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Condensed Consolidating Financial Statements
 9 Months Ended
Jan. 31, 2019
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 January 31, 2019
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
53,461

 
$
433,144

 
$
(18,221
)
 
$
468,384

Cost of revenues
 
—

 
34,533

 
396,672

 
(10,179
)
 
421,026

Selling, general and administrative
 
—

 
10,347

 
183,153

 
(8,042
)
 
185,458

Total operating expenses
 
—

 
44,880

 
579,825

 
(18,221
)
 
606,484

Other income (expense), net
 
(134,984
)
 
8,903

 
348

 
128,002

 
2,269

Interest expense on external borrowings
 
—

 
(22,833
)
 
—

 
—

 
(22,833
)
Loss from continuing operations before income taxes (benefit)
 
(134,984
)
 
(5,349
)
 
(146,333
)
 
128,002

 
(158,664
)
Income taxes (benefit)
 
(8,530
)
 
75

 
(30,430
)
 
—

 
(38,885
)
Net loss from continuing operations
 
(126,454
)
 
(5,424
)
 
(115,903
)
 
128,002

 
(119,779
)
Net loss from discontinued operations
 
—

 
(6,675
)
 
—

 
—

 
(6,675
)
Net loss
 
(126,454
)
 
(12,099
)
 
(115,903
)
 
128,002

 
(126,454
)
Other comprehensive income
 
1,238

 
—

 
1,238

 
(1,238
)
 
1,238

Comprehensive loss
 
$
(125,216
)
 
$
(12,099
)
 
$
(114,665
)
 
$
126,764

 
$
(125,216
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(in 000s)

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

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
55,795

 
$
449,608

 
$
(16,977
)
 
$
488,426

Cost of revenues
 
—

 
33,805

 
391,772

 
(8,976
)
 
416,601

Selling, general and administrative
 
—

 
10,823

 
166,276

 
(8,001
)
 
169,098

Total operating expenses
 
—

 
44,628

 
558,048

 
(16,977
)
 
585,699

Other income (expense), net
 
(250,732
)
 
7,819

 
(20,071
)
 
264,012

 
1,028

Interest expense on external borrowings
 
—

 
(24,491
)
 
(69
)
 
—

 
(24,560
)
Loss from continuing operations before income taxes (benefit)
 
(250,732
)
 
(5,505
)
 
(128,580
)
 
264,012

 
(120,805
)
Income taxes (benefit)
 
(5,087
)
 
15,600

 
111,607

 
—

 
122,120

Net loss from continuing operations
 
(245,645
)
 
(21,105
)
 
(240,187
)
 
264,012

 
(242,925
)
Net loss from discontinued operations
 
—

 
(2,720
)
 
—

 
—

 
(2,720
)
Net loss
 
(245,645
)
 
(23,825
)
 
(240,187
)
 
264,012

 
(245,645
)
Other comprehensive income
 
4,848

 
—

 
4,848

 
(4,848
)
 
4,848

Comprehensive loss
 
$
(240,797
)
 
$
(23,825
)
 
$
(235,339
)
 
$
259,164

 
$
(240,797
)
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
 
(in 000s)

Nine months ended January 31, 2019
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
81,751

 
$
706,775

 
$
(26,088
)
 
$
762,438

Cost of revenues
 
—

 
46,580

 
859,759

 
(12,938
)
 
893,401

Selling, general and administrative
 
1,476

 
16,444

 
399,747

 
(13,150
)
 
404,517

Total operating expenses
 
1,476

 
63,024

 
1,259,506

 
(26,088
)
 
1,297,918

Other income (expense), net
 
(465,085
)
 
27,748

 
6,498

 
442,114

 
11,275

Interest expense on external borrowings
 
—

 
(65,082
)
 
(132
)
 
—

 
(65,214
)
Loss from continuing operations before income tax benefit
 
(466,561
)
 
(18,607
)
 
(546,365
)
 
442,114

 
(589,419
)
Income tax benefit
 
(11,161
)
 
(5,942
)
 
(132,803
)
 
—

 
(149,906
)
Net loss from continuing operations
 
(455,400
)
 
(12,665
)
 
(413,562
)
 
442,114

 
(439,513
)
Net loss from discontinued operations
 
—

 
(15,887
)
 
—

 
—

 
(15,887
)
Net loss
 
(455,400
)
 
(28,552
)
 
(413,562
)
 
442,114

 
(455,400
)
Other comprehensive loss
 
(3,339
)
 
—

 
(3,339
)
 
3,339

 
(3,339
)
Comprehensive loss
 
$
(458,739
)
 
$
(28,552
)
 
$
(416,901
)
 
$
445,453

 
$
(458,739
)
 
 
 
 
 
 
 
 
 
 
 

 
 
(in 000s)

Nine months ended January 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Total revenues
 
$
—

 
$
85,056

 
$
704,762

 
$
(22,736
)
 
$
767,082

Cost of revenues
 
—

 
46,769

 
846,685

 
(9,119
)
 
884,335

Selling, general and administrative
 
—

 
17,614

 
377,196

 
(13,617
)
 
381,193

Total operating expenses
 
—

 
64,383

 
1,223,881

 
(22,736
)
 
1,265,528

Other income (expense), net
 
(538,995
)
 
20,884

 
(33,710
)
 
555,080

 
3,259

Interest expense on external borrowings
 
—

 
(66,873
)
 
(229
)
 
—

 
(67,102
)
Loss from continuing operations before income taxes (benefit)
 
(538,995
)
 
(25,316
)
 
(553,058
)
 
555,080

 
(562,289
)
Income taxes (benefit)
 
(9,217
)
 
9,987

 
(44,004
)
 
—

 
(43,234
)
Net loss from continuing operations
 
(529,778
)
 
(35,303
)
 
(509,054
)
 
555,080

 
(519,055
)
Net loss from discontinued operations
 
—

 
(10,721
)
 
(2
)
 
—

 
(10,723
)
Net loss
 
(529,778
)
 
(46,024
)
 
(509,056
)
 
555,080

 
(529,778
)
Other comprehensive income
 
5,925

 
—

 
5,925

 
(5,925
)
 
5,925

Comprehensive loss
 
$
(523,853
)
 
$
(46,024
)
 
$
(503,131
)
 
$
549,155

 
$
(523,853
)
 
 
 
 
 
 
 
 
 
 
 

CONDENSED CONSOLIDATING BALANCE SHEETS
 
(in 000s)

As of January 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Cash & cash equivalents
 
$
—

 
$
4,475

 
$
182,891

 
$
—

 
$
187,366

Cash & cash equivalents - restricted
 
—

 
—

 
83,033

 
—

 
83,033

Receivables, net
 
—

 
396,046

 
395,572

 
—

 
791,618

Income taxes receivable
 
3,250

 
—

 
69,525

 
—

 
72,775

Prepaid expenses and other current assets
 
—

 
2,908

 
146,441

 
—

 
149,349

Total current assets
 
3,250

 
403,429

 
877,462

 
—

 
1,284,141

Property and equipment, net
 
—

 
814

 
249,097

 
—

 
249,911

Intangible assets, net
 
—

 
—

 
390,993

 
—

 
390,993

Goodwill
 
—

 
—

 
504,789

 
—

 
504,789

Deferred tax assets and income taxes receivable
 
—

 
20,427

 
4,878

 
—

 
25,305

Investments in subsidiaries
 
1,655,160

 
—

 
67,690

 
(1,722,850
)
 
—

Amounts due from affiliates
 
—

 
1,910,351

 
2,335,670

 
(4,246,021
)
 
—

Other noncurrent assets
 
—

 
66,497

 
39,664

 
—

 
106,161

Total assets
 
$
1,658,410

 
$
2,401,518

 
$
4,470,243

 
$
(5,968,871
)
 
$
2,561,300

 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accrued expenses
 
$
2,516

 
$
15,514

 
$
145,623

 
$
—

 
$
163,653

Accrued salaries, wages and payroll taxes
 
—

 
954

 
134,672

 
—

 
135,626

Accrued income taxes and reserves for uncertain tax positions
 
—

 
—

 
164,246

 
—

 
164,246

Current portion of long-term debt
 
—

 
—

 
1,015

 
—

 
1,015

Deferred revenue and other current liabilities
 
—

 
29,052

 
172,936

 
—

 
201,988

Total current liabilities
 
2,516

 
45,520

 
618,492

 
—

 
666,528

Long-term debt and line of credit borrowings
 
—

 
2,279,368

 
4,863

 
—

 
2,284,231

Deferred tax liabilities and reserves for uncertain tax positions
 
18,293

 
8,037

 
175,054

 
—

 
201,384

Deferred revenue and other noncurrent liabilities
 
—

 
903

 
106,323

 
—

 
107,226

Amounts due to affiliates
 
2,335,670

 
—

 
1,910,351

 
(4,246,021
)
 
—

Total liabilities
 
2,356,479

 
2,333,828

 
2,815,083

 
(4,246,021
)
 
3,259,369

Stockholders' equity (deficiency)
 
(698,069
)
 
67,690

 
1,655,160

 
(1,722,850
)
 
(698,069
)
Total liabilities and stockholders' equity
 
$
1,658,410

 
$
2,401,518

 
$
4,470,243

 
$
(5,968,871
)
 
$
2,561,300

 
 
 
 
 
 
 
 
 
 
 




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)

Nine months ended January 31, 2019
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash used in operating activities
 
$
—

 
$
(359,101
)
 
$
(988,355
)
 
$
—

 
$
(1,347,456
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(166
)
 
(79,816
)
 
—

 
(79,982
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(42,428
)
 
—

 
(42,428
)
Franchise loans funded
 
—

 
(16,198
)
 
(677
)
 
—

 
(16,875
)
Payments received on franchise loans
 
—

 
14,834

 
315

 
—

 
15,149

Intercompany borrowings (payments)
 
—

 
(18,579
)
 
(254,491
)
 
273,070

 
—

Other, net
 
—

 
(4,746
)
 
9,623

 
—

 
4,877

Net cash used in investing activities
 
—

 
(24,855
)
 
(367,474
)
 
273,070

 
(119,259
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Repayments of line of credit borrowings
 
—

 
(230,000
)
 
—

 
—

 
(230,000
)
Proceeds from line of credit borrowings
 
—

 
615,000

 
—

 
—

 
615,000

Dividends paid
 
(154,866
)
 
—

 
—

 
—

 
(154,866
)
Repurchase of common stock, including shares surrendered
 
(102,152
)
 
—

 
—

 
—

 
(102,152
)
Proceeds from exercise of stock options
 
2,527

 
—

 
—

 
—

 
2,527

Intercompany borrowings (payments)
 
254,491

 
—

 
18,579

 
(273,070
)
 
—

Other, net
 
—

 
(668
)
 
(19,458
)
 
—

 
(20,126
)
Net cash provided by (used in) financing activities
 
—

 
384,332

 
(879
)
 
(273,070
)
 
110,383

Effects of exchange rates on cash
 
—

 
—

 
(2,217
)
 
—

 
(2,217
)
Net increase (decrease) in cash, cash equivalents and restricted cash
 
—

 
376

 
(1,358,925
)
 
—

 
(1,358,549
)
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
 
$
—

 
$
4,722

 
$
300,407

 
$
—

 
$
305,129

 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
 
(in 000s)

Nine months ended January 31, 2018
 
H&R Block, Inc.
(Guarantor)

 
Block Financial
(Issuer)

 
Other
Subsidiaries

 
Eliminations

 
Consolidated
H&R Block

Net cash used in operating activities
 
$
—

 
$
(353,081
)
 
$
(1,004,620
)
 
$
—

 
$
(1,357,701
)
Cash flows from investing:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(794
)
 
(77,071
)
 
—

 
(77,865
)
Payments made for business acquisitions, net of cash acquired
 
—

 
—

 
(39,397
)
 
—

 
(39,397
)
Franchise loans funded
 
—

 
(20,080
)
 
(146
)
 
—

 
(20,226
)
Payments received on franchise loans
 
—

 
13,058

 
333

 
—

 
13,391

Intercompany borrowings (payments)
 
—

 
(427,473
)
 
(129,736
)
 
557,209

 
—

Other, net
 
—

 
(9,039
)
 
10,563

 
—

 
1,524

Net cash used in investing activities
 
—

 
(444,328
)
 
(235,454
)
 
557,209

 
(122,573
)
Cash flows from financing:
 
 
 
 
 
 
 
 
 
 
Repayments of line of credit borrowings
 
—

 
(40,000
)
 
—

 
—

 
(40,000
)
Proceeds from line of credit borrowings
 
—

 
830,000

 
—

 
—

 
830,000

Dividends paid
 
(150,258
)
 
—

 
—

 
—

 
(150,258
)
Repurchase of common stock, including shares surrendered
 
(7,746
)
 
—

 
—

 
—

 
(7,746
)
Proceeds from exercise of stock options
 
28,268

 
—

 
—

 
—

 
28,268

Intercompany borrowings (payments)
 
129,736

 
—

 
427,473

 
(557,209
)
 
—

Other, net
 
—

 
(662
)
 
(28,260
)
 
—

 
(28,922
)
Net cash provided by financing activities
 
—

 
789,338

 
399,213

 
(557,209
)
 
631,342

Effects of exchange rates on cash
 
—

 
—

 
1,792

 
—

 
1,792

Net decrease in cash, cash equivalents and restricted cash
 
—

 
(8,071
)
 
(839,069
)
 
—

 
(847,140
)
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
 
$
—

 
$
4,475

 
$
265,924

 
$
—

 
$
270,399