Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Jul. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule Of Condensed Consolidating Statements Of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS													(in 000s)
Three months ended July 31, 2019	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Total revenues	$	—		$	16,534		$	137,059		$	(3,231	)	$	150,362
Cost of revenues	—			5,216			224,698			(522		)	229,392
Selling, general and administrative	—			2,897			115,948			(2,709		)	116,136
Total operating expenses	—			8,113			340,646			(3,231		)	345,528
Other income (expense), net	(151,752		)	10,497			13,868			136,510			9,123
Interest expense on external borrowings	—			(21,056		)	(15		)	—			(21,071		)
Loss from continuing operations before income tax benefit	(151,752		)	(2,138		)	(189,734		)	136,510			(207,114		)
Income tax benefit	(1,505		)	(178		)	(59,707		)	—			(61,390		)
Net loss from continuing operations	(150,247		)	(1,960		)	(130,027		)	136,510			(145,724		)
Net loss from discontinued operations	—			(4,523		)	—			—			(4,523		)
Net loss	(150,247		)	(6,483		)	(130,027		)	136,510			(150,247		)
Other comprehensive loss	(2,320		)	—			(2,320		)	2,320			(2,320		)
Comprehensive loss	$	(152,567	)	$	(6,483	)	$	(132,347	)	$	138,830		$	(152,567	)

													(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	)

Schedule Of Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS										(in 000s)
As of July 31, 2019	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	4,641	$	603,027	$	—		$	607,668
Cash & cash equivalents - restricted	—		—		157,786		—			157,786
Receivables, net	—		26,392		49,736		—			76,128
Prepaid expenses and other current assets	2,811		1,682		100,630		—			105,123
Total current assets	2,811		32,715		911,179		—			946,705
Property and equipment, net	—		470		199,209		—			199,679
Operating lease right of use asset	—		334		485,813		—			486,147
Intangible assets, net	—		—		419,391		—			419,391
Goodwill	—		—		821,278		—			821,278
Deferred tax assets and income taxes receivable	464		15,953		125,999		—			142,416
Investments in subsidiaries	3,245,662		—		131,249		(3,376,911		)	—
Amounts due from affiliates	—		1,547,959		2,914,289		(4,462,248		)	—
Other noncurrent assets	—		62,455		31,929		—			94,384
Total assets	$	3,248,937	$	1,659,886	$	6,040,336	$	(7,839,159	)	$	3,110,000
Accounts payable and accrued expenses	19,221		6,093		96,842		—			122,156
Accrued salaries, wages and payroll taxes	—		1,787		46,379		—			48,166
Accrued income taxes and reserves for uncertain tax positions	—		1,060		181,868		—			182,928
Operating lease liabilities	—		134		186,221		—			186,355
Deferred revenue and other current liabilities	—		23,861		169,503		—			193,364
Total current liabilities	19,221		32,935		680,813		—			732,969
Long-term debt	—		1,493,289		—		—			1,493,289
Deferred tax liabilities and reserves for uncertain tax positions	24,623		1,486		173,605		—			199,714
Operating lease liabilities	—		187		292,631		—			292,818
Deferred revenue and other noncurrent liabilities	—		740		99,666		—			100,406
Amounts due to affiliates	2,914,289		—		1,547,959		(4,462,248		)	—
Total liabilities	2,958,133		1,528,637		2,794,674		(4,462,248		)	2,819,196
Stockholders' equity	290,804		131,249		3,245,662		(3,376,911		)	290,804
Total liabilities and stockholders' equity	$	3,248,937	$	1,659,886	$	6,040,336	$	(7,839,159	)	$	3,110,000

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
Prepaid expenses and other current assets	2,811		1,954		96,290		—			101,055
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
Deferred revenue and other current liabilities	—		24,952		177,792		—			202,744
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 April 30, 2019	H&R Block, Inc. (Guarantor)		Block Financial (Issuer)		Other Subsidiaries		Eliminations			Consolidated H&R Block
Cash & cash equivalents	$	—	$	4,109	$	1,568,041	$	—		$	1,572,150
Cash & cash equivalents - restricted	—		—		135,577		—			135,577
Receivables, net	—		35,901		103,064		—			138,965
Prepaid expenses and other current assets	2,812		1,695		142,160		—			146,667
Total current assets	2,812		41,705		1,948,842		—			1,993,359
Property and equipment, net	—		552		211,540		—			212,092
Intangible assets, net	—		—		342,493		—			342,493
Goodwill	—		—		519,937		—			519,937
Deferred tax assets and income taxes receivable	3,218		15,953		122,808		—			141,979
Investments in subsidiaries	3,378,009		—		137,733		(3,515,742		)	—
Amounts due from affiliates	—		1,562,958		2,815,617		(4,378,575		)	—
Other noncurrent assets	—		54,976		35,109		—			90,085
Total assets	$	3,384,039	$	1,676,144	$	6,134,079	$	(7,894,317	)	$	3,299,945
Accounts payable and accrued expenses	$	2,272	$	19,735	$	227,518	$	—		$	249,525
Accrued salaries, wages and payroll taxes	—		1,564		194,963		—			196,527
Accrued income taxes and reserves for uncertain tax positions	—		1,060		270,913		—			271,973
Deferred revenue and other current liabilities	—		21,144		183,832		—			204,976
Total current liabilities	2,272		43,503		877,226		—			923,001
Long-term debt	—		1,492,629		—		—			1,492,629
Deferred tax liabilities and reserves for uncertain tax positions	24,623		1,486		171,797		—			197,906
Deferred revenue and other noncurrent liabilities	—		793		144,089		—			144,882
Amounts due to affiliates	2,815,617		—		1,562,958		(4,378,575		)	—
Total liabilities	2,842,512		1,538,411		2,756,070		(4,378,575		)	2,758,418
Stockholders' equity	541,527		137,733		3,378,009		(3,515,742		)	541,527
Total liabilities and stockholders' equity	$	3,384,039	$	1,676,144	$	6,134,079	$	(7,894,317	)	$	3,299,945

Schedule of Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS													(in 000s)
Three months ended July 31, 2019	H&R Block, Inc. (Guarantor)			Block Financial (Issuer)			Other Subsidiaries			Eliminations			Consolidated H&R Block
Net cash used in operating activities	$	—		$	(13,442	)	$	(470,387	)	$	—		$	(483,829	)
Cash flows from investing:
Capital expenditures	—			—			(15,181		)	—			(15,181		)
Payments made for business acquisitions, net of cash acquired	—			—			(394,411		)	—			(394,411		)
Franchise loans funded	—			(2,689		)	(117		)	—			(2,806		)
Payments from franchisees	—			2,352			295			—			2,647
Intercompany borrowings (payments)	—			14,999			(87,762		)	72,763			—
Other, net	—			(688		)	51,632			—			50,944
Net cash provided by (used in) investing activities	—			13,974			(445,544		)	72,763			(358,807		)
Cash flows from financing:
Dividends paid	(52,512		)	—			—			—			(52,512		)
Repurchase of common stock, including shares surrendered	(36,456		)	—			—			—			(36,456		)
Proceeds from exercise of stock options	1,206			—			—			—			1,206
Intercompany borrowings (payments)	87,762			—			(14,999		)	(72,763		)	—
Other, net	—			—			(12,431		)	—			(12,431		)
Net cash used in financing activities	—			—			(27,430		)	(72,763		)	(100,193		)
Effects of exchange rates on cash	—			—			556			—			556
Net increase (decrease) in cash, including restricted balances	—			532			(942,805		)	—			(942,273		)
Cash, cash equivalents and restricted cash, beginning of period	—			4,109			1,703,618			—			1,707,727
Cash, cash equivalents and restricted cash, end of period	$	—		$	4,641		$	760,813		$	—		$	765,454

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 from franchisees	—			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, including restricted balances	—			(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