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Condensed Consolidating Financial Statements
 6 Months Ended
Oct. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Statements
NOTE 11: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Block Financial LLC (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 2018 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 STATEMENTS OF OPERATIONS
 
(in 000s)

Three months ended October 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
11,458

 
$
142,154

 
$
(4,741
)
 
$
148,871

Cost of revenues
 
—

 
7,014

 
245,969

 
(2,168
)
 
250,815

Selling, general and administrative
 
1,476

 
2,847

 
111,569

 
(2,573
)
 
113,319

Total operating expenses
 
1,476

 
9,861

 
357,538

 
(4,741
)
 
364,134

Other income (expense), net
 
(176,485
)
 
9,018

 
(898
)
 
172,829

 
4,464

Interest expense on external borrowings
 
—

 
(21,126
)
 
(65
)
 
—

 
(21,191
)
Loss from continuing operations before income tax benefit
 
(177,961
)
 
(10,511
)
 
(216,347
)
 
172,829

 
(231,990
)
Income tax benefit
 
(1,685
)
 
(2,316
)
 
(57,052
)
 
—

 
(61,053
)
Net loss from continuing operations
 
(176,276
)
 
(8,195
)
 
(159,295
)
 
172,829

 
(170,937
)
Net loss from discontinued operations
 
—

 
(5,339
)
 
—

 
—

 
(5,339
)
Net loss
 
(176,276
)
 
(13,534
)
 
(159,295
)
 
172,829

 
(176,276
)
Other comprehensive loss
 
(2,846
)
 
—

 
(2,846
)
 
2,846

 
(2,846
)
Comprehensive loss
 
$
(179,122
)
 
$
(13,534
)
 
$
(162,141
)
 
$
175,675

 
$
(179,122
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(in 000s)

Three months ended October 31, 2017
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
11,705

 
$
132,060

 
$
(2,911
)
 
$
140,854

Cost of revenues
 
—

 
5,104

 
234,943

 
(28
)
 
240,019

Selling, general and administrative
 
—

 
3,585

 
116,144

 
(2,883
)
 
116,846

Total operating expenses
 
—

 
8,689

 
351,087

 
(2,911
)
 
356,865

Other income (expense), net
 
(155,999
)
 
6,992

 
(11,221
)
 
161,239

 
1,011

Interest expense on external borrowings
 
—

 
(21,178
)
 
(87
)
 
—

 
(21,265
)
Loss from continuing operations before tax benefit
 
(155,999
)
 
(11,170
)
 
(230,335
)
 
161,239

 
(236,265
)
Income tax benefit
 
(2,433
)
 
(990
)
 
(84,530
)
 
—

 
(87,953
)
Net loss from continuing operations
 
(153,566
)
 
(10,180
)
 
(145,805
)
 
161,239

 
(148,312
)
Net loss from discontinued operations
 
—

 
(5,253
)
 
(1
)
 
—

 
(5,254
)
Net loss
 
(153,566
)
 
(15,433
)
 
(145,806
)
 
161,239

 
(153,566
)
Other comprehensive loss
 
(1,385
)
 
—

 
(1,385
)
 
1,385

 
(1,385
)
Comprehensive loss
 
$
(154,951
)
 
$
(15,433
)
 
$
(147,191
)
 
$
162,624

 
$
(154,951
)
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
 
(in 000s)

Six months ended October 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
28,290

 
$
273,631

 
$
(7,867
)
 
$
294,054

Cost of revenues
 
—

 
12,047

 
463,087

 
(2,759
)
 
472,375

Selling, general and administrative
 
1,476

 
6,097

 
216,594

 
(5,108
)
 
219,059

Total operating expenses
 
1,476

 
18,144

 
679,681

 
(7,867
)
 
691,434

Other income (expense), net
 
(330,101
)
 
18,845

 
6,150

 
314,112

 
9,006

Interest expense on external borrowings
 
—

 
(42,249
)
 
(132
)
 
—

 
(42,381
)
Loss from continuing operations before income tax benefit
 
(331,577
)
 
(13,258
)
 
(400,032
)
 
314,112

 
(430,755
)
Income tax benefit
 
(2,631
)
 
(6,017
)
 
(102,373
)
 
—

 
(111,021
)
Net loss from continuing operations
 
(328,946
)
 
(7,241
)
 
(297,659
)
 
314,112

 
(319,734
)
Net loss from discontinued operations
 
—

 
(9,212
)
 
—

 
—

 
(9,212
)
Net loss
 
(328,946
)
 
(16,453
)
 
(297,659
)
 
314,112

 
(328,946
)
Other comprehensive loss
 
(4,577
)
 
—

 
(4,577
)
 
4,577

 
(4,577
)
Comprehensive loss
 
$
(333,523
)
 
$
(16,453
)
 
$
(302,236
)
 
$
318,689

 
$
(333,523
)
 
 
 
 
 
 
 
 
 
 
 

 
 
(in 000s)

Six months ended October 31, 2017
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
29,261

 
$
255,154

 
$
(5,759
)
 
$
278,656

Cost of revenues
 
—

 
12,964

 
454,913

 
(143
)
 
467,734

Selling, general and administrative
 
—

 
6,791

 
210,920

 
(5,616
)
 
212,095

Total operating expenses
 
—

 
19,755

 
665,833

 
(5,759
)
 
679,829

Other income (expense), net
 
(288,263
)
 
13,065

 
(13,639
)
 
291,068

 
2,231

Interest expense on external borrowings
 
—

 
(42,382
)
 
(160
)
 
—

 
(42,542
)
Loss from continuing operations before tax benefit
 
(288,263
)
 
(19,811
)
 
(424,478
)
 
291,068

 
(441,484
)
Income tax benefit
 
(4,130
)
 
(5,613
)
 
(155,611
)
 
—

 
(165,354
)
Net loss from continuing operations
 
(284,133
)
 
(14,198
)
 
(268,867
)
 
291,068

 
(276,130
)
Net loss from discontinued operations
 
—

 
(8,001
)
 
(2
)
 
—

 
(8,003
)
Net loss
 
(284,133
)
 
(22,199
)
 
(268,869
)
 
291,068

 
(284,133
)
Other comprehensive income
 
1,077

 
—

 
1,077

 
(1,077
)
 
1,077

Comprehensive loss
 
$
(283,056
)
 
$
(22,199
)
 
$
(267,792
)
 
$
289,991

 
$
(283,056
)
 
 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING BALANCE SHEETS
 
(in 000s)

As of October 31, 2017
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Cash & cash equivalents
 
$
—

 
$
4,321

 
$
176,676

 
$
—

 
$
180,997

Cash & cash equivalents - restricted
 
—

 
8,083

 
92,582

 
—

 
100,665

Receivables, net
 
—

 
54,006

 
23,744

 
—

 
77,750

Prepaid expenses and other current assets
 
—

 
4,205

 
80,999

 
—

 
85,204

Total current assets
 
—

 
70,615

 
374,001

 
—

 
444,616

Property and equipment, net
 
—

 
56

 
262,170

 
—

 
262,226

Intangible assets, net
 
—

 
—

 
406,440

 
—

 
406,440

Goodwill
 
—

 
—

 
493,059

 
—

 
493,059

Deferred tax assets and income taxes receivable
 
7,463

 
25,453

 
—

 
(23,711
)
 
9,205

Investments in subsidiaries
 
1,890,500

 
—

 
91,515

 
(1,982,015
)
 
—

Amounts due from affiliates
 
—

 
1,467,742

 
2,290,036

 
(3,757,778
)
 
—

Other noncurrent assets
 
—

 
62,046

 
38,969

 
—

 
101,015

Total assets
 
$
1,897,963

 
$
1,625,912

 
$
3,956,190

 
$
(5,763,504
)
 
$
1,716,561

 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
 
$
2,407

 
$
9,334

 
$
103,134

 
$
—

 
$
114,875

Accrued salaries, wages and payroll taxes
 
—

 
1,432

 
41,465

 
—

 
42,897

Accrued income taxes and reserves for uncertain tax positions
 
—

 
—

 
43,879

 
—

 
43,879

Current portion of long-term debt
 
—

 
—

 
1,004

 
—

 
1,004

Deferred revenue and other current liabilities
 
—

 
25,977

 
164,545

 
—

 
190,522

Total current liabilities
 
2,407

 
36,743

 
354,027

 
—

 
393,177

Long-term debt
 
—

 
1,488,707

 
5,121

 
—

 
1,493,828

Reserves for uncertain tax positions
 
18,293

 
8,037

 
135,405

 
(23,711
)
 
138,024

Deferred revenue and other noncurrent liabilities
 
—

 
910

 
103,395

 
—

 
104,305

Amounts due to affiliates
 
2,290,036

 
—

 
1,467,742

 
(3,757,778
)
 
—

Total liabilities
 
2,310,736

 
1,534,397

 
2,065,690

 
(3,781,489
)
 
2,129,334

Stockholders' equity (deficiency)
 
(412,773
)
 
91,515

 
1,890,500

 
(1,982,015
)
 
(412,773
)
Total liabilities and stockholders' equity
 
$
1,897,963

 
$
1,625,912

 
$
3,956,190

 
$
(5,763,504
)
 
$
1,716,561

 
 
 
 
 
 
 
 
 
 
 




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

 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
(in 000s)

Six months ended October 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash used in operating activities
 
$
—

 
$
(22,827
)
 
$
(604,864
)
 
$
—

 
$
(627,691
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(164
)
 
(66,258
)
 
—

 
(66,422
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(24,549
)
 
—

 
(24,549
)
Franchise loans funded
 
—

 
(8,740
)
 
(175
)
 
—

 
(8,915
)
Payments received on franchise loans
 
—

 
11,442

 
247

 
—

 
11,689

Intercompany borrowings (payments)
 
—

 
20,819

 
(203,834
)
 
183,015

 
—

Other, net
 
—

 
209

 
4,784

 
—

 
4,993

Net cash provided by (used in) investing activities
 
—

 
23,566

 
(289,785
)
 
183,015

 
(83,204
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Dividends paid
 
(103,484
)
 
—

 
—

 
—

 
(103,484
)
Repurchase of common stock, including shares surrendered
 
(102,096
)
 
—

 
—

 
—

 
(102,096
)
Proceeds from exercise of stock options
 
1,746

 
—

 
—

 
—

 
1,746

Intercompany borrowings (payments)
 
203,834

 
—

 
(20,819
)
 
(183,015
)
 
—

Other, net
 
—

 
(668
)
 
(21,766
)
 
—

 
(22,434
)
Net cash used in financing activities
 
—

 
(668
)
 
(42,585
)
 
(183,015
)
 
(226,268
)
Effects of exchange rates on cash
 
—

 
—

 
(3,209
)
 
—

 
(3,209
)
Net increase (decrease) in cash, cash equivalents and restricted cash
 
—

 
71

 
(940,443
)
 
—

 
(940,372
)
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
 
$
—

 
$
4,417

 
$
718,889

 
$
—

 
$
723,306

 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
(in 000s)

Six months ended October 31, 2017
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash used in operating activities
 
$
—

 
$
(17,827
)
 
$
(630,630
)
 
$
—

 
$
(648,457
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(10
)
 
(56,740
)
 
—

 
(56,750
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(27,522
)
 
—

 
(27,522
)
Franchise loans funded
 
—

 
(10,885
)
 
(54
)
 
—

 
(10,939
)
Payments received on franchise loans
 
—

 
10,077

 
245

 
—

 
10,322

Intercompany borrowings (payments)
 
—

 
20,163

 
(80,141
)
 
59,978

 
—

Other, net
 
—

 
(998
)
 
6,472

 
—

 
5,474

Net cash provided by (used in) investing activities
 
—

 
18,347

 
(157,740
)
 
59,978

 
(79,415
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Dividends paid
 
(100,082
)
 
—

 
—

 
—

 
(100,082
)
Repurchase of common stock, including shares surrendered
 
(7,581
)
 
—

 
—

 
—

 
(7,581
)
Proceeds from exercise of stock options
 
27,522

 
—

 
—

 
—

 
27,522

Intercompany borrowings (payments)
 
80,141

 
—

 
(20,163
)
 
(59,978
)
 
—

Other, net
 
—

 
(662
)
 
(26,055
)
 
—

 
(26,717
)
Net cash used in financing activities
 
—

 
(662
)
 
(46,218
)
 
(59,978
)
 
(106,858
)
Effects of exchange rates on cash
 
—

 
—

 
(1,147
)
 
—

 
(1,147
)
Net decrease in cash, cash equivalents and restricted cash
 
—

 
(142
)
 
(835,735
)
 
—

 
(835,877
)
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
 
$
—

 
$
12,404

 
$
269,258

 
$
—

 
$
281,662