	965,083	$	1,412,944		$	2,174,923		$	(958,673	)	$	3,594,277


As of April 30, 2012	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	515,147		$	1,430,030		$	(843	)	$	1,944,334
Cash & cash equivalents – restricted		—		8,814			39,286			—			48,100
Receivables, net		—		90,755			103,103			—			193,858
Mortgage loans held for investment, net		—		406,201			—			—			406,201
Intangible assets and goodwill, net		—		—			692,017			—			692,017
Investments in subsidiaries		2,525,473		—			715			(2,525,473	)		715
Other assets		8,887		623,032			732,423			—			1,364,342

Total assets	$	2,534,360	$	1,643,949		$	2,997,574		$	(2,526,316	)	$	4,649,567

Customer deposits	$	—	$	828,392		$	—		$	(843	)	$	827,549
Long-term debt		—		999,325			41,224			—			1,040,549
Other liabilities		22,690		(33,609	)		1,466,496			—			1,455,577
Net intercompany advances		1,185,778		62,734			(1,248,512	)		—			—
Stockholders' equity		1,325,892		(212,893	)		2,738,366			(2,525,473	)		1,325,892

Total liabilities and stockholders' equity	$	2,534,360	$	1,643,949		$	2,997,574		$	(2,526,316	)	$	4,649,567


Condensed Consolidating Statements of Cash Flows													(in 000s)
Three months ended July 31, 2012	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities:	$	(20,577	)	$	(42,793	)	$	(309,770	)	$	—		$	(373,140	)

Cash flows from investing:
Purchases of available-for-sale securities		—			(28,990	)		—			—			(28,990	)
Mortgage loans originated for investment, net		—			12,652			—			—			12,652
Purchase property & equipment		—			(31	)		(13,242	)		—			(13,273	)
Payments made for business acquisitions, net		—			—			(2,972	)		—			(2,972	)
Loans made to franchisees		—			(5,062	)		—			—			(5,062	)
Repayments from franchisees		—			5,154			—			—			5,154
Net intercompany advances		413,392			—			—			(413,392	)		—
Other, net		—			22,766			3,010			—			25,776

Net cash provided by (used in) investing activities		413,392			6,489			(13,204	)		(413,392	)		(6,715	)

Cash flows from financing:
Repayments of long-term borrowings		—			—			(30,831	)		—			(30,831	)
Customer banking deposits		—			(179,038	)		—			(481	)		(179,519	)
Dividends paid		(54,201	)		—			—			—			(54,201	)
Repurchase of common stock		(339,088	)		—			—			—			(339,088	)
Proceeds from exercise of stock options, net		468			—			—			—			468
Net intercompany advances		—			42,908			(456,300	)		413,392			—
Other, net		6			146			(20,091	)		—			(19,939	)

Net cash used in financing activities		(392,815	)		(135,984	)		(507,222	)		412,911			(623,110	)

Effects of exchange rates on cash		—			—			(1,498	)		—			(1,498	)

Net decrease in cash		—			(172,288	)		(831,694	)		(481	)		(1,004,463	)
Cash – beginning of period		—			515,147			1,430,030			(843	)		1,944,334

Cash – end of period	$	—		$	342,859		$	598,336		$	(1,324	)	$	939,871


Three months ended July 31, 2011	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated 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