Condensed Consolidating Financial Statements

12 Months Ended

Apr. 30, 2017

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 2016 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, 2017	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	186,659		$	2,877,265		$	(27,610	)	$	3,036,314
Cost of revenues	—			71,661			1,580,425			(7,709		)	1,644,377
Selling, general and administrative	—			24,201			671,653			(19,901		)	675,953
Total operating expenses	—			95,862			2,252,078			(27,610		)	2,320,330
Other income (expense), net	399,996			25,361			9,330			(428,433		)	6,254
Interest expense on external borrowings	—			(92,263		)	(688		)	—			(92,951		)
Income from continuing operations before taxes	399,996			23,895			633,829			(428,433		)	629,287
Income tax (benefit)	(8,949		)	6,472			210,847			—			208,370
Net income from continuing operations	408,945			17,423			422,982			(428,433		)	420,917
Net income (loss) from discontinued operations	—			(12,705		)	733			—			(11,972		)
Net income	408,945			4,718			423,715			(428,433		)	408,945
Other comprehensive loss	(4,066		)	—			(4,066		)	4,066			(4,066		)
Comprehensive income	$	404,879		$	4,718		$	419,649		$	(424,367	)	$	404,879

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 (expense), net	375,136			21,473			(9,965		)	(381,395		)	5,249
Interest expense on external borrowings	—			(68,531		)	(431		)	—			(68,962		)
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 (expense), net	475,336			1,773			35,458			(519,182		)	(6,615		)
Interest expense on external borrowings	—			(44,884		)	(362		)	—			(45,246		)
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

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of April 30, 2017	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—		$	4,486	$	1,006,845	$	—		$	1,011,331
Cash & cash equivalents - restricted	—			8,060		98,148		—			106,208
Receivables, net	—			61,250		101,525		—			162,775
Prepaid expenses and other current assets	—			2,280		63,445		—			65,725
Total current assets	—			76,076		1,269,963		—			1,346,039
Property and equipment, net	—			78		263,749		—			263,827
Intangible assets, net	—			—		409,364		—			409,364
Goodwill	—			—		491,207		—			491,207
Deferred tax assets and income taxes receivable	5,587			30,743		47,398		—			83,728
Investments in subsidiaries	2,158,234			—		113,714		(2,271,948		)	—
Amounts due from affiliates	—			1,493,195		2,194,294		(3,687,489		)	—
Other noncurrent assets	—			51,829		48,114		—			99,943
Total assets	$	2,163,821		$	1,651,921	$	4,837,803	$	(5,959,437	)	$	2,694,108
Accounts payable and accrued expenses	$	2,086		$	14,218	$	200,724	$	—		$	217,028
Accrued salaries, wages and payroll taxes	—			851		183,005		—			183,856
Accrued income taxes and reserves for uncertain tax positions	—			—		348,199		—			348,199
Current portion of long-term debt	—			—		981		—			981
Deferred revenue and other current liabilities	—			26,759		162,457		—			189,216
Total current liabilities	2,086			41,828		895,366		—			939,280
Long-term debt	—			1,487,389		5,628		—			1,493,017
Deferred tax liabilities and reserves for uncertain tax positions	28,324			8,037		122,724		—			159,085
Deferred revenue and other noncurrent liabilities	—			953		162,656		—			163,609
Amounts due to affiliates	2,194,294			—		1,493,195		(3,687,489		)	—
Total liabilities	2,224,704			1,538,207		2,679,569		(3,687,489		)	2,754,991
Stockholders' equity (deficiency)	(60,883		)	113,714		2,158,234		(2,271,948		)	(60,883		)
Total liabilities and stockholders' equity	$	2,163,821		$	1,651,921	$	4,837,803	$	(5,959,437	)	$	2,694,108

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	—		6,925		59,649		—			66,574
Total current assets	—		116,836		1,103,765		—			1,220,601
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	—		62,806		43,103		—			105,909
Total assets	$	1,744,560	$	1,767,045	$	4,204,879	$	(4,869,259	)	$	2,847,225
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 and reserves for uncertain tax positions	—		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	—		1,484,766		6,609		—			1,491,375
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		1,658,050		2,466,236		(3,021,621		)	2,824,122
Stockholders' equity	23,103		108,995		1,738,643		(1,847,638		)	23,103
Total liabilities and stockholders' equity	$	1,744,560	$	1,767,045	$	4,204,879	$	(4,869,259	)	$	2,847,225

Year ended April 30, 2016	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash provided by (used in) operating activities:	$	—		$	(55,689	)	$	588,083		$	—		$	532,394
Cash flows from investing:
Sales, maturities and payments received on AFS securities	—			430,460			6,011			—			436,471
Principal payments and sales of mortgage loans and real estate owned, net	—			38,481			—			—			38,481
Capital expenditures	—			(21		)	(99,902		)	—			(99,923		)
Payments for business acquisitions, net of cash acquired	—			—			(88,776		)	—			(88,776		)
Franchise loans funded	—			(22,479		)	(341		)	—			(22,820		)
Payments received on franchise loans	—			54,613			394			—			55,007
Intercompany borrowings (payments)	—			(1,147,985		)	(2,197,954		)	3,345,939			—
Other, net	—			2,192			8,883			—			11,075
Net cash provided by (used in) investing activities	—			(644,739		)	(2,371,685		)	3,345,939			329,515
Cash flows from financing:
Repayments of line of credit borrowings	—			(1,465,000		)	—			—			(1,465,000		)
Proceeds from line of credit borrowings	—			1,465,000			—			—			1,465,000
Proceeds from long-term debt	—			996,831			—			—			996,831
Transfer of HRB Bank deposits	—			(419,028		)	—			—			(419,028		)
Customer banking deposits, net	—			(327,145		)	—			440			(326,705		)
Dividends paid	(201,688		)	—			—			—			(201,688		)
Repurchase of common stock, including shares surrendered	(2,018,338		)	—			—			—			(2,018,338		)
Proceeds from exercise of stock options	25,775			—			—			—			25,775
Intercompany borrowings (payments)	2,197,954			—			1,147,985			(3,345,939		)	—
Other, net	(3,703		)	(19,282		)	4,409			—			(18,576		)
Net cash provided by (used in) financing activities	—			231,376			1,152,394			(3,345,499		)	(1,961,729		)
Effects of exchange rate changes on cash	—			—			(10,569		)	—			(10,569		)
Net decrease in cash	—			(469,052		)	(641,777		)	440			(1,110,389		)
Cash - beginning of the year	—			478,077			1,529,553			(440		)	2,007,190
Cash - end of the year	$	—		$	9,025		$	887,776		$	—		$	896,801

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
Principal payments and sales of mortgage loans and real estate owned, net	—			32,090			—			—			32,090
Capital expenditures	—			(224		)	(122,934		)	—			(123,158		)
Payments for business acquisitions, net of cash acquired	—			—			(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	—			3,807			9,343			—			13,150
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, including shares surrendered	(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