Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Jan. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule Of Condensed Consolidating Statements Of Operations

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	)

Schedule Of Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS											(in 000s)
As of January 31, 2019	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—		$	4,722	$	198,504	$	—		$	203,226
Cash & cash equivalents - restricted	—			—		101,903		—			101,903
Receivables, net	—			392,257		365,960		—			758,217
Income taxes receivable	2,811			—		33,675		—			36,486
Prepaid expenses and other current assets	—			2,637		132,183		—			134,820
Total current assets	2,811			399,616		832,225		—			1,234,652
Property and equipment, net	—			466		220,039		—			220,505
Intangible assets, net	—			—		356,952		—			356,952
Goodwill	—			—		520,005		—			520,005
Deferred tax assets and income taxes receivable	1,794			17,941		121,631		—			141,366
Investments in subsidiaries	2,485,857			—		102,763		(2,588,620		)	—
Amounts due from affiliates	—			1,559,416		2,679,945		(4,239,361		)	—
Other noncurrent assets	—			57,230		38,096		—			95,326
Total assets	$	2,490,462		$	2,034,669	$	4,871,656	$	(6,827,981	)	$	2,568,806
Accounts payable and accrued expenses	$	14,823		$	18,475	$	168,803	$	—		$	202,101
Accrued salaries, wages and payroll taxes	—			1,333		139,569		—			140,902
Accrued income taxes and reserves for uncertain tax positions	—			1,060		47,949		—			49,009
Deferred revenue and other current liabilities	—			28,441		167,193		—			195,634
Total current liabilities	14,823			49,309		523,514		—			587,646
Long-term debt and line of credit borrowings	—			1,876,989		—		—			1,876,989
Deferred tax liabilities and reserves for uncertain tax positions	9,285			3,989		200,943		—			214,217
Deferred revenue and other noncurrent liabilities	—			1,619		101,926		—			103,545
Amounts due to affiliates	2,679,945			—		1,559,416		(4,239,361		)	—
Total liabilities	2,704,053			1,931,906		2,385,799		(4,239,361		)	2,782,397
Stockholders' equity (deficiency)	(213,591		)	102,763		2,485,857		(2,588,620		)	(213,591		)
Total liabilities and stockholders' equity	$	2,490,462		$	2,034,669	$	4,871,656	$	(6,827,981	)	$	2,568,806

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

Schedule of Condensed Consolidating Statements of Cash Flows

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