Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jul. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Schedule Of Condensed Consolidating Statement Of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS													(in 000s)
Three months ended July 31, 2018	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	16,832		$	131,477		$	(3,126	)	$	145,183
Cost of revenues	—			5,033			217,118			(591		)	221,560
Selling, general and administrative	—			3,250			105,025			(2,535		)	105,740
Total operating expenses	—			8,283			322,143			(3,126		)	327,300
Other income (expense), net	(153,616		)	9,827			7,048			141,283			4,542
Interest expense on external borrowings	—			(21,123		)	(67		)	—			(21,190		)
Loss from continuing operations before income tax benefit	(153,616		)	(2,747		)	(183,685		)	141,283			(198,765		)
Income tax benefit	(946		)	(3,701		)	(45,321		)	—			(49,968		)
Net income (loss) from continuing operations	(152,670		)	954			(138,364		)	141,283			(148,797		)
Net loss from discontinued operations	—			(3,873		)	—			—			(3,873		)
Net loss	(152,670		)	(2,919		)	(138,364		)	141,283			(152,670		)
Other comprehensive loss	(1,731		)	—			(1,731		)	1,731			(1,731		)
Comprehensive loss	$	(154,401	)	$	(2,919	)	$	(140,095	)	$	143,014		$	(154,401	)

													(in 000s)
Three months ended July 31, 2017	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	17,556		$	123,094		$	(2,848	)	$	137,802
Cost of revenues	—			7,860			219,970			(115		)	227,715
Selling, general and administrative	—			3,206			94,776			(2,733		)	95,249
Total operating expenses	—			11,066			314,746			(2,848		)	322,964
Other income (expense), net	(132,264		)	6,073			(2,418		)	129,829			1,220
Interest expense on external borrowings	—			(21,204		)	(73		)	—			(21,277		)
Loss from continuing operations before tax benefit	(132,264		)	(8,641		)	(194,143		)	129,829			(205,219		)
Income tax benefit	(1,697		)	(4,623		)	(71,081		)	—			(77,401		)
Net loss from continuing operations	(130,567		)	(4,018		)	(123,062		)	129,829			(127,818		)
Net loss from discontinued operations	—			(2,748		)	(1		)	—			(2,749		)
Net loss	(130,567		)	(6,766		)	(123,063		)	129,829			(130,567		)
Other comprehensive income	2,462			—			2,462			(2,462		)	2,462
Comprehensive loss	$	(128,105	)	$	(6,766	)	$	(120,601	)	$	127,367		$	(128,105	)

Schedule Of Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of July 31, 2018	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	3,759	$	975,357	$	—		$	979,116
Cash & cash equivalents - restricted	—		—		131,376		—			131,376
Receivables, net	—		40,457		30,119		—			70,576
Income taxes receivable	2,811		—		12,965		—			15,776
Prepaid expenses and other current assets	—		1,954		83,325		—			85,279
Total current assets	2,811		46,170		1,233,142		—			1,282,123
Property and equipment, net	—		418		226,585		—			227,003
Intangible assets, net	—		—		354,831		—			354,831
Goodwill	—		—		507,941		—			507,941
Deferred tax assets and income taxes receivable	—		17,941		113,742		—			131,683
Investments in subsidiaries	2,762,660		—		128,396		(2,891,056		)	—
Amounts due from affiliates	—		1,538,119		2,560,781		(4,098,900		)	—
Other noncurrent assets	—		56,004		45,453		—			101,457
Total assets	$	2,765,471	$	1,658,652	$	5,170,871	$	(6,989,956	)	$	2,605,038
Accounts payable and accrued expenses	$	2,216	$	7,511	$	135,744	$	—		$	145,471
Accrued salaries, wages and payroll taxes	—		1,423		36,045		—			37,468
Accrued income taxes and reserves for uncertain tax positions	—		1,060		177,253		—			178,313
Current portion of long-term debt	—		—		1,038		—			1,038
Deferred revenue and other current liabilities	—		24,952		176,754		—			201,706
Total current liabilities	2,216		34,946		526,834		—			563,996
Long-term debt	—		1,490,668		4,338		—			1,495,006
Deferred tax liabilities and reserves for uncertain tax positions	10,465		3,989		216,838		—			231,292
Deferred revenue and other noncurrent liabilities	—		653		122,082		—			122,735
Amounts due to affiliates	2,560,781		—		1,538,119		(4,098,900		)	—
Total liabilities	2,573,462		1,530,256		2,408,211		(4,098,900		)	2,413,029
Stockholders' equity	192,009		128,396		2,762,660		(2,891,056		)	192,009
Total liabilities and stockholders' equity	$	2,765,471	$	1,658,652	$	5,170,871	$	(6,989,956	)	$	2,605,038

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of July 31, 2017	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—		$	7,480	$	544,086	$	—		$	551,566
Cash & cash equivalents - restricted	—			8,069		108,525		—			116,594
Receivables, net	16			54,187		36,801		—			91,004
Prepaid expenses and other current assets	—			2,280		72,496		—			74,776
Total current assets	16			72,016		761,908		—			833,940
Property and equipment, net	—			66		253,189		—			253,255
Intangible assets, net	—			—		393,972		—			393,972
Goodwill	—			—		493,991		—			493,991
Deferred tax assets and income taxes receivable	5,587			32,047		16,714		—			54,348
Investments in subsidiaries	2,037,691			—		106,948		(2,144,639		)	—
Amounts due from affiliates	—			1,477,940		2,227,052		(3,704,992		)	—
Other noncurrent assets	—			60,242		42,500		—			102,742
Total assets	$	2,043,294		$	1,642,311	$	4,296,274	$	(5,849,631	)	$	2,132,248
Accounts payable and accrued expenses	$	2,246		$	6,870	$	152,635	$	—		$	161,751
Accrued salaries, wages and payroll taxes	—			1,070		33,993		—			35,063
Accrued income taxes and reserves for uncertain tax positions	—			—		176,909		—			176,909
Current portion of long-term debt	—			—		992		—			992
Deferred revenue and other current liabilities	—			30,412		157,379		—			187,791
Total current liabilities	2,246			38,352		521,908		—			562,506
Long-term debt	—			1,488,046		5,376		—			1,493,422
Deferred tax liabilities and reserves for uncertain tax positions	28,324			8,037		122,872		—			159,233
Deferred revenue and other noncurrent liabilities	—			928		130,487		—			131,415
Amounts due to affiliates	2,227,052			—		1,477,940		(3,704,992		)	—
Total liabilities	2,257,622			1,535,363		2,258,583		(3,704,992		)	2,346,576
Stockholders' equity (deficiency)	(214,328		)	106,948		2,037,691		(2,144,639		)	(214,328		)
Total liabilities and stockholders' equity	$	2,043,294		$	1,642,311	$	4,296,274	$	(5,849,631	)	$	2,132,248

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of April 30, 2018	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	4,346	$	1,540,598	$	—		$	1,544,944
Cash & cash equivalents - restricted	—		—		118,734		—			118,734
Receivables, net	—		51,562		95,212		—			146,774
Income taxes receivable	2,801		—		12,310		(2,801		)	12,310
Prepaid expenses and other current assets	—		1,954		66,997		—			68,951
Total current assets	2,801		57,862		1,833,851		(2,801		)	1,891,713
Property and equipment, net	—		467		231,421		—			231,888
Intangible assets, net	—		—		373,981		—			373,981
Goodwill	—		—		507,871		—			507,871
Deferred tax assets and income taxes receivable	1,400		17,798		14,897		—			34,095
Investments in subsidiaries	2,801,808		—		131,315		(2,933,123		)	—
Amounts due from affiliates	—		1,541,954		2,400,938		(3,942,892		)	—
Other noncurrent assets	—		50,073		51,328		—			101,401
Total assets	$	2,806,009	$	1,668,154	$	5,545,602	$	(6,878,816	)	$	3,140,949
Accounts payable and accrued expenses	$	2,074	$	16,628	$	233,273	$	—		$	251,975
Accrued salaries, wages and payroll taxes	—		1,161		140,338		—			141,499
Accrued income taxes and reserves for uncertain tax positions	—		1,060		264,791		(2,801		)	263,050
Current portion of long-term debt	—		—		1,026		—			1,026
Deferred revenue and other current liabilities	—		22,172		163,929		—			186,101
Total current liabilities	2,074		41,021		803,357		(2,801		)	843,651
Long-term debt	—		1,490,007		4,602		—			1,494,609
Deferred tax liabilities and reserves for uncertain tax positions	9,286		4,963		215,181		—			229,430
Deferred revenue and other noncurrent liabilities	—		848		178,700		—			179,548
Amounts due to affiliates	2,400,938		—		1,541,954		(3,942,892		)	—
Total liabilities	2,412,298		1,536,839		2,743,794		(3,945,693		)	2,747,238
Stockholders' equity	393,711		131,315		2,801,808		(2,933,123		)	393,711
Total liabilities and stockholders' equity	$	2,806,009	$	1,668,154	$	5,545,602	$	(6,878,816	)	$	3,140,949

Schedule of Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2018	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities	$	—		$	(6,335	)	$	(369,228	)	$	—		$	(375,563	)
Cash flows from investing:
Capital expenditures	—			—			(12,057		)	—			(12,057		)
Payments made for business acquisitions, net of cash acquired	—			—			(1,449		)	—			(1,449		)
Franchise loans funded	—			(1,791		)	(14		)	—			(1,805		)
Payments received on franchise loans	—			5,006			98			—			5,104
Intercompany borrowings (payments)	—			2,718			(152,414		)	149,696			—
Other, net	—			(185		)	3,830			—			3,645
Net cash provided by (used in) investing activities	—			5,748			(162,006		)	149,696			(6,562		)
Cash flows from financing:
Dividends paid	(52,104		)	—			—			—			(52,104		)
Repurchase of common stock, including shares surrendered	(101,665		)	—			—			—			(101,665		)
Proceeds from exercise of stock options	1,355			—			—			—			1,355
Intercompany borrowings (payments)	152,414			—			(2,718		)	(149,696		)	—
Other, net	—			—			(17,494		)	—			(17,494		)
Net cash used in financing activities	—			—			(20,212		)	(149,696		)	(169,908		)
Effects of exchange rates on cash	—			—			(1,153		)	—			(1,153		)
Net decrease in cash, cash equivalents and restricted cash	—			(587		)	(552,599		)	—			(553,186		)
Cash, cash equivalents and restricted cash, beginning of period	—			4,346			1,659,332			—			1,663,678
Cash, cash equivalents and restricted cash, end of period	$	—		$	3,759		$	1,106,733		$	—		$	1,110,492

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2017	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities	$	—		$	(9,721	)	$	(399,394	)	$	—		$	(409,115	)
Cash flows from investing:
Capital expenditures	—			(2		)	(13,092		)	—			(13,094		)
Payments made for business acquisitions, net of cash acquired	—			—			(1,440		)	—			(1,440		)
Franchise loans funded	—			(4,527		)	—			—			(4,527		)
Payments received on franchise loans	—			4,524			203			—			4,727
Intercompany borrowings (payments)	—			13,952			(29,995		)	16,043			—
Other, net	—			(1,223		)	2,594			—			1,371
Net cash provided by (used in) investing activities	—			12,724			(41,730		)	16,043			(12,963		)
Cash flows from financing:
Dividends paid	(49,905		)	—			—			—			(49,905		)
Repurchase of common stock, including shares surrendered	(7,508		)	—			—			—			(7,508		)
Proceeds from exercise of stock options	27,418			—			—			—			27,418
Intercompany borrowings (payments)	29,995			—			(13,952		)	(16,043		)	—
Other, net	—			—			2,545			—			2,545
Net cash used in financing activities	—			—			(11,407		)	(16,043		)	(27,450		)
Effects of exchange rates on cash	—			—			149			—			149
Net increase (decrease) in cash, cash equivalents and restricted cash	—			3,003			(452,382		)	—			(449,379		)
Cash, cash equivalents and restricted cash, beginning of period	—			12,546			1,104,993			—			1,117,539
Cash, cash equivalents and restricted cash, end of period	$	—		$	15,549		$	652,611		$	—		$	668,160