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Condensed Consolidating Financial Statements
 6 Months Ended
Oct. 31, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Statements
NOTE 17: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Block Financial is a 100% owned subsidiary of the Company. Block Financial is the Issuer and the Company is the full and unconditional Guarantor of the Senior Notes issued on October 25, 2012, our 2012 CLOC, 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.
Certain amounts included in the following statements of operations for the three and six months ended October 31, 2013, the statements of cash flows for the six months ended October 31, 2013, and the balance sheet as of October 31, 2013 have been restated to correct errors in presentation. The statements of operations have been corrected to properly reflect equity earnings in subsidiaries of H&R Block, Inc. (Guarantor) in "Other income (expense), net" to include income taxes and discontinued operations which were previously shown on separate lines. The balance sheet has been corrected to properly reflect a classified balance sheet and to show the investment in Block Financial by Other Subsidiaries. The statements of cash flows have been corrected to properly reflect intercompany borrowings and payments as either investing or financing activities, as appropriate. These restatements impacted disclosures required by this note, but had no impact on the consolidated financial statements as of and for the three and six months ended October 31, 2013.
Additionally, as discussed in note 11, the presentation of interest expense on borrowings for the three and six months ended October 31, 2013 has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption.
Six months ended October 31, 2014
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
44,751

 
$
223,556

 
$
(93
)
 
$
268,214

Cost of revenues
 
—

 
22,658

 
396,853

 
(88
)
 
419,423

Selling, general and administrative
 
—

 
9,197

 
185,387

 
(5
)
 
194,579

Total operating expenses
 
—

 
31,855

 
582,240

 
(93
)
 
614,002

Other income (expense), net
 
(233,646
)
 
1,396

 
(19,076
)
 
248,363

 
(2,963
)
Interest expense on borrowings
 
—

 
27,436

 
202

 
—

 
27,638

Loss from continuing operations before tax benefit
 
(233,646
)
 
(13,144
)
 
(377,962
)
 
248,363

 
(376,389
)
Income tax benefit
 
(5,416
)
 
(9,663
)
 
(139,232
)
 
—

 
(154,311
)
Net loss from continuing operations
 
(228,230
)
 
(3,481
)
 
(238,730
)
 
248,363

 
(222,078
)
Net income (loss) from discontinued operations
 
—

 
(8,843
)
 
2,691

 
—

 
(6,152
)
Net loss
 
(228,230
)
 
(12,324
)
 
(236,039
)
 
248,363

 
(228,230
)
Other comprehensive income
 
1,400

 
4,261

 
1,400

 
(5,661
)
 
1,400

Comprehensive loss
 
$
(226,830
)
 
$
(8,063
)
 
$
(234,639
)
 
$
242,702

 
$
(226,830
)
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
 
(in 000s)

Six months ended October 31, 2013
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
48,385

 
$
213,340

 
$
(190
)
 
$
261,535

Cost of revenues
 
—

 
38,906

 
364,597

 
(190
)
 
403,313

Selling, general and administrative
 
—

 
15,407

 
175,382

 
—

 
190,789

Total operating expenses
 
—

 
54,313

 
539,979

 
(190
)
 
594,102

Other income (expense), net (1)
 
(220,130
)
 
1,706

 
(5,391
)
 
220,130

 
(3,685
)
Interest expense on borrowings (1)
 
—

 
27,385

 
219

 
—

 
27,604

Loss from continuing operations before tax benefit
 
(220,130
)
 
(31,607
)
 
(332,249
)
 
220,130

 
(363,856
)
Income tax benefit (1)
 
—

 
(11,601
)
 
(135,970
)
 
—

 
(147,571
)
Net loss from continuing operations
 
(220,130
)
 
(20,006
)
 
(196,279
)
 
220,130

 
(216,285
)
Net loss from discontinued operations (1)
 
—

 
(2,716
)
 
(1,129
)
 
—

 
(3,845
)
Net loss
 
(220,130
)
 
(22,722
)
 
(197,408
)
 
220,130

 
(220,130
)
Other comprehensive loss
 
(9,087
)
 
(6,616
)
 
(2,471
)
 
9,087

 
(9,087
)
Comprehensive loss
 
$
(229,217
)
 
$
(29,338
)
 
$
(199,879
)
 
$
229,217

 
$
(229,217
)
 
 
 
 
 
 
 
 
 
 
 
(1) 
Amounts have been restated, including the presentation of interest expense on borrowings, and equity in earnings of subsidiaries net of income taxes and discontinued operations.

CONDENSED CONSOLIDATING BALANCE SHEETS
 
(in 000s)

As of October 31, 2013
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Cash & cash equivalents
 
$
—

 
$
389,915

 
$
401,303

 
$
(446
)
 
$
790,772

Cash & cash equivalents - restricted
 
—

 
6,795

 
40,726

 
—

 
47,521

Receivables, net
 
—

 
99,867

 
31,834

 
—

 
131,701

Prepaid expenses and other current assets
 
—

 
14,543

 
217,662

 
(6,545
)
 
225,660

Total current assets
 
—

 
511,120

 
691,525

 
(6,991
)
 
1,195,654

Mortgage loans held for investment, net
 
—

 
295,907

 
—

 
—

 
295,907

Investments in AFS securities
 
—

 
460,935

 
4,409

 
—

 
465,344

Property and equipment, net
 
—

 
145

 
311,012

 
—

 
311,157

Intangible assets, net
 
—

 
—

 
296,213

 
—

 
296,213

Goodwill
 
—

 
—

 
442,812

 
—

 
442,812

Investments in subsidiaries (1)
 
3,114,988

 
—

 
26,962

 
(3,141,950
)
 
—

Amounts due from affiliates
 
—

 
397,526

 
2,167,944

 
(2,565,470
)
 
—

Other assets
 
8,512

 
140,811

 
118,103

 
—

 
267,426

Total assets
 
$
3,123,500

 
$
1,806,444

 
$
4,058,980

 
$
(5,714,411
)
 
$
3,274,513

 
 
 
 
 
 
 
 
 
 
 
Customer banking deposits
 
$
—

 
$
655,575

 
$
—

 
$
(446
)
 
$
655,129

Accounts payable, accrued expenses and other current liabilities
 
581

 
183,342

 
243,071

 
—

 
426,994

Accrued salaries, wages and payroll taxes
 
—

 
1,881

 
39,703

 
—

 
41,584

Accrued income taxes
 
—

 
29,020

 
—

 
(6,545
)
 
22,475

Current portion of long-term debt
 
—

 
399,765

 
738

 
—

 
400,503

Total current liabilities
 
581

 
1,269,583

 
283,512

 
(6,991
)
 
1,546,685

Long-term debt
 
—

 
497,471

 
8,607

 
—

 
506,078

Other noncurrent liabilities
 
—

 
12,428

 
254,347

 
—

 
266,775

Amounts due to affiliates
 
2,167,944

 
—

 
397,526

 
(2,565,470
)
 
—

Total liabilities
 
2,168,525

 
1,779,482

 
943,992

 
(2,572,461
)
 
2,319,538

Stockholders' equity (1)
 
954,975

 
26,962

 
3,114,988

 
(3,141,950
)
 
954,975

Total liabilities and stockholders' equity
 
$
3,123,500

 
$
1,806,444

 
$
4,058,980

 
$
(5,714,411
)
 
$
3,274,513

 
 
 
 
 
 
 
 
 
 
 

Note:
Amounts have been restated to include the presentation of a classified balance sheet.
(1) 
Amounts have been restated, including the presentation of the investment of Other Subsidiaries in Block Financial.


CONDENSED CONSOLIDATING BALANCE SHEETS
 
(in 000s)

As of April 30, 2014
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Cash & cash equivalents
 
$
—

 
$
612,376

 
$
1,574,031

 
$
(1,100
)
 
$
2,185,307

Cash & cash equivalents - restricted
 
—

 
67,463

 
47,856

 
—

 
115,319

Receivables, net
 
—

 
89,975

 
101,643

 
—

 
191,618

Prepaid expenses and other current assets
 
—

 
10,202

 
188,065

 
—

 
198,267

Investments in AFS securities
 
—

 
423,495

 
—

 
—

 
423,495

Total current assets
 
—

 
1,203,511

 
1,911,595

 
(1,100
)
 
3,114,006

Mortgage loans held for investment, net
 
—

 
268,428

 
—

 
—

 
268,428

Investments in AFS securities
 
—

 
—

 
4,329

 
—

 
4,329

Property and equipment, net
 
—

 
121

 
304,790

 
—

 
304,911

Intangible assets, net
 
—

 
—

 
355,622

 
—

 
355,622

Goodwill
 
—

 
—

 
436,117

 
—

 
436,117

Investments in subsidiaries
 
904,331

 
—

 
60,902

 
(965,233
)
 
—

Amounts due from affiliates
 
642,101

 
386,818

 
397

 
(1,029,316
)
 
—

Other assets
 
11,271

 
173,168

 
25,677

 
—

 
210,116

Total assets
 
$
1,557,703

 
$
2,032,046

 
$
3,099,429

 
$
(1,995,649
)
 
$
4,693,529

 
 
 
 
 
 
 
 
 
 
 
Customer banking deposits
 
$
—

 
$
770,885

 
$
—

 
$
(1,100
)
 
$
769,785

Accounts payable, accrued expenses and other current liabilities
 
757

 
223,677

 
344,573

 
—

 
569,007

Accrued salaries, wages and payroll taxes
 
—

 
2,190

 
164,842

 
—

 
167,032

Accrued income taxes
 
—

 
71,132

 
335,523

 
—

 
406,655

Current portion of long-term debt
 
—

 
399,882

 
755

 
—

 
400,637

Total current liabilities
 
757

 
1,467,766

 
845,693

 
(1,100
)
 
2,313,116

Long-term debt
 
—

 
497,612

 
8,225

 
—

 
505,837

Other noncurrent liabilities
 
—

 
5,766

 
312,261

 
—

 
318,027

Amounts due to affiliates
 
397

 
—

 
1,028,919

 
(1,029,316
)
 
—

Total liabilities
 
1,154

 
1,971,144

 
2,195,098

 
(1,030,416
)
 
3,136,980

Stockholders' equity
 
1,556,549

 
60,902

 
904,331

 
(965,233
)
 
1,556,549

Total liabilities and stockholders' equity
 
$
1,557,703

 
$
2,032,046

 
$
3,099,429

 
$
(1,995,649
)
 
$
4,693,529

 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
(in 000s)

Six months ended October 31, 2014
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash provided by (used in) operating activities:
 
$
—

 
$
55,612

 
$
(683,189
)
 
$
—

 
$
(627,577
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Purchases of AFS securities
 
—

 
—

 
(100
)
 
—

 
(100
)
Maturities of and payments received on AFS securities
 
—

 
49,013

 
—

 
—

 
49,013

Principal payments on mortgage loans held for investment, net
 
—

 
13,451

 
—

 
—

 
13,451

Capital expenditures
 
—

 
(119
)
 
(70,808
)
 
—

 
(70,927
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(94,230
)
 
—

 
(94,230
)
Loans made to franchisees
 
—

 
(18,180
)
 
(71
)
 
—

 
(18,251
)
Repayments from franchisees
 
—

 
29,404

 
233

 
—

 
29,637

Intercompany payments/investments in subsidiaries
 
—

 
400,000

 
(109,031
)
 
(290,969
)
 
—

Other, net
 
—

 
4,372

 
6,313

 
—

 
10,685

Net cash provided by (used in) investing activities
 
—

 
477,941

 
(267,694
)
 
(290,969
)
 
(80,722
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Repayments of long-term debt
 
—

 
(400,000
)
 
—

 
—

 
(400,000
)
Customer banking deposits, net
 
—

 
(317,095
)
 
—

 
826

 
(316,269
)
Dividends paid
 
(109,871
)
 
—

 
—

 
—

 
(109,871
)
Proceeds from exercise of stock options
 
14,477

 
—

 
—

 
—

 
14,477

Intercompany borrowings (repayments)
 
105,641

 
3,390

 
(400,000
)
 
290,969

 
—

Other, net
 
(10,247
)
 
—

 
(23,392
)
 
—

 
(33,639
)
Net cash used in financing activities
 
—

 
(713,705
)
 
(423,392
)
 
291,795

 
(845,302
)
Effects of exchange rates on cash
 
—

 
—

 
(4,216
)
 
—

 
(4,216
)
Net decrease in cash and cash equivalents
 
—

 
(180,152
)
 
(1,378,491
)
 
826

 
(1,557,817
)
Cash and cash equivalents at beginning of the period
 
—

 
612,376

 
1,574,031

 
(1,100
)
 
2,185,307

Cash and cash equivalents at end of the period
 
$
—

 
$
432,224

 
$
195,540

 
$
(274
)
 
$
627,490

 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
(in 000s)

Six months ended October 31, 2013
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash provided by (used in) operating activities:
 
$
799

 
$
46,969

 
$
(540,141
)
 
$
—

 
$
(492,373
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Purchases of AFS securities
 
—

 
(45,158
)
 
—

 
—

 
(45,158
)
Maturities of and payments received on AFS securities
 
—

 
55,615

 
—

 
—

 
55,615

Principal payments on mortgage loans held for investment, net
 
—

 
24,340

 
—

 
—

 
24,340

Capital expenditures
 
—

 
(57
)
 
(86,869
)
 
—

 
(86,926
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(20,927
)
 
—

 
(20,927
)
Loans made to franchisees
 
—

 
(22,114
)
 
—

 
—

 
(22,114
)
Repayments from franchisees
 
—

 
15,883

 
—

 
—

 
15,883

Intercompany payments/investments in subsidiaries (1)
 
—

 
23,036

 
(89,318
)
 
66,282

 
—

Other, net
 
—

 
11,368

 
3,887

 
—

 
15,255

Net cash provided by (used in) investing activities
 
—

 
62,913

 
(193,227
)
 
66,282

 
(64,032
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Customer banking deposits, net
 
—

 
(278,077
)
 
—

 
2,277

 
(275,800
)
Dividends paid
 
(109,324
)
 
—

 
—

 
—

 
(109,324
)
Proceeds from exercise of stock options
 
24,536

 
—

 
—

 
—

 
24,536

Intercompany borrowings (repayments) (1)
 
89,318

 
—

 
(23,036
)
 
(66,282
)
 
—

Other, net
 
(5,329
)
 
—

 
(26,619
)
 
—

 
(31,948
)
Net cash used in financing activities
 
(799
)
 
(278,077
)
 
(49,655
)
 
(64,005
)
 
(392,536
)
Effects of exchange rates on cash
 
—

 
—

 
(7,871
)
 
—

 
(7,871
)
Net decrease in cash and cash equivalents
 
—

 
(168,195
)
 
(790,894
)
 
2,277

 
(956,812
)
Cash and cash equivalents at beginning of the period
 
—

 
558,110

 
1,192,197

 
(2,723
)
 
1,747,584

Cash and cash equivalents at end of the period
 
$
—

 
$
389,915

 
$
401,303

 
$
(446
)
 
$
790,772

 
 
 
 
 
 
 
 
 
 
 
(1)
Amounts have been restated, including the presentation of intercompany borrowings (payments) as either investing or financing activities.