10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended July 31, 2015
	OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from             to

Commission file number 1-6089

H&R Block, Inc.

(Exact name of registrant as specified in its charter)

MISSOURI	44-0607856
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

One H&R Block Way, Kansas City, Missouri 64105

(Address of principal executive offices, including zip code)

(816) 854-3000

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ     No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ     No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer þ          Accelerated filer ¨        Non-accelerated filer ¨        Smaller reporting company ¨

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨No  þ

The number of shares outstanding of the registrant's Common Stock, without par value, at the close of business on August 31, 2015: 276,359,906 shares.

Form 10-Q for the Period Ended July 31, 2015

Table of Contents

	PART I
Item 1.	Consolidated Statements of Operations and Comprehensive Loss
	Three months ended July 31, 2015 and 2014	1
	Consolidated Balance Sheets
	As of July 31, 2015, July 31, 2014 and April 30, 2015	2
	Condensed Consolidated Statements of Cash Flows
	Three months ended July 31, 2015 and 2014	3
	Notes to Consolidated Financial Statements	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37
	PART II
Item 1.	Legal Proceedings	37
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	38
Item 4.	Mine Safety Disclosures	38
Item 5.	Other Information	38
Item 6.	Exhibits	38
	Signatures	40

PART I    FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS	(unaudited, in 000s, except  per share amounts)
Three months ended July 31,	2015			2014
REVENUES:
Service revenues	$	118,434		$	115,473
Royalty, product and other revenues	10,906			8,814
Interest income	8,378			9,299
	137,718			133,586
OPERATING EXPENSES:
Cost of revenues:
Compensation and benefits	55,789			51,855
Occupancy and equipment	89,855			83,306
Provision for bad debt and loan losses	2,005			4,364
Depreciation and amortization	27,084			25,085
Other	38,775			33,116
	213,508			197,726
Selling, general and administrative:
Marketing and advertising	8,531			8,145
Compensation and benefits	54,669			60,964
Depreciation and amortization	13,010			8,601
Other selling, general and administrative	21,982			19,490
	98,192			97,200
Total operating expenses	311,700			294,926
Other income	433			523
Interest expense on borrowings	(8,575		)	(13,795		)
Other expenses	(4,985		)	(1,204		)
Loss from continuing operations before income tax benefit	(187,109		)	(175,816		)
Income tax benefit	(90,604		)	(66,965		)
Net loss from continuing operations	(96,505		)	(108,851		)
Net loss from discontinued operations, net of tax benefits of $1,889 and $4,564	(3,154		)	(7,381		)
NET LOSS	$	(99,659	)	$	(116,232	)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations	$	(0.35	)	$	(0.40	)
Discontinued operations	(0.01		)	(0.02		)
Consolidated	$	(0.36	)	$	(0.42	)
DIVIDENDS DECLARED PER SHARE	$	0.20		$	0.20
COMPREHENSIVE LOSS:
Net loss	$	(99,659	)	$	(116,232	)
Unrealized gains (losses) on securities, net of taxes:
Unrealized holding losses arising during the period	(1,360		)	(723		)
Reclassification adjustment for gains included in income	141			574
Change in foreign currency translation adjustments	(8,755		)	455
Other comprehensive income (loss)	(9,974		)	306
Comprehensive loss	$	(109,633	)	$	(115,926	)

See accompanying notes to consolidated financial statements.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 1

CONSOLIDATED BALANCE SHEETS	(unaudited, in 000s, except  share and per share amounts)
As of	July 31, 2015			July 31, 2014			April 30, 2015
ASSETS
Cash and cash equivalents	$	1,299,382		$	1,429,489		$	2,007,190
Cash and cash equivalents - restricted	61,040			71,917			91,972
Receivables, less allowance for doubtful accounts of $53,771, $51,400 and $54,527	103,194			122,315			167,964
Deferred tax assets and income taxes receivable	160,390			190,323			174,267
Prepaid expenses and other current assets	80,993			74,343			70,283
Investments in available-for-sale securities	406,360			403,774			439,625
Total current assets	2,111,359			2,292,161			2,951,301
Mortgage loans held for investment, less allowance for loan losses of $7,659, $10,561 and $7,886	230,130			259,732			239,338
Property and equipment, at cost less accumulated depreciation and amortization of $538,823, $468,372 and $518,797	297,321			314,531			311,387
Intangible assets, net	417,009			347,890			432,142
Goodwill	454,394			478,845			441,831
Deferred tax assets and income taxes receivable	11,377			46,953			13,461
Other noncurrent assets	111,101			150,707			125,960
Total assets	$	3,632,691		$	3,890,819		$	4,515,420
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Customer banking deposits	$	476,732		$	482,975		$	744,241
Accounts payable and accrued expenses	116,855			127,912			231,322
Accrued salaries, wages and payroll taxes	33,447			30,996			144,744
Accrued income taxes	245,541			284,038			434,684
Current portion of long-term debt	799			400,705			790
Deferred revenue and other current liabilities	316,880			357,293			322,508
Total current liabilities	1,190,254			1,683,919			1,878,289
Long-term debt	505,197			505,714			505,298
Deferred tax liabilities and reserves for uncertain tax positions	137,603			167,914			142,586
Deferred revenue and other noncurrent liabilities	130,210			136,072			156,298
Total liabilities	1,963,264			2,493,619			2,682,471
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 316,628,110	3,166			3,166			3,166
Additional paid-in capital	773,783			766,014			783,793
Accumulated other comprehensive income (loss)	(8,234		)	5,483			1,740
Retained earnings	1,679,234			1,418,124			1,836,442
Less treasury shares, at cost	(778,522		)	(795,587		)	(792,192		)
Total stockholders' equity	1,669,427			1,397,200			1,832,949
Total liabilities and stockholders' equity	$	3,632,691		$	3,890,819		$	4,515,420

See accompanying notes to consolidated financial statements.

2 Q1 FY2016 Form 10-Q | H&R Block, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	(unaudited, in 000s)
Three months ended July 31,	2015			2014
NET CASH USED IN OPERATING ACTIVITIES	$	(378,246	)	$	(381,585	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of and payments received on available-for-sale securities	32,103			18,484
Principal payments on mortgage loans held for investment, net	8,537			6,250
Capital expenditures	(8,689		)	(25,841		)
Payments made for business acquisitions, net of cash acquired	(12,271		)	(40,533		)
Franchise loans:
Loans funded	(2,582		)	(7,398		)
Payments received	11,434			18,674
Other, net	3,562			4,030
Net cash provided by (used in) investing activities	32,094			(26,334		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Customer banking deposits, net	(268,532		)	(287,609		)
Dividends paid	(55,063		)	(54,852		)
Repurchase of common stock, including shares surrendered	(17,756		)	(9,397		)
Proceeds from exercise of stock options	13,015			13,368
Other, net	(22,413		)	(9,919		)
Net cash used in financing activities	(350,749		)	(348,409		)
Effects of exchange rate changes on cash	(10,907		)	510
Net decrease in cash and cash equivalents	(707,808		)	(755,818		)
Cash and cash equivalents at beginning of the period	2,007,190			2,185,307
Cash and cash equivalents at end of the period	$	1,299,382		$	1,429,489
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net of refunds received	$	75,358		$	88,924
Interest paid on borrowings	15,381			15,415
Interest paid on deposits	136			201
Transfers of foreclosed loans to other assets	624			1,818
Accrued additions to property and equipment	5,977			11,988

See accompanying notes to consolidated financial statements.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 3

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                  (unaudited)

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION –The consolidated balance sheets as of July 31, 2015 and 2014, the consolidated statements of operations and comprehensive loss for the three months ended July 31, 2015 and 2014, and the condensed consolidated statements of cash flows for the three months ended July 31, 2015 and 2014 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows as of July 31, 2015 and 2014 and for all periods presented have been made.

"H&R Block," "the Company," "we," "our" and "us" are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U. S. (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2015 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2015 or for the year then ended are derived from our April 30, 2015 Annual Report to Shareholders on Form 10-K.

MANAGEMENT ESTIMATES –The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, valuation allowances on deferred tax assets, reserves for uncertain tax positions and related matters. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.

SEASONALITY OF BUSINESS –Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of January through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.

DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation (including its subsidiaries, collectively, SCC), which exited its mortgage business in fiscal year 2008. See notes 12 and 13 for additional information on litigation, claims and other loss contingencies related to our discontinued operations.

NOTE 2: SUBSEQUENT EVENTS

DIVESTITURE OF H&R BLOCK BANK – In April 2014, our subsidiaries, H&R Block Bank (HRB Bank) and Block Financial LLC, the sole shareholder of HRB Bank (Block Financial), entered into a definitive Purchase and Assumption Agreement with BofI Federal Bank, a federal savings bank (BofI), pursuant to which we agreed to sell certain assets and liabilities, including all of the deposit liabilities of HRB Bank, to BofI (P&A Transaction). On August 4, 2015, HRB Bank, Block Financial and BofI received regulatory approvals for the P&A Transaction. On August 5, 2015, HRB Bank, Block Financial and BofI entered into an Amended and Restated Purchase and Assumption Agreement.

On August 31, 2015, we completed the P&A Transaction and made a one-time cash payment to BofI of approximately $419 million, which is approximately equal to the carrying value of the liabilities (including all deposit liabilities) assumed by BofI. In connection with the closing, we intend to liquidate the available-for-sale (AFS) securities previously held by HRB Bank, which totaled $404 million at July 31, 2015.

On the closing date of the P&A Transaction, HRB Bank converted from a federal savings bank to a national banking association, merged with and into its parent company, Block Financial, surrendered its bank charter and ceased to exist as a bank. As a result, as of August 31, 2015, neither we nor any of our subsidiaries is subject to minimum regulatory capital requirements or to regulation by the Office of the Comptroller of the Currency (OCC). In addition, H&R Block, Inc., H&R Block Group, Inc. and Block Financial (collectively, our Holding Companies) were Savings and Loan Holding Companies (SLHCs) because they controlled HRB Bank. As a result of the P&A Transaction and related actions, our Holding Companies have ceased to be SLHCs and have deregistered as SLHCs under Section 10(b) of the

4 Q1 FY2016 Form 10-Q | H&R Block, Inc.

Home Owner's Loan Act. As of August 31, 2015, our Holding Companies are no longer subject to regulatory capital requirements applicable to SLHCs or regulation by the Board of Governors of the Federal Reserve System (Federal Reserve).

Additional information about the closing of the P&A Transaction and the agreements executed at the closing are set forth in Part 1, Item 2 under "Recent Developments."

CAPITAL STRUCTURE – On September 1, 2015, we announced our intent to establish a new capital structure, which includes a new $3.5 billion share repurchase program approved by our Board of Directors, a new unsecured committed line of credit (CLOC) and incremental debt. As a part of this new capital structure, we also announced our intent to take near-term action on the planned capital structure changes, including:

▪ Our plans to launch a "modified Dutch auction" tender offer to purchase up to $1.5 billion of our common stock under our new share repurchase program, at a price per share of not less than $32.25 and not greater than $37.00, which will be contingent upon, among other customary items, the successful closing of a new CLOC, and satisfaction of other customary conditions;

▪ Our intent to replace our existing five-year $1.5 billion CLOC (2012 CLOC) with the new CLOC; and

▪ Our intent to incur additional incremental debt through other debt issuances as a part of the capital structure changes, which will fund stock repurchases under our new share repurchase program, together with available cash, borrowings under the new CLOC and funds from ongoing business operations.

On September 2, 2015, we commenced the tender offer described above to purchase up to $1.5 billion of our common stock, at a price per share of not less than $32.25 and not greater than $37.00.

Additional information about our new capital structure, including our new share repurchase program and related tender offer, is set forth in Part 1, Item 2 under "Recent Developments."

NOTE 3: LOSS PER SHARE AND STOCKHOLDERS' EQUITY

LOSS PER SHARE – Basic and diluted loss per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 5.0 million shares for the three months ended July 31, 2015, and 5.5 million shares for the three months ended July 31, 2014, as the effect would be antidilutive due to the net loss from continuing operations during those periods.

The computations of basic and diluted earnings per share from continuing operations are as follows:

(in 000s, except per share amounts)
Three months ended July 31,	2015			2014
Net loss from continuing operations attributable to shareholders	$	(96,505	)	$	(108,851	)
Amounts allocated to participating securities	(102		)	(89		)
Net loss from continuing operations attributable to common shareholders	$	(96,607	)	$	(108,940	)
Basic weighted average common shares	275,765			274,575
Potential dilutive shares	—			—
Dilutive weighted average common shares	275,765			274,575
Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.35	)	$	(0.40	)
Diluted	(0.35		)	(0.40		)

H&R Block, Inc. | Q1 FY2016 Form 10-Q 5

STOCK-BASED COMPENSATION – During the three months ended July 31, 2015, we acquired 0.6 million shares of our common stock at an aggregate cost of $17.8 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the three months ended July 31, 2014, we acquired 0.3 million shares at an aggregate cost of $9.4 million for similar purposes.

During the three months ended July 31, 2015 and 2014, we issued 1.6 million and 1.1 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the three months ended July 31, 2015, we granted equity awards equivalent to 0.9 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Nonvested units generally either vest over a three-year period with one-third vesting each year or cliff vest at the end of a three-year period. Stock-based compensation expense of our continuing operations totaled $6.0 million for the three months ended July 31, 2015, and $7.5 million for the three months ended July 31, 2014. As of July 31, 2015, unrecognized compensation cost for stock options totaled $0.1 million, and for nonvested shares and units totaled $50.2 million.

OTHER COMPREHENSIVE INCOME –Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows:

(in 000s)
	Foreign Currency Translation Adjustments			Unrealized Gain (Loss) on AFS Securities			Total
Balances as of May 1, 2015	$	(6,789	)	$	8,529		$	1,740
Other comprehensive income (loss) before reclassifications:
Gross losses arising during the period	(8,755		)	(2,235		)	(10,990		)
Income taxes	—			(875		)	(875		)
	(8,755		)	(1,360		)	(10,115		)
Amounts reclassified to net income:
Gross amount reclassified	—			230			230
Income taxes	—			89			89
	—			141			141
Net other comprehensive loss	(8,755		)	(1,219		)	(9,974		)
Balances as of July 31, 2015	$	(15,544	)	$	7,310		$	(8,234	)
Balances as of May 1, 2014	$	3,334		$	1,843		$	5,177
Other comprehensive income (loss) before reclassifications:
Gross gains (losses) arising during the period	455			(1,183		)	(728		)
Income taxes	—			(460		)	(460		)
	455			(723		)	(268		)
Amounts reclassified to net income:
Gross amount reclassified	—			941			941
Income taxes	—			367			367
	—			574			574
Net other comprehensive income (loss)	455			(149		)	306
Balances as of July 31, 2014	$	3,789		$	1,694		$	5,483

Gross gains and losses reclassified out of accumulated other comprehensive income are included in other income and other expense, respectively, in the consolidated statements of operations and comprehensive loss.

6 Q1 FY2016 Form 10-Q | H&R Block, Inc.

NOTE 4: RECEIVABLES

Receivables consist of the following:

(in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	56,277		$	57,792	$	62,195		$	83,013	$	56,603		$	64,472
Receivables for tax preparation and related fees	39,927			6,103		38,204			—		48,864			6,103
Cash Back® receivables	2,777			—		4,170			—		42,680			—
Emerald Advance lines of credit	20,321			598		20,239			2,839		21,908			1,913
Royalties from franchisees	4,509			—		4,278			—		8,206			—
Other	33,154			7,934		44,629			15,294		44,230			8,379
	156,965			72,427		173,715			101,146		222,491			80,867
Allowance for doubtful accounts	(53,771		)	—		(51,400		)	—		(54,527		)	—
	$	103,194		$	72,427	$	122,315		$	101,146	$	167,964		$	80,867

Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES –Franchisee loan balances as of July 31, 2015 and 2014 and April 30, 2015, consisted of $75.7 million, $99.7 million and $80.8 million, respectively, in term loans made primarily to finance the purchase of franchises and $38.4 million, $45.5 million and $40.3 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs.

As of July 31, 2015 and 2014 and April 30, 2015, loans with a principal balance of $1.5 million, $0.8 million and $0.1 million, respectively, were more than 30 days past due. We had no loans to franchisees on non-accrual status.

CANADIAN CASH BACK® PROGRAM –Refunds advanced under the Cash Back program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Cash Back amounts are generally received within 60 days of filing the client's return. As of July 31, 2015 and 2014 and April 30, 2015, $0.6 million, $1.1 million and $1.3 million of Cash Back balances were more than 60 days old, respectively.

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT –We review the credit quality of our H&R Block Emerald Advance® lines of credit (EA) receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of July 31, 2015, by year of origination, are as follows:

(in 000s)
Credit Quality Indicator – Year of origination:
2015	$	5,348
2014	92
2013	1,699
Revolving loans	13,780
	$	20,919

As of July 31, 2015 and 2014 and April 30, 2015, $17.4 million, $20.0 million and $18.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 7

ALLOWANCE FOR DOUBTFUL ACCOUNTS –Activity in the allowance for doubtful accounts for our short-term receivables for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	—		713			713
Charge-offs	—		(1,469		)	(1,469		)
Balances as of July 31, 2015	$	7,353	$	46,418		$	53,771
Balances as of May 1, 2014	$	7,530	$	45,048		$	52,578
Provision	—		2,842			2,842
Charge-offs	—		(4,020		)	(4,020		)
Balances as of July 31, 2014	$	7,530	$	43,870		$	51,400

NOTE 5: MORTGAGE LOANS HELD FOR INVESTMENT

The composition of our mortgage loan portfolio is as follows:

(dollars in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Amount			% of Total		Amount			% of Total		Amount			% of Total
Adjustable-rate loans	$	124,752		53	%	$	144,096		54	%	$	130,182		53	%
Fixed-rate loans	111,096			47	%	123,991			46	%	115,034			47	%
	235,848			100	%	268,087			100	%	245,216			100	%
Unamortized deferred fees and costs	1,941					2,206					2,008
Less: Allowance for loan losses	(7,659		)			(10,561		)			(7,886		)
	$	230,130				$	259,732				$	239,338

Our loan loss allowance as a percent of mortgage loans was 3.2% as of July 31, 2015, compared to 3.9% as of July 31, 2014 and 3.2% as of April 30, 2015.

Activity in the allowance for loan losses for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance at beginning of the period	$	7,886		$	11,272
Provision	(28		)	725
Recoveries	365			679
Charge-offs	(564		)	(2,115		)
Balance at end of the period	$	7,659		$	10,561

Detail of the aging of the mortgage loans in our portfolio as of July 31, 2015 is as follows:

(in 000s)
	Less than 60 Days Past Due		60 – 89 Days Past Due		90+ Days Past Due(1)		Total Past Due		Current		Total
Purchased from SCC	$	8,525	$	985	$	45,957	$	55,467	$	83,894	$	139,361
All other	2,790		488		6,346		9,624		86,863		96,487
	$	11,315	$	1,473	$	52,303	$	65,091	$	170,757	$	235,848

⁽¹⁾  We do not accrue interest on loans past due 90 days or more.

8 Q1 FY2016 Form 10-Q | H&R Block, Inc.

NOTE 6: INVESTMENTS

The amortized cost and fair value of securities classified as AFS are summarized below:

(in 000s)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of July 31, 2015:
Mortgage-backed securities	$	392,285	$	11,936	$	—		$	404,221
Municipal bonds	3,025		80		—			3,105
U.S. treasury bills	100		—		—			100
	$	395,410	$	12,016	$	—		$	407,426
As of July 31, 2014:
Mortgage-backed securities	$	401,092	$	2,582	$	—		$	403,674
Municipal bonds	4,106		183		—			4,289
U.S. treasury bills	100		—		—			100
	$	405,298	$	2,765	$	—		$	408,063
As of April 30, 2015:
Mortgage-backed securities	$	421,035	$	13,889	$	—		$	434,924
Municipal bonds	4,062		109		(24		)	4,147
Common stock	2,491		47		—			2,538
U.S. treasury bills	100		—		—			100
	$	427,688	$	14,045	$	(24	)	$	441,709

Substantially all AFS debt securities held as of July 31, 2015 mature after five years.

NOTE 7: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill of our Tax Services segment for the three months ended July 31, 2015 and 2014 are as follows:

(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2015	$	474,128		$	(32,297	)	$	441,831
Acquisitions	14,030			—			14,030
Disposals and foreign currency changes, net	(1,467		)	—			(1,467		)
Impairments	—			—			—
Balances as of July 31, 2015	$	486,691		$	(32,297	)	$	454,394
Balances as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117
Acquisitions	42,274			—			42,274
Disposals and foreign currency changes, net	454			—			454
Impairments	—			—			—
Balances as of July 31, 2014	$	511,142		$	(32,297	)	$	478,845

The increase in goodwill resulted from acquired franchisee and competitor businesses during the period. We expect the purchase price allocation to be finalized during fiscal year 2016.

We test goodwill for impairment annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 9

Components of the intangible assets of our Tax Services segment are as follows:

(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2015:
Reacquired franchise rights	$	294,918	$	(51,233	)	$	243,685
Customer relationships	169,998		(83,471		)	86,527
Internally-developed software	120,522		(84,215		)	36,307
Noncompete agreements	30,576		(24,091		)	6,485
Franchise agreements	19,201		(8,534		)	10,667
Purchased technology	54,700		(21,362		)	33,338
	$	689,915	$	(272,906	)	$	417,009
As of July 31, 2014:
Reacquired franchise rights	$	233,749	$	(29,152	)	$	204,597
Customer relationships	123,130		(62,514		)	60,616
Internally-developed software	104,580		(75,243		)	29,337
Noncompete agreements	24,697		(22,408		)	2,289
Franchise agreements	19,201		(7,254		)	11,947
Purchased technology	54,974		(15,870		)	39,104
	$	560,331	$	(212,441	)	$	347,890
As of April 30, 2015:
Reacquired franchise rights	$	294,647	$	(46,180	)	$	248,467
Customer relationships	170,851		(78,157		)	92,694
Internally-developed software	118,865		(80,689		)	38,176
Noncompete agreements	30,630		(23,666		)	6,964
Franchise agreements	19,201		(8,214		)	10,987
Purchased technology	54,700		(19,846		)	34,854
	$	688,894	$	(256,752	)	$	432,142

Amortization of intangible assets for the three months ended July 31, 2015 was $16.6 million. Amortization of intangible assets for the three months ended July 31, 2014 was $11.2 million. Estimated amortization of intangible assets for fiscal years 2016, 2017, 2018, 2019 and 2020 is $64.1 million, $55.7 million, $48.6 million, $36.9 million and $26.2 million, respectively.

10 Q1 FY2016 Form 10-Q | H&R Block, Inc.

NOTE 8: FAIR VALUE

FAIR VALUE MEASUREMENT –Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Our investments in AFS securities are carried at fair value on a recurring basis with gains and losses reported as a component of other comprehensive income, except for losses assessed to be other than temporary. Our AFS securities include certain agency and agency-sponsored mortgage-backed securities and municipal bonds. Quoted market prices are not available for these securities, as they are not actively traded and have fewer observable transactions. As a result, we use third-party pricing services to determine fair value and classify the securities as Level 2. The third-party pricing services' models are based on market data and utilize available trade, bid and other market information for similar securities. Quarterly, we compare the prices obtained from our third-party pricing services to other available independent pricing information to validate the reasonableness of the valuations provided. In addition, we also perform analytics to assess the reasonableness of the fair value received from the third-party pricing service based on changes in the portfolio and changes in market conditions. We evaluate whether adjustments to third-party pricing is necessary and historically, we have not made adjustments to prices obtained from our third-party pricing services.

There were no transfers of AFS securities between hierarchy levels during the three months ended July 31, 2015 and 2014. See note 6 for details of our AFS securities that were remeasured at fair value on a recurring basis during the three months ended July 31, 2015 and 2014 and the unrealized gains or losses on those remeasurements.

The following table presents the assets that were remeasured at fair value on a non-recurring basis during the three months ended July 31, 2015 and 2014 and the losses on those remeasurements:

(dollars in 000s)
	Total			Level 1			Level 2			Level 3			Losses
As of July 31, 2015:
Impaired mortgage loans held for investment	$	57,951		$	—		$	—		$	57,951		$	(88	)
As a percentage of total assets	1.6		%	—		%	—		%	1.6		%
As of July 31, 2014:
Impaired mortgage loans held for investment	$	59,635		$	—		$	—		$	59,635		$	(842	)
As a percentage of total assets	1.5		%	—		%	—		%	1.5		%

The fair value of impaired mortgage loans held for investment is generally based on the net present value of discounted cash flows for TDR loans or the appraised value of the underlying collateral for all other loans. Impaired and TDR loans are required to be remeasured at least annually, based on HRB Bank's loan policy. These loans are classified as Level 3.

We have established various controls and procedures to ensure that the unobservable inputs used in the fair value measurement of these instruments are appropriate. Appraisals are obtained from certified appraisers and reviewed internally by HRB Bank's asset management group. The inputs and assumptions used in our discounted cash flow model for TDRs are reviewed and approved by HRB Bank management each time the balances are remeasured. Significant changes in fair value from the previous measurement are presented to HRB Bank management for approval. There were no changes to the unobservable inputs used in determining the fair values of our Level 3 financial assets.

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The following table presents the quantitative information about our Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs:

(in 000s)
	Fair Value as of July 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired mortgage loans held for investment – non TDRs	$	68,368	Collateral- based	Cost to list/sell Time to sell (months) Collateral depreciation Loss severity	0% – 171%(10%) 12 (12) (128%) – 100%(32%) 0% – 100%(61%)
Impaired mortgage loans held for investment – TDRs	$	29,925	Discounted cash flow	Aged default performance Loss severity	23% – 36%(29%) 0% – 23%(7%)

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS – The carrying amounts and estimated fair values of our financial instruments are as follows:

(in 000s)
As of	July 31, 2015				July 31, 2014				April 30, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	1,299,382	$	1,299,382	$	1,429,489	$	1,429,489	$	2,007,190	$	2,007,190
Cash and cash equivalents - restricted	61,040		61,040		71,917		71,917		91,972		91,972
Receivables, net - short-term	103,194		103,194		122,315		122,315		167,964		167,964
Mortgage loans held for investment, net	230,130		184,277		259,732		193,920		239,338		190,196
Investments in AFS securities	407,426		407,426		408,063		408,063		441,709		441,709
Receivables, net - long-term	72,427		72,427		101,146		101,146		80,867		80,867
Liabilities:
Customer banking deposits	477,145		473,720		483,477		480,729		744,699		737,261
Long-term debt	505,996		552,431		906,419		965,650		506,088		556,769
Contingent consideration payments	10,650		10,650		9,168		9,168		10,667		10,667

Fair value estimates, methods and assumptions are set forth below. The fair value was not estimated for assets and liabilities that are not considered financial instruments.

▪ Cash and cash equivalents, including restricted - Fair value approximates the carrying amount (Level 1).

▪ Receivables, net - short-term - For short-term balances the carrying values reported in the balance sheet approximate fair market value due to the relative short-term nature of the respective instruments (Level 1).

▪ Mortgage loans held for investment, net - The fair value of mortgage loans held for investment is estimated using a third-party pricing service. The fair value is determined using the present value of expected future cash flows at the asset level, assuming future prepayments and using discount factors determined by prices obtained for residential loans with similar characteristics in the secondary market, as discounted for illiquid assets. Quarterly, we perform analytics to assess the reasonableness of the fair value received from the third-party pricing service based on changes in the portfolio and changes in market conditions. We evaluate whether adjustments to third-party pricing is necessary and historically, we have not made adjustments to prices obtained from our third-party pricing service (Level 3).

▪ Investments in AFS securities - For mortgage-backed securities, we use a third-party pricing service to determine fair value. The service's pricing model is based on market data and utilizes available trade, bid and other market information for similar securities (Level 2). The fair value of our investment in common stock is determined based on quoted market prices (Level 1).

▪ Receivables, net - long-term - The carrying values for the long-term portion of loans to franchisees approximate fair market value due to variable interest rates, low historical delinquency rates and franchise

12 Q1 FY2016 Form 10-Q | H&R Block, Inc.

territories serving as collateral (Level 1). Long-term EA receivables are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates.

▪ Customer banking deposits - The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, checking, money market and savings accounts, is equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities (Level 3).

▪ Long-term debt - The fair value of our Senior Notes is based on quotes from multiple banks (Level 2).

▪ Contingent consideration payments - Fair value approximates the carrying amount (Level 3).

NOTE 9: INCOME TAXES

We file a consolidated federal income tax return in the United States (U.S.) with the Internal Revenue Service (IRS) and file tax returns in various state and foreign jurisdictions. Tax returns are typically examined and settled upon completion of the examination, with tax controversies settled either at the exam level or through the appeals process. The Company currently does not have a U.S. federal return under examination; however, our calendar 2013 federal return and federal returns for all periods after this date remain open to examination. Additionally, the Company is either currently under examination or open to examination in all U.S. states that impose a corporate income tax.

We had gross unrecognized tax benefits of $76.5 million, $128.1 million and $86.3 million as of July 31, 2015 and 2014 and April 30, 2015, respectively. The gross unrecognized tax benefits decreased $9.8 million and increased $16.6 million during the three months ended July 31, 2015 and 2014, respectively. The decrease in unrecognized tax benefits during the three months ending July 31, 2015 is primarily related to a law change enacted in the state of Missouri which allowed the Company to release prior year income tax reserves. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $15 million within the next twelve months. The anticipated decrease is due to the expiration of statutes of limitations and anticipated closure of various state matters currently under exam. The portion of unrecognized benefits expected to be cash settled within the next twelve months amounts to $8.7 million and is included in accrued income taxes on our consolidated balance sheet. The remaining liability for uncertain tax positions is classified as long-term and is included in deferred tax liabilities and reserves for uncertain tax positions on the consolidated balance sheet.

Consistent with prior years, our pretax loss for the three months ended July 31, 2015 is expected to be offset by income in the fourth quarter due to the established pattern of seasonality in our primary business operations. As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur within our fiscal year. The amount of tax benefit recorded reflects management's estimate of the annual effective tax rate applied to the year-to-date loss from continuing operations. Certain discrete tax adjustments are also reflected in income tax expense for the periods presented.

A discrete income tax benefit of $20.6 million was recorded in the three months ended July 31, 2015, compared to a discrete tax benefit of less than $100 thousand in the same period of the prior year. The discrete tax benefit recorded in the current period resulted primarily from a law change enacted in the state of Missouri which provides us the ability to reduce tax expense related to income from our two prior fiscal years that will be included on timely filed state tax returns for calendar years 2014 and 2015.

Excluding discrete items, management's estimate of the annualized effective tax rate for the three months ended July 31, 2015 and 2014 was 37.4% and 38.1%, respectively. Our effective tax rate for continuing operations, including the effects of discrete income tax items was 48.4% and 38.1% for the three months ended July 31, 2015 and 2014, respectively. Due to the loss in both periods, a discrete tax benefit in either period increases the tax rate while an item of discrete tax expense decreases the tax rate. The impact of the discrete tax items combined with the seasonal nature of our business can cause the effective tax rate through our first quarter to be significantly different than the rate for our full fiscal year.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 13

NOTE 10: INTEREST INCOME AND INTEREST EXPENSE

The following table shows the components of interest income and expense:

(in 000s)
Three months ended July 31,	2015		2014
Interest income:
Mortgage loans, net	$	2,812	$	2,978
Loans to franchisees	1,654		2,071
AFS securities	2,058		2,270
Other	1,854		1,980
	$	8,378	$	9,299
Interest expense:
Borrowings	$	8,575	$	13,795
Deposits	136		145
	$	8,711	$	13,940

The presentation of interest expense from borrowings in the amount of $13.8 million for the three months ended July 31, 2014, has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption in the consolidated statements of operations and comprehensive loss.

NOTE 11: COMMITMENTS AND CONTINGENCIES

Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM), which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance, beginning of the period	$	158,169		$	145,237
Amounts deferred for new extended service plans issued	920			873
Revenue recognized on previous deferrals	(27,703		)	(24,253		)
Balance, end of the period	$	131,386		$	121,857

We accrued $7.6 million, $10.6 million and $8.4 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to estimated losses under our standard guarantee, which is included with our standard in-office tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets. For POM in franchise offices, we deferred revenue of $0.1 million, and recognized revenue of $3.4 million during the three months ended July 31, 2015. At July 31, 2015, our deferred revenue related to POM in franchise offices totaled $28.3 million.

We have accrued estimated contingent consideration payments totaling $10.7 million, $9.2 million and $10.7 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to acquisitions, with the short-term amount recorded in deferred revenue and other liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations.

We have contractual commitments to fund certain franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $77.4 million at July 31, 2015, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $38.8 million.

We maintain compensating balances with certain financial institutions that are creditors in our 2012 CLOC, which are not legally restricted as to withdrawal. We had compensating balances totaling $225.0 million as of July 31, 2015. These balances may fluctuate significantly over the course of any fiscal year.

14 Q1 FY2016 Form 10-Q | H&R Block, Inc.

NOTE 12: LITIGATION AND RELATED CONTINGENCIES

We are a defendant in numerous litigation matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, are sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or a claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement of numerous claims over an extended period of time.

The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

In addition to litigation matters, we are also subject to claims and other loss contingencies arising out of our business activities, including as described below.

We accrue liabilities for litigation, claims and other loss contingencies and any related settlements (each referred to, individually, as a "matter" and, collectively, as "matters") when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been accrued for a number of the matters noted below. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.

For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of July 31, 2015. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of July 31, 2015 and 2014 and April 30, 2015, we accrued liabilities of $9.3 million, $23.7 million and $8.9 million, respectively, for such litigation addressed in this note.

For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. This estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Those matters for which an estimate is not reasonably possible are not included within this estimated range. Therefore, this estimated range of reasonably possible loss represents what we believe to be an estimate of reasonably possible loss only for certain matters meeting these criteria. It does not represent our maximum loss exposure. For those matters, and for matters where a liability has been accrued, as of July 31, 2015, we believe the aggregate range of reasonably possible losses in excess of amounts accrued is not material.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by courts on motions or appeals, analysis by experts, or the status of any settlement negotiations.

On a quarterly and annual basis, we review relevant information with respect to litigation and other loss contingencies and update our accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance

H&R Block, Inc. | Q1 FY2016 Form 10-Q 15

recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously, but there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and consolidated financial position, results of operations and cash flows.

LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, OR OTHER LOSS CONTINGENCIES PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – Although SCC ceased its mortgage loan origination activities in December 2007 and sold its loan servicing business in April 2008, SCC or the Company have been, remain, or may in the future be subject to litigation, claims, including indemnification claims, and other loss contingencies pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These contingencies, claims and lawsuits include actions by regulators, third parties seeking indemnification, including depositors and underwriters, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these contingencies, claims and lawsuits allege or may allege discriminatory or unfair and deceptive loan origination and servicing (including debt collection, foreclosure and eviction) practices, other common law torts, rights to indemnification and contribution, breach of contract, violations of securities laws and a variety of federal statutes, including the Truth in Lending Act (TILA), Equal Credit Opportunity Act, Fair Housing Act, Real Estate Settlement Procedures Act (RESPA), Home Ownership & Equity Protection Act (HOEPA), as well as similar state statutes. Given the impact of the financial crisis on the non-prime mortgage environment, the aggregate volume of these matters is substantial although it is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters, including certain of the lawsuits and claims described below, it is not possible to estimate a reasonably possible loss or range of loss due to, among other things, the inherent uncertainties involved in these matters, some of which are beyond the Company's control, and the indeterminate damages sought in some of these matters.

On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC-related entities, H&R Block, Inc. and other entities, arising out of FHLB-Chicago's purchase of residential mortgage-backed securities (RMBSs). The plaintiff seeks rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities collateralized by loans originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $32 million remains outstanding. The plaintiff agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, filed motions to dismiss, which the court denied. The defendants moved for leave to appeal and the circuit court denied the motion. On August 31, 2015, the parties reached an agreement to settle the claims for an amount fully covered by prior accruals.

On May 31, 2012, a lawsuit was filed by Homeward Residential, Inc. (Homeward) in the Supreme Court of the State of New York, County of New York, against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Index No. 651885/2012). SCC removed the case to the United States District Court for the Southern District of New York on June 28, 2012 (Case No. 12-cv-5067). The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-2 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract, anticipatory breach, indemnity and declaratory judgment in connection with alleged losses incurred as a result of the breach of representations and warranties relating to SCC and to loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses, as well as a repurchase of all loans due to alleged misrepresentations by SCC as to itself and as to the loans' compliance with its underwriting standards and the value of underlying real estate. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase, anticipatory breach, indemnity, and declaratory judgment. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On September 28, 2012, a second lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 12-cv-7319).

16 Q1 FY2016 Form 10-Q | H&R Block, Inc.

The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-3 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 96 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On April 5, 2013, a third lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC. The suit, styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 13-cv-2107), was filed as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, the plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 159 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

Underwriters and depositors are, or have been, involved in multiple lawsuits related to securitization transactions in which SCC participated. These lawsuits allege or alleged a variety of claims, including violations of federal and state securities laws and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 20 lawsuits in which notice of a claim has been made involve 38 securitization transactions with original investments of approximately $14 billion (of which the outstanding principal amount is approximately $4 billion). Because SCC has not been a party to these lawsuits (with the exception of the Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation case discussed in this note) and has not had control of this litigation or any settlements thereof, SCC does not have precise information about the amount of damages or other remedies being asserted, the defenses to the claims in such lawsuits or the terms of any settlements of such lawsuits. SCC therefore cannot reasonably estimate the amount of potential losses or associated fees and expenses that may be incurred in connection with such lawsuits, which may be material. Additional lawsuits against the underwriters or depositors may be filed in the future, and SCC may receive additional notices of claims for indemnification from underwriters or depositors with respect to existing or new lawsuits or settlements of such lawsuits. Certain of the notices received included, and future notices may include, a reservation of rights, which are referred to as "reserved contribution rights," that encompasses a right of contribution which may become operative if indemnification is unavailable or insufficient to cover all of the losses and expenses involved. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, nor have we accrued a liability related to any of these claims or rights.

LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS –

Compliance Fee Litigation. On April 16, 2012, a putative class action lawsuit was filed against us in the Circuit Court of Jackson County, Missouri styled Manuel H. Lopez III v. H&R Block, Inc., et al. (Case # 1216CV12290) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all Missouri citizens who were charged the compliance fee, and asserts claims of violation of the Missouri Merchandising Practices Act, money had and received, and unjust enrichment. We filed a motion to compel arbitration of the 2011 claims. The court denied the motion. We filed an appeal. On May 6, 2014, the Missouri Court of Appeals, Western District, reversed the ruling of the trial court and remanded the case for further consideration of the motion. On March 12, 2015, the trial court denied the motion on remand. We filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

On April 19, 2012, a putative class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Ronald Perras v. H&R Block, Inc., et al. (Case No. 4:12-cv-00450-DGK)concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserts claims of

H&R Block, Inc. | Q1 FY2016 Form 10-Q 17

violation of various state consumer laws, money had and received, and unjust enrichment. In November 2013, the court compelled arbitration of the 2011 claims and stayed all proceedings with respect to those claims. In June 2014, the court denied class certification of the remaining 2012 claims. Plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which was denied on June 18, 2015. The Eighth Circuit denied plaintiff's subsequent petition for rehearing on August 7, 2015. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

Form 8863 Litigation. A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013. Taken together, the plaintiffs in these lawsuits purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or desktop tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The plaintiffs seek damages, pre-judgment interest, attorneys' fees and costs. In August 2013, the plaintiff in the state court action voluntarily dismissed her case without prejudice. The Judicial Panel on Multidistrict Litigation subsequently granted our petition to consolidate the remaining federal lawsuits for coordinated pretrial proceedings in the United States District Court for the Western District of Missouri in a proceeding styled IN RE: H&R BLOCK IRS FORM 8863 LITIGATION (MDL No. 2474/Case No. 4:13-MD-02474-FJG). On July 11, 2014, the MDL court granted our motion to compel arbitration for those named plaintiffs who agreed to arbitrate their claims. Plaintiffs filed a consolidated class action complaint in October 2014. We filed a motion to strike the class allegations relating to those clients who agreed to arbitration, which the court granted on January 7, 2015. The cases remain stayed with respect to the individual plaintiffs who agreed to arbitration. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable.

LITIGATION, CLAIMS AND OTHER LOSS CONTINGENCIES PERTAINING TO OTHER DISCONTINUED OPERATIONS –

Express IRA Litigation. On January 2, 2008, the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages.

Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations.

OTHER – We are from time to time a party to litigation, claims and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated.

While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business or our consolidated financial position, results of operations and cash flows.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows.

NOTE 13: LOSS CONTINGENCIES ARISING FROM REPRESENTATIONS AND WARRANTIES OF OUR DISCONTINUED MORTGAGE OPERATIONS

SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations.

18 Q1 FY2016 Form 10-Q | H&R Block, Inc.

Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." These representations and warranties varied based on the nature of the transaction and the buyer's or insurer's requirements, but generally pertained to the ownership of the loan, the validity of the lien securing the loan, borrower fraud, the loan's compliance with the criteria for inclusion in the transaction, including compliance with SCC's underwriting standards or loan criteria established by the buyer, ability to deliver required documentation, and compliance with applicable laws. Representations and warranties related to borrower fraud in whole loan sale transactions to institutional investors, which were generally securitized by such investors and represented approximately 68% of the disposal of loans originated in calendar years 2005, 2006 and 2007, included a "knowledge qualifier" limiting SCC's liability to those instances where SCC had knowledge of the fraud at the time the loans were sold. Representations and warranties made in other sale transactions effectively did not include a knowledge qualifier as to borrower fraud. SCC believes it would have an obligation to repurchase a loan only if it breached a representation and warranty and such breach materially and adversely affects the value of the mortgage loan or certificate holder's interest in the mortgage loan. SCC also would assert that it has no liability for the failure to repurchase any mortgage loan that has been liquidated prior to a repurchase demand, although there is conflicting case law on the liquidated loan defense issue as described below.

Representation and warranty claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination and borrower fraud for loans originated in calendar years 2006 and 2007. SCC has received claims representing an original principal amount of $2.6 billion since May 1, 2008, of which $1.9 billion were received prior to fiscal year 2013.

SETTLEMENT ACTIONS –SCC has entered into tolling agreements with counterparties that have made a significant portion of previously denied representation and warranty claims. These tolling agreements toll the running of any applicable statute of limitations related to potential lawsuits regarding representation and warranty claims and other claims against SCC.

Beginning in the fourth quarter of fiscal year 2013 and continuing through the first quarter of fiscal year 2016, SCC has been engaged in discussions with these counterparties regarding the bulk settlement of previously denied and potential future claims. Based on settlement discussions with these counterparties, SCC believes a bulk settlement approach, rather than the loan-by-loan resolution process, will be needed to resolve all of the representation and warranty and other claims that are the subject of these discussions. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. The amount paid under the settlement agreement was fully covered by prior accruals. In the event that the ongoing efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result.

SCC will continue to vigorously contest any request for repurchase when it has concluded that a valid basis for repurchase does not exist. SCC's decision whether to engage in bulk settlement discussions is based on factors that vary by counterparty or type of counterparty and include the considerations used by SCC in determining its loss estimate, described below under "Liability for Estimated Contingent Losses."

LIABILITY FOR ESTIMATED CONTINGENT LOSSES –SCC accrues a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. Development of loss estimates is subject to a high degree of management judgment and estimates may vary significantly period to period. SCC's loss estimate as of July 31, 2015, is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and the factors mentioned below. These factors include the terms of prior bulk settlements, the terms expected to result from ongoing bulk settlement discussions, and an assessment of, among other things, historical claim results, threatened claims, terms and provisions of related agreements, counterparty willingness to pursue a settlement, legal standing of counterparties to provide a comprehensive settlement, bulk settlement methodologies used and publicly disclosed by other market participants, the potential pro-rata realization of the claims as compared to all claims and other relevant facts and circumstances when developing its estimate of probable loss. SCC believes that the most significant of these factors are the terms expected to result from ongoing bulk settlement discussions, which have been primarily influenced by the bulk settlement methodologies used and publicly disclosed by other market participants and the

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anticipated pro-rata realization of the claims of particular counterparties as compared to the anticipated realization if all claims and litigation were resolved together with payment of SCC's related administration and legal expense. Changes in any one of the factors mentioned above could significantly impact the estimate.

The liability is included in deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows:

(in 000s)
Three months ended July 31,	2015		2014
Balance, beginning of the period	$	149,765	$	183,765
Provisions	—		10,000
Payments	—		—
Balance, end of the period	$	149,765	$	193,765

On June 11, 2015, the New York Court of Appeals, New York's highest appellate court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. This decision applies to claims and lawsuits brought against SCC where New York law governs. New York law governs many, though not all, of the RMBS transactions into which SCC entered. However this decision would not affect representation and warranty claims and lawsuits SCC has received or may receive, for example, where the statute of limitations has been tolled by agreement or a suit was timely filed. It is possible that in response to the statute of limitations rulings in the ACE case and similar rulings in other state and federal courts, parties seeking to pursue representation and warranty claims or lawsuits with respect to trusts where the statute of limitations for representation and warranty claims against the originator has run, may pursue alternate legal theories of recovery or assert claims against other contractual parties. SCC has not accrued liabilities for claims not subject to a tolling arrangement or not asserted prior to the expiration of the applicable statute of limitations. The impact on SCC, if any, from alternative legal theories or assertions is unclear. 

SCC is taking the legal position, where appropriate, for both contractual representation and warranty claims and similar claims in litigation, that a valid representation and warranty claim cannot be made with respect to a mortgage loan that has been liquidated. There is conflicting case law on this issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and may be subject to appeal. It is anticipated that the liquidated mortgage loan defense will be the subject of future judicial decisions. In the event the liquidated loan defense is further clarified by the courts or other developments occur, the liquidated loan defense may be a factor in the future in SCC's estimated accrual for representation and warranty claims where such defense may be applicable.

SCC believes it is reasonably possible that future losses related to representation and warranty claims may vary from amounts accrued for these exposures. SCC currently believes the aggregate range of reasonably possible losses in excess of amounts accrued is not material. This estimated range is based on the best information currently available, significant management judgment and a number of factors that are subject to change, including developments in case law and the factors mentioned above. The actual loss that may be incurred could differ materially from our accrual or the estimate of reasonably possible losses.

As described more fully in note 12, losses may also be incurred with respect to various indemnification claims or reserved contribution rights by underwriters and depositors in securitization transactions in which SCC participated. Losses from these indemnification claims or reserved contribution rights are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, have not accrued a liability for these claims or rights and are not able to estimate a reasonably possible loss or range of loss for these claims or rights. Accordingly, neither the accrued liability described above totaling $149.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above, includes any possible losses which may arise from these indemnification claims or reserved contribution rights. There can be no assurances as to the outcome or impact of these indemnification claims or reserved contribution rights. In the event of unfavorable outcomes on these claims or rights, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations and cash flows.

20 Q1 FY2016 Form 10-Q | H&R Block, Inc.

If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC's related administration and legal expense, exceeds SCC's net assets, the creditors of SCC, or a bankruptcy trustee if SCC were to file or be forced into bankruptcy, may attempt to assert claims against us for payment of SCC's obligations. Claimants may also attempt to assert claims or seek payment directly from the Company even if SCC's assets exceed its liabilities. SCC's principal assets, as of July 31, 2015, total approximately $480 million and consist primarily of an intercompany note receivable and a deferred tax asset. We believe our legal position is strong on any potential corporate veil-piercing arguments; however, if this position is challenged and not upheld, it could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows.

NOTE 14: SEGMENT INFORMATION

Results of our continuing operations by reportable segment are as follows:

(in 000s)
Three months ended July 31,	2015			2014
REVENUES :
Tax preparation fees:
U.S. assisted	$	27,285		$	25,489
International	35,718			41,456
U.S. digital	3,179			2,932
	66,182			69,877
Royalties	9,695			7,642
Revenues from Refund Transfers	3,415			3,419
Revenues from Emerald Card®	15,689			14,045
Revenues from Peace of Mind® Extended Service Plan	27,703			24,253
Interest and fee income on Emerald Advance	314			607
Other	9,576			9,237
Total Tax Services	132,574			129,080
Corporate and eliminations	5,144			4,506
	$	137,718		$	133,586
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :
Tax Services	$	(169,438	)	$	(150,560	)
Corporate and eliminations	(17,671		)	(25,256		)
	$	(187,109	)	$	(175,816	)

NOTE 15: 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.

As discussed in note 10, the presentation of interest expense on borrowings for the three months ended July 31, 2014 has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption.

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CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	24,767		$	113,044		$	(93	)	$	137,718
Cost of revenues	—			11,755			201,846			(93		)	213,508
Selling, general and administrative	—			4,376			93,816			—			98,192
Total operating expenses	—			16,131			295,662			(93		)	311,700
Other income	909			495			554			(1,525		)	433
Interest expense on external borrowings	—			(8,436		)	(139		)	—			(8,575		)
Other expenses	(102,593		)	(468		)	(12,255		)	110,331			(4,985		)
Income (loss) from continuing operations before tax (benefit)	(101,684		)	227			(194,458		)	108,806			(187,109		)
Income tax expense (benefit)	(2,025		)	3,286			(91,865		)	—			(90,604		)
Net loss from continuing operations	(99,659		)	(3,059		)	(102,593		)	108,806			(96,505		)
Net loss from discontinued operations	—			(3,154		)	—			—			(3,154		)
Net loss	(99,659		)	(6,213		)	(102,593		)	108,806			(99,659		)
Other comprehensive loss	(9,974		)	(1,187		)	(9,974		)	11,161			(9,974		)
Comprehensive loss	$	(109,633	)	$	(7,400	)	$	(112,567	)	$	119,967		$	(109,633	)

Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	23,860		$	109,809		$	(83	)	$	133,586
Cost of revenues	—			11,808			185,998			(80		)	197,726
Selling, general and administrative	—			3,343			93,860			(3		)	97,200
Total operating expenses	—			15,151			279,858			(83		)	294,926
Other income	1,226			1,006			659			(2,368		)	523
Interest expense on external borrowings (1)	—			(13,693		)	(102		)	—			(13,795		)
Other expenses	(120,219		)	(1,842		)	(1,730		)	122,587			(1,204		)
Loss from continuing operations before tax benefit	(118,993		)	(5,820		)	(171,222		)	120,219			(175,816		)
Income tax benefit	(2,761		)	(2,643		)	(61,561		)	—			(66,965		)
Net loss from continuing operations	(116,232		)	(3,177		)	(109,661		)	120,219			(108,851		)
Net loss from discontinued operations	—			(7,209		)	(172		)	—			(7,381		)
Net loss	(116,232		)	(10,386		)	(109,833		)	120,219			(116,232		)
Other comprehensive income (loss)	306			(121		)	306			(185		)	306
Comprehensive loss	$	(115,926	)	$	(10,507	)	$	(109,527	)	$	120,034		$	(115,926	)

⁽¹⁾  Amounts have been restated, including the presentation of interest expense on borrowings as discussed in note 10.

22 Q1 FY2016 Form 10-Q | H&R Block, Inc.

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of July 31, 2015	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	286,165	$	1,013,707	$	(490	)	$	1,299,382
Cash & cash equivalents - restricted	—		11,806		49,234		—			61,040
Receivables, net	1		77,539		25,654		—			103,194
Deferred tax assets and income taxes receivable	—		78,184		82,206		—			160,390
Prepaid expenses and other current assets	—		6,817		74,176		—			80,993
Investments in AFS securities	—		404,221		2,139		—			406,360
Total current assets	1		864,732		1,247,116		(490		)	2,111,359
Mortgage loans held for investment, net	—		230,130		—		—			230,130
Property and equipment, net	—		210		297,111		—			297,321
Intangible assets, net	—		—		417,009		—			417,009
Goodwill	—		—		454,394		—			454,394
Deferred tax assets and income taxes receivable	—		41,328		—		(29,951		)	11,377
Investments in subsidiaries	1,259,110		—		108,582		(1,367,692		)	—
Amounts due from affiliates	412,924		131,889		1,423		(546,236		)	—
Other noncurrent assets	—		72,009		39,092		—			111,101
Total assets	$	1,672,035	$	1,340,298	$	2,564,727	$	(1,944,369	)	$	3,632,691
Customer banking deposits	$	—	$	477,222	$	—	$	(490	)	$	476,732
Accounts payable and accrued expenses	1,206		6,679		108,970		—			116,855
Accrued salaries, wages and payroll taxes	—		2,293		31,154		—			33,447
Accrued income taxes	—		49,240		196,301		—			245,541
Current portion of long-term debt	—		—		799		—			799
Deferred revenue and other current liabilities	—		169,900		146,980		—			316,880
Total current liabilities	1,206		705,334		484,204		(490		)	1,190,254
Long-term debt	—		497,964		7,233		—			505,197
Deferred tax liabilities and reserves for uncertain tax positions	—		26,737		140,817		(29,951		)	137,603
Deferred revenue and other noncurrent liabilities	—		1,660		128,550		—			130,210
Amounts due to affiliates	1,402		21		544,813		(546,236		)	—
Total liabilities	2,608		1,231,716		1,305,617		(576,677		)	1,963,264
Stockholders' equity	1,669,427		108,582		1,259,110		(1,367,692		)	1,669,427
Total liabilities and stockholders' equity	$	1,672,035	$	1,340,298	$	2,564,727	$	(1,944,369	)	$	3,632,691

H&R Block, Inc. | Q1 FY2016 Form 10-Q 23

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of July 31, 2014	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries			Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	405,512	$	1,024,407		$	(430	)	$	1,429,489
Cash & cash equivalents - restricted	—		12,817		59,100			—			71,917
Receivables, net	15		86,968		35,332			—			122,315
Deferred tax assets and income taxes receivable	17		98,041		92,265			—			190,323
Prepaid expenses and other current assets	—		9,684		64,659			—			74,343
Investments in AFS securities	—		403,674		100			—			403,774
Total current assets	32		1,016,696		1,275,863			(430		)	2,292,161
Mortgage loans held for investment, net	—		259,732		—			—			259,732
Property and equipment, net	—		209		314,322			—			314,531
Intangible assets, net	—		—		347,890			—			347,890
Goodwill	—		—		478,845			—			478,845
Deferred tax assets and income taxes receivable	3,395		46,752		(3,194		)	—			46,953
Investments in subsidiaries	784,419		—		50,384			(834,803		)	—
Amounts due from affiliates	616,578		322,339		983			(939,900		)	—
Other noncurrent assets	—		103,178		47,529			—			150,707
Total assets	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819
Customer banking deposits	$	—	$	483,405	$	—		$	(430	)	$	482,975
Accounts payable and accrued expenses	846		4,639		122,427			—			127,912
Accrued salaries, wages and payroll taxes	—		2,129		28,867			—			30,996
Accrued income taxes	—		30,944		253,094			—			284,038
Current portion of long-term debt	—		399,941		764			—			400,705
Deferred revenue and other current liabilities	—		220,324		136,969			—			357,293
Total current liabilities	846		1,141,382		542,121			(430		)	1,683,919
Long-term debt	—		497,682		8,032			—			505,714
Deferred tax liabilities and reserves for uncertain tax positions	5,395		57,242		105,277			—			167,914
Deferred revenue and other noncurrent liabilities	—		2,216		133,856			—			136,072
Amounts due to affiliates	983		—		938,917			(939,900		)	—
Total liabilities	7,224		1,698,522		1,728,203			(940,330		)	2,493,619
Stockholders' equity	1,397,200		50,384		784,419			(834,803		)	1,397,200
Total liabilities and stockholders' equity	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819

24 Q1 FY2016 Form 10-Q | H&R Block, Inc.

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of April 30, 2015	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	478,077	$	1,529,553	$	(440	)	$	2,007,190
Cash & cash equivalents - restricted	—		45,098		46,874		—			91,972
Receivables, net	—		80,332		87,632		—			167,964
Deferred tax assets and income taxes receivable	—		77,418		96,849		—			174,267
Prepaid expenses and other current assets	—		7,771		62,512		—			70,283
Investments in AFS securities	—		434,924		4,701		—			439,625
Total current assets	—		1,123,620		1,828,121		(440		)	2,951,301
Mortgage loans held for investment, net	—		239,338		—		—			239,338
Property and equipment, net	—		218		311,169		—			311,387
Intangible assets, net	—		—		432,142		—			432,142
Goodwill	—		—		441,831		—			441,831
Deferred tax assets and income taxes receivable	—		44,788		—		(31,327		)	13,461
Investments in subsidiaries	1,371,677		—		116,870		(1,488,547		)	—
Amounts due from affiliates	463,434		134,094		1,058		(598,586		)	—
Other noncurrent assets	—		81,075		44,885		—			125,960
Total assets	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420
Customer banking deposits	$	—	$	744,681	$	—	$	(440	)	$	744,241
Accounts payable and accrued expenses	1,104		7,672		222,546		—			231,322
Accrued salaries, wages and payroll taxes	—		1,946		142,798		—			144,744
Accrued income taxes	—		49,529		385,155		—			434,684
Current portion of long-term debt	—		—		790		—			790
Deferred revenue and other current liabilities	—		177,063		145,445		—			322,508
Total current liabilities	1,104		980,891		896,734		(440		)	1,878,289
Long-term debt	—		497,893		7,405		—			505,298
Deferred tax liabilities and reserves for uncertain tax positions	—		25,696		148,217		(31,327		)	142,586
Deferred revenue and other noncurrent liabilities	—		1,783		154,515		—			156,298
Amounts due to affiliates	1,058		—		597,528		(598,586		)	—
Total liabilities	2,162		1,506,263		1,804,399		(630,353		)	2,682,471
Stockholders' equity	1,832,949		116,870		1,371,677		(1,488,547		)	1,832,949
Total liabilities and stockholders' equity	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420

H&R Block, Inc. | Q1 FY2016 Form 10-Q 25

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by (used in) operating activities:	$	—		$	27,342		$	(405,588	)	$	—		$	(378,246	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			28,339			3,764			—			32,103
Principal payments on mortgage loans held for investment, net	—			8,537			—			—			8,537
Capital expenditures	—			(19		)	(8,670		)	—			(8,689		)
Payments made for business acquisitions, net of cash acquired	—			—			(12,271		)	—			(12,271		)
Loans made to franchisees	—			(2,582		)	—			—			(2,582		)
Repayments from franchisees	—			11,288			146			—			11,434
Intercompany payments/investments in subsidiaries	—			2,226			(59,804		)	57,578			—
Other, net	—			1,439			2,123			—			3,562
Net cash provided by (used in) investing activities	—			49,228			(74,712		)	57,578			32,094
Cash flows from financing:
Customer banking deposits, net	—			(268,482		)	—			(50		)	(268,532		)
Dividends paid	(55,063		)	—			—			—			(55,063		)
Repurchase of common stock	(17,756		)	—			—			—			(17,756		)
Proceeds from exercise of stock options	13,015			—			—			—			13,015
Intercompany borrowings	59,804			—			(2,226		)	(57,578		)	—
Other, net	—			—			(22,413		)	—			(22,413		)
Net cash used in financing activities	—			(268,482		)	(24,639		)	(57,628		)	(350,749		)
Effects of exchange rates on cash	—			—			(10,907		)	—			(10,907		)
Net decrease in cash and cash equivalents	—			(191,912		)	(515,846		)	(50		)	(707,808		)
Cash and cash equivalents at beginning of the period	—			478,077			1,529,553			(440		)	2,007,190
Cash and cash equivalents at end of the period	$	—		$	286,165		$	1,013,707		$	(490	)	$	1,299,382

26 Q1 FY2016 Form 10-Q | H&R Block, Inc.

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities:	$	—		$	(20,669	)	$	(360,916	)	$	—		$	(381,585	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			18,484			—			—			18,484
Principal payments on mortgage loans held for investment, net	—			6,250			—			—			6,250
Capital expenditures	—			(116		)	(25,725		)	—			(25,841		)
Payments made for business acquisitions, net of cash acquired	—			—			(40,533		)	—			(40,533		)
Loans made to franchisees	—			(7,398		)	—			—			(7,398		)
Repayments from franchisees	—			18,674			—			—			18,674
Intercompany payments/investments in subsidiaries	—			64,322			(50,881		)	(13,441		)	—
Other, net	—			1,868			2,162			—			4,030
Net cash provided by (used in) investing activities	—			102,084			(114,977		)	(13,441		)	(26,334		)
Cash flows from financing:
Customer banking deposits, net	—			(288,279		)	—			670			(287,609		)
Dividends paid	(54,852		)	—			—			—			(54,852		)
Repurchase of common stock	(9,397		)	—			—			—			(9,397		)
Proceeds from exercise of stock options	13,368			—			—			—			13,368
Intercompany borrowings	50,881			—			(64,322		)	13,441			—
Other, net	—			—			(9,919		)	—			(9,919		)
Net cash used in financing activities	—			(288,279		)	(74,241		)	14,111			(348,409		)
Effects of exchange rates on cash	—			—			510			—			510
Net decrease in cash and cash equivalents	—			(206,864		)	(549,624		)	670			(755,818		)
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	$	—		$	405,512		$	1,024,407		$	(430	)	$	1,429,489

H&R Block, Inc. | Q1 FY2016 Form 10-Q 27

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our subsidiaries provide tax preparation and other services, and distribute the H&R Block-branded financial products and services of BofI. Tax returns are either prepared by H&R Block tax professionals (in company-owned or franchise offices or virtually via the internet) or prepared and filed by our clients through H&R Block tax software, either online or using our software or mobile applications.

RECENT DEVELOPMENTS

DIVESTITURE OF H&R BLOCK BANK – In April 2014, our subsidiaries, HRB Bank and Block Financial, the sole shareholder of HRB Bank, entered into a definitive Purchase and Assumption Agreement with BofI pursuant to which we agreed to sell certain assets and liabilities, including all of the deposit liabilities of HRB Bank, to BofI (referred to herein as the P&A Transaction). On August 4, 2015, HRB Bank, Block Financial and BofI received regulatory approvals for the P&A Transaction. On August 5, 2015, HRB Bank, Block Financial and BofI entered into an Amended and Restated Purchase and Assumption Agreement.

On August 31, 2015, we completed the P&A Transaction and made a one-time cash payment to BofI of approximately $419 million, which is approximately equal to the carrying value of the liabilities (including all deposit liabilities) assumed by BofI. In connection with the closing, we intend to liquidate the AFS securities previously held by HRB Bank, which totaled $404 million at July 31, 2015.

In connection with the closing of the P&A Transaction: (i) Emerald Financial Services, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (EFS), and BofI entered into the Program Management Agreement, dated August 31, 2015 (PMA); (ii) the Company, EFS, HRB Participant I, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company, and BofI entered into the Emerald Receivables Participation Agreement, dated August 31, 2015 (RPA); and (iii) the Company and BofI entered into the Guaranty Agreement, dated August 31, 2015 (Guaranty Agreement).

The PMA, RPA and Guaranty Agreement set forth the terms under which BofI will offer H&R Block-branded financial products and services distributed by the Company to the Company's clients. Under these agreements, EFS will also provide certain marketing, servicing and operational support to BofI for such financial products and services, the performance of which is guaranteed by the Company. A more detailed description of the terms of the PMA, RPA and Guaranty Agreement is set forth under Item 1.01 of the Company's Current Report on Form 8-K filed with the SEC on April 10, 2014, as supplemented by the description of the revised terms of the PMA set forth under Item 1.01 of the Company’s Current Report on Form 8-K filed with the SEC on August 5, 2015, each of which is incorporated herein by reference.

The foregoing description of the PMA, RPA and Guaranty Agreement (including the description incorporated herein by reference) does not purport to be complete and is subject to, and is qualified in its entirety by, reference to the PMA, RPA and Guaranty Agreement, as executed by the parties thereto, which were attached as Exhibits 10.1, 10.2 and 10.3, respectively, to Company's Current Report on Form 8-K filed with the SEC on September 1, 2015, each of which is incorporated herein by reference.

Upon closing of the P&A Transaction, HRB Bank merged with and into its parent company, Block Financial, surrendered its bank charter and ceased to exist as a bank. As a result, as of August 31, 2015, neither we nor any of our subsidiaries is subject to minimum regulatory capital requirements or to regulation by the OCC.

In addition, our Holding Companies were SLHCs because they controlled HRB Bank. As a result of the P&A Transaction and related actions, our Holding Companies have ceased to be SLHCs and have deregistered as SLHCs under Section 10(b) of the Home Owner's Loan Act. As of August 31, 2015, our Holding Companies are no longer subject to regulatory capital requirements applicable to SLHCs or to regulation by the Federal Reserve.

CAPITAL STRUCTURE – On September 1, 2015, we announced our intent to establish a new capital structure, which includes a new $3.5 billion share repurchase program approved by our Board of Directors, a new CLOC and incremental debt, as well as our intent to take near-term action on the planned capital structure changes, as discussed below.

Share Repurchase Program. Consistent with our long-standing philosophy on shareholder returns, we announced that our Board of Directors approved a new $3.5 billion share repurchase program, effective through June 2019. We

28 Q1 FY2016 Form 10-Q | H&R Block, Inc.

currently intend to repurchase shares of our common stock over time through a combination of the tender offer referred to below and open market purchases, and we may also repurchase shares through private transactions, exchange offers, additional tender offers or other means. We intend to fund this program through available cash, borrowings under the new CLOC and incremental debt as described below, and funds from ongoing business operations.

Our announcement of our new share repurchase program does not obligate us to repurchase any specific dollar amount or number of shares of common stock. We will determine when, if and how to proceed with any repurchase transactions under the program, as well as the amount of any such repurchase transactions, based upon, among other things, the results of the tender offer and our evaluation of our liquidity and capital needs (including for strategic and other opportunities), our business, results of operations, and financial position and prospects, our credit ratings, general financial, economic and market conditions, prevailing market prices for our shares of common stock, corporate, regulatory and legal requirements, and other conditions and factors deemed relevant by our management and Board of Directors from time to time. The share repurchase program may be suspended or discontinued at any time. There can be no assurance as to the actual volume of any share repurchases in any given period or over the term of the program or as to the manner or terms of any such repurchases. Our failure to maintain investment grade ratings metrics or obtain incremental debt financing as contemplated could adversely impact us and our ability to implement the share repurchase program as currently contemplated.

"Modified Dutch Auction" Tender Offer. On September 2, 2015, we commenced a "modified Dutch auction" tender offer to purchase up to $1.5 billion of our common stock, at a price per share of not less than $32.25 and not greater than $37.00. The tender offer is contingent upon, among other customary items, the successful closing of a new CLOC, as described below, and satisfaction of other customary conditions. Repurchases under the tender offer will be part of our new share repurchase program. As of August 31, 2015, we had approximately 276.4 million shares outstanding. We intend to fund the tender offer and related expenses with a combination of available cash, borrowings under the new CLOC and incremental debt as described below.

Information Regarding the Tender Offer. The information above relating to the tender offer is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of our common stock. The solicitation and offer to buy our common stock is being made only pursuant to the Offer to Purchase, the Letter of Transmittal and the other offer materials that we have filed with the SEC and sent to our shareholders. Shareholders and investors are urged to read our Tender Offer Statement on Schedule TO, the Offer to Purchase, the related Letter of Transmittal and the other offer materials, as well as any amendments or supplements to the Schedule TO that we file with the SEC, because they contain important information, including various terms and conditions of the tender offer.

New Committed Line of Credit. We also announced that we intend to replace our 2012 CLOC with a new CLOC. The new CLOC facility amount and terms will be determined based on market conditions at the time of closing of the new CLOC. As described above, the tender offer is contingent upon, among other customary items, the successful closing of the new CLOC and as such, we intend to complete the new CLOC prior to the completion of the tender offer. It is also our intention to utilize the new CLOC to fund our future seasonal working capital needs rather than issuing commercial paper. Our ability to enter into the new CLOC is dependent on, among other things, market conditions and the agreement of the lenders, and our ability to borrow under any new CLOC is dependent on our performance and ability to satisfy the borrowing conditions thereunder.

Incremental Debt. We also announced that we intend to incur incremental debt through other debt issuances as part of the capital structure changes described above. The amount and composition of the incremental debt will be dependent on market conditions and capital allocation considerations at the time the debt is incurred. We intend to use the incremental debt to fund stock repurchases under our new share repurchase program, together with available cash, borrowings under the new CLOC and funds from ongoing business operations. Our ability to take on incremental debt is dependent on, among other things, market conditions, our performance, and satisfaction of other customary financing conditions.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 29

RESULTS OF OPERATIONS

TAX SERVICES –This segment consists primarily of our assisted and DIY income tax preparation offerings - in-person, online, software and mobile applications - including tax operations primarily in the U.S. and its territories, Canada, and Australia. This segment also includes the distribution of H&R Block-branded financial products and services of BofI after closing of the P&A Transaction, which were previously offered through the activities of HRB Bank in support of our U.S. tax preparation business.

CORPORATE AND ELIMINATIONS –Corporate operating results include net interest income and gains or losses relating to mortgage loans held for investment and residual interests in securitizations, interest expense on borrowings, other corporate expenses, and eliminations of intercompany activities.

30 Q1 FY2016 Form 10-Q | H&R Block, Inc.

A summary of the financial results for our operations is as follows:

Consolidated – Financial Results													(in 000s)
Three months ended July 31,	2015									2014
	Tax Services			Corporate and Eliminations			Total			Tax Services			Corporate and Eliminations			Total
Tax preparation fees:
U.S. assisted	$	27,285		$	—		$	27,285		$	25,489		$	—		$	25,489
International	35,718			—			35,718			41,456			—			41,456
U.S. digital	3,179			—			3,179			2,932			—			2,932
	66,182			—			66,182			69,877			—			69,877
Royalties	9,695			—			9,695			7,642			—			7,642
Revenues from Refund Transfers	3,415						3,415			3,419			—			3,419
Revenues from Emerald Card®	15,689			—			15,689			14,045			—			14,045
Revenues from Peace of Mind® Extended Service Plan	27,703			—			27,703			24,253			—			24,253
Interest and fee income on Emerald Advance	314			—			314			607			—			607
Other	9,576			5,144			14,720			9,237			4,506			13,743
Total revenues	132,574			5,144			137,718			129,080			4,506			133,586
Compensation and benefits:
Field wages	45,938			—			45,938			45,997			—			45,997
Other wages	37,202			4,667			41,869			38,717			4,476			43,193
Benefits and other compensation	18,738			3,913			22,651			18,822			4,807			23,629
	101,878			8,580			110,458			103,536			9,283			112,819
Occupancy and equipment	89,379			420			89,799			83,098			11			83,109
Marketing and advertising	7,789			742			8,531			7,387			758			8,145
Depreciation and amortization	40,076			18			40,094			33,683			3			33,686
Bad debt	2,033			(28		)	2,005			3,639			725			4,364
Supplies	2,389			10			2,399			3,057			16			3,073
Other	53,176			5,238			58,414			43,858			5,872			49,730
Total operating expenses	296,720			14,980			311,700			278,258			16,668			294,926
Other income	253			180			433			350			173			523
Interest expense on borrowings	(532		)	(8,043		)	(8,575		)	(528		)	(13,267		)	(13,795		)
Other expenses	(5,013		)	28			(4,985		)	(1,204		)	—			(1,204		)
Pretax loss	$	(169,438	)	$	(17,671	)	(187,109		)	$	(150,560	)	$	(25,256	)	(175,816		)
Income tax benefit							(90,604		)							(66,965		)
Net loss from continuing operations							(96,505		)							(108,851		)
Net loss from discontinued operations							(3,154		)							(7,381		)
Net loss							$	(99,659	)							$	(116,232	)
Basic and diluted loss per share:
Continuing operations							$	(0.35	)							$	(0.40	)
Discontinued operations							(0.01		)							(0.02		)
Consolidated							$	(0.36	)							$	(0.42	)
EBITDA from continuing operations (1)							$	(138,304	)							$	(128,190	)
EBITDA from continuing operations - adjusted (1)							(137,346		)							(126,183		)

⁽¹⁾  See "Non-GAAP Financial Information" at the end of this item for a reconciliation of non-GAAP measures.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 31

Three months ended July 31, 2015 compared to July 31, 2014

Tax Services – Revenues increased$3.5 million, or 2.7%, over the prior year, due primarily to higher revenues for our POM and royalties, partially offset by the negative impact of foreign currency rates.

Total operating expenses increased$18.5 million, or 6.6%, from the prior year. Occupancy costs increased$6.3 million, or 7.6%, and depreciation and amortization expense increased$6.4 million, due primarily to acquisitions of franchisee and competitor businesses and improvements to existing offices. Other expenses increased$9.3 million from the prior year, primarily due to higher consulting and processing fees.

Corporate and Eliminations – Interest expense on borrowings declined $5.2 million due to the repayment of our 5.125% Senior Notes.

See Item 1, note 9 for discussion of the impact of income taxes for the period.

DISCONTINUED OPERATIONS

Discontinued operations include our discontinued mortgage operations.

CONTINGENT LOSSES –SCC has accrued a liability as of July 31, 2015, for estimated contingent losses arising from representation and warranty claims of $149.8 million. See note 13 for changes in this accrual. The estimate of accrued loss is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and other factors. Changes in any one of these factors could significantly impact the estimate.

Losses may also be incurred with respect to various indemnification claims by underwriters and depositors in securitization transactions in which SCC participated. SCC has not concluded that a loss is probable or reasonably estimable related to these indemnification claims, therefore there is no accrued liability for these contingent losses as of July 31, 2015.

See additional discussion of risks and sensitivity of estimates in Item 1A, "Risk Factors" and Item 7, under "Critical Accounting Estimates" in our Annual Report on Form 10-K.

FINANCIAL CONDITION

These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Part 1, Item 1.

CAPITAL RESOURCES AND LIQUIDITY – OVERVIEW – Our primary sources of capital and liquidity include cash from operations (including changes in working capital) and issuances of debt. We use our sources of liquidity primarily to fund working capital, service and repay debt, pay dividends, repurchase shares of our common stock, and acquire businesses.

Our operations are highly seasonal and substantially all of our revenues and cash flow are generated during the period from January through April. Therefore, we require the use of cash to fund losses from May through December, and typically rely on available cash balances from the prior tax season and short-term borrowings to meet our off-season liquidity needs.

Given the likely availability of a number of liquidity options discussed herein, as well as the liquidity options contemplated under our new capital structure discussed above under "Recent Developments – Capital Structure," we believe that, in the absence of any unexpected developments, our existing sources of capital as of July 31, 2015 are, and our expected sources of capital under our new capital structure will be, sufficient to meet our operating and financing needs.

32 Q1 FY2016 Form 10-Q | H&R Block, Inc.

DISCUSSION OF CONSOLIDATED STATEMENTS OF CASH FLOWS – The following table summarizes our statements of cash flows for the three months ended July 31, 2015 and 2014. See Item 1 for the complete statements of cash flows for these periods.

	(in 000s)
Three months ended July 31,	2015			2014
Net cash provided by (used in):
Operating activities	$	(378,246	)	$	(381,585	)
Investing activities	32,094			(26,334		)
Financing activities	(350,749		)	(348,409		)
Effects of exchange rates on cash	(10,907		)	510
Net change in cash and cash equivalents	$	(707,808	)	$	(755,818	)

Operating Activities. Cash used in operations was essentially flat compared to the prior year.

Investing Activities. Cash provided by investing activities totaled $32.1 million for the three months ended July 31, 2015 compared to a use of $26.3 million in the prior year period. This change resulted from a decrease of $28.3 million in payments for business acquisitions, a decline of $17.2 million in capital expenditures and an increase in cash received on AFS securities of $13.6 million.

Financing Activities. Cash used in financing activities totaled $350.7 million for the three months ended July 31, 2015 compared to $348.4 million in the prior year period. The impacts of changes in deposit balances were offset by shares of stock surrendered and changes in book overdrafts.

CASH REQUIREMENTS –

Dividends and Share Repurchase. Returning capital to shareholders in the form of dividends and the repurchase of outstanding shares has historically been a significant component of our capital allocation plan.

We have consistently paid quarterly dividends. Dividends paid totaled $55.1 million and $54.9 million for the three months ended July 31, 2015 and 2014, respectively. Although we have historically paid dividends and plan to continue to do so, there can be no assurances that circumstances will not change in the future that could affect our ability or decisions to pay dividends.

We have not completed any open-market repurchases of outstanding shares of our common stock since fiscal year 2013 primarily due to the regulatory limitations that were applicable to us while we were registered as a SLHC. As discussed above under "Recent Developments - Capital Structure," on September 1, 2015, we announced that our Board of Directors approved a new $3.5 billion share repurchase program, effective through June 2019, and on September 2, 2015, we commenced a "modified Dutch auction" tender offer to purchase up to $1.5 billion of our common stock under this program, at a price per share of not less than $32.25 and not greater than $37.00. As discussed above, there can be no assurance as to the actual volume of any share repurchases in any given period or over the term of the program or as to the manner or terms of any such repurchases.

Divestiture of HRB Bank. As discussed above under "Recent Developments – Divestiture of H&R Block Bank," at the time of the closing of the P&A Transaction, we made a one-time cash payment to BofI of approximately $419 million, which is approximately equal to the carrying value of the liabilities (including all deposit liabilities) assumed by BofI. In connection with the closing, we intend to liquidate the AFS securities previously held by HRB Bank, which totaled $404 million at July 31, 2015.

See additional discussion in Item 1, note 2 to the consolidated financial statements, and below under "Regulatory Environment."

Capital Investment. Our business is not capital intensive. Capital expenditures totaled $8.7 million and $25.8 million for the three months ended July 31, 2015 and 2014, respectively. Our capital expenditures relate primarily to recurring improvements to retail offices, as well as investments in computers, software and related assets. We also made payments to acquire franchisee and competitor businesses totaling $12.3 million and $40.5 million for the three months ended July 31, 2015 and 2014, respectively.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 33

FINANCING RESOURCES – Our 2012 CLOC has capacity up to $1.5 billion, and is scheduled to expire in August 2017. As discussed above under "Recent Developments – Capital Structure," we intend to enter into a new CLOC and incur additional incremental debt. As discussed above, our ability to enter into a new CLOC and make borrowings thereunder and incur additional incremental debt is dependent on number of conditions, including market conditions, as well as our performance.

Our 5.125% Senior Notes with a principal amount of $400 million matured in October 2014 and, utilizing available cash on hand, we repaid them according to their terms.

The following table provides ratings for debt issued by Block Financial as of July 31, 2015 and April 30, 2015:

	Short-term	Long-term	Outlook
Moody's (1)	P-2	Baa2	Stable
S&P (2)	A-2	BBB	Negative

⁽¹⁾    Short-term rating of P-3, long-term rating of Baa3 and outlook of stable effective September 2, 2015.

⁽²⁾    Short-term rating of A-2, long-term rating of BBB and outlook of stable effective September 2, 2015.

There have been no other material changes in our borrowings from those reported as of April 30, 2015 in our Annual Report on Form 10-K.

CASH AND INVESTMENT SECURITIES – As of July 31, 2015, we held cash and cash equivalents of $1.3 billion, including $283.2 million held by HRB Bank and $154.2 million held by our foreign subsidiaries.

As of July 31, 2015, we also held investments, primarily mortgage backed securities, with a carrying value of $407.4 million which we classified as available for sale. As discussed above, we intend to liquidate the majority of these securities in connection with a closing of the P&A Transaction on August 31, 2015.

Foreign Operations. Seasonal borrowing needs of our Canadian operations are typically funded by our U.S. operations. To mitigate foreign currency exchange rate risk, we sometimes enter into foreign exchange forward contracts. There were no forward contracts outstanding as of July 31, 2015.

As of July 31, 2015, our Canadian operations had approximately $52 million of U.S. dollar denominated borrowings owed to various U.S. subsidiaries. These borrowings may be repaid in full or in part at any time. Non-borrowed funds would have to be repatriated to be available to fund domestic operations, and in certain circumstances this would trigger additional income taxes on those amounts. We do not currently intend to repatriate any non-borrowed funds held by our foreign subsidiaries.

The impact of changes in foreign exchange rates during the period on our international cash balances resulted in a decrease of $10.9 million during the three months ended July 31, 2015 compared to $0.5 million in the prior year.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – There have been no material changes in our contractual obligations and commercial commitments from those reported as of April 30, 2015 in our Annual Report on Form 10-K.

34 Q1 FY2016 Form 10-Q | H&R Block, Inc.

REGULATORY ENVIRONMENT

Divestiture of HRB Bank. As discussed above under "Recent Developments - Divestiture of H&R Bank," on August 31, 2015, we completed the P&A Transaction and related actions, pursuant to which we divested HRB Bank. On the closing date of the P&A Transaction, HRB Bank converted from a federal savings bank to a national banking association. At closing, HRB Bank sold certain assets and liabilities, including all of the deposit liabilities of HRB Bank, to BofI. On the same date, HRB Bank merged with and into its parent company (Block Financial), surrendered its charter and ceased to exist as a bank. As a result of the P&A Transaction and related actions, neither we nor any of our subsidiaries is subject to minimum regulatory capital requirements or to regulation by the OCC.

Deregistration as SLHCs. As discussed above under "Recent Developments - Divestiture of H&R Bank," as a result of the P&A Transaction and related actions on August 31, 2015, our Holding Companies have ceased to be SLHCs and have deregistered as SLHCs under Section 10(b) of the Home Owners Loan Act. As of August 31, 2015, our Holding Companies are not subject to minimum regulatory capital requirements or to regulation by the Federal Reserve.

Additional information about the closing of the P&A Transaction and related actions and the end to regulation of the Company by the OCC and Federal Reserve is set forth above under "Recent Developments - Divestiture of H&R Bank." Except as set forth above, there have been no other material changes in our regulatory environment from those reported at April 30, 2015 in our Annual Report on Form 10-K, as supplemented by our other periodic filings.

NON-GAAP FINANCIAL INFORMATION

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Because these measures are not measures of financial performance under GAAP and are susceptible to varying calculations, they may not be comparable to similarly titled measures for other companies.

We consider non-GAAP financial measures to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of items that are not indicative of our core operating performance.

The following are descriptions of adjustments we make for our non-GAAP financial measures:

▪ We exclude losses from settlements and estimated contingent losses from litigation and favorable reserve adjustments. This does not include legal defense costs.

▪ We exclude non-cash charges to adjust the carrying values of goodwill, intangible assets, other long-lived assets and investments to their estimated fair values.

▪ We exclude severance and other restructuring charges in connection with the termination of personnel, closure of offices and related costs.

▪ We exclude the gains and losses on business dispositions, including investment banking, legal and accounting fees from both business dispositions and acquisitions.

▪ We exclude the gains and losses on extinguishment of debt.

We may consider whether other significant items that arise in the future should also be excluded from our non-GAAP financial measures.

We measure the performance of our business using a variety of metrics, including earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and other adjusted financial metrics as identified in the table below. The adjusted financial metrics eliminate the impact of items that we do not consider indicative of our core operating performance and, we believe, provide meaningful information to assist in understanding our financial results, analyzing trends in our underlying business, and assessing our prospects for future performance. Additionally, we use EBITDA and pretax income of continuing operations, each subject to permitted adjustments, as performance metrics in incentive compensation calculations for our employees.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 35

The following is a reconciliation of our reported results from continuing operations to our adjusted results from continuing operations, which are non-GAAP financial measures:

				(in 000s)
Three months ended July 31,	2015						2014
	EBITDA			Loss			EBITDA			Loss
As reported - from continuing operations	$	(138,304	)	$	(96,505	)	$	(128,190	)	$	(108,851	)
Adjustments (pretax):
Loss contingencies - litigation	618			618			228			228
Severance	—			—			813			813
Professional fees related to HRB Bank transaction	52			52			25			25
Impairment of AFS securities	288			288			941			941
Tax effect of adjustments	—			(358		)	—			(764		)
	958			600			2,007			1,243
As adjusted - from continuing operations	$	(137,346	)	$	(95,905	)	$	(126,183	)	$	(107,608	)
				$	(0.35	)				$	(0.40	)

The following is a reconciliation of EBITDA:

				(in 000s)
Three months ended July 31,	2015			2014
Net loss - as reported	$	(99,659	)	$	(116,232	)
Add back:
Discontinued operations	3,154			7,381
Income taxes of continuing operations	(90,604		)	(66,965		)
Interest expense of continuing operations	8,711			13,940
Depreciation and amortization of continuing operations	40,094			33,686
	(38,645		)	(11,958		)
EBITDA from continuing operations	$	(138,304	)	$	(128,190	)

FORWARD-LOOKING INFORMATION

This report and other documents filed with the Securities and Exchange Commission (SEC) may contain forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "could," "may" or other similar expressions. Forward-looking statements provide management's current expectations or predictions of future conditions, events or results. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. They may include estimates of revenues, income, earnings per share, capital expenditures, dividends, stock repurchase, liquidity, capital structure or other financial items, descriptions of management's plans or objectives for future operations, services or products, or descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions, factors, or expectations, new information, data or methods, future events or other changes, except as required by law.

By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, operational and regulatory factors, many of which

36 Q1 FY2016 Form 10-Q | H&R Block, Inc.

are beyond the Company's control. Investors should understand that it is not possible to predict or identify all such factors and, consequently, should not consider any such list to be a complete set of all potential risks or uncertainties. There can be no assurances regarding when or if the contemplated transactions described in this report will occur, or the final terms and conditions of the various agreements involved with such transactions.

Details about risks, uncertainties and assumptions that could affect various aspects of our business are included throughout our Annual Report on Form 10-K for the fiscal year ended April 30, 2015 and are also described from time to time in other filings with the SEC. Investors should carefully consider all of these risks, and should pay particular attention to Item 1A, "Risk Factors," and Item 7 under "Critical Accounting Policies" of our Annual Report on Form 10-K for the fiscal year ended April 30, 2015.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our market risks from those reported at April 30, 2015 in our Annual Report on Form 10-K.

ITEM 4.     CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – As of the end of the period covered by this Form 10-Q, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). The controls evaluation was done under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-Q.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING – There were no changes during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II    OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

For a description of our material pending legal proceedings, see discussion in Part I, Item 1, note 12 to the consolidated financial statements.

ITEM 1A.    RISK FACTORS

There have been no material changes in our risk factors from those reported at April 30, 2015 in our Annual Report on Form 10-K.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

A summary of our purchases of H&R Block common stock during the first quarter of fiscal year 2016 is as follows:

(in 000s, except per share amounts)
	Total Number of Shares Purchased (1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans  or Programs (2)	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans  or Programs (2)
May 1 – May 31	4	$	31.55	—	$	857,504
June 1 – June 30	591	$	29.67	—	$	857,504
July 1 – July 31	3	$	29.78	—	$	—
	598	$	29.68

⁽¹⁾  We purchased approximately 598 thousand shares in connection with funding employee income tax withholding obligations arising upon the lapse of restrictions on restricted shares and restricted share units. There were no open-market repurchases.

⁽²⁾  In June 2008, our Board of Directors approved an authorization to purchase up to $2.0 billion of our common stock through June 2012. In June 2012, our Board of Directors extended this authorization through June 2015 at which time it expired. As discussed in Part 1, Item 2 under "Recent Developments – Capital Structure," on September 1, 2015, we announced that our Board of Directors approved a new $3.5 billion share repurchase program, effective through June 2019, and on September 2, 2015, we commenced a "modified Dutch auction" tender offer to purchase up to $1.5 billion of our common stock under this program, at a price per share of not less than $32.25 and not greater than $37.00.

H&R Block, Inc. | Q1 FY2016 Form 10-Q 37

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

None.

ITEM 6.     EXHIBITS

The following exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K:

3.1 Amended and Restated Bylaws of H&R Block, Inc., as amended through July 14, 2015, filed as Exhibit 3.1 to the Company's current report on Form 8-K filed July 16, 2015, file number 1-06089, is incorporated herein by reference.

10.1 Letter Agreement, dated as of June 18, 2015, by and among the Company, H&R Block Management, LLC, and William C. Cobb, filed as Exhibit 10.1 to the Company's current report on Form 8-K filed June 19, 2015, file number 1-06089, is incorporated herein by reference.

10.2 Form of 2013 Long Term Incentive Plan Award Agreement for Market Stock Units, filed as Exhibit 10.2 to the Company's current report on Form 8-K filed June 19, 2015, file number 1-06089, is incorporated herein by reference.

10.3 Form of 2013 Long Term Incentive Plan Award Agreement for Performance Share Units, filed as Exhibit 10.3 to the Company's current report on Form 8-K filed June 19, 2015, file number 1-06089, is incorporated herein by reference.

10.4 Alternate Form of 2013 Long Term Incentive Plan Award Agreement for Market Stock Units, filed as Exhibit 10.4 to the Company's current report on Form 8-K filed June 19, 2015, file number 1-06089, is incorporated herein by reference.

10.5 Alternate Form of 2013 Long Term Incentive Plan Award Agreement for Performance Share Units, filed as Exhibit 10.5 to the Company's current report on Form 8-K filed June 19, 2015, file number 1-06089, is incorporated herein by reference.

10.6 Amended and Restated Purchase and Assumption Agreement, dated August 5, 2015, by and among H&R Block Bank, Block Financial LLC, and BofI Federal Bank, filed as Exhibit 10.1 to the Company's current report on Form 8-K filed August 5, 2015, file number 1-06089, is incorporated herein by reference.

10.7 Program Management Agreement, dated August 31, 2015, by and between Emerald Financial Services, LLC and BofI Federal Bank, filed as Exhibit 10.1 to the Company's current report on Form 8-K filed September 1, 2015, file number 1-06089, is incorporated herein by reference.

10.8 Emerald Advance Receivables Participation Agreement, dated as of August 31, 2015, by and among Emerald Financial Services, LLC, BofI Federal Bank, HRB Participant I, LLC and H&R Block, Inc., filed as Exhibit 10.2 to the Company's current report on Form 8-K filed September 1, 2015, file number 1-06089, is incorporated herein by reference.

10.9 Guaranty Agreement, dated as of August 31, 2015, by and between H&R Block, Inc. and BofI Federal Bank, filed as Exhibit 10.2 to the Company's current report on Form 8-K filed September 1, 2015, file number 1-06089, is incorporated herein by reference.

12.1 Computation of Ratio of Earnings to Fixed Charges for H&R Block, Inc.

12.2 Computation of Ratio of Earnings to Fixed Charges for Block Financial LLC.

31.1 Certification by Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification by Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification by Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification by Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema

101.CAL XBRL Extension Calculation Linkbase

H&R Block, Inc. | Q1 FY2016 Form 10-Q 38

101.LAB XBRL Taxonomy Extension Label Linkbase

101.PRE XBRL Taxonomy Extension Presentation Linkbase

101.DEF XBRL Taxonomy Extension Definition Linkbase

H&R Block, Inc. | Q1 FY2016 Form 10-Q 39

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

H&R BLOCK, INC.

/s/ William C. Cobb

William C. Cobb

President and Chief Executive Officer

September 4, 2015

/s/ Gregory J. Macfarlane

Gregory J. Macfarlane

Chief Financial Officer

September 4, 2015

/s/ Jeffrey T. Brown

Jeffrey T. Brown

Chief Accounting and Risk Officer

September 4, 2015

40 Q1 FY2016 Form 10-Q | H&R Block, Inc.

EX-12.1

													Exhibit 12.1
H&R BLOCK, INC.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
	Three months ended July 31,						Twelve months ended April 30,
	2015			2014			2015		2014		2013		2012		2011
Pretax income (loss) from continuing operations	$	(187,109	)	$	(175,816	)	$	742,805	$	767,116	$	702,011	$	576,070	$	627,703
Add: Fixed charges	26,307			30,007			116,977		125,162		146,954		164,848		169,140
Total earnings (loss) before income taxes and fixed charges	$	(160,802	)	$	(145,809	)	$	859,782	$	892,278	$	848,965	$	740,918	$	796,843
Fixed charges:
Interest expense	$	8,575		$	13,795		$	45,246	$	55,279	$	74,297	$	85,354	$	85,695
Interest on deposits	136			145			682		2,109		5,660		6,735		8,488
Interest portion of net rent expense (a)	17,596			16,067			71,049		67,774		66,997		72,759		74,957
Total fixed charges	$	26,307		$	30,007		$	116,977	$	125,162	$	146,954	$	164,848	$	169,140
Ratio of earnings to fixed charges:
Including interest on deposits	-			-			7.4		7.1		5.8		4.5		4.7
Excluding interest on deposits	-			-			7.4		7.2		6.0		4.6		4.9
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges	$	(187,109	)	$	(175,816	)	$	—	$	—	$	—	$	—	$	—

(a) One-third of net rent expense is the portion deemed representative of the interest factor.

Note: In computing the ratio of earnings to fixed charges: (a) earnings have been based on income from continuing operations before income taxes and fixed charges (exclusive of interest capitalized) and (b) fixed charges consist of interest expense and the estimated interest portion of rents. Interest expense on uncertain tax positions has been excluded from fixed charges, as it is included as a component of income taxes in the consolidated financial statements.

EX-12.2

													Exhibit 12.2
BLOCK FINANCIAL LLC
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
	Three months ended July 31,					Twelve months ended April 30,
	2015		2014			2015		2014		2013			2012			2011
Pretax income (loss) from continuing operations	$	227	$	(5,820	)	$	67,628	$	40,828	$	(6,112	)	$	(3,107	)	$	(51,989	)
Add: Fixed charges	8,574		13,840			45,575		57,010		79,500			90,213			92,325
Total earnings before income taxes and fixed charges	$	8,801	$	8,020		$	113,203	$	97,838	$	73,388		$	87,106		$	40,336
Fixed charges:
Interest expense	$	8,436	$	13,693		$	44,884	$	54,892	$	73,831		$	83,469		$	83,828
Interest on deposits	136		145			682		2,109		5,660			6,735			8,488
Interest portion of net rent expense (a)	2		2			9		9		9			9			9
Total fixed charges	$	8,574	$	13,840		$	45,575	$	57,010	$	79,500		$	90,213		$	92,325
Ratio of earnings to fixed charges:
Including interest on deposits	1.0		-			2.5		1.7		-			-			-
Excluding interest on deposits	1.0		-			2.5		1.7		-			-			-
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges	$	—	$	(5,820	)	$	—	$	—	$	(6,112	)	$	(3,107	)	$	(51,989	)

(a) One-third of net rent expense is the portion deemed representative of the interest factor.

Note: In computing the ratio of earnings to fixed charges: (a) earnings have been based on income from continuing operations before income taxes and fixed charges (exclusive of interest capitalized) and (b) fixed charges consist of interest expense and the estimated interest portion of rents. Interest expense on uncertain tax positions has been excluded from fixed charges, as it is included as a component of income taxes in the consolidated financial statements.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, William C. Cobb, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of H&R Block, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	September 4, 2015	/s/ William C. Cobb
		William C. Cobb
		Chief Executive Officer H&R Block, Inc.

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gregory J. Macfarlane, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of H&R Block, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	September 4, 2015	/s/ Gregory J. Macfarlane
		Gregory J. Macfarlane
		Chief Financial Officer H&R Block, Inc.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of H&R Block, Inc. (the “Company”) on Form 10‑Q for the fiscal quarter ending July 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William C. Cobb, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William C. Cobb

William C. Cobb

Chief Executive Officer

H&R Block, Inc.

September 4, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of H&R Block, Inc. (the “Company”) on Form 10‑Q for the fiscal quarter ending July 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory J. Macfarlane, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gregory J. Macfarlane

Gregory J. Macfarlane

Chief Financial Officer

H&R Block, Inc.

September 4, 2015

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Receivables (Schedule Of Receivables Based On Year Of Origination) (Details) - Emerald Advance lines of credit $ in Thousands	Jul. 31, 2015 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 20,919
Year Of Origination2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	5,348
Year Of Origination2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	92
Year Of Origination2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	1,699
Revolving Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 13,780

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Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015	Apr. 30, 2014
Commitments And Contingencies [Line Items]
Standard guarantee accrual amount	$ 7,600	$ 10,600	$ 8,400
Contingent business acquisition obligations	10,650		10,667
Lines of credit, total obligation	77,400
Remaining franchise equity lines of credit-undrawn commitment	38,800
Financing Receivables, Line of Credit Facility, Compensating Balances	225,000
Amounts deferred for new extended service plans issued	920	873
Deferred Revenue, Revenue Recognized	27,703	24,253
Deferred Revenue	131,386	121,857	$ 158,169	$ 145,237
Level 3
Commitments And Contingencies [Line Items]
Contingent business acquisition obligations		$ 9,168
Peace of Mind Franchise [Member]
Commitments And Contingencies [Line Items]
Amounts deferred for new extended service plans issued	100
Deferred Revenue, Revenue Recognized	3,400
Deferred Revenue	$ 28,300

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Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	$ 689,915	$ 688,894	$ 560,331
Accumulated Amortization	(272,906)	(256,752)	(212,441)
Net	417,009	432,142	347,890
Tax Services [Member] | Reacquired Franchise Rights [Member]
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	294,918	294,647	233,749
Accumulated Amortization	(51,233)	(46,180)	(29,152)
Net	243,685	248,467	204,597
Tax Services [Member] | Customer Relationships [Member]
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	169,998	170,851	123,130
Accumulated Amortization	(83,471)	(78,157)	(62,514)
Net	86,527	92,694	60,616
Tax Services [Member] | Software and Software Development Costs [Member]
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	120,522	118,865	104,580
Accumulated Amortization	(84,215)	(80,689)	(75,243)
Net	36,307	38,176	29,337
Tax Services [Member] | Noncompete Agreements [Member]
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	30,576	30,630	24,697
Accumulated Amortization	(24,091)	(23,666)	(22,408)
Net	6,485	6,964	2,289
Tax Services [Member] | Franchise Agreements
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	19,201	19,201	19,201
Accumulated Amortization	(8,534)	(8,214)	(7,254)
Net	10,667	10,987	11,947
Tax Services [Member] | Purchased Technology
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	54,700	54,700	54,974
Accumulated Amortization	(21,362)	(19,846)	(15,870)
Net	$ 33,338	$ 34,854	$ 39,104

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Commitments And Contingencies (Schedule Of Deferred Revenue Related To The Peace Of Mind Program) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Movement in Deferred Revenue [Roll Forward]
Balance, beginning of the period	$ 158,169	$ 145,237
Amounts deferred for new extended service plans issued	920	873
Revenue recognized on previous deferrals	(27,703)	(24,253)
Balance, end of the period	$ 131,386	$ 121,857

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Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 16.6	$ 11.2
Estimated amortization, 2015	64.1
Estimated amortization, 2016	55.7
Estimated amortization, 2017	48.6
Estimated amortization, 2018	36.9
Estimated amortization, 2019	$ 26.2

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Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jul. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Consolidating Statement of Cash Flows [Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by (used in) operating activities:	$	—		$	27,342		$	(405,588	)	$	—		$	(378,246	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			28,339			3,764			—			32,103
Principal payments on mortgage loans held for investment, net	—			8,537			—			—			8,537
Capital expenditures	—			(19		)	(8,670		)	—			(8,689		)
Payments made for business acquisitions, net of cash acquired	—			—			(12,271		)	—			(12,271		)
Loans made to franchisees	—			(2,582		)	—			—			(2,582		)
Repayments from franchisees	—			11,288			146			—			11,434
Intercompany payments/investments in subsidiaries	—			2,226			(59,804		)	57,578			—
Other, net	—			1,439			2,123			—			3,562
Net cash provided by (used in) investing activities	—			49,228			(74,712		)	57,578			32,094
Cash flows from financing:
Customer banking deposits, net	—			(268,482		)	—			(50		)	(268,532		)
Dividends paid	(55,063		)	—			—			—			(55,063		)
Repurchase of common stock	(17,756		)	—			—			—			(17,756		)
Proceeds from exercise of stock options	13,015			—			—			—			13,015
Intercompany borrowings	59,804			—			(2,226		)	(57,578		)	—
Other, net	—			—			(22,413		)	—			(22,413		)
Net cash used in financing activities	—			(268,482		)	(24,639		)	(57,628		)	(350,749		)
Effects of exchange rates on cash	—			—			(10,907		)	—			(10,907		)
Net decrease in cash and cash equivalents	—			(191,912		)	(515,846		)	(50		)	(707,808		)
Cash and cash equivalents at beginning of the period	—			478,077			1,529,553			(440		)	2,007,190
Cash and cash equivalents at end of the period	$	—		$	286,165		$	1,013,707		$	(490	)	$	1,299,382

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities:	$	—		$	(20,669	)	$	(360,916	)	$	—		$	(381,585	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			18,484			—			—			18,484
Principal payments on mortgage loans held for investment, net	—			6,250			—			—			6,250
Capital expenditures	—			(116		)	(25,725		)	—			(25,841		)
Payments made for business acquisitions, net of cash acquired	—			—			(40,533		)	—			(40,533		)
Loans made to franchisees	—			(7,398		)	—			—			(7,398		)
Repayments from franchisees	—			18,674			—			—			18,674
Intercompany payments/investments in subsidiaries	—			64,322			(50,881		)	(13,441		)	—
Other, net	—			1,868			2,162			—			4,030
Net cash provided by (used in) investing activities	—			102,084			(114,977		)	(13,441		)	(26,334		)
Cash flows from financing:
Customer banking deposits, net	—			(288,279		)	—			670			(287,609		)
Dividends paid	(54,852		)	—			—			—			(54,852		)
Repurchase of common stock	(9,397		)	—			—			—			(9,397		)
Proceeds from exercise of stock options	13,368			—			—			—			13,368
Intercompany borrowings	50,881			—			(64,322		)	13,441			—
Other, net	—			—			(9,919		)	—			(9,919		)
Net cash used in financing activities	—			(288,279		)	(74,241		)	14,111			(348,409		)
Effects of exchange rates on cash	—			—			510			—			510
Net decrease in cash and cash equivalents	—			(206,864		)	(549,624		)	670			(755,818		)
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	$	—		$	405,512		$	1,024,407		$	(430	)	$	1,429,489

Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	24,767		$	113,044		$	(93	)	$	137,718
Cost of revenues	—			11,755			201,846			(93		)	213,508
Selling, general and administrative	—			4,376			93,816			—			98,192
Total operating expenses	—			16,131			295,662			(93		)	311,700
Other income	909			495			554			(1,525		)	433
Interest expense on external borrowings	—			(8,436		)	(139		)	—			(8,575		)
Other expenses	(102,593		)	(468		)	(12,255		)	110,331			(4,985		)
Income (loss) from continuing operations before tax (benefit)	(101,684		)	227			(194,458		)	108,806			(187,109		)
Income tax expense (benefit)	(2,025		)	3,286			(91,865		)	—			(90,604		)
Net loss from continuing operations	(99,659		)	(3,059		)	(102,593		)	108,806			(96,505		)
Net loss from discontinued operations	—			(3,154		)	—			—			(3,154		)
Net loss	(99,659		)	(6,213		)	(102,593		)	108,806			(99,659		)
Other comprehensive loss	(9,974		)	(1,187		)	(9,974		)	11,161			(9,974		)
Comprehensive loss	$	(109,633	)	$	(7,400	)	$	(112,567	)	$	119,967		$	(109,633	)

Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	23,860		$	109,809		$	(83	)	$	133,586
Cost of revenues	—			11,808			185,998			(80		)	197,726
Selling, general and administrative	—			3,343			93,860			(3		)	97,200
Total operating expenses	—			15,151			279,858			(83		)	294,926
Other income	1,226			1,006			659			(2,368		)	523
Interest expense on external borrowings (1)	—			(13,693		)	(102		)	—			(13,795		)
Other expenses	(120,219		)	(1,842		)	(1,730		)	122,587			(1,204		)
Loss from continuing operations before tax benefit	(118,993		)	(5,820		)	(171,222		)	120,219			(175,816		)
Income tax benefit	(2,761		)	(2,643		)	(61,561		)	—			(66,965		)
Net loss from continuing operations	(116,232		)	(3,177		)	(109,661		)	120,219			(108,851		)
Net loss from discontinued operations	—			(7,209		)	(172		)	—			(7,381		)
Net loss	(116,232		)	(10,386		)	(109,833		)	120,219			(116,232		)
Other comprehensive income (loss)	306			(121		)	306			(185		)	306
Comprehensive loss	$	(115,926	)	$	(10,507	)	$	(109,527	)	$	120,034		$	(115,926	)

⁽¹⁾  Amounts have been restated, including the presentation of interest expense on borrowings as discussed in note 10.

Schedule Of Condensed Consolidating Balance Sheet [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of July 31, 2014	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries			Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	405,512	$	1,024,407		$	(430	)	$	1,429,489
Cash & cash equivalents - restricted	—		12,817		59,100			—			71,917
Receivables, net	15		86,968		35,332			—			122,315
Deferred tax assets and income taxes receivable	17		98,041		92,265			—			190,323
Prepaid expenses and other current assets	—		9,684		64,659			—			74,343
Investments in AFS securities	—		403,674		100			—			403,774
Total current assets	32		1,016,696		1,275,863			(430		)	2,292,161
Mortgage loans held for investment, net	—		259,732		—			—			259,732
Property and equipment, net	—		209		314,322			—			314,531
Intangible assets, net	—		—		347,890			—			347,890
Goodwill	—		—		478,845			—			478,845
Deferred tax assets and income taxes receivable	3,395		46,752		(3,194		)	—			46,953
Investments in subsidiaries	784,419		—		50,384			(834,803		)	—
Amounts due from affiliates	616,578		322,339		983			(939,900		)	—
Other noncurrent assets	—		103,178		47,529			—			150,707
Total assets	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819
Customer banking deposits	$	—	$	483,405	$	—		$	(430	)	$	482,975
Accounts payable and accrued expenses	846		4,639		122,427			—			127,912
Accrued salaries, wages and payroll taxes	—		2,129		28,867			—			30,996
Accrued income taxes	—		30,944		253,094			—			284,038
Current portion of long-term debt	—		399,941		764			—			400,705
Deferred revenue and other current liabilities	—		220,324		136,969			—			357,293
Total current liabilities	846		1,141,382		542,121			(430		)	1,683,919
Long-term debt	—		497,682		8,032			—			505,714
Deferred tax liabilities and reserves for uncertain tax positions	5,395		57,242		105,277			—			167,914
Deferred revenue and other noncurrent liabilities	—		2,216		133,856			—			136,072
Amounts due to affiliates	983		—		938,917			(939,900		)	—
Total liabilities	7,224		1,698,522		1,728,203			(940,330		)	2,493,619
Stockholders' equity	1,397,200		50,384		784,419			(834,803		)	1,397,200
Total liabilities and stockholders' equity	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of April 30, 2015	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	478,077	$	1,529,553	$	(440	)	$	2,007,190
Cash & cash equivalents - restricted	—		45,098		46,874		—			91,972
Receivables, net	—		80,332		87,632		—			167,964
Deferred tax assets and income taxes receivable	—		77,418		96,849		—			174,267
Prepaid expenses and other current assets	—		7,771		62,512		—			70,283
Investments in AFS securities	—		434,924		4,701		—			439,625
Total current assets	—		1,123,620		1,828,121		(440		)	2,951,301
Mortgage loans held for investment, net	—		239,338		—		—			239,338
Property and equipment, net	—		218		311,169		—			311,387
Intangible assets, net	—		—		432,142		—			432,142
Goodwill	—		—		441,831		—			441,831
Deferred tax assets and income taxes receivable	—		44,788		—		(31,327		)	13,461
Investments in subsidiaries	1,371,677		—		116,870		(1,488,547		)	—
Amounts due from affiliates	463,434		134,094		1,058		(598,586		)	—
Other noncurrent assets	—		81,075		44,885		—			125,960
Total assets	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420
Customer banking deposits	$	—	$	744,681	$	—	$	(440	)	$	744,241
Accounts payable and accrued expenses	1,104		7,672		222,546		—			231,322
Accrued salaries, wages and payroll taxes	—		1,946		142,798		—			144,744
Accrued income taxes	—		49,529		385,155		—			434,684
Current portion of long-term debt	—		—		790		—			790
Deferred revenue and other current liabilities	—		177,063		145,445		—			322,508
Total current liabilities	1,104		980,891		896,734		(440		)	1,878,289
Long-term debt	—		497,893		7,405		—			505,298
Deferred tax liabilities and reserves for uncertain tax positions	—		25,696		148,217		(31,327		)	142,586
Deferred revenue and other noncurrent liabilities	—		1,783		154,515		—			156,298
Amounts due to affiliates	1,058		—		597,528		(598,586		)	—
Total liabilities	2,162		1,506,263		1,804,399		(630,353		)	2,682,471
Stockholders' equity	1,832,949		116,870		1,371,677		(1,488,547		)	1,832,949
Total liabilities and stockholders' equity	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420

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Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations (Narrative) (Details) - USD ($) $ in Thousands	36 Months Ended	48 Months Ended	60 Months Ended
	Apr. 30, 2007	Apr. 30, 2012	Apr. 30, 2013	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014	Apr. 30, 2014
Loss Contingencies [Line Items]
Percentage of fraud on originated loans	68.00%
Claims received for loans		$ 1,900,000	$ 2,600,000
Loss Contingency Accrual				$ 9,300	$ 8,900	$ 23,700
Principal Assets of SCC				480,000
SCC [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, Product Liability, Gross				$ 149,765	$ 149,765	$ 193,765	$ 183,765

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Mortgage Loans Held For Investment And Related Assets (Tables)

3 Months Ended

Jul. 31, 2015

Mortgage Loans Held For Investment And Related Assets [Abstract]

Schedule Of Mortgage Loan Portfolio

The composition of our mortgage loan portfolio is as follows:

(dollars in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Amount			% of Total		Amount			% of Total		Amount			% of Total
Adjustable-rate loans	$	124,752		53	%	$	144,096		54	%	$	130,182		53	%
Fixed-rate loans	111,096			47	%	123,991			46	%	115,034			47	%
	235,848			100	%	268,087			100	%	245,216			100	%
Unamortized deferred fees and costs	1,941					2,206					2,008
Less: Allowance for loan losses	(7,659		)			(10,561		)			(7,886		)
	$	230,130				$	259,732				$	239,338

Schedule Of Allowance For Loan Losses

Activity in the allowance for loan losses for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance at beginning of the period	$	7,886		$	11,272
Provision	(28		)	725
Recoveries	365			679
Charge-offs	(564		)	(2,115		)
Balance at end of the period	$	7,659		$	10,561

Schedule Of Past Due Mortgage Loans

Detail of the aging of the mortgage loans in our portfolio as of July 31, 2015 is as follows:

(in 000s)
	Less than 60 Days Past Due		60 – 89 Days Past Due		90+ Days Past Due(1)		Total Past Due		Current		Total
Purchased from SCC	$	8,525	$	985	$	45,957	$	55,467	$	83,894	$	139,361
All other	2,790		488		6,346		9,624		86,863		96,487
	$	11,315	$	1,473	$	52,303	$	65,091	$	170,757	$	235,848

⁽¹⁾  We do not accrue interest on loans past due 90 days or more.

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Fair Value (Quantitative Information About Level 3 Fair Value Measurements) (Details) - Jul. 31, 2015 - USD ($) $ in Thousands	Total
Collateral-Based | Impaired Mortgage Loans Held For Investment - Non TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Time to sell (in months)	12 months
Collateral-Based | Impaired Mortgage Loans Held For Investment - TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 29,925
Collateral-Based | Minimum | Impaired Mortgage Loans Held For Investment - Non TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cost to list/sell	0.00%
Loss severity	0.00%
Collateral depreciation	(128.00%)
Collateral-Based | Maximum | Impaired Mortgage Loans Held For Investment - Non TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cost to list/sell	171.00%
Loss severity	100.00%
Collateral depreciation	100.00%
Collateral-Based | Weighted Average | Impaired Mortgage Loans Held For Investment - Non TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Cost to list/sell	10.00%
Loss severity	61.00%
Time to sell (in months)	12 months
Collateral depreciation	32.00%
Discounted Cash Flow | Impaired Mortgage Loans Held For Investment - Non TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 68,368
Discounted Cash Flow | Minimum | Impaired Mortgage Loans Held For Investment - TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	0.00%
Aged default performance	23.00%
Discounted Cash Flow | Maximum | Impaired Mortgage Loans Held For Investment - TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	23.00%
Aged default performance	36.00%
Discounted Cash Flow | Weighted Average | Impaired Mortgage Loans Held For Investment - TDRs
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Loss severity	7.00%
Aged default performance	29.00%

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Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014	Apr. 30, 2014
Mortgage Loans Held For Investment And Related Assets [Abstract]
Adjustable-rate loans	$ 124,752	$ 130,182	$ 144,096
Adjustable-rate loans, percent of total loans	53.00%	53.00%	54.00%
Fixed-rate loans	$ 111,096	$ 115,034	$ 123,991
Fixed-rate loans, percent of Total loans	47.00%	47.00%	46.00%
Total loans	$ 235,848	$ 245,216	$ 268,087
Total loans, percent of Total loans	100.00%	100.00%	100.00%
Unamortized deferred fees and costs	$ 1,941	$ 2,008	$ 2,206
Less: Allowance for loan losses	(7,659)	(7,886)	(10,561)	$ (11,272)
Total	$ 230,130	$ 239,338	$ 259,732

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Receivables (Schedule Of Short-Term Receivables) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Gross, Current	$ 156,965	$ 222,491	$ 173,715
Accounts Receivable, Gross, Noncurrent	72,427	80,867	101,146
Allowance for doubtful accounts	(53,771)	(54,527)	(51,400)
Allowance for Doubtful Accounts Receivable, Noncurrent	0	0	0
Receivables, net	103,194	167,964	122,315
Accounts Receivable, Net, Noncurrent	72,427	80,867	101,146
Loans to franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		56,603	62,195
Accounts Receivable, Gross, Current	56,277
Accounts Receivable, Gross, Noncurrent	57,792	64,472	83,013
Receivables for tax preparation and related fees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		48,864	38,204
Accounts Receivable, Gross, Current	39,927
Accounts Receivable, Gross, Noncurrent	6,103	6,103	0
Cash Back® receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		42,680	4,170
Accounts Receivable, Gross, Current	2,777
Accounts Receivable, Gross, Noncurrent	0	0	0
Emerald Advance lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		21,908	20,239
Accounts Receivable, Gross, Current	20,321
Accounts Receivable, Gross, Noncurrent	598	1,913	2,839
Allowance for doubtful accounts	(7,353)	(7,353)
Royalties from franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		8,206	4,278
Accounts Receivable, Gross, Current	4,509
Accounts Receivable, Gross, Noncurrent	0	0
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, gross		44,230	44,629
Accounts Receivable, Gross, Current	33,154
Accounts Receivable, Gross, Noncurrent	$ 7,934	$ 8,379	$ 15,294

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits	$ 76,500	$ 128,100	$ 86,300
Unrecognized Tax Benefits, Period Increase (Decrease)	9,800	16,600
Effect of anticipated settlements of audit issues and expiring statutes of limitations	15,000
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	8,700
Accrued income taxes	$ 245,541	$ 284,038	$ 434,684
Effective tax rate, excluding discrete tax items	37.40%	38.10%
Effective Income Tax Rate Reconciliation, Percent	48.40%	38.10%
Net Discreet Tax Expense (Benefit)	$ 20,600	$ 100

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Condensed Consolidating Financial Statements (Balance Sheets) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014	Apr. 30, 2014
Condensed Financial Statements, Captions [Line Items]
Cash & cash equivalents	$ 1,299,382	$ 2,007,190	$ 1,429,489	$ 2,185,307
Cash and cash equivalents - restricted	61,040	91,972	71,917
Receivables, net	103,194	167,964	122,315
Deferred Tax Assets, Net, Current	160,390	174,267	190,323
Prepaid expenses and other current assets	80,993	70,283	74,343
Investments in available-for-sale securities	406,360	439,625	403,774
Total current assets	2,111,359	2,951,301	2,292,161
Mortgage loans held for investment, net	230,130	239,338	259,732
Property and equipment, at cost less accumulated depreciation and amortization of $538,823, $468,372 and $518,797	297,321	311,387	314,531
Intangible assets, net	417,009	432,142	347,890
Goodwill	454,394	441,831	478,845	436,117
Deferred tax assets and income taxes receivable	11,377	13,461	46,953
Amounts due from affiliates	0	0	0
Other assets	111,101	125,960	150,707
Total assets	3,632,691	4,515,420	3,890,819
Customer deposits	476,732	744,241	482,975
Accounts payable and accrued expenses	116,855	231,322	127,912
Accrued salaries, wages and payroll taxes	33,447	144,744	30,996
Accrued income taxes	245,541	434,684	284,038
Current portion of long-term debt	799	790	400,705
Accounts payable and accrued expenses	316,880	322,508	357,293
Total current liabilities	1,190,254	1,878,289	1,683,919
Long-term debt	505,197	505,298	505,714
Deferred tax liabilities and reserves for uncertain tax positions	137,603	142,586	167,914
Deferred revenue and other noncurrent liabilities	130,210	156,298	136,072
Total liabilities	1,963,264	2,682,471	2,493,619
Stockholders’ equity	1,669,427	1,832,949	1,397,200
Total liabilities and stockholders' equity	3,632,691	4,515,420	3,890,819
Block Financial Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Cash & cash equivalents	286,165	478,077	405,512	612,376
Cash and cash equivalents - restricted	11,806	45,098	12,817
Receivables, net	77,539	80,332	86,968
Deferred Tax Assets, Net, Current	78,184	77,418	98,041
Prepaid expenses and other current assets	6,817	7,771	9,684
Investments in available-for-sale securities	404,221	434,924	403,674
Total current assets	864,732	1,123,620	1,016,696
Mortgage loans held for investment, net	230,130	239,338	259,732
Property and equipment, at cost less accumulated depreciation and amortization of $538,823, $468,372 and $518,797	210	218	209
Deferred tax assets and income taxes receivable	41,328	44,788	46,752
Amounts due from affiliates	131,889	134,094	322,339
Other assets	72,009	81,075	103,178
Total assets	1,340,298	1,623,133	1,748,906
Customer deposits	477,222	744,681	483,405
Accounts payable and accrued expenses	6,679	7,672	4,639
Accrued salaries, wages and payroll taxes	2,293	1,946	2,129
Accrued income taxes	49,240	49,529	30,944
Current portion of long-term debt			399,941
Accounts payable and accrued expenses	169,900	177,063	220,324
Total current liabilities	705,334	980,891	1,141,382
Long-term debt	497,964	497,893	497,682
Deferred tax liabilities and reserves for uncertain tax positions	26,737	25,696	57,242
Deferred revenue and other noncurrent liabilities	1,660	1,783	2,216
Amounts due to affiliates	21
Total liabilities	1,231,716	1,506,263	1,698,522
Stockholders’ equity	108,582	116,870	50,384
Total liabilities and stockholders' equity	1,340,298	1,623,133	1,748,906
Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Cash & cash equivalents	1,013,707	1,529,553	1,024,407	1,574,031
Cash and cash equivalents - restricted	49,234	46,874	59,100
Receivables, net	25,654	87,632	35,332
Deferred Tax Assets, Net, Current	82,206	96,849	92,265
Prepaid expenses and other current assets	74,176	62,512	64,659
Investments in available-for-sale securities	2,139	4,701	100
Total current assets	1,247,116	1,828,121	1,275,863
Property and equipment, at cost less accumulated depreciation and amortization of $538,823, $468,372 and $518,797	297,111	311,169	314,322
Intangible assets, net	417,009	432,142	347,890
Goodwill	454,394	441,831	478,845
Deferred tax assets and income taxes receivable			(3,194)
Investments in subsidiaries	108,582	116,870	50,384
Amounts due from affiliates	1,423	1,058	983
Other assets	39,092	44,885	47,529
Total assets	2,564,727	3,176,076	2,512,622
Accounts payable and accrued expenses	108,970	222,546	122,427
Accrued salaries, wages and payroll taxes	31,154	142,798	28,867
Accrued income taxes	196,301	385,155	253,094
Current portion of long-term debt	799	790	764
Accounts payable and accrued expenses	146,980	145,445	136,969
Total current liabilities	484,204	896,734	542,121
Long-term debt	7,233	7,405	8,032
Deferred tax liabilities and reserves for uncertain tax positions	140,817	148,217	105,277
Deferred revenue and other noncurrent liabilities	128,550	154,515	133,856
Amounts due to affiliates	544,813	597,528	938,917
Total liabilities	1,305,617	1,804,399	1,728,203
Stockholders’ equity	1,259,110	1,371,677	784,419
Total liabilities and stockholders' equity	2,564,727	3,176,076	2,512,622
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Receivables, net	1		15
Deferred Tax Assets, Net, Current			17
Total current assets	1		32
Deferred tax assets and income taxes receivable			3,395
Investments in subsidiaries	1,259,110	1,371,677	784,419
Amounts due from affiliates	412,924	463,434	616,578
Total assets	1,672,035	1,835,111	1,404,424
Accounts payable and accrued expenses	1,206	1,104	846
Total current liabilities	1,206	1,104	846
Deferred tax liabilities and reserves for uncertain tax positions			5,395
Amounts due to affiliates	1,402	1,058	983
Total liabilities	2,608	2,162	7,224
Stockholders’ equity	1,669,427	1,832,949	1,397,200
Total liabilities and stockholders' equity	1,672,035	1,835,111	1,404,424
Intersegment Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Cash & cash equivalents	(490)	(440)	(430)	$ (1,100)
Total current assets	(490)	(440)	(430)
Deferred tax assets and income taxes receivable	(29,951)	(31,327)
Investments in subsidiaries	(1,367,692)	(1,488,547)	(834,803)
Amounts due from affiliates	(546,236)	(598,586)	(939,900)
Total assets	(1,944,369)	(2,118,900)	(1,775,133)
Customer deposits	(490)	(440)	(430)
Total current liabilities	(490)	(440)	(430)
Deferred tax liabilities and reserves for uncertain tax positions	(29,951)	(31,327)
Amounts due to affiliates	(546,236)	(598,586)	(939,900)
Total liabilities	(576,677)	(630,353)	(940,330)
Stockholders’ equity	(1,367,692)	(1,488,547)	(834,803)
Total liabilities and stockholders' equity	$ (1,944,369)	$ (2,118,900)	$ (1,775,133)

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Goodwill And Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Goodwill [Roll Forward]
Goodwill before impairment losses, beginning balance	$ 474,128	$ 468,414
Accumulated impairment losses, beginning balance	(32,297)	(32,297)
Goodwill, beginning balance	441,831	436,117
Acquisitions	14,030	42,274
Disposals and foreign currency changes, net	1,467	(454)
Impairments	0	0
Goodwill before impairment losses, ending balance	486,691	511,142
Accumulated impairment losses, ending balance	(32,297)	(32,297)
Goodwill, ending balance	$ 454,394	$ 478,845

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Loss Per Share and Stockholders' Equity

3 Months Ended

Jul. 31, 2015

Earnings Per Share [Abstract]

Loss Per Share and Stockholders' Equity

NOTE 3: LOSS PER SHARE AND STOCKHOLDERS' EQUITY

LOSS PER SHARE – Basic and diluted loss per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 5.0 million shares for the three months ended July 31, 2015, and 5.5 million shares for the three months ended July 31, 2014, as the effect would be antidilutive due to the net loss from continuing operations during those periods.

The computations of basic and diluted earnings per share from continuing operations are as follows:

(in 000s, except per share amounts)
Three months ended July 31,	2015			2014
Net loss from continuing operations attributable to shareholders	$	(96,505	)	$	(108,851	)
Amounts allocated to participating securities	(102		)	(89		)
Net loss from continuing operations attributable to common shareholders	$	(96,607	)	$	(108,940	)
Basic weighted average common shares	275,765			274,575
Potential dilutive shares	—			—
Dilutive weighted average common shares	275,765			274,575
Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.35	)	$	(0.40	)
Diluted	(0.35		)	(0.40		)

STOCK-BASED COMPENSATION – During the three months ended July 31, 2015, we acquired 0.6 million shares of our common stock at an aggregate cost of $17.8 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the three months ended July 31, 2014, we acquired 0.3 million shares at an aggregate cost of $9.4 million for similar purposes.

During the three months ended July 31, 2015 and 2014, we issued 1.6 million and 1.1 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the three months ended July 31, 2015, we granted equity awards equivalent to 0.9 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Nonvested units generally either vest over a three-year period with one-third vesting each year or cliff vest at the end of a three-year period. Stock-based compensation expense of our continuing operations totaled $6.0 million for the three months ended July 31, 2015, and $7.5 million for the three months ended July 31, 2014. As of July 31, 2015, unrecognized compensation cost for stock options totaled $0.1 million, and for nonvested shares and units totaled $50.2 million.

OTHER COMPREHENSIVE INCOME –Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows:

(in 000s)
	Foreign Currency Translation Adjustments			Unrealized Gain (Loss) on AFS Securities			Total
Balances as of May 1, 2015	$	(6,789	)	$	8,529		$	1,740
Other comprehensive income (loss) before reclassifications:
Gross losses arising during the period	(8,755		)	(2,235		)	(10,990		)
Income taxes	—			(875		)	(875		)
	(8,755		)	(1,360		)	(10,115		)
Amounts reclassified to net income:
Gross amount reclassified	—			230			230
Income taxes	—			89			89
	—			141			141
Net other comprehensive loss	(8,755		)	(1,219		)	(9,974		)
Balances as of July 31, 2015	$	(15,544	)	$	7,310		$	(8,234	)
Balances as of May 1, 2014	$	3,334		$	1,843		$	5,177
Other comprehensive income (loss) before reclassifications:
Gross gains (losses) arising during the period	455			(1,183		)	(728		)
Income taxes	—			(460		)	(460		)
	455			(723		)	(268		)
Amounts reclassified to net income:
Gross amount reclassified	—			941			941
Income taxes	—			367			367
	—			574			574
Net other comprehensive income (loss)	455			(149		)	306
Balances as of July 31, 2014	$	3,789		$	1,694		$	5,483

Gross gains and losses reclassified out of accumulated other comprehensive income are included in other income and other expense, respectively, in the consolidated statements of operations and comprehensive loss.

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Condensed Consolidating Financial Statements (Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015	Apr. 30, 2014
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities:	$ (378,246)	$ (381,585)
Maturities of and payments received on AFS securities	32,103	18,484
Principal payments on mortgage loans held for investment, net	8,537	6,250
Capital expenditures	(8,689)	(25,841)
Payments made for business acquisitions, net of cash acquired	(12,271)	(40,533)
Loans made to franchisees	(2,582)	(7,398)
Repayments from franchisees	11,434	18,674
Other, net	3,562	4,030
Net cash provided by (used in) investing activities	32,094	(26,334)
Customer banking deposits, net	(268,532)	(287,609)
Dividends paid	(55,063)	(54,852)
Payments for repurchase of common stock, including shares surrendered	17,756	9,397
Proceeds from exercise of stock options	13,015	13,368
Other, net	(22,413)	(9,919)
Net cash used in financing activities	(350,749)	(348,409)
Effects of exchange rates on cash	(10,907)	510
Net decrease in cash and cash equivalents	(707,808)	(755,818)
Cash & cash equivalents	1,299,382	1,429,489	$ 2,007,190	$ 2,185,307
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends paid	(55,063)	(54,852)
Payments for repurchase of common stock, including shares surrendered	17,756	9,397
Proceeds from exercise of stock options	13,015	13,368
Intercompany borrowings	59,804	50,881
Block Financial Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities:	27,342	(20,669)
Maturities of and payments received on AFS securities	28,339	18,484
Principal payments on mortgage loans held for investment, net	8,537	6,250
Capital expenditures	(19)	(116)
Loans made to franchisees	(2,582)	(7,398)
Repayments from franchisees	11,288	18,674
Intercompany payments/investments in subsidiaries	2,226	64,322
Other, net	1,439	1,868
Net cash provided by (used in) investing activities	49,228	102,084
Customer banking deposits, net	(268,482)	(288,279)
Net cash used in financing activities	(268,482)	(288,279)
Net decrease in cash and cash equivalents	(191,912)	(206,864)
Cash & cash equivalents	286,165	405,512	478,077	612,376
Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities:	(405,588)	(360,916)
Maturities of and payments received on AFS securities	3,764
Capital expenditures	(8,670)	(25,725)
Payments made for business acquisitions, net of cash acquired	(12,271)	(40,533)
Repayments from franchisees	146
Intercompany payments/investments in subsidiaries	(59,804)	(50,881)
Other, net	2,123	2,162
Net cash provided by (used in) investing activities	(74,712)	(114,977)
Intercompany borrowings	(2,226)	(64,322)
Other, net	(22,413)	(9,919)
Net cash used in financing activities	(24,639)	(74,241)
Effects of exchange rates on cash	(10,907)	510
Net decrease in cash and cash equivalents	(515,846)	(549,624)
Cash & cash equivalents	1,013,707	1,024,407	1,529,553	1,574,031
Intersegment Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Intercompany payments/investments in subsidiaries	57,578	(13,441)
Net cash provided by (used in) investing activities	57,578	(13,441)
Customer banking deposits, net	(50)	670
Intercompany borrowings	(57,578)	13,441
Net cash used in financing activities	(57,628)	14,111
Net decrease in cash and cash equivalents	(50)	670
Cash & cash equivalents	$ (490)	$ (430)	$ (440)	$ (1,100)

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Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Loans and Leases Rollforward [Roll Forward]
Balance at beginning of the period	$ 7,886	$ 11,272
Provision	(28)	725
Recoveries	365	679
Charge-offs	(564)	(2,115)
Balance at end of the period	$ 7,659	$ 10,561

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Interest Income And Interest Expense (Tables)

3 Months Ended

Jul. 31, 2015

Interest Income And Interest Expense [Abstract]

Schedule Of Interest Income And Expense Of Continuing Operations

The following table shows the components of interest income and expense:

(in 000s)
Three months ended July 31,	2015		2014
Interest income:
Mortgage loans, net	$	2,812	$	2,978
Loans to franchisees	1,654		2,071
AFS securities	2,058		2,270
Other	1,854		1,980
	$	8,378	$	9,299
Interest expense:
Borrowings	$	8,575	$	13,795
Deposits	136		145
	$	8,711	$	13,940

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Fair Value (Tables)

3 Months Ended

Jul. 31, 2015

Fair Value Disclosures [Abstract]

Assets Remeasured At Fair Value On Non-Recurring Basis

the three months ended July 31, 2015 and 2014 and the losses on those remeasurements:

(dollars in 000s)
	Total			Level 1			Level 2			Level 3			Losses
As of July 31, 2015:
Impaired mortgage loans held for investment	$	57,951		$	—		$	—		$	57,951		$	(88	)
As a percentage of total assets	1.6		%	—		%	—		%	1.6		%
As of July 31, 2014:
Impaired mortgage loans held for investment	$	59,635		$	—		$	—		$	59,635		$	(842	)
As a percentage of total assets	1.5		%	—		%	—		%	1.5		%

Quantitative Information About Level 3 Fair Value Measurements

(in 000s)
	Fair Value as of July 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired mortgage loans held for investment – non TDRs	$	68,368	Collateral- based	Cost to list/sell Time to sell (months) Collateral depreciation Loss severity	0% – 171%(10%) 12 (12) (128%) – 100%(32%) 0% – 100%(61%)
Impaired mortgage loans held for investment – TDRs	$	29,925	Discounted cash flow	Aged default performance Loss severity	23% – 36%(29%) 0% – 23%(7%)

Fair Value Measurements, Recurring and Nonrecurring

The carrying amounts and estimated fair values of our financial instruments are as follows:

(in 000s)
As of	July 31, 2015				July 31, 2014				April 30, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	1,299,382	$	1,299,382	$	1,429,489	$	1,429,489	$	2,007,190	$	2,007,190
Cash and cash equivalents - restricted	61,040		61,040		71,917		71,917		91,972		91,972
Receivables, net - short-term	103,194		103,194		122,315		122,315		167,964		167,964
Mortgage loans held for investment, net	230,130		184,277		259,732		193,920		239,338		190,196
Investments in AFS securities	407,426		407,426		408,063		408,063		441,709		441,709
Receivables, net - long-term	72,427		72,427		101,146		101,146		80,867		80,867
Liabilities:
Customer banking deposits	477,145		473,720		483,477		480,729		744,699		737,261
Long-term debt	505,996		552,431		906,419		965,650		506,088		556,769
Contingent consideration payments	10,650		10,650		9,168		9,168		10,667		10,667

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Litigation And Related Contingencies (Details) $ in Millions	35 Months Ended
	Nov. 30, 2007 transaction	Jul. 31, 2015 USD ($)	Apr. 30, 2015 USD ($) lawsuit	Jul. 31, 2014 USD ($)	Apr. 05, 2013 loan	Oct. 15, 2010 USD ($)
Loss Contingencies [Line Items]
Loss Contingency Accrual		$ 9.3	$ 8.9	$ 23.7
Number of loans sold to trust | loan					159
Securitization Transactions | transaction	38
MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member]
Loss Contingencies [Line Items]
Number Of Lawsuits | lawsuit			20
MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | SCC [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability			$ 14,000.0
MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | SCC [Member] | Claims with Knowledge of Outstanding Principal Amount [Member]
Loss Contingencies [Line Items]
Estimated Litigation Liability			$ 4,000.0
Pending Litigation [Member] | ederal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al [Member]
Loss Contingencies [Line Items]
Initial principal on loans securitized						$ 50.0
Principal outstanding on loans securitized		$ 32.0

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Mortgage Loans Held For Investment And Related Assets (Schedule Of Past Due Mortgage Loans) (Details) - USD ($) $ in Thousands		Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		$ 235,848	$ 245,216	$ 268,087
Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		139,361
All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		96,487
Less than 60 Days Past Due
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		11,315
Less than 60 Days Past Due | Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		8,525
Less than 60 Days Past Due | All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		2,790
60 – 89 Days Past Due
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		1,473
60 – 89 Days Past Due | Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		985
60 – 89 Days Past Due | All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		488
90 Days Past Due
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio	[1]	52,303
90 Days Past Due | Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio	[1]	45,957
90 Days Past Due | All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio	[1]	6,346
Total Past Due
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		65,091
Total Past Due | Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		55,467
Total Past Due | All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		9,624
Current
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		170,757
Current | Purchased From SCC
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		83,894
Current | All Other
Mortgage Loans Held For Investment And Related Assets [Line Items]
Total Portfolio		$ 86,863

[1] We do not accrue interest on loans past due 90 days or more.

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Commitments And Contingencies (Tables)

3 Months Ended

Jul. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Deferred Revenue Related To The Peace Of Mind Program

Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM), which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance, beginning of the period	$	158,169		$	145,237
Amounts deferred for new extended service plans issued	920			873
Revenue recognized on previous deferrals	(27,703		)	(24,253		)
Balance, end of the period	$	131,386		$	121,857

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Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Tables)

3 Months Ended

Jul. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Litigation And Related Contingencies

NOTE 12: LITIGATION AND RELATED CONTINGENCIES

We are a defendant in numerous litigation matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, are sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or a claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement of numerous claims over an extended period of time.

The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

In addition to litigation matters, we are also subject to claims and other loss contingencies arising out of our business activities, including as described below.

We accrue liabilities for litigation, claims and other loss contingencies and any related settlements (each referred to, individually, as a "matter" and, collectively, as "matters") when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been accrued for a number of the matters noted below. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.

For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of July 31, 2015. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of July 31, 2015 and 2014 and April 30, 2015, we accrued liabilities of $9.3 million, $23.7 million and $8.9 million, respectively, for such litigation addressed in this note.

For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. This estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Those matters for which an estimate is not reasonably possible are not included within this estimated range. Therefore, this estimated range of reasonably possible loss represents what we believe to be an estimate of reasonably possible loss only for certain matters meeting these criteria. It does not represent our maximum loss exposure. For those matters, and for matters where a liability has been accrued, as of July 31, 2015, we believe the aggregate range of reasonably possible losses in excess of amounts accrued is not material.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by courts on motions or appeals, analysis by experts, or the status of any settlement negotiations.

On a quarterly and annual basis, we review relevant information with respect to litigation and other loss contingencies and update our accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously, but there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and consolidated financial position, results of operations and cash flows.

LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, OR OTHER LOSS CONTINGENCIES PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – Although SCC ceased its mortgage loan origination activities in December 2007 and sold its loan servicing business in April 2008, SCC or the Company have been, remain, or may in the future be subject to litigation, claims, including indemnification claims, and other loss contingencies pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These contingencies, claims and lawsuits include actions by regulators, third parties seeking indemnification, including depositors and underwriters, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these contingencies, claims and lawsuits allege or may allege discriminatory or unfair and deceptive loan origination and servicing (including debt collection, foreclosure and eviction) practices, other common law torts, rights to indemnification and contribution, breach of contract, violations of securities laws and a variety of federal statutes, including the Truth in Lending Act (TILA), Equal Credit Opportunity Act, Fair Housing Act, Real Estate Settlement Procedures Act (RESPA), Home Ownership & Equity Protection Act (HOEPA), as well as similar state statutes. Given the impact of the financial crisis on the non-prime mortgage environment, the aggregate volume of these matters is substantial although it is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters, including certain of the lawsuits and claims described below, it is not possible to estimate a reasonably possible loss or range of loss due to, among other things, the inherent uncertainties involved in these matters, some of which are beyond the Company's control, and the indeterminate damages sought in some of these matters.

On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC-related entities, H&R Block, Inc. and other entities, arising out of FHLB-Chicago's purchase of residential mortgage-backed securities (RMBSs). The plaintiff seeks rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities collateralized by loans originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $32 million remains outstanding. The plaintiff agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, filed motions to dismiss, which the court denied. The defendants moved for leave to appeal and the circuit court denied the motion. On August 31, 2015, the parties reached an agreement to settle the claims for an amount fully covered by prior accruals.

On May 31, 2012, a lawsuit was filed by Homeward Residential, Inc. (Homeward) in the Supreme Court of the State of New York, County of New York, against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Index No. 651885/2012). SCC removed the case to the United States District Court for the Southern District of New York on June 28, 2012 (Case No. 12-cv-5067). The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-2 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract, anticipatory breach, indemnity and declaratory judgment in connection with alleged losses incurred as a result of the breach of representations and warranties relating to SCC and to loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses, as well as a repurchase of all loans due to alleged misrepresentations by SCC as to itself and as to the loans' compliance with its underwriting standards and the value of underlying real estate. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase, anticipatory breach, indemnity, and declaratory judgment. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On September 28, 2012, a second lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 12-cv-7319). The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-3 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 96 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On April 5, 2013, a third lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC. The suit, styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 13-cv-2107), was filed as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, the plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 159 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

Underwriters and depositors are, or have been, involved in multiple lawsuits related to securitization transactions in which SCC participated. These lawsuits allege or alleged a variety of claims, including violations of federal and state securities laws and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 20 lawsuits in which notice of a claim has been made involve 38 securitization transactions with original investments of approximately $14 billion (of which the outstanding principal amount is approximately $4 billion). Because SCC has not been a party to these lawsuits (with the exception of the Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation case discussed in this note) and has not had control of this litigation or any settlements thereof, SCC does not have precise information about the amount of damages or other remedies being asserted, the defenses to the claims in such lawsuits or the terms of any settlements of such lawsuits. SCC therefore cannot reasonably estimate the amount of potential losses or associated fees and expenses that may be incurred in connection with such lawsuits, which may be material. Additional lawsuits against the underwriters or depositors may be filed in the future, and SCC may receive additional notices of claims for indemnification from underwriters or depositors with respect to existing or new lawsuits or settlements of such lawsuits. Certain of the notices received included, and future notices may include, a reservation of rights, which are referred to as "reserved contribution rights," that encompasses a right of contribution which may become operative if indemnification is unavailable or insufficient to cover all of the losses and expenses involved. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, nor have we accrued a liability related to any of these claims or rights.

LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS –

Compliance Fee Litigation. On April 16, 2012, a putative class action lawsuit was filed against us in the Circuit Court of Jackson County, Missouri styled Manuel H. Lopez III v. H&R Block, Inc., et al. (Case # 1216CV12290) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all Missouri citizens who were charged the compliance fee, and asserts claims of violation of the Missouri Merchandising Practices Act, money had and received, and unjust enrichment. We filed a motion to compel arbitration of the 2011 claims. The court denied the motion. We filed an appeal. On May 6, 2014, the Missouri Court of Appeals, Western District, reversed the ruling of the trial court and remanded the case for further consideration of the motion. On March 12, 2015, the trial court denied the motion on remand. We filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

On April 19, 2012, a putative class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Ronald Perras v. H&R Block, Inc., et al. (Case No. 4:12-cv-00450-DGK)concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserts claims of violation of various state consumer laws, money had and received, and unjust enrichment. In November 2013, the court compelled arbitration of the 2011 claims and stayed all proceedings with respect to those claims. In June 2014, the court denied class certification of the remaining 2012 claims. Plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which was denied on June 18, 2015. The Eighth Circuit denied plaintiff's subsequent petition for rehearing on August 7, 2015. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

Form 8863 Litigation. A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013. Taken together, the plaintiffs in these lawsuits purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or desktop tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The plaintiffs seek damages, pre-judgment interest, attorneys' fees and costs. In August 2013, the plaintiff in the state court action voluntarily dismissed her case without prejudice. The Judicial Panel on Multidistrict Litigation subsequently granted our petition to consolidate the remaining federal lawsuits for coordinated pretrial proceedings in the United States District Court for the Western District of Missouri in a proceeding styled IN RE: H&R BLOCK IRS FORM 8863 LITIGATION (MDL No. 2474/Case No. 4:13-MD-02474-FJG). On July 11, 2014, the MDL court granted our motion to compel arbitration for those named plaintiffs who agreed to arbitrate their claims. Plaintiffs filed a consolidated class action complaint in October 2014. We filed a motion to strike the class allegations relating to those clients who agreed to arbitration, which the court granted on January 7, 2015. The cases remain stayed with respect to the individual plaintiffs who agreed to arbitration. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable.

LITIGATION, CLAIMS AND OTHER LOSS CONTINGENCIES PERTAINING TO OTHER DISCONTINUED OPERATIONS –

Express IRA Litigation. On January 2, 2008, the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages.

Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations.

OTHER – We are from time to time a party to litigation, claims and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated.

While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business or our consolidated financial position, results of operations and cash flows.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows.

(in 000s)
Three months ended July 31,	2015		2014
Balance, beginning of the period	$	149,765	$	183,765
Provisions	—		10,000
Payments	—		—
Balance, end of the period	$	149,765	$	193,765

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Subsequent Events Subsequent Events

3 Months Ended

Jul. 31, 2015

H&R Block Bank [Abstract]

Subsequent Events

NOTE 2: SUBSEQUENT EVENTS

DIVESTITURE OF H&R BLOCK BANK – In April 2014, our subsidiaries, H&R Block Bank (HRB Bank) and Block Financial LLC, the sole shareholder of HRB Bank (Block Financial), entered into a definitive Purchase and Assumption Agreement with BofI Federal Bank, a federal savings bank (BofI), pursuant to which we agreed to sell certain assets and liabilities, including all of the deposit liabilities of HRB Bank, to BofI (P&A Transaction). On August 4, 2015, HRB Bank, Block Financial and BofI received regulatory approvals for the P&A Transaction. On August 5, 2015, HRB Bank, Block Financial and BofI entered into an Amended and Restated Purchase and Assumption Agreement.

On August 31, 2015, we completed the P&A Transaction and made a one-time cash payment to BofI of approximately $419 million, which is approximately equal to the carrying value of the liabilities (including all deposit liabilities) assumed by BofI. In connection with the closing, we intend to liquidate the available-for-sale (AFS) securities previously held by HRB Bank, which totaled $404 million at July 31, 2015.

On the closing date of the P&A Transaction, HRB Bank converted from a federal savings bank to a national banking association, merged with and into its parent company, Block Financial, surrendered its bank charter and ceased to exist as a bank. As a result, as of August 31, 2015, neither we nor any of our subsidiaries is subject to minimum regulatory capital requirements or to regulation by the Office of the Comptroller of the Currency (OCC). In addition, H&R Block, Inc., H&R Block Group, Inc. and Block Financial (collectively, our Holding Companies) were Savings and Loan Holding Companies (SLHCs) because they controlled HRB Bank. As a result of the P&A Transaction and related actions, our Holding Companies have ceased to be SLHCs and have deregistered as SLHCs under Section 10(b) of the Home Owner's Loan Act. As of August 31, 2015, our Holding Companies are no longer subject to regulatory capital requirements applicable to SLHCs or regulation by the Board of Governors of the Federal Reserve System (Federal Reserve).

Additional information about the closing of the P&A Transaction and the agreements executed at the closing are set forth in Part 1, Item 2 under "Recent Developments."

CAPITAL STRUCTURE – On September 1, 2015, we announced our intent to establish a new capital structure, which includes a new $3.5 billion share repurchase program approved by our Board of Directors, a new unsecured committed line of credit (CLOC) and incremental debt. As a part of this new capital structure, we also announced our intent to take near-term action on the planned capital structure changes, including:

▪ Our plans to launch a "modified Dutch auction" tender offer to purchase up to $1.5 billion of our common stock under our new share repurchase program, at a price per share of not less than $32.25 and not greater than $37.00, which will be contingent upon, among other customary items, the successful closing of a new CLOC, and satisfaction of other customary conditions;

▪ Our intent to replace our existing five-year $1.5 billion CLOC (2012 CLOC) with the new CLOC; and

▪ Our intent to incur additional incremental debt through other debt issuances as a part of the capital structure changes, which will fund stock repurchases under our new share repurchase program, together with available cash, borrowings under the new CLOC and funds from ongoing business operations.

On September 2, 2015, we commenced the tender offer described above to purchase up to $1.5 billion of our common stock, at a price per share of not less than $32.25 and not greater than $37.00.

Additional information about our new capital structure, including our new share repurchase program and related tender offer, is set forth in Part 1, Item 2 under "Recent Developments."

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Segment Information (Tables)

3 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Operations By Reportable Operating Segment

Results of our continuing operations by reportable segment are as follows:

(in 000s)
Three months ended July 31,	2015			2014
REVENUES :
Tax preparation fees:
U.S. assisted	$	27,285		$	25,489
International	35,718			41,456
U.S. digital	3,179			2,932
	66,182			69,877
Royalties	9,695			7,642
Revenues from Refund Transfers	3,415			3,419
Revenues from Emerald Card®	15,689			14,045
Revenues from Peace of Mind® Extended Service Plan	27,703			24,253
Interest and fee income on Emerald Advance	314			607
Other	9,576			9,237
Total Tax Services	132,574			129,080
Corporate and eliminations	5,144			4,506
	$	137,718		$	133,586
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :
Tax Services	$	(169,438	)	$	(150,560	)
Corporate and eliminations	(17,671		)	(25,256		)
	$	(187,109	)	$	(175,816	)

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Receivables (Schedule Of Activity In The Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ 53,771	$ 51,400	$ 54,527
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance		52,578
Provision	713	2,842
Charge-offs	(1,469)	(4,020)
Ending balance		51,400
Emerald Advance lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	7,353		7,353
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance		7,530
Provision	0	0
Charge-offs	0	0
Ending balance		7,530
All Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	46,418		$ 47,174
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance		45,048
Provision	713	2,842
Charge-offs	$ (1,469)	(4,020)
Ending balance		$ 43,870

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Interest Income And Interest Expense (Schedule Of Interest Income And Expense Of Continuing Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Schedule Of Interest Income And Expense [Line Items]
Interest Income	$ 8,378	$ 9,299
Interest expense on borrowings	8,575	13,795
Interest expense	8,711	13,940
Mortgage Loans, Net
Schedule Of Interest Income And Expense [Line Items]
Interest Income	2,812	2,978
Loans to franchisees
Schedule Of Interest Income And Expense [Line Items]
Interest Income	1,654	2,071
AFS Securities
Schedule Of Interest Income And Expense [Line Items]
Interest Income	2,058	2,270
Other
Schedule Of Interest Income And Expense [Line Items]
Interest Income	1,854	1,980
Borrowings
Schedule Of Interest Income And Expense [Line Items]
Interest expense on borrowings	8,575	13,795
Deposits
Schedule Of Interest Income And Expense [Line Items]
Interest Expense, Deposits	$ 136	$ 145

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Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
REVENUES:
Service revenues	$ 118,434	$ 115,473
Royalty, product and other revenues	10,906	8,814
Interest income	8,378	9,299
Total revenues	137,718	133,586
Cost of revenues:
Compensation and benefits	55,789	51,855
Occupancy and equipment	89,855	83,306
Provision for bad debt and loan losses	2,005	4,364
Depreciation and amortization	27,084	25,085
Other	38,775	33,116
Cost of revenues	213,508	197,726
Selling, general and administrative:
Marketing and advertising	8,531	8,145
Compensation and benefits	54,669	60,964
Depreciation and amortization	13,010	8,601
Other selling, general and administrative	21,982	19,490
Selling, general and administrative	98,192	97,200
Total operating expenses	311,700	294,926
Other income	(4,985)	(1,204)
Other Nonoperating Income	433	523
Interest expense on borrowings	(8,575)	(13,795)
Loss from continuing operations before income tax benefit	(187,109)	(175,816)
Income tax benefit	(90,604)	(66,965)
Net loss from continuing operations	(96,505)	(108,851)
Net loss from discontinued operations, net of tax benefits of $1,889 and $4,564	(3,154)	(7,381)
NET LOSS	$ (99,659)	$ (116,232)
BASIC AND DILUTED LOSS PER SHARE:
Continuing operations (in usd per share)	$ (0.35)	$ (0.40)
Discontinued operations (in usd per share)	(0.01)	(0.02)
Consolidated (in usd per share)	(0.36)	(0.42)
DIVIDENDS PAID PER SHARE (in usd per share)	$ 0.20	$ 0.20
COMPREHENSIVE LOSS:
NET LOSS	$ (99,659)	$ (116,232)
Unrealized gains (losses) on securities, net of taxes:
Unrealized holding losses arising during the period	(1,360)	(723)
Reclassification adjustment for gains included in income	141	574
Change in foreign currency translation adjustments	(8,755)	455
Other comprehensive income (loss)	(9,974)	306
Comprehensive loss	$ (109,633)	$ (115,926)

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Investments (Amortized Cost And Fair Value Of Securities Available-For-Sale) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 395,410	$ 427,688	$ 405,298
Gross Unrealized Gains	12,016	14,045	2,765
Gross Unrealized Losses	0	(24)	0
Available-for-sale Securities, Current	406,360	439,625	403,774
Fair Value	407,426	441,709	408,063
Long-Term | Mortgage-Backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	392,285	421,035	401,092
Gross Unrealized Gains	11,936	13,889	2,582
Gross Unrealized Losses	0	0	0
Available-for-sale Securities, Current	404,221
Fair Value		434,924	403,674
Long-Term | Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,025	4,062	4,106
Gross Unrealized Gains	80	109	183
Gross Unrealized Losses	0	(24)	0
Fair Value	3,105	4,147	4,289
Long-Term | Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		2,491
Gross Unrealized Gains		47
Gross Unrealized Losses		0
Fair Value		2,538
Long-Term | US Treasury Bill Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	100	100	100
Gross Unrealized Gains	0	0	0
Gross Unrealized Losses	0	0	0
Fair Value	$ 100	$ 100	$ 100

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Statement of Cash Flows [Abstract]
NET CASH USED IN OPERATING ACTIVITIES	$ (378,246)	$ (381,585)
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities of and payments received on available-for-sale securities	32,103	18,484
Principal payments on mortgage loans held for investment, net	8,537	6,250
Purchases of property and equipment	(8,689)	(25,841)
Payments made for business acquisitions, net of cash acquired	(12,271)	(40,533)
Franchise loans:
Loans funded	(2,582)	(7,398)
Payments received	11,434	18,674
Other, net	3,562	4,030
Net cash provided by (used in) investing activities	32,094	(26,334)
CASH FLOWS FROM FINANCING ACTIVITIES:
Customer banking deposits, net	(268,532)	(287,609)
Dividends paid	(55,063)	(54,852)
Payments for repurchase of common stock, including shares surrendered	17,756	9,397
Proceeds from exercise of stock options	13,015	13,368
Other, net	(22,413)	(9,919)
Net cash used in financing activities	(350,749)	(348,409)
Effects of exchange rates on cash	(10,907)	510
Net decrease in cash and cash equivalents	(707,808)	(755,818)
Cash and cash equivalents at beginning of the period	2,007,190	2,185,307
Cash and cash equivalents at end of the period	1,299,382	1,429,489
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net of refunds received	75,358	88,924
Interest paid on borrowings	15,381	15,415
Interest paid on deposits	136	201
Transfers of foreclosed loans to other assets	624	1,818
Accrued additions to property and equipment	$ 5,977	$ 11,988

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Segment Information (Continuing Operations By Reportable Operating Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Segment Reporting Information [Line Items]
Total revenues	$ 137,718	$ 133,586
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :	(187,109)	(175,816)
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenues	5,144	4,506
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :	(17,671)	(25,256)
Tax Services [Member]
Segment Reporting Information [Line Items]
Total revenues	132,574	129,080
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :	(169,438)	(150,560)
Tax Services [Member] | U.S. Assisted [Member]
Segment Reporting Information [Line Items]
Total revenues	27,285	25,489
Tax Services [Member] | International [Member]
Segment Reporting Information [Line Items]
Total revenues	35,718	41,456
Tax Services [Member] | U.S. Digital [Member]
Segment Reporting Information [Line Items]
Total revenues	3,179	2,932
Tax Services [Member] | Tax preparation fees [Member]
Segment Reporting Information [Line Items]
Total revenues	66,182	69,877
Tax Services [Member] | Note receivable
Segment Reporting Information [Line Items]
Total revenues	9,695	7,642
Tax Services [Member] | Refund Transfer fees [Member]
Segment Reporting Information [Line Items]
Total revenues	3,415	3,419
Tax Services [Member] | Emerald Card fees [Member]
Segment Reporting Information [Line Items]
Total revenues	15,689	14,045
Tax Services [Member] | Peace of Mind fees [Member]
Segment Reporting Information [Line Items]
Total revenues	27,703	24,253
Tax Services [Member] | Emerald Advance lines of credit
Segment Reporting Information [Line Items]
Total revenues	314	607
Tax Services [Member] | Other revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	$ 9,576	$ 9,237

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Loss Per Share and Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015	Apr. 30, 2014
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss)	$ (6,789)	$ 3,334
Gross losses arising during the period	(10,990)	(728)
Income taxes	(875)	(460)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(10,115)	(268)
Gross amount reclassified	0	0
Income taxes	0	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax	0	0
Change in foreign currency translation adjustments	(8,755)	455
Accumulated Other Comprehensive Income (Loss)	(15,544)	3,789
Unrealized Gain (Loss) on AFS Securities
Accumulated Other Comprehensive Income (Loss)	8,529	1,843
Gross amount reclassified	230	941
Tax effect of reclassification adjustment for gains included in income	89	367
Reclassification adjustment for gains included in income	141	574
Net other comprehensive loss	(1,219)	(149)
Accumulated Other Comprehensive Income (Loss)	7,310	1,694
Accumulated other comprehensive income (loss)	(8,234)	5,483	$ 1,740	$ 5,177
Other Comprehensive Income (Loss), Net of Tax	(9,974)	306
Net loss from continuing operations attributable to shareholders	(96,505)	(108,851)
Amounts allocated to participating securities	(102)	(89)
Net loss from continuing operations attributable to common shareholders	$ (96,607)	$ (108,940)
Basic weighted average common shares (in shares)	275,765	274,575
Potential dilutive shares (in shares)	0	0
Weighted Average Number of Shares Outstanding, Diluted	275,765	274,575
Basic (in usd per share)	$ (0.35)	$ (0.40)
Narrative Details [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	5,000	5,500
Shares repurchased during the period, (in shares)	600	300
Shares repurchased during the period, Value	$ 17,800	$ 9,400
Shares issued during period (in shares)	1,600	1,100
Nonvested units granted	900
Stock-based compensation	$ 6,000	$ 7,500
Unrecognized compensation costs, options	100
Unrecognized compensation costs, nonvested shares and units	50,200
Accumulated Translation Adjustment [Member]
Foreign Currency Translation Adjustments
Gross losses arising during the period	(8,755)	455
Income taxes	0	0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(8,755)	455
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Foreign Currency Translation Adjustments
Gross losses arising during the period	(2,235)	(1,183)
Income taxes	(875)	(460)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	$ (1,360)	$ (723)

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Summary Of Significant Accounting Policies (Policy)

3 Months Ended

Jul. 31, 2015

Summary Of Significant Accounting Policies [Abstract]

Basis of Presentation

–The consolidated balance sheets as of July 31, 2015 and 2014, the consolidated statements of operations and comprehensive loss for the three months ended July 31, 2015 and 2014, and the condensed consolidated statements of cash flows for the three months ended July 31, 2015 and 2014 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows as of July 31, 2015 and 2014 and for all periods presented have been made.

"H&R Block," "the Company," "we," "our" and "us" are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U. S. (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2015 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2015 or for the year then ended are derived from our April 30, 2015 Annual Report to Shareholders on Form 10-K.

Management Estimates

MANAGEMENT ESTIMATES –The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, valuation allowances on deferred tax assets, reserves for uncertain tax positions and related matters. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.

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Receivables (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Document Fiscal Year Focus	2016
Impaired non-accrual status term, days	60 days
Total Portfolio	$ 235,848	$ 245,216	$ 268,087
Loans to franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Recorded Investment, Past Due	1,500	800	100
Emerald Advance lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual status loans	17,400	18,700	20,000
Term Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, net	75,700	80,800	99,700
Revolving Lines Of Credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, net	38,400	40,300	45,500
Cash Back® receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	$ 600	$ 1,300	$ 1,100

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Receivables (Tables)

3 Months Ended

Jul. 31, 2015

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

Schedule Of Short-Term Receivables

Receivables consist of the following:

(in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	56,277		$	57,792	$	62,195		$	83,013	$	56,603		$	64,472
Receivables for tax preparation and related fees	39,927			6,103		38,204			—		48,864			6,103
Cash Back® receivables	2,777			—		4,170			—		42,680			—
Emerald Advance lines of credit	20,321			598		20,239			2,839		21,908			1,913
Royalties from franchisees	4,509			—		4,278			—		8,206			—
Other	33,154			7,934		44,629			15,294		44,230			8,379
	156,965			72,427		173,715			101,146		222,491			80,867
Allowance for doubtful accounts	(53,771		)	—		(51,400		)	—		(54,527		)	—
	$	103,194		$	72,427	$	122,315		$	101,146	$	167,964		$	80,867

Schedule Of Receivables Based On Year Of Origination

These amounts as of July 31, 2015, by year of origination, are as follows:

(in 000s)
Credit Quality Indicator – Year of origination:
2015	$	5,348
2014	92
2013	1,699
Revolving loans	13,780
	$	20,919

Schedule Of Activity In The Allowance For Doubtful Accounts

Activity in the allowance for doubtful accounts for our short-term receivables for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	—		713			713
Charge-offs	—		(1,469		)	(1,469		)
Balances as of July 31, 2015	$	7,353	$	46,418		$	53,771
Balances as of May 1, 2014	$	7,530	$	45,048		$	52,578
Provision	—		2,842			2,842
Charge-offs	—		(4,020		)	(4,020		)
Balances as of July 31, 2014	$	7,530	$	43,870		$	51,400

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Summary Of Significant Accounting Policies

3 Months Ended

Jul. 31, 2015

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION –The consolidated balance sheets as of July 31, 2015 and 2014, the consolidated statements of operations and comprehensive loss for the three months ended July 31, 2015 and 2014, and the condensed consolidated statements of cash flows for the three months ended July 31, 2015 and 2014 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows as of July 31, 2015 and 2014 and for all periods presented have been made.

"H&R Block," "the Company," "we," "our" and "us" are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the U. S. (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2015 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2015 or for the year then ended are derived from our April 30, 2015 Annual Report to Shareholders on Form 10-K.

MANAGEMENT ESTIMATES –The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, valuation allowances on deferred tax assets, reserves for uncertain tax positions and related matters. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.

SEASONALITY OF BUSINESS –Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of January through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.

DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation (including its subsidiaries, collectively, SCC), which exited its mortgage business in fiscal year 2008. See notes 12 and 13 for additional information on litigation, claims and other loss contingencies related to our discontinued operations.

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Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Income Statement [Abstract]
Tax benefit on discontinued operations	$ (1,889)	$ (4,564)

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Commitments And Contingencies

3 Months Ended

Jul. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

NOTE 11: COMMITMENTS AND CONTINGENCIES

Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM), which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance, beginning of the period	$	158,169		$	145,237
Amounts deferred for new extended service plans issued	920			873
Revenue recognized on previous deferrals	(27,703		)	(24,253		)
Balance, end of the period	$	131,386		$	121,857

We accrued $7.6 million, $10.6 million and $8.4 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to estimated losses under our standard guarantee, which is included with our standard in-office tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets. For POM in franchise offices, we deferred revenue of $0.1 million, and recognized revenue of $3.4 million during the three months ended July 31, 2015. At July 31, 2015, our deferred revenue related to POM in franchise offices totaled $28.3 million.

We have accrued estimated contingent consideration payments totaling $10.7 million, $9.2 million and $10.7 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to acquisitions, with the short-term amount recorded in deferred revenue and other liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations.

We have contractual commitments to fund certain franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $77.4 million at July 31, 2015, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $38.8 million.

We maintain compensating balances with certain financial institutions that are creditors in our 2012 CLOC, which are not legally restricted as to withdrawal. We had compensating balances totaling $225.0 million as of July 31, 2015. These balances may fluctuate significantly over the course of any fiscal year.

NOTE 13: LOSS CONTINGENCIES ARISING FROM REPRESENTATIONS AND WARRANTIES OF OUR DISCONTINUED MORTGAGE OPERATIONS

SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations.

Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." These representations and warranties varied based on the nature of the transaction and the buyer's or insurer's requirements, but generally pertained to the ownership of the loan, the validity of the lien securing the loan, borrower fraud, the loan's compliance with the criteria for inclusion in the transaction, including compliance with SCC's underwriting standards or loan criteria established by the buyer, ability to deliver required documentation, and compliance with applicable laws. Representations and warranties related to borrower fraud in whole loan sale transactions to institutional investors, which were generally securitized by such investors and represented approximately 68% of the disposal of loans originated in calendar years 2005, 2006 and 2007, included a "knowledge qualifier" limiting SCC's liability to those instances where SCC had knowledge of the fraud at the time the loans were sold. Representations and warranties made in other sale transactions effectively did not include a knowledge qualifier as to borrower fraud. SCC believes it would have an obligation to repurchase a loan only if it breached a representation and warranty and such breach materially and adversely affects the value of the mortgage loan or certificate holder's interest in the mortgage loan. SCC also would assert that it has no liability for the failure to repurchase any mortgage loan that has been liquidated prior to a repurchase demand, although there is conflicting case law on the liquidated loan defense issue as described below.

Representation and warranty claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination and borrower fraud for loans originated in calendar years 2006 and 2007. SCC has received claims representing an original principal amount of $2.6 billion since May 1, 2008, of which $1.9 billion were received prior to fiscal year 2013.

SETTLEMENT ACTIONS –SCC has entered into tolling agreements with counterparties that have made a significant portion of previously denied representation and warranty claims. These tolling agreements toll the running of any applicable statute of limitations related to potential lawsuits regarding representation and warranty claims and other claims against SCC.

Beginning in the fourth quarter of fiscal year 2013 and continuing through the first quarter of fiscal year 2016, SCC has been engaged in discussions with these counterparties regarding the bulk settlement of previously denied and potential future claims. Based on settlement discussions with these counterparties, SCC believes a bulk settlement approach, rather than the loan-by-loan resolution process, will be needed to resolve all of the representation and warranty and other claims that are the subject of these discussions. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. The amount paid under the settlement agreement was fully covered by prior accruals. In the event that the ongoing efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result.

SCC will continue to vigorously contest any request for repurchase when it has concluded that a valid basis for repurchase does not exist. SCC's decision whether to engage in bulk settlement discussions is based on factors that vary by counterparty or type of counterparty and include the considerations used by SCC in determining its loss estimate, described below under "Liability for Estimated Contingent Losses."

LIABILITY FOR ESTIMATED CONTINGENT LOSSES –SCC accrues a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. Development of loss estimates is subject to a high degree of management judgment and estimates may vary significantly period to period. SCC's loss estimate as of July 31, 2015, is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and the factors mentioned below. These factors include the terms of prior bulk settlements, the terms expected to result from ongoing bulk settlement discussions, and an assessment of, among other things, historical claim results, threatened claims, terms and provisions of related agreements, counterparty willingness to pursue a settlement, legal standing of counterparties to provide a comprehensive settlement, bulk settlement methodologies used and publicly disclosed by other market participants, the potential pro-rata realization of the claims as compared to all claims and other relevant facts and circumstances when developing its estimate of probable loss. SCC believes that the most significant of these factors are the terms expected to result from ongoing bulk settlement discussions, which have been primarily influenced by the bulk settlement methodologies used and publicly disclosed by other market participants and the anticipated pro-rata realization of the claims of particular counterparties as compared to the anticipated realization if all claims and litigation were resolved together with payment of SCC's related administration and legal expense. Changes in any one of the factors mentioned above could significantly impact the estimate.

The liability is included in deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows:

(in 000s)
Three months ended July 31,	2015		2014
Balance, beginning of the period	$	149,765	$	183,765
Provisions	—		10,000
Payments	—		—
Balance, end of the period	$	149,765	$	193,765

On June 11, 2015, the New York Court of Appeals, New York's highest appellate court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. This decision applies to claims and lawsuits brought against SCC where New York law governs. New York law governs many, though not all, of the RMBS transactions into which SCC entered. However this decision would not affect representation and warranty claims and lawsuits SCC has received or may receive, for example, where the statute of limitations has been tolled by agreement or a suit was timely filed. It is possible that in response to the statute of limitations rulings in the ACE case and similar rulings in other state and federal courts, parties seeking to pursue representation and warranty claims or lawsuits with respect to trusts where the statute of limitations for representation and warranty claims against the originator has run, may pursue alternate legal theories of recovery or assert claims against other contractual parties. SCC has not accrued liabilities for claims not subject to a tolling arrangement or not asserted prior to the expiration of the applicable statute of limitations. The impact on SCC, if any, from alternative legal theories or assertions is unclear. 

SCC is taking the legal position, where appropriate, for both contractual representation and warranty claims and similar claims in litigation, that a valid representation and warranty claim cannot be made with respect to a mortgage loan that has been liquidated. There is conflicting case law on this issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and may be subject to appeal. It is anticipated that the liquidated mortgage loan defense will be the subject of future judicial decisions. In the event the liquidated loan defense is further clarified by the courts or other developments occur, the liquidated loan defense may be a factor in the future in SCC's estimated accrual for representation and warranty claims where such defense may be applicable.

SCC believes it is reasonably possible that future losses related to representation and warranty claims may vary from amounts accrued for these exposures. SCC currently believes the aggregate range of reasonably possible losses in excess of amounts accrued is not material. This estimated range is based on the best information currently available, significant management judgment and a number of factors that are subject to change, including developments in case law and the factors mentioned above. The actual loss that may be incurred could differ materially from our accrual or the estimate of reasonably possible losses.

As described more fully in note 12, losses may also be incurred with respect to various indemnification claims or reserved contribution rights by underwriters and depositors in securitization transactions in which SCC participated. Losses from these indemnification claims or reserved contribution rights are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, have not accrued a liability for these claims or rights and are not able to estimate a reasonably possible loss or range of loss for these claims or rights. Accordingly, neither the accrued liability described above totaling $149.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above, includes any possible losses which may arise from these indemnification claims or reserved contribution rights. There can be no assurances as to the outcome or impact of these indemnification claims or reserved contribution rights. In the event of unfavorable outcomes on these claims or rights, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations and cash flows.

If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC's related administration and legal expense, exceeds SCC's net assets, the creditors of SCC, or a bankruptcy trustee if SCC were to file or be forced into bankruptcy, may attempt to assert claims against us for payment of SCC's obligations. Claimants may also attempt to assert claims or seek payment directly from the Company even if SCC's assets exceed its liabilities. SCC's principal assets, as of July 31, 2015, total approximately $480 million and consist primarily of an intercompany note receivable and a deferred tax asset. We believe our legal position is strong on any potential corporate veil-piercing arguments; however, if this position is challenged and not upheld, it could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows.

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Document And Entity Information - shares	3 Months Ended
	Jul. 31, 2015	Aug. 31, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	H&R BLOCK INC
Entity Central Index Key	0000012659
Current Fiscal Year End Date	--04-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		276,359,906

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Litigation And Related Contingencies

3 Months Ended

Jul. 31, 2015

Litigation And Related Contingencies [Abstract]

Litigation And Related Contingencies

NOTE 12: LITIGATION AND RELATED CONTINGENCIES

We are a defendant in numerous litigation matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, are sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or a claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement of numerous claims over an extended period of time.

The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

In addition to litigation matters, we are also subject to claims and other loss contingencies arising out of our business activities, including as described below.

We accrue liabilities for litigation, claims and other loss contingencies and any related settlements (each referred to, individually, as a "matter" and, collectively, as "matters") when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been accrued for a number of the matters noted below. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range.

For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of July 31, 2015. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of July 31, 2015 and 2014 and April 30, 2015, we accrued liabilities of $9.3 million, $23.7 million and $8.9 million, respectively, for such litigation addressed in this note.

For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. This estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Those matters for which an estimate is not reasonably possible are not included within this estimated range. Therefore, this estimated range of reasonably possible loss represents what we believe to be an estimate of reasonably possible loss only for certain matters meeting these criteria. It does not represent our maximum loss exposure. For those matters, and for matters where a liability has been accrued, as of July 31, 2015, we believe the aggregate range of reasonably possible losses in excess of amounts accrued is not material.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by courts on motions or appeals, analysis by experts, or the status of any settlement negotiations.

On a quarterly and annual basis, we review relevant information with respect to litigation and other loss contingencies and update our accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously, but there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and consolidated financial position, results of operations and cash flows.

LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, OR OTHER LOSS CONTINGENCIES PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – Although SCC ceased its mortgage loan origination activities in December 2007 and sold its loan servicing business in April 2008, SCC or the Company have been, remain, or may in the future be subject to litigation, claims, including indemnification claims, and other loss contingencies pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These contingencies, claims and lawsuits include actions by regulators, third parties seeking indemnification, including depositors and underwriters, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these contingencies, claims and lawsuits allege or may allege discriminatory or unfair and deceptive loan origination and servicing (including debt collection, foreclosure and eviction) practices, other common law torts, rights to indemnification and contribution, breach of contract, violations of securities laws and a variety of federal statutes, including the Truth in Lending Act (TILA), Equal Credit Opportunity Act, Fair Housing Act, Real Estate Settlement Procedures Act (RESPA), Home Ownership & Equity Protection Act (HOEPA), as well as similar state statutes. Given the impact of the financial crisis on the non-prime mortgage environment, the aggregate volume of these matters is substantial although it is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters, including certain of the lawsuits and claims described below, it is not possible to estimate a reasonably possible loss or range of loss due to, among other things, the inherent uncertainties involved in these matters, some of which are beyond the Company's control, and the indeterminate damages sought in some of these matters.

On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC-related entities, H&R Block, Inc. and other entities, arising out of FHLB-Chicago's purchase of residential mortgage-backed securities (RMBSs). The plaintiff seeks rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities collateralized by loans originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $32 million remains outstanding. The plaintiff agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, filed motions to dismiss, which the court denied. The defendants moved for leave to appeal and the circuit court denied the motion. On August 31, 2015, the parties reached an agreement to settle the claims for an amount fully covered by prior accruals.

On May 31, 2012, a lawsuit was filed by Homeward Residential, Inc. (Homeward) in the Supreme Court of the State of New York, County of New York, against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Index No. 651885/2012). SCC removed the case to the United States District Court for the Southern District of New York on June 28, 2012 (Case No. 12-cv-5067). The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-2 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract, anticipatory breach, indemnity and declaratory judgment in connection with alleged losses incurred as a result of the breach of representations and warranties relating to SCC and to loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses, as well as a repurchase of all loans due to alleged misrepresentations by SCC as to itself and as to the loans' compliance with its underwriting standards and the value of underlying real estate. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase, anticipatory breach, indemnity, and declaratory judgment. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On September 28, 2012, a second lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 12-cv-7319). The plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-3 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 96 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

On April 5, 2013, a third lawsuit was filed by Homeward in the United States District Court for the Southern District of New York against SCC. The suit, styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 13-cv-2107), was filed as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, the plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 159 loans sold to the trust. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter.

Underwriters and depositors are, or have been, involved in multiple lawsuits related to securitization transactions in which SCC participated. These lawsuits allege or alleged a variety of claims, including violations of federal and state securities laws and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 20 lawsuits in which notice of a claim has been made involve 38 securitization transactions with original investments of approximately $14 billion (of which the outstanding principal amount is approximately $4 billion). Because SCC has not been a party to these lawsuits (with the exception of the Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation case discussed in this note) and has not had control of this litigation or any settlements thereof, SCC does not have precise information about the amount of damages or other remedies being asserted, the defenses to the claims in such lawsuits or the terms of any settlements of such lawsuits. SCC therefore cannot reasonably estimate the amount of potential losses or associated fees and expenses that may be incurred in connection with such lawsuits, which may be material. Additional lawsuits against the underwriters or depositors may be filed in the future, and SCC may receive additional notices of claims for indemnification from underwriters or depositors with respect to existing or new lawsuits or settlements of such lawsuits. Certain of the notices received included, and future notices may include, a reservation of rights, which are referred to as "reserved contribution rights," that encompasses a right of contribution which may become operative if indemnification is unavailable or insufficient to cover all of the losses and expenses involved. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, nor have we accrued a liability related to any of these claims or rights.

LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS –

Compliance Fee Litigation. On April 16, 2012, a putative class action lawsuit was filed against us in the Circuit Court of Jackson County, Missouri styled Manuel H. Lopez III v. H&R Block, Inc., et al. (Case # 1216CV12290) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all Missouri citizens who were charged the compliance fee, and asserts claims of violation of the Missouri Merchandising Practices Act, money had and received, and unjust enrichment. We filed a motion to compel arbitration of the 2011 claims. The court denied the motion. We filed an appeal. On May 6, 2014, the Missouri Court of Appeals, Western District, reversed the ruling of the trial court and remanded the case for further consideration of the motion. On March 12, 2015, the trial court denied the motion on remand. We filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

On April 19, 2012, a putative class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Ronald Perras v. H&R Block, Inc., et al. (Case No. 4:12-cv-00450-DGK)concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserts claims of violation of various state consumer laws, money had and received, and unjust enrichment. In November 2013, the court compelled arbitration of the 2011 claims and stayed all proceedings with respect to those claims. In June 2014, the court denied class certification of the remaining 2012 claims. Plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which was denied on June 18, 2015. The Eighth Circuit denied plaintiff's subsequent petition for rehearing on August 7, 2015. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter.

Form 8863 Litigation. A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013. Taken together, the plaintiffs in these lawsuits purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or desktop tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The plaintiffs seek damages, pre-judgment interest, attorneys' fees and costs. In August 2013, the plaintiff in the state court action voluntarily dismissed her case without prejudice. The Judicial Panel on Multidistrict Litigation subsequently granted our petition to consolidate the remaining federal lawsuits for coordinated pretrial proceedings in the United States District Court for the Western District of Missouri in a proceeding styled IN RE: H&R BLOCK IRS FORM 8863 LITIGATION (MDL No. 2474/Case No. 4:13-MD-02474-FJG). On July 11, 2014, the MDL court granted our motion to compel arbitration for those named plaintiffs who agreed to arbitrate their claims. Plaintiffs filed a consolidated class action complaint in October 2014. We filed a motion to strike the class allegations relating to those clients who agreed to arbitration, which the court granted on January 7, 2015. The cases remain stayed with respect to the individual plaintiffs who agreed to arbitration. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable.

LITIGATION, CLAIMS AND OTHER LOSS CONTINGENCIES PERTAINING TO OTHER DISCONTINUED OPERATIONS –

Express IRA Litigation. On January 2, 2008, the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages.

Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations.

OTHER – We are from time to time a party to litigation, claims and other loss contingencies not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated.

While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our business or our consolidated financial position, results of operations and cash flows.

We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows.

(in 000s)
Three months ended July 31,	2015		2014
Balance, beginning of the period	$	149,765	$	183,765
Provisions	—		10,000
Payments	—		—
Balance, end of the period	$	149,765	$	193,765

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
ASSETS
Cash and cash equivalents	$ 1,299,382	$ 2,007,190	$ 1,429,489
Cash and cash equivalents - restricted	61,040	91,972	71,917
Receivables, less allowance for doubtful accounts of $53,771, $51,400 and $54,527	103,194	167,964	122,315
Deferred tax assets and income taxes receivable	160,390	174,267	190,323
Prepaid expenses and other current assets	80,993	70,283	74,343
Investments in available-for-sale securities	406,360	439,625	403,774
Total current assets	2,111,359	2,951,301	2,292,161
Mortgage loans held for investment, less allowance for loan losses of $7,659, $10,561 and $7,886	230,130	239,338	259,732
Property and equipment, at cost less accumulated depreciation and amortization of $538,823, $468,372 and $518,797	297,321	311,387	314,531
Intangible assets, net	417,009	432,142	347,890
Goodwill	454,394	441,831	478,845
Deferred tax assets and income taxes receivable	11,377	13,461	46,953
Other noncurrent assets	111,101	125,960	150,707
Total assets	3,632,691	4,515,420	3,890,819
LIABILITIES:
Customer banking deposits	476,732	744,241	482,975
Accounts payable and accrued expenses	116,855	231,322	127,912
Accounts payable and accrued expenses	316,880	322,508	357,293
Accrued salaries, wages and payroll taxes	33,447	144,744	30,996
Accrued income taxes	245,541	434,684	284,038
Current portion of long-term debt	799	790	400,705
Total current liabilities	1,190,254	1,878,289	1,683,919
Long-term debt	505,197	505,298	505,714
Deferred tax liabilities and reserves for uncertain tax positions	137,603	142,586	167,914
Deferred revenue and other noncurrent liabilities	130,210	156,298	136,072
Total liabilities	$ 1,963,264	$ 2,682,471	$ 2,493,619
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 316,628,110	$ 3,166	$ 3,166	$ 3,166
Additional paid-in capital	773,783	783,793	766,014
Accumulated other comprehensive income (loss)	(8,234)	1,740	5,483
Retained earnings	1,679,234	1,836,442	1,418,124
Less treasury shares, at cost	(778,522)	(792,192)	(795,587)
Total stockholders' equity	1,669,427	1,832,949	1,397,200
Total liabilities and stockholders' equity	$ 3,632,691	$ 4,515,420	$ 3,890,819

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Investments

3 Months Ended

Jul. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

NOTE 6: INVESTMENTS

The amortized cost and fair value of securities classified as AFS are summarized below:

(in 000s)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of July 31, 2015:
Mortgage-backed securities	$	392,285	$	11,936	$	—		$	404,221
Municipal bonds	3,025		80		—			3,105
U.S. treasury bills	100		—		—			100
	$	395,410	$	12,016	$	—		$	407,426
As of July 31, 2014:
Mortgage-backed securities	$	401,092	$	2,582	$	—		$	403,674
Municipal bonds	4,106		183		—			4,289
U.S. treasury bills	100		—		—			100
	$	405,298	$	2,765	$	—		$	408,063
As of April 30, 2015:
Mortgage-backed securities	$	421,035	$	13,889	$	—		$	434,924
Municipal bonds	4,062		109		(24		)	4,147
Common stock	2,491		47		—			2,538
U.S. treasury bills	100		—		—			100
	$	427,688	$	14,045	$	(24	)	$	441,709

Substantially all AFS debt securities held as of July 31, 2015 mature after five years.

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Mortgage Loans Held For Investment And Related Assets

3 Months Ended

Jul. 31, 2015

Mortgage Loans Held For Investment And Related Assets [Abstract]

Mortgage Loans Held For Investment And Related Assets

NOTE 5: MORTGAGE LOANS HELD FOR INVESTMENT

The composition of our mortgage loan portfolio is as follows:

(dollars in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Amount			% of Total		Amount			% of Total		Amount			% of Total
Adjustable-rate loans	$	124,752		53	%	$	144,096		54	%	$	130,182		53	%
Fixed-rate loans	111,096			47	%	123,991			46	%	115,034			47	%
	235,848			100	%	268,087			100	%	245,216			100	%
Unamortized deferred fees and costs	1,941					2,206					2,008
Less: Allowance for loan losses	(7,659		)			(10,561		)			(7,886		)
	$	230,130				$	259,732				$	239,338

Our loan loss allowance as a percent of mortgage loans was 3.2% as of July 31, 2015, compared to 3.9% as of July 31, 2014 and 3.2% as of April 30, 2015.

Activity in the allowance for loan losses for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance at beginning of the period	$	7,886		$	11,272
Provision	(28		)	725
Recoveries	365			679
Charge-offs	(564		)	(2,115		)
Balance at end of the period	$	7,659		$	10,561

Detail of the aging of the mortgage loans in our portfolio as of July 31, 2015 is as follows:

(in 000s)
	Less than 60 Days Past Due		60 – 89 Days Past Due		90+ Days Past Due(1)		Total Past Due		Current		Total
Purchased from SCC	$	8,525	$	985	$	45,957	$	55,467	$	83,894	$	139,361
All other	2,790		488		6,346		9,624		86,863		96,487
	$	11,315	$	1,473	$	52,303	$	65,091	$	170,757	$	235,848

⁽¹⁾  We do not accrue interest on loans past due 90 days or more.

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Loss Per Share and Stockholders' Equity (Tables)

3 Months Ended

Jul. 31, 2015

Earnings Per Share [Abstract]

Computations Of Basic And Diluted Earnings Per Share

The computations of basic and diluted earnings per share from continuing operations are as follows:

(in 000s, except per share amounts)
Three months ended July 31,	2015			2014
Net loss from continuing operations attributable to shareholders	$	(96,505	)	$	(108,851	)
Amounts allocated to participating securities	(102		)	(89		)
Net loss from continuing operations attributable to common shareholders	$	(96,607	)	$	(108,940	)
Basic weighted average common shares	275,765			274,575
Potential dilutive shares	—			—
Dilutive weighted average common shares	275,765			274,575
Loss per share from continuing operations attributable to common shareholders:
Basic	$	(0.35	)	$	(0.40	)
Diluted	(0.35		)	(0.40		)

Schedule of Comprehensive Income (Loss)

OTHER COMPREHENSIVE INCOME –Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows:

(in 000s)
	Foreign Currency Translation Adjustments			Unrealized Gain (Loss) on AFS Securities			Total
Balances as of May 1, 2015	$	(6,789	)	$	8,529		$	1,740
Other comprehensive income (loss) before reclassifications:
Gross losses arising during the period	(8,755		)	(2,235		)	(10,990		)
Income taxes	—			(875		)	(875		)
	(8,755		)	(1,360		)	(10,115		)
Amounts reclassified to net income:
Gross amount reclassified	—			230			230
Income taxes	—			89			89
	—			141			141
Net other comprehensive loss	(8,755		)	(1,219		)	(9,974		)
Balances as of July 31, 2015	$	(15,544	)	$	7,310		$	(8,234	)
Balances as of May 1, 2014	$	3,334		$	1,843		$	5,177
Other comprehensive income (loss) before reclassifications:
Gross gains (losses) arising during the period	455			(1,183		)	(728		)
Income taxes	—			(460		)	(460		)
	455			(723		)	(268		)
Amounts reclassified to net income:
Gross amount reclassified	—			941			941
Income taxes	—			367			367
	—			574			574
Net other comprehensive income (loss)	455			(149		)	306
Balances as of July 31, 2014	$	3,789		$	1,694		$	5,483

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Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations

3 Months Ended

Jul. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations

NOTE 11: COMMITMENTS AND CONTINGENCIES

Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM), which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows:

(in 000s)
Three months ended July 31,	2015			2014
Balance, beginning of the period	$	158,169		$	145,237
Amounts deferred for new extended service plans issued	920			873
Revenue recognized on previous deferrals	(27,703		)	(24,253		)
Balance, end of the period	$	131,386		$	121,857

We accrued $7.6 million, $10.6 million and $8.4 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to estimated losses under our standard guarantee, which is included with our standard in-office tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets. For POM in franchise offices, we deferred revenue of $0.1 million, and recognized revenue of $3.4 million during the three months ended July 31, 2015. At July 31, 2015, our deferred revenue related to POM in franchise offices totaled $28.3 million.

We have accrued estimated contingent consideration payments totaling $10.7 million, $9.2 million and $10.7 million as of July 31, 2015 and 2014 and April 30, 2015, respectively, related to acquisitions, with the short-term amount recorded in deferred revenue and other liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations.

We have contractual commitments to fund certain franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $77.4 million at July 31, 2015, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $38.8 million.

We maintain compensating balances with certain financial institutions that are creditors in our 2012 CLOC, which are not legally restricted as to withdrawal. We had compensating balances totaling $225.0 million as of July 31, 2015. These balances may fluctuate significantly over the course of any fiscal year.

NOTE 13: LOSS CONTINGENCIES ARISING FROM REPRESENTATIONS AND WARRANTIES OF OUR DISCONTINUED MORTGAGE OPERATIONS

SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations.

Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." These representations and warranties varied based on the nature of the transaction and the buyer's or insurer's requirements, but generally pertained to the ownership of the loan, the validity of the lien securing the loan, borrower fraud, the loan's compliance with the criteria for inclusion in the transaction, including compliance with SCC's underwriting standards or loan criteria established by the buyer, ability to deliver required documentation, and compliance with applicable laws. Representations and warranties related to borrower fraud in whole loan sale transactions to institutional investors, which were generally securitized by such investors and represented approximately 68% of the disposal of loans originated in calendar years 2005, 2006 and 2007, included a "knowledge qualifier" limiting SCC's liability to those instances where SCC had knowledge of the fraud at the time the loans were sold. Representations and warranties made in other sale transactions effectively did not include a knowledge qualifier as to borrower fraud. SCC believes it would have an obligation to repurchase a loan only if it breached a representation and warranty and such breach materially and adversely affects the value of the mortgage loan or certificate holder's interest in the mortgage loan. SCC also would assert that it has no liability for the failure to repurchase any mortgage loan that has been liquidated prior to a repurchase demand, although there is conflicting case law on the liquidated loan defense issue as described below.

Representation and warranty claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination and borrower fraud for loans originated in calendar years 2006 and 2007. SCC has received claims representing an original principal amount of $2.6 billion since May 1, 2008, of which $1.9 billion were received prior to fiscal year 2013.

SETTLEMENT ACTIONS –SCC has entered into tolling agreements with counterparties that have made a significant portion of previously denied representation and warranty claims. These tolling agreements toll the running of any applicable statute of limitations related to potential lawsuits regarding representation and warranty claims and other claims against SCC.

Beginning in the fourth quarter of fiscal year 2013 and continuing through the first quarter of fiscal year 2016, SCC has been engaged in discussions with these counterparties regarding the bulk settlement of previously denied and potential future claims. Based on settlement discussions with these counterparties, SCC believes a bulk settlement approach, rather than the loan-by-loan resolution process, will be needed to resolve all of the representation and warranty and other claims that are the subject of these discussions. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. The amount paid under the settlement agreement was fully covered by prior accruals. In the event that the ongoing efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result.

SCC will continue to vigorously contest any request for repurchase when it has concluded that a valid basis for repurchase does not exist. SCC's decision whether to engage in bulk settlement discussions is based on factors that vary by counterparty or type of counterparty and include the considerations used by SCC in determining its loss estimate, described below under "Liability for Estimated Contingent Losses."

LIABILITY FOR ESTIMATED CONTINGENT LOSSES –SCC accrues a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. Development of loss estimates is subject to a high degree of management judgment and estimates may vary significantly period to period. SCC's loss estimate as of July 31, 2015, is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and the factors mentioned below. These factors include the terms of prior bulk settlements, the terms expected to result from ongoing bulk settlement discussions, and an assessment of, among other things, historical claim results, threatened claims, terms and provisions of related agreements, counterparty willingness to pursue a settlement, legal standing of counterparties to provide a comprehensive settlement, bulk settlement methodologies used and publicly disclosed by other market participants, the potential pro-rata realization of the claims as compared to all claims and other relevant facts and circumstances when developing its estimate of probable loss. SCC believes that the most significant of these factors are the terms expected to result from ongoing bulk settlement discussions, which have been primarily influenced by the bulk settlement methodologies used and publicly disclosed by other market participants and the anticipated pro-rata realization of the claims of particular counterparties as compared to the anticipated realization if all claims and litigation were resolved together with payment of SCC's related administration and legal expense. Changes in any one of the factors mentioned above could significantly impact the estimate.

The liability is included in deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows:

(in 000s)
Three months ended July 31,	2015		2014
Balance, beginning of the period	$	149,765	$	183,765
Provisions	—		10,000
Payments	—		—
Balance, end of the period	$	149,765	$	193,765

On June 11, 2015, the New York Court of Appeals, New York's highest appellate court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. This decision applies to claims and lawsuits brought against SCC where New York law governs. New York law governs many, though not all, of the RMBS transactions into which SCC entered. However this decision would not affect representation and warranty claims and lawsuits SCC has received or may receive, for example, where the statute of limitations has been tolled by agreement or a suit was timely filed. It is possible that in response to the statute of limitations rulings in the ACE case and similar rulings in other state and federal courts, parties seeking to pursue representation and warranty claims or lawsuits with respect to trusts where the statute of limitations for representation and warranty claims against the originator has run, may pursue alternate legal theories of recovery or assert claims against other contractual parties. SCC has not accrued liabilities for claims not subject to a tolling arrangement or not asserted prior to the expiration of the applicable statute of limitations. The impact on SCC, if any, from alternative legal theories or assertions is unclear. 

SCC is taking the legal position, where appropriate, for both contractual representation and warranty claims and similar claims in litigation, that a valid representation and warranty claim cannot be made with respect to a mortgage loan that has been liquidated. There is conflicting case law on this issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and may be subject to appeal. It is anticipated that the liquidated mortgage loan defense will be the subject of future judicial decisions. In the event the liquidated loan defense is further clarified by the courts or other developments occur, the liquidated loan defense may be a factor in the future in SCC's estimated accrual for representation and warranty claims where such defense may be applicable.

SCC believes it is reasonably possible that future losses related to representation and warranty claims may vary from amounts accrued for these exposures. SCC currently believes the aggregate range of reasonably possible losses in excess of amounts accrued is not material. This estimated range is based on the best information currently available, significant management judgment and a number of factors that are subject to change, including developments in case law and the factors mentioned above. The actual loss that may be incurred could differ materially from our accrual or the estimate of reasonably possible losses.

As described more fully in note 12, losses may also be incurred with respect to various indemnification claims or reserved contribution rights by underwriters and depositors in securitization transactions in which SCC participated. Losses from these indemnification claims or reserved contribution rights are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, have not accrued a liability for these claims or rights and are not able to estimate a reasonably possible loss or range of loss for these claims or rights. Accordingly, neither the accrued liability described above totaling $149.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above, includes any possible losses which may arise from these indemnification claims or reserved contribution rights. There can be no assurances as to the outcome or impact of these indemnification claims or reserved contribution rights. In the event of unfavorable outcomes on these claims or rights, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our business and our consolidated financial position, results of operations and cash flows.

If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC's related administration and legal expense, exceeds SCC's net assets, the creditors of SCC, or a bankruptcy trustee if SCC were to file or be forced into bankruptcy, may attempt to assert claims against us for payment of SCC's obligations. Claimants may also attempt to assert claims or seek payment directly from the Company even if SCC's assets exceed its liabilities. SCC's principal assets, as of July 31, 2015, total approximately $480 million and consist primarily of an intercompany note receivable and a deferred tax asset. We believe our legal position is strong on any potential corporate veil-piercing arguments; however, if this position is challenged and not upheld, it could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows.

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Income Taxes

3 Months Ended

Jul. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 9: INCOME TAXES

We file a consolidated federal income tax return in the United States (U.S.) with the Internal Revenue Service (IRS) and file tax returns in various state and foreign jurisdictions. Tax returns are typically examined and settled upon completion of the examination, with tax controversies settled either at the exam level or through the appeals process. The Company currently does not have a U.S. federal return under examination; however, our calendar 2013 federal return and federal returns for all periods after this date remain open to examination. Additionally, the Company is either currently under examination or open to examination in all U.S. states that impose a corporate income tax.

We had gross unrecognized tax benefits of $76.5 million, $128.1 million and $86.3 million as of July 31, 2015 and 2014 and April 30, 2015, respectively. The gross unrecognized tax benefits decreased $9.8 million and increased $16.6 million during the three months ended July 31, 2015 and 2014, respectively. The decrease in unrecognized tax benefits during the three months ending July 31, 2015 is primarily related to a law change enacted in the state of Missouri which allowed the Company to release prior year income tax reserves. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $15 million within the next twelve months. The anticipated decrease is due to the expiration of statutes of limitations and anticipated closure of various state matters currently under exam. The portion of unrecognized benefits expected to be cash settled within the next twelve months amounts to $8.7 million and is included in accrued income taxes on our consolidated balance sheet. The remaining liability for uncertain tax positions is classified as long-term and is included in deferred tax liabilities and reserves for uncertain tax positions on the consolidated balance sheet.

Consistent with prior years, our pretax loss for the three months ended July 31, 2015 is expected to be offset by income in the fourth quarter due to the established pattern of seasonality in our primary business operations. As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur within our fiscal year. The amount of tax benefit recorded reflects management's estimate of the annual effective tax rate applied to the year-to-date loss from continuing operations. Certain discrete tax adjustments are also reflected in income tax expense for the periods presented.

A discrete income tax benefit of $20.6 million was recorded in the three months ended July 31, 2015, compared to a discrete tax benefit of less than $100 thousand in the same period of the prior year. The discrete tax benefit recorded in the current period resulted primarily from a law change enacted in the state of Missouri which provides us the ability to reduce tax expense related to income from our two prior fiscal years that will be included on timely filed state tax returns for calendar years 2014 and 2015.

Excluding discrete items, management's estimate of the annualized effective tax rate for the three months ended July 31, 2015 and 2014 was 37.4% and 38.1%, respectively. Our effective tax rate for continuing operations, including the effects of discrete income tax items was 48.4% and 38.1% for the three months ended July 31, 2015 and 2014, respectively. Due to the loss in both periods, a discrete tax benefit in either period increases the tax rate while an item of discrete tax expense decreases the tax rate. The impact of the discrete tax items combined with the seasonal nature of our business can cause the effective tax rate through our first quarter to be significantly different than the rate for our full fiscal year.

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Condensed Consolidating Financial Statements (Income Statement) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Other Nonoperating Income	$ 433	$ 523
Total revenues	137,718	133,586
Cost of revenues	213,508	197,726
Selling, general and administrative	98,192	97,200
Total operating expenses	311,700	294,926
Interest expense on borrowings	(8,575)	(13,795)
Other income	(4,985)	(1,204)
Loss from continuing operations before income tax benefit	(187,109)	(175,816)
Income tax benefit	(90,604)	(66,965)
Net loss from continuing operations	(96,505)	(108,851)
Net loss from discontinued operations	(3,154)	(7,381)
Net loss	(99,659)	(116,232)
Other comprehensive income (loss)	(9,974)	306
Comprehensive loss	(109,633)	(115,926)
Block Financial Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Other Nonoperating Income	495	1,006
Total revenues	24,767	23,860
Cost of revenues	11,755	11,808
Selling, general and administrative	4,376	3,343
Total operating expenses	16,131	15,151
Interest expense on borrowings	(8,436)	(13,693)
Other income	(468)	(1,842)
Loss from continuing operations before income tax benefit	227	(5,820)
Income tax benefit	3,286	(2,643)
Net loss from continuing operations	(3,059)	(3,177)
Net loss from discontinued operations	(3,154)	(7,209)
Net loss	(6,213)	(10,386)
Other comprehensive income (loss)	(1,187)	(121)
Comprehensive loss	(7,400)	(10,507)
Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Other Nonoperating Income	554	659
Total revenues	113,044	109,809
Cost of revenues	201,846	185,998
Selling, general and administrative	93,816	93,860
Total operating expenses	295,662	279,858
Interest expense on borrowings	(139)	(102)
Other income	(12,255)	(1,730)
Loss from continuing operations before income tax benefit	(194,458)	(171,222)
Income tax benefit	(91,865)	(61,561)
Net loss from continuing operations	(102,593)	(109,661)
Net loss from discontinued operations		(172)
Net loss	(102,593)	(109,833)
Other comprehensive income (loss)	(9,974)	306
Comprehensive loss	(112,567)	(109,527)
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Other Nonoperating Income	909	1,226
Interest expense on borrowings	0	0
Other income	(102,593)	(120,219)
Loss from continuing operations before income tax benefit	(101,684)	(118,993)
Income tax benefit	(2,025)	(2,761)
Net loss from continuing operations	(99,659)	(116,232)
Net loss from discontinued operations	0
Net loss	(99,659)	(116,232)
Other comprehensive income (loss)	(9,974)	306
Comprehensive loss	(109,633)	(115,926)
Intersegment Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Other Nonoperating Income	(1,525)	(2,368)
Total revenues	(93)	(83)
Cost of revenues	(93)	(80)
Selling, general and administrative		(3)
Total operating expenses	(93)	(83)
Interest expense on borrowings	0	0
Other income	110,331	122,587
Loss from continuing operations before income tax benefit	108,806	120,219
Net loss from continuing operations	108,806	120,219
Net loss	108,806	120,219
Other comprehensive income (loss)	11,161	(185)
Comprehensive loss	$ 119,967	$ 120,034

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Goodwill And Intangible Assets

3 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets

NOTE 7: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill of our Tax Services segment for the three months ended July 31, 2015 and 2014 are as follows:

(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2015	$	474,128		$	(32,297	)	$	441,831
Acquisitions	14,030			—			14,030
Disposals and foreign currency changes, net	(1,467		)	—			(1,467		)
Impairments	—			—			—
Balances as of July 31, 2015	$	486,691		$	(32,297	)	$	454,394
Balances as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117
Acquisitions	42,274			—			42,274
Disposals and foreign currency changes, net	454			—			454
Impairments	—			—			—
Balances as of July 31, 2014	$	511,142		$	(32,297	)	$	478,845

The increase in goodwill resulted from acquired franchisee and competitor businesses during the period. We expect the purchase price allocation to be finalized during fiscal year 2016.

We test goodwill for impairment annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

Components of the intangible assets of our Tax Services segment are as follows:

(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2015:
Reacquired franchise rights	$	294,918	$	(51,233	)	$	243,685
Customer relationships	169,998		(83,471		)	86,527
Internally-developed software	120,522		(84,215		)	36,307
Noncompete agreements	30,576		(24,091		)	6,485
Franchise agreements	19,201		(8,534		)	10,667
Purchased technology	54,700		(21,362		)	33,338
	$	689,915	$	(272,906	)	$	417,009
As of July 31, 2014:
Reacquired franchise rights	$	233,749	$	(29,152	)	$	204,597
Customer relationships	123,130		(62,514		)	60,616
Internally-developed software	104,580		(75,243		)	29,337
Noncompete agreements	24,697		(22,408		)	2,289
Franchise agreements	19,201		(7,254		)	11,947
Purchased technology	54,974		(15,870		)	39,104
	$	560,331	$	(212,441	)	$	347,890
As of April 30, 2015:
Reacquired franchise rights	$	294,647	$	(46,180	)	$	248,467
Customer relationships	170,851		(78,157		)	92,694
Internally-developed software	118,865		(80,689		)	38,176
Noncompete agreements	30,630		(23,666		)	6,964
Franchise agreements	19,201		(8,214		)	10,987
Purchased technology	54,700		(19,846		)	34,854
	$	688,894	$	(256,752	)	$	432,142

Amortization of intangible assets for the three months ended July 31, 2015 was $16.6 million. Amortization of intangible assets for the three months ended July 31, 2014 was $11.2 million. Estimated amortization of intangible assets for fiscal years 2016, 2017, 2018, 2019 and 2020 is $64.1 million, $55.7 million, $48.6 million, $36.9 million and $26.2 million, respectively.

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Fair Value

3 Months Ended

Jul. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value

NOTE 8: FAIR VALUE

FAIR VALUE MEASUREMENT –Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Our investments in AFS securities are carried at fair value on a recurring basis with gains and losses reported as a component of other comprehensive income, except for losses assessed to be other than temporary. Our AFS securities include certain agency and agency-sponsored mortgage-backed securities and municipal bonds. Quoted market prices are not available for these securities, as they are not actively traded and have fewer observable transactions. As a result, we use third-party pricing services to determine fair value and classify the securities as Level 2. The third-party pricing services' models are based on market data and utilize available trade, bid and other market information for similar securities. Quarterly, we compare the prices obtained from our third-party pricing services to other available independent pricing information to validate the reasonableness of the valuations provided. In addition, we also perform analytics to assess the reasonableness of the fair value received from the third-party pricing service based on changes in the portfolio and changes in market conditions. We evaluate whether adjustments to third-party pricing is necessary and historically, we have not made adjustments to prices obtained from our third-party pricing services.

There were no transfers of AFS securities between hierarchy levels during the three months ended July 31, 2015 and 2014. See note 6 for details of our AFS securities that were remeasured at fair value on a recurring basis during the three months ended July 31, 2015 and 2014 and the unrealized gains or losses on those remeasurements.

The following table presents the assets that were remeasured at fair value on a non-recurring basis during the three months ended July 31, 2015 and 2014 and the losses on those remeasurements:

(dollars in 000s)
	Total			Level 1			Level 2			Level 3			Losses
As of July 31, 2015:
Impaired mortgage loans held for investment	$	57,951		$	—		$	—		$	57,951		$	(88	)
As a percentage of total assets	1.6		%	—		%	—		%	1.6		%
As of July 31, 2014:
Impaired mortgage loans held for investment	$	59,635		$	—		$	—		$	59,635		$	(842	)
As a percentage of total assets	1.5		%	—		%	—		%	1.5		%

The fair value of impaired mortgage loans held for investment is generally based on the net present value of discounted cash flows for TDR loans or the appraised value of the underlying collateral for all other loans. Impaired and TDR loans are required to be remeasured at least annually, based on HRB Bank's loan policy. These loans are classified as Level 3.

We have established various controls and procedures to ensure that the unobservable inputs used in the fair value measurement of these instruments are appropriate. Appraisals are obtained from certified appraisers and reviewed internally by HRB Bank's asset management group. The inputs and assumptions used in our discounted cash flow model for TDRs are reviewed and approved by HRB Bank management each time the balances are remeasured. Significant changes in fair value from the previous measurement are presented to HRB Bank management for approval. There were no changes to the unobservable inputs used in determining the fair values of our Level 3 financial assets.

The following table presents the quantitative information about our Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs:

(in 000s)
	Fair Value as of July 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted Average)
Impaired mortgage loans held for investment – non TDRs	$	68,368	Collateral- based	Cost to list/sell Time to sell (months) Collateral depreciation Loss severity	0% – 171%(10%) 12 (12) (128%) – 100%(32%) 0% – 100%(61%)
Impaired mortgage loans held for investment – TDRs	$	29,925	Discounted cash flow	Aged default performance Loss severity	23% – 36%(29%) 0% – 23%(7%)

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS – The carrying amounts and estimated fair values of our financial instruments are as follows:

(in 000s)
As of	July 31, 2015				July 31, 2014				April 30, 2015
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	1,299,382	$	1,299,382	$	1,429,489	$	1,429,489	$	2,007,190	$	2,007,190
Cash and cash equivalents - restricted	61,040		61,040		71,917		71,917		91,972		91,972
Receivables, net - short-term	103,194		103,194		122,315		122,315		167,964		167,964
Mortgage loans held for investment, net	230,130		184,277		259,732		193,920		239,338		190,196
Investments in AFS securities	407,426		407,426		408,063		408,063		441,709		441,709
Receivables, net - long-term	72,427		72,427		101,146		101,146		80,867		80,867
Liabilities:
Customer banking deposits	477,145		473,720		483,477		480,729		744,699		737,261
Long-term debt	505,996		552,431		906,419		965,650		506,088		556,769
Contingent consideration payments	10,650		10,650		9,168		9,168		10,667		10,667

Fair value estimates, methods and assumptions are set forth below. The fair value was not estimated for assets and liabilities that are not considered financial instruments.

▪ Cash and cash equivalents, including restricted - Fair value approximates the carrying amount (Level 1).

▪ Receivables, net - short-term - For short-term balances the carrying values reported in the balance sheet approximate fair market value due to the relative short-term nature of the respective instruments (Level 1).

▪ Mortgage loans held for investment, net - The fair value of mortgage loans held for investment is estimated using a third-party pricing service. The fair value is determined using the present value of expected future cash flows at the asset level, assuming future prepayments and using discount factors determined by prices obtained for residential loans with similar characteristics in the secondary market, as discounted for illiquid assets. Quarterly, we perform analytics to assess the reasonableness of the fair value received from the third-party pricing service based on changes in the portfolio and changes in market conditions. We evaluate whether adjustments to third-party pricing is necessary and historically, we have not made adjustments to prices obtained from our third-party pricing service (Level 3).

▪ Investments in AFS securities - For mortgage-backed securities, we use a third-party pricing service to determine fair value. The service's pricing model is based on market data and utilizes available trade, bid and other market information for similar securities (Level 2). The fair value of our investment in common stock is determined based on quoted market prices (Level 1).

▪ Receivables, net - long-term - The carrying values for the long-term portion of loans to franchisees approximate fair market value due to variable interest rates, low historical delinquency rates and franchise territories serving as collateral (Level 1). Long-term EA receivables are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates.

▪ Customer banking deposits - The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, checking, money market and savings accounts, is equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities (Level 3).

▪ Long-term debt - The fair value of our Senior Notes is based on quotes from multiple banks (Level 2).

▪ Contingent consideration payments - Fair value approximates the carrying amount (Level 3).

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Interest Income And Interest Expense

3 Months Ended

Jul. 31, 2015

Interest Income And Interest Expense [Abstract]

Interest Income And Interest Expense

NOTE 10: INTEREST INCOME AND INTEREST EXPENSE

The following table shows the components of interest income and expense:

(in 000s)
Three months ended July 31,	2015		2014
Interest income:
Mortgage loans, net	$	2,812	$	2,978
Loans to franchisees	1,654		2,071
AFS securities	2,058		2,270
Other	1,854		1,980
	$	8,378	$	9,299
Interest expense:
Borrowings	$	8,575	$	13,795
Deposits	136		145
	$	8,711	$	13,940

The presentation of interest expense from borrowings in the amount of $13.8 million for the three months ended July 31, 2014, has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption in the consolidated statements of operations and comprehensive loss.

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jul. 31, 2015	Sep. 01, 2015	Apr. 30, 2015	Jul. 31, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Investments in available-for-sale securities	$ 406,360		$ 439,625	$ 403,774
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,500,000
Minimum [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Accelerated Share Repurchases, Final Price Paid Per Share	$ 32.25
Maximum [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Customer Deposits	$ 419,000
Accelerated Share Repurchases, Final Price Paid Per Share	$ 37.00
HRB Bank [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Customer Deposits	$ 477,145		$ 744,699	$ 483,477
Collateralized Mortgage Backed Securities [Member] | Other Long-term Investments [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Investments in available-for-sale securities	$ 404,221
Subsequent Event [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Stock Repurchase Program, Authorized Amount		$ 3,500,000
Subsequent Event [Member] | Tender Offer [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Stock Repurchase Program, Authorized Amount		$ 1,500,000

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Fair Value Fair Value (Summary Of Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014	Apr. 30, 2014
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash & cash equivalents	$ 1,299,382	$ 2,007,190	$ 1,429,489	$ 2,185,307
Cash and cash equivalents, Estimated Fair Value	1,299,382	2,007,190
Cash and cash equivalents - restricted, Carrying Amount	61,040	91,972	71,917
Cash and cash equivalents - restricted, Estimated Fair Value	61,040	91,972
Receivables, net	103,194	167,964	122,315
Receivables, net - short-term, Estimated Fair Value	103,194	167,964
Mortgage loans held for investment, less allowance for loan losses of $7,659, $10,561 and $7,886	230,130	239,338	259,732
Loans Receivable, Fair Value Disclosure	184,277	190,196
Investments in available-for-sale securities, Estimated Fair Value	407,426	441,709	408,063
Accounts Receivable, Net, Noncurrent	72,427	80,867	101,146
Receivables, net - long-term, Estimated Fair Value	72,427	80,867	101,146
Total Portfolio	235,848	245,216	268,087
Deposits, Estimated Fair Value	473,720	737,261	480,729
Long-term Debt	505,996	506,088
Long-term borrowings, Estimated Fair Value	552,431	556,769
Contingent consideration payments, carrying amount	10,650	10,667
Contingent consideration payments, estimated fair value	10,650	10,667
Level 1
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Cash and cash equivalents, Estimated Fair Value			1,429,489
Cash and cash equivalents - restricted, Estimated Fair Value			71,917
Receivables, net - short-term, Estimated Fair Value			122,315
Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Loans Receivable, Fair Value Disclosure			193,920
Long-term Debt			906,419
Long-term borrowings, Estimated Fair Value			965,650
Contingent consideration payments, carrying amount			9,168
Contingent consideration payments, estimated fair value			9,168
Level 2
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investments in available-for-sale securities, Estimated Fair Value			408,063
HRB Bank [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Deposits, Carrying Amount	$ 477,145	$ 744,699	$ 483,477

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Condensed Consolidating Financial Statements

3 Months Ended

Jul. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Statements

NOTE 15: 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.

As discussed in note 10, the presentation of interest expense on borrowings for the three months ended July 31, 2014 has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption.

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	24,767		$	113,044		$	(93	)	$	137,718
Cost of revenues	—			11,755			201,846			(93		)	213,508
Selling, general and administrative	—			4,376			93,816			—			98,192
Total operating expenses	—			16,131			295,662			(93		)	311,700
Other income	909			495			554			(1,525		)	433
Interest expense on external borrowings	—			(8,436		)	(139		)	—			(8,575		)
Other expenses	(102,593		)	(468		)	(12,255		)	110,331			(4,985		)
Income (loss) from continuing operations before tax (benefit)	(101,684		)	227			(194,458		)	108,806			(187,109		)
Income tax expense (benefit)	(2,025		)	3,286			(91,865		)	—			(90,604		)
Net loss from continuing operations	(99,659		)	(3,059		)	(102,593		)	108,806			(96,505		)
Net loss from discontinued operations	—			(3,154		)	—			—			(3,154		)
Net loss	(99,659		)	(6,213		)	(102,593		)	108,806			(99,659		)
Other comprehensive loss	(9,974		)	(1,187		)	(9,974		)	11,161			(9,974		)
Comprehensive loss	$	(109,633	)	$	(7,400	)	$	(112,567	)	$	119,967		$	(109,633	)

Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	23,860		$	109,809		$	(83	)	$	133,586
Cost of revenues	—			11,808			185,998			(80		)	197,726
Selling, general and administrative	—			3,343			93,860			(3		)	97,200
Total operating expenses	—			15,151			279,858			(83		)	294,926
Other income	1,226			1,006			659			(2,368		)	523
Interest expense on external borrowings (1)	—			(13,693		)	(102		)	—			(13,795		)
Other expenses	(120,219		)	(1,842		)	(1,730		)	122,587			(1,204		)
Loss from continuing operations before tax benefit	(118,993		)	(5,820		)	(171,222		)	120,219			(175,816		)
Income tax benefit	(2,761		)	(2,643		)	(61,561		)	—			(66,965		)
Net loss from continuing operations	(116,232		)	(3,177		)	(109,661		)	120,219			(108,851		)
Net loss from discontinued operations	—			(7,209		)	(172		)	—			(7,381		)
Net loss	(116,232		)	(10,386		)	(109,833		)	120,219			(116,232		)
Other comprehensive income (loss)	306			(121		)	306			(185		)	306
Comprehensive loss	$	(115,926	)	$	(10,507	)	$	(109,527	)	$	120,034		$	(115,926	)

⁽¹⁾  Amounts have been restated, including the presentation of interest expense on borrowings as discussed in note 10.

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of July 31, 2014	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries			Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	405,512	$	1,024,407		$	(430	)	$	1,429,489
Cash & cash equivalents - restricted	—		12,817		59,100			—			71,917
Receivables, net	15		86,968		35,332			—			122,315
Deferred tax assets and income taxes receivable	17		98,041		92,265			—			190,323
Prepaid expenses and other current assets	—		9,684		64,659			—			74,343
Investments in AFS securities	—		403,674		100			—			403,774
Total current assets	32		1,016,696		1,275,863			(430		)	2,292,161
Mortgage loans held for investment, net	—		259,732		—			—			259,732
Property and equipment, net	—		209		314,322			—			314,531
Intangible assets, net	—		—		347,890			—			347,890
Goodwill	—		—		478,845			—			478,845
Deferred tax assets and income taxes receivable	3,395		46,752		(3,194		)	—			46,953
Investments in subsidiaries	784,419		—		50,384			(834,803		)	—
Amounts due from affiliates	616,578		322,339		983			(939,900		)	—
Other noncurrent assets	—		103,178		47,529			—			150,707
Total assets	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819
Customer banking deposits	$	—	$	483,405	$	—		$	(430	)	$	482,975
Accounts payable and accrued expenses	846		4,639		122,427			—			127,912
Accrued salaries, wages and payroll taxes	—		2,129		28,867			—			30,996
Accrued income taxes	—		30,944		253,094			—			284,038
Current portion of long-term debt	—		399,941		764			—			400,705
Deferred revenue and other current liabilities	—		220,324		136,969			—			357,293
Total current liabilities	846		1,141,382		542,121			(430		)	1,683,919
Long-term debt	—		497,682		8,032			—			505,714
Deferred tax liabilities and reserves for uncertain tax positions	5,395		57,242		105,277			—			167,914
Deferred revenue and other noncurrent liabilities	—		2,216		133,856			—			136,072
Amounts due to affiliates	983		—		938,917			(939,900		)	—
Total liabilities	7,224		1,698,522		1,728,203			(940,330		)	2,493,619
Stockholders' equity	1,397,200		50,384		784,419			(834,803		)	1,397,200
Total liabilities and stockholders' equity	$	1,404,424	$	1,748,906	$	2,512,622		$	(1,775,133	)	$	3,890,819

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of April 30, 2015	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	478,077	$	1,529,553	$	(440	)	$	2,007,190
Cash & cash equivalents - restricted	—		45,098		46,874		—			91,972
Receivables, net	—		80,332		87,632		—			167,964
Deferred tax assets and income taxes receivable	—		77,418		96,849		—			174,267
Prepaid expenses and other current assets	—		7,771		62,512		—			70,283
Investments in AFS securities	—		434,924		4,701		—			439,625
Total current assets	—		1,123,620		1,828,121		(440		)	2,951,301
Mortgage loans held for investment, net	—		239,338		—		—			239,338
Property and equipment, net	—		218		311,169		—			311,387
Intangible assets, net	—		—		432,142		—			432,142
Goodwill	—		—		441,831		—			441,831
Deferred tax assets and income taxes receivable	—		44,788		—		(31,327		)	13,461
Investments in subsidiaries	1,371,677		—		116,870		(1,488,547		)	—
Amounts due from affiliates	463,434		134,094		1,058		(598,586		)	—
Other noncurrent assets	—		81,075		44,885		—			125,960
Total assets	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420
Customer banking deposits	$	—	$	744,681	$	—	$	(440	)	$	744,241
Accounts payable and accrued expenses	1,104		7,672		222,546		—			231,322
Accrued salaries, wages and payroll taxes	—		1,946		142,798		—			144,744
Accrued income taxes	—		49,529		385,155		—			434,684
Current portion of long-term debt	—		—		790		—			790
Deferred revenue and other current liabilities	—		177,063		145,445		—			322,508
Total current liabilities	1,104		980,891		896,734		(440		)	1,878,289
Long-term debt	—		497,893		7,405		—			505,298
Deferred tax liabilities and reserves for uncertain tax positions	—		25,696		148,217		(31,327		)	142,586
Deferred revenue and other noncurrent liabilities	—		1,783		154,515		—			156,298
Amounts due to affiliates	1,058		—		597,528		(598,586		)	—
Total liabilities	2,162		1,506,263		1,804,399		(630,353		)	2,682,471
Stockholders' equity	1,832,949		116,870		1,371,677		(1,488,547		)	1,832,949
Total liabilities and stockholders' equity	$	1,835,111	$	1,623,133	$	3,176,076	$	(2,118,900	)	$	4,515,420

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by (used in) operating activities:	$	—		$	27,342		$	(405,588	)	$	—		$	(378,246	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			28,339			3,764			—			32,103
Principal payments on mortgage loans held for investment, net	—			8,537			—			—			8,537
Capital expenditures	—			(19		)	(8,670		)	—			(8,689		)
Payments made for business acquisitions, net of cash acquired	—			—			(12,271		)	—			(12,271		)
Loans made to franchisees	—			(2,582		)	—			—			(2,582		)
Repayments from franchisees	—			11,288			146			—			11,434
Intercompany payments/investments in subsidiaries	—			2,226			(59,804		)	57,578			—
Other, net	—			1,439			2,123			—			3,562
Net cash provided by (used in) investing activities	—			49,228			(74,712		)	57,578			32,094
Cash flows from financing:
Customer banking deposits, net	—			(268,482		)	—			(50		)	(268,532		)
Dividends paid	(55,063		)	—			—			—			(55,063		)
Repurchase of common stock	(17,756		)	—			—			—			(17,756		)
Proceeds from exercise of stock options	13,015			—			—			—			13,015
Intercompany borrowings	59,804			—			(2,226		)	(57,578		)	—
Other, net	—			—			(22,413		)	—			(22,413		)
Net cash used in financing activities	—			(268,482		)	(24,639		)	(57,628		)	(350,749		)
Effects of exchange rates on cash	—			—			(10,907		)	—			(10,907		)
Net decrease in cash and cash equivalents	—			(191,912		)	(515,846		)	(50		)	(707,808		)
Cash and cash equivalents at beginning of the period	—			478,077			1,529,553			(440		)	2,007,190
Cash and cash equivalents at end of the period	$	—		$	286,165		$	1,013,707		$	(490	)	$	1,299,382

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities:	$	—		$	(20,669	)	$	(360,916	)	$	—		$	(381,585	)
Cash flows from investing:
Maturities of and payments received on AFS securities	—			18,484			—			—			18,484
Principal payments on mortgage loans held for investment, net	—			6,250			—			—			6,250
Capital expenditures	—			(116		)	(25,725		)	—			(25,841		)
Payments made for business acquisitions, net of cash acquired	—			—			(40,533		)	—			(40,533		)
Loans made to franchisees	—			(7,398		)	—			—			(7,398		)
Repayments from franchisees	—			18,674			—			—			18,674
Intercompany payments/investments in subsidiaries	—			64,322			(50,881		)	(13,441		)	—
Other, net	—			1,868			2,162			—			4,030
Net cash provided by (used in) investing activities	—			102,084			(114,977		)	(13,441		)	(26,334		)
Cash flows from financing:
Customer banking deposits, net	—			(288,279		)	—			670			(287,609		)
Dividends paid	(54,852		)	—			—			—			(54,852		)
Repurchase of common stock	(9,397		)	—			—			—			(9,397		)
Proceeds from exercise of stock options	13,368			—			—			—			13,368
Intercompany borrowings	50,881			—			(64,322		)	13,441			—
Other, net	—			—			(9,919		)	—			(9,919		)
Net cash used in financing activities	—			(288,279		)	(74,241		)	14,111			(348,409		)
Effects of exchange rates on cash	—			—			510			—			510
Net decrease in cash and cash equivalents	—			(206,864		)	(549,624		)	670			(755,818		)
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	$	—		$	405,512		$	1,024,407		$	(430	)	$	1,429,489

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Investments (Tables)

3 Months Ended

Jul. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized Cost And Fair Value Of Securities Available-For-Sale

The amortized cost and fair value of securities classified as AFS are summarized below:

(in 000s)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
As of July 31, 2015:
Mortgage-backed securities	$	392,285	$	11,936	$	—		$	404,221
Municipal bonds	3,025		80		—			3,105
U.S. treasury bills	100		—		—			100
	$	395,410	$	12,016	$	—		$	407,426
As of July 31, 2014:
Mortgage-backed securities	$	401,092	$	2,582	$	—		$	403,674
Municipal bonds	4,106		183		—			4,289
U.S. treasury bills	100		—		—			100
	$	405,298	$	2,765	$	—		$	408,063
As of April 30, 2015:
Mortgage-backed securities	$	421,035	$	13,889	$	—		$	434,924
Municipal bonds	4,062		109		(24		)	4,147
Common stock	2,491		47		—			2,538
U.S. treasury bills	100		—		—			100
	$	427,688	$	14,045	$	(24	)	$	441,709

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Fair Value (Assets Remeasured At Fair Value On Non-Recurring Basis) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014
Non-Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss, Impaired mortgage loans held for investment	$ (88)	$ (842)
Non-Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	$ 0	$ 0
As a percentage of total assets	0.00%	0.00%
Non-Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	$ 0	$ 0
As a percentage of total assets	0.00%	0.00%
Non-Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	$ 57,951	$ 59,635
As a percentage of total assets	1.60%	1.50%
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired mortgage loans held for investment	$ 57,951	$ 59,635
As a percentage of total assets	1.60%	1.50%

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Mortgage Loans Held For Investment And Related Assets (Narrative) (Details)	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Mortgage Loans Held For Investment And Related Assets [Line Items]
Allowance as Percent of Principal	3.20%	3.20%	3.90%

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 53,771	$ 54,527	$ 51,400
Allowance for loan losses	7,659	7,886	10,561
Accumulated depreciation and amortization	$ 538,823	$ 518,797	$ 468,372
Common stock, no par value	$ 0	$ 0	$ 0
Common stock, stated value per share	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	800,000,000	800,000,000	800,000,000
Common stock, shares issued	316,628,110	316,628,110	316,628,110

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Receivables

3 Months Ended

Jul. 31, 2015

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

Receivables

NOTE 4: RECEIVABLES

Receivables consist of the following:

(in 000s)
As of	July 31, 2015					July 31, 2014					April 30, 2015
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	56,277		$	57,792	$	62,195		$	83,013	$	56,603		$	64,472
Receivables for tax preparation and related fees	39,927			6,103		38,204			—		48,864			6,103
Cash Back® receivables	2,777			—		4,170			—		42,680			—
Emerald Advance lines of credit	20,321			598		20,239			2,839		21,908			1,913
Royalties from franchisees	4,509			—		4,278			—		8,206			—
Other	33,154			7,934		44,629			15,294		44,230			8,379
	156,965			72,427		173,715			101,146		222,491			80,867
Allowance for doubtful accounts	(53,771		)	—		(51,400		)	—		(54,527		)	—
	$	103,194		$	72,427	$	122,315		$	101,146	$	167,964		$	80,867

Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES –Franchisee loan balances as of July 31, 2015 and 2014 and April 30, 2015, consisted of $75.7 million, $99.7 million and $80.8 million, respectively, in term loans made primarily to finance the purchase of franchises and $38.4 million, $45.5 million and $40.3 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs.

As of July 31, 2015 and 2014 and April 30, 2015, loans with a principal balance of $1.5 million, $0.8 million and $0.1 million, respectively, were more than 30 days past due. We had no loans to franchisees on non-accrual status.

CANADIAN CASH BACK® PROGRAM –Refunds advanced under the Cash Back program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Cash Back amounts are generally received within 60 days of filing the client's return. As of July 31, 2015 and 2014 and April 30, 2015, $0.6 million, $1.1 million and $1.3 million of Cash Back balances were more than 60 days old, respectively.

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT –We review the credit quality of our H&R Block Emerald Advance® lines of credit (EA) receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of July 31, 2015, by year of origination, are as follows:

(in 000s)
Credit Quality Indicator – Year of origination:
2015	$	5,348
2014	92
2013	1,699
Revolving loans	13,780
	$	20,919

As of July 31, 2015 and 2014 and April 30, 2015, $17.4 million, $20.0 million and $18.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively.

ALLOWANCE FOR DOUBTFUL ACCOUNTS –Activity in the allowance for doubtful accounts for our short-term receivables for the three months ended July 31, 2015 and 2014 is as follows:

(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	—		713			713
Charge-offs	—		(1,469		)	(1,469		)
Balances as of July 31, 2015	$	7,353	$	46,418		$	53,771
Balances as of May 1, 2014	$	7,530	$	45,048		$	52,578
Provision	—		2,842			2,842
Charge-offs	—		(4,020		)	(4,020		)
Balances as of July 31, 2014	$	7,530	$	43,870		$	51,400

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Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2015	Jul. 31, 2014	Apr. 30, 2015	Apr. 30, 2014
Loss Contingency Accrual [Roll Forward]
Provisions	$ 9,300	$ 23,700
SCC [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, Product Liability, Gross	149,765	193,765	$ 149,765	$ 183,765
Loss Contingency Accrual [Roll Forward]
Payments	0	0
Balance, end of the period	$ 0	$ 10,000

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Goodwill And Intangible Assets (Tables)

3 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Goodwill

Changes in the carrying amount of goodwill of our Tax Services segment for the three months ended July 31, 2015 and 2014 are as follows:

(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2015	$	474,128		$	(32,297	)	$	441,831
Acquisitions	14,030			—			14,030
Disposals and foreign currency changes, net	(1,467		)	—			(1,467		)
Impairments	—			—			—
Balances as of July 31, 2015	$	486,691		$	(32,297	)	$	454,394
Balances as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117
Acquisitions	42,274			—			42,274
Disposals and foreign currency changes, net	454			—			454
Impairments	—			—			—
Balances as of July 31, 2014	$	511,142		$	(32,297	)	$	478,845

Schedule Of Intangible Assets

Components of the intangible assets of our Tax Services segment are as follows:

(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2015:
Reacquired franchise rights	$	294,918	$	(51,233	)	$	243,685
Customer relationships	169,998		(83,471		)	86,527
Internally-developed software	120,522		(84,215		)	36,307
Noncompete agreements	30,576		(24,091		)	6,485
Franchise agreements	19,201		(8,534		)	10,667
Purchased technology	54,700		(21,362		)	33,338
	$	689,915	$	(272,906	)	$	417,009
As of July 31, 2014:
Reacquired franchise rights	$	233,749	$	(29,152	)	$	204,597
Customer relationships	123,130		(62,514		)	60,616
Internally-developed software	104,580		(75,243		)	29,337
Noncompete agreements	24,697		(22,408		)	2,289
Franchise agreements	19,201		(7,254		)	11,947
Purchased technology	54,974		(15,870		)	39,104
	$	560,331	$	(212,441	)	$	347,890
As of April 30, 2015:
Reacquired franchise rights	$	294,647	$	(46,180	)	$	248,467
Customer relationships	170,851		(78,157		)	92,694
Internally-developed software	118,865		(80,689		)	38,176
Noncompete agreements	30,630		(23,666		)	6,964
Franchise agreements	19,201		(8,214		)	10,987
Purchased technology	54,700		(19,846		)	34,854
	$	688,894	$	(256,752	)	$	432,142

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Receivables (Schedule Of Loans Receivable) (Details) - USD ($) $ in Thousands	Jul. 31, 2015	Apr. 30, 2015	Jul. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Gross, Current	$ 156,965	$ 222,491	$ 173,715
Accounts Receivable, Gross, Noncurrent	72,427	80,867	101,146
Emerald Advance lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Gross, Current	20,321
Short-term		21,908	20,239
Accounts Receivable, Gross, Noncurrent	598	1,913	2,839
Financing Receivable, Gross	20,919
Loans to franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Gross, Current	56,277
Short-term		56,603	62,195
Accounts Receivable, Gross, Noncurrent	57,792	64,472	83,013
Cash Back® receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts Receivable, Gross, Current	2,777
Short-term		42,680	4,170
Accounts Receivable, Gross, Noncurrent	$ 0	$ 0	$ 0

XML

Segment Information

3 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment Information

NOTE 14: SEGMENT INFORMATION

Results of our continuing operations by reportable segment are as follows:

(in 000s)
Three months ended July 31,	2015			2014
REVENUES :
Tax preparation fees:
U.S. assisted	$	27,285		$	25,489
International	35,718			41,456
U.S. digital	3,179			2,932
	66,182			69,877
Royalties	9,695			7,642
Revenues from Refund Transfers	3,415			3,419
Revenues from Emerald Card®	15,689			14,045
Revenues from Peace of Mind® Extended Service Plan	27,703			24,253
Interest and fee income on Emerald Advance	314			607
Other	9,576			9,237
Total Tax Services	132,574			129,080
Corporate and eliminations	5,144			4,506
	$	137,718		$	133,586
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES :
Tax Services	$	(169,438	)	$	(150,560	)
Corporate and eliminations	(17,671		)	(25,256		)
	$	(187,109	)	$	(175,816	)