Condensed Consolidating Financial Statements

12 Months Ended

Apr. 30, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

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, our 2015 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.

CONDENSED CONSOLIDATING INCOME STATEMENTS													(in 000s)
Year ended April 30, 2016	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	192,698		$	2,868,343		$	(22,888	)	$	3,038,153
Cost of revenues	—			102,707			1,588,450			(5,605		)	1,685,552
Selling, general and administrative	2,537			30,780			703,375			(17,283		)	719,409
Total operating expenses	2,537			133,487			2,291,825			(22,888		)	2,404,961
Other income	381,670			25,420			11,569			(400,958		)	17,701
Interest expense on external borrowings	—			(68,531		)	(431		)	—			(68,962		)
Other expenses	(6,534		)	(3,947		)	(21,534		)	19,563			(12,452		)
Income from continuing operations before taxes	372,599			12,153			566,122			(381,395		)	569,479
Income taxes (benefit)	(1,668		)	1,411			186,183			—			185,926
Net income from continuing operations	374,267			10,742			379,939			(381,395		)	383,553
Net loss from discontinued operations	—			(9,286		)	—			—			(9,286		)
Net income	374,267			1,456			379,939			(381,395		)	374,267
Other comprehensive loss	(12,973		)	(8,444		)	(12,973		)	21,417			(12,973		)
Comprehensive income (loss)	$	361,294		$	(6,988	)	$	366,966		$	(359,978	)	$	361,294

Year ended April 30, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	226,285		$	2,858,474		$	(6,101	)	$	3,078,658
Cost of revenues	—			96,493			1,540,091			(6,094		)	1,630,490
Selling, general and administrative	—			19,053			634,456			(7		)	653,502
Total operating expenses	—			115,546			2,174,547			(6,101		)	2,283,992
Other income	475,336			2,726			50,434			(527,182		)	1,314
Interest expense on external borrowings	—			(44,884		)	(362		)	—			(45,246		)
Other expenses	—			(953		)	(14,976		)	8,000			(7,929		)
Income from continuing operations before taxes	475,336			67,628			719,023			(519,182		)	742,805
Income taxes	1,673			2,602			251,786			—			256,061
Net income from continuing operations	473,663			65,026			467,237			(519,182		)	486,744
Net income (loss) from discontinued operations	—			(16,725		)	3,644			—			(13,081		)
Net income	473,663			48,301			470,881			(519,182		)	473,663
Other comprehensive income (loss)	(3,437		)	6,738			(3,437		)	(3,301		)	(3,437		)
Comprehensive income	$	470,226		$	55,039		$	467,444		$	(522,483	)	$	470,226

Year ended April 30, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	235,075		$	2,795,562		$	(6,342	)	$	3,024,295
Cost of revenues	—			124,887			1,453,832			(6,342		)	1,572,377
Selling, general and administrative	—			22,505			610,923			—			633,428
Total operating expenses	—			147,392			2,064,755			(6,342		)	2,205,805
Other income	478,866			20,925			5,580			(469,056		)	36,315
Interest expense on external borrowings	—			(54,892		)	(387		)	—			(55,279		)
Other expenses	—			(12,888		)	(19,522		)	—			(32,410		)
Income from continuing operations before taxes	478,866			40,828			716,478			(469,056		)	767,116
Income taxes	3,709			10,551			252,759			—			267,019
Net income from continuing operations	475,157			30,277			463,719			(469,056		)	500,097
Net loss from discontinued operations	—			(23,771		)	(1,169		)	—			(24,940		)
Net income	475,157			6,506			462,550			(469,056		)	475,157
Other comprehensive loss	(5,373		)	(2,012		)	(5,373		)	7,385			(5,373		)
Comprehensive income	$	469,784		$	4,494		$	457,177		$	(461,671	)	$	469,784

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of April 30, 2016	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	9,025	$	887,776	$	—		$	896,801
Cash & cash equivalents - restricted	—		29,004		75,106		—			104,110
Receivables, net	—		71,882		81,234		—			153,116
Prepaid expenses and other current assets	—		8,622		58,516		—			67,138
Investments in available-for-sale securities	—		—		1,133		—			1,133
Total current assets	—		118,533		1,103,765		—			1,222,298
Mortgage loans held for investment, net	—		202,385		—		—			202,385
Property and equipment, net	—		136		293,429		—			293,565
Intangible assets, net	—		—		433,885		—			433,885
Goodwill	—		—		470,757		—			470,757
Deferred tax assets and income taxes receivable	5,917		77,270		36,936		—			120,123
Investments in subsidiaries	1,738,643		—		108,995		(1,847,638		)	—
Amounts due from affiliates	—		1,307,612		1,714,009		(3,021,621		)	—
Other noncurrent assets	—		71,659		43,103		—			114,762
Total assets	$	1,744,560	$	1,777,595	$	4,204,879	$	(4,869,259	)	$	2,857,775
Accounts payable and accrued expenses	$	1,531	$	18,596	$	239,459	$	—		$	259,586
Accrued salaries, wages and payroll taxes	—		1,766		160,020		—			161,786
Accrued income taxes	—		52,976		320,778		—			373,754
Current portion of long-term debt	—		—		826		—			826
Deferred revenue and other current liabilities	—		87,982		155,671		—			243,653
Total current liabilities	1,531		161,320		876,754		—			1,039,605
Long-term debt	—		1,495,316		6,609		—			1,501,925
Deferred tax liabilities and reserves for uncertain tax positions	5,917		10,786		116,257		—			132,960
Deferred revenue and other noncurrent liabilities	—		1,178		159,004		—			160,182
Amounts due to affiliates	1,714,009		—		1,307,612		(3,021,621		)	—
Total liabilities	1,721,457		1,668,600		2,466,236		(3,021,621		)	2,834,672
Stockholders' equity	23,103		108,995		1,738,643		(1,847,638		)	23,103
Total liabilities and stockholders' equity	$	1,744,560	$	1,777,595	$	4,204,879	$	(4,869,259	)	$	2,857,775

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 available-for-sale 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

Year ended April 30, 2015	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by operating activities:	$	—		$	15,456		$	611,152		$	—		$	626,608
Cash flows from investing:
Purchases of AFS securities	—			(90,381		)	(200		)	—			(90,581		)
Sales, maturities and payments received on AFS securities	—			87,922			3,956			—			91,878
Mortgage loans held for investment, net	—			23,886			—			—			23,886
Capital expenditures	—			(224		)	(122,934		)	—			(123,158		)
Payments for business acquisitions, net	—			—			(113,252		)	—			(113,252		)
Franchise loans funded	—			(49,220		)	(475		)	—			(49,695		)
Payments received on franchise loans	—			90,199			437			—			90,636
Intercompany borrowings (payments)	—			134,094			(285,049		)	150,955			—
Other, net	—			12,011			9,343			—			21,354
Net cash provided by (used in) investing activities	—			208,287			(508,174		)	150,955			(148,932		)
Cash flows from financing:
Repayments of short-term borrowings	—			(1,049,136		)	—			—			(1,049,136		)
Proceeds from short-term borrowings	—			1,049,136			—			—			1,049,136
Repayments of long-term debt	—			(400,000		)	—			—			(400,000		)
Customer banking deposits, net	—			(29,204		)	—			660			(28,544		)
Dividends paid	(219,960		)	—			—			—			(219,960		)
Repurchase of common stock	(10,449		)	—			—			—			(10,449		)
Proceeds from exercise of stock options	16,522			—			—			—			16,522
Intercompany borrowings (payments)	213,887			71,162			(134,094		)	(150,955		)	—
Other, net	—			—			(3,376		)	—			(3,376		)
Net cash used in financing activities	—			(358,042		)	(137,470		)	(150,295		)	(645,807		)
Effects of exchange rate changes on cash	—			—			(9,986		)	—			(9,986		)
Net decrease in cash	—			(134,299		)	(44,478		)	660			(178,117		)
Cash - beginning of the year	—			612,376			1,574,031			(1,100		)	2,185,307
Cash - end of the year	$	—		$	478,077		$	1,529,553		$	(440	)	$	2,007,190

Year ended April 30, 2014	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by operating activities:	$	—		$	35,034		$	774,547		$	—		$	809,581
Cash flows from investing:
Purchases of AFS securities	—			(45,158		)	—			—			(45,158		)
Sales, maturities and payments received on AFS securities	—			106,873			228			—			107,101
Mortgage loans held for investment, net	—			46,664			—			—			46,664
Capital expenditures	—			(75		)	(146,936		)	—			(147,011		)
Payments for business acquisitions, net	—			—			(68,428		)	—			(68,428		)
Proceeds from notes receivable	—			—			64,865			—			64,865
Franchise loans funded	—			(63,960		)	—			—			(63,960		)
Payments received on franchise loans	—			87,220			—			—			87,220
Intercompany borrowings (payments)	—			33,497			(196,840		)	163,343			—
Other, net	—			19,746			9,651			—			29,397
Net cash provided by (used in) investing activities	—			184,807			(337,460		)	163,343			10,690
Cash flows from financing:
Repayments of short-term borrowings	—			(316,000		)	—			—			(316,000		)
Proceeds from short-term borrowings	—			316,000			—			—			316,000
Customer banking deposits, net	—			(165,575		)	—			1,623			(163,952		)
Dividends paid	(218,980		)	—			—			—			(218,980		)
Repurchase of common stock	(6,106		)	—			—			—			(6,106		)
Proceeds from exercise of stock options	28,246			—			—			—			28,246
Intercompany borrowings (payments)	196,840			—			(33,497		)	(163,343		)	—
Other, net	—			—			(4,138		)	—			(4,138		)
Net cash used in financing activities	—			(165,575		)	(37,635		)	(161,720		)	(364,930		)
Effects of exchange rate changes on cash	—			—			(17,618		)	—			(17,618		)
Net increase in cash	—			54,266			381,834			1,623			437,723
Cash - beginning of the year	—			558,110			1,192,197			(2,723		)	1,747,584
Cash - end of the year	$	—		$	612,376		$	1,574,031		$	(1,100	)	$	2,185,307