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Condensed Consolidating Financial Statements | 3 Months Ended
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Jul. 31, 2017
Condensed Financial Information of Parent Company Only 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 2016 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 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 | )
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS |  | (in 000s) |
Three months ended July 31, 2016 |  | H&R Block, Inc. (Guarantor) |  |  | Block Financial (Issuer) |  |  | Other Subsidiaries |  |  | Eliminations |  |  | Consolidated H&R Block |
Total revenues |  | $ | — |  |  | $ | 15,504 |  |  | $ | 109,800 |  |  | $ | (119 | ) |  | $ | 125,185 |
Cost of revenues |  | — |  |  | 8,606 |  |  | 202,599 |  |  | (119 | ) |  | 211,086 |
Selling, general and administrative |  | — |  |  | 2,480 |  |  | 96,343 |  |  | — |  |  | 98,823 |
Total operating expenses |  | — |  |  | 11,086 |  |  | 298,942 |  |  | (119 | ) |  | 309,909 |
Other income (expense), net |  | (124,662 | ) |  | 826 |  |  | (9,630 | ) |  | 136,107 |  |  | 2,641 |
Interest expense on external borrowings |  | — |  |  | (21,314 | ) |  | (152 | ) |  | — |  |  | (21,466 | )
Loss from continuing operations before tax benefit |  | (124,662 | ) |  | (16,070 | ) |  | (198,924 | ) |  | 136,107 |  |  | (203,549 | )
Income tax benefit |  | (989 | ) |  | (5,794 | ) |  | (75,740 | ) |  | — |  |  | (82,523 | )
Net loss from continuing operations |  | (123,673 | ) |  | (10,276 | ) |  | (123,184 | ) |  | 136,107 |  |  | (121,026 | )
Net loss from discontinued operations |  | — |  |  | (2,646 | ) |  | (1 | ) |  | — |  |  | (2,647 | )
Net loss |  | (123,673 | ) |  | (12,922 | ) |  | (123,185 | ) |  | 136,107 |  |  | (123,673 | )
Other comprehensive loss |  | (3,571 | ) |  | — |  |  | (3,571 | ) |  | 3,571 |  |  | (3,571 | )
Comprehensive loss |  | $ | (127,244 | ) |  | $ | (12,922 | ) |  | $ | (126,756 | ) |  | $ | 139,678 |  |  | $ | (127,244 | )
CONDENSED CONSOLIDATING BALANCE SHEETS |  | (in 000s) |
As of July 31, 2016 |  | H&R Block, Inc. (Guarantor) |  |  | Block Financial (Issuer) |  |  | Other Subsidiaries |  |  | Eliminations |  |  | Consolidated H&R Block |
Cash & cash equivalents |  | $ | — |  |  | $ | 3,902 |  |  | $ | 302,969 |  |  | $ | — |  |  | $ | 306,871 |
Cash & cash equivalents - restricted |  | — |  |  | 29,000 |  |  | 93,025 |  |  | — |  |  | 122,025 |
Receivables, net |  | — |  |  | 72,865 |  |  | 30,560 |  |  | — |  |  | 103,425 |
Prepaid expenses and other current assets |  | — |  |  | 7,114 |  |  | 68,938 |  |  | — |  |  | 76,052 |
Total current assets |  | — |  |  | 112,881 |  |  | 495,492 |  |  | — |  |  | 608,373 |
Mortgage loans held for investment, net |  | — |  |  | 192,375 |  |  | — |  |  | — |  |  | 192,375 |
Property and equipment, net |  | — |  |  | 116 |  |  | 283,998 |  |  | — |  |  | 284,114 |
Intangible assets, net |  | — |  |  | — |  |  | 419,909 |  |  | — |  |  | 419,909 |
Goodwill |  | — |  |  | — |  |  | 470,942 |  |  | — |  |  | 470,942 |
Deferred tax assets and income taxes receivable |  | — |  |  | 60,312 |  |  | 30,186 |  |  | — |  |  | 90,498 |
Investments in subsidiaries |  | 1,611,887 |  |  | — |  |  | 96,216 |  |  | (1,708,103 | ) |  | — |
Amounts due from affiliates |  | — |  |  | 1,282,286 |  |  | 1,794,655 |  |  | (3,076,941 | ) |  | — |
Other noncurrent assets |  | — |  |  | 58,311 |  |  | 39,020 |  |  | — |  |  | 97,331 |
Total assets |  | $ | 1,611,887 |  |  | $ | 1,706,281 |  |  | $ | 3,630,418 |  |  | $ | (4,785,044 | ) |  | $ | 2,163,542 |
Accounts payable and accrued expenses |  | $ | 10,551 |  |  | $ | 7,671 |  |  | $ | 138,863 |  |  | $ | — |  |  | $ | 157,085 |
Accrued salaries, wages and payroll taxes |  | — |  |  | 1,889 |  |  | 41,627 |  |  | — |  |  | 43,516 |
Accrued income taxes and reserves for uncertain tax positions |  | — |  |  | 52,976 |  |  | 163,414 |  |  | — |  |  | 216,390 |
Current portion of long-term debt |  | — |  |  | — |  |  | 864 |  |  | — |  |  | 864 |
Deferred revenue and other current liabilities |  | — |  |  | 52,420 |  |  | 138,884 |  |  | — |  |  | 191,304 |
Total current liabilities |  | 10,551 |  |  | 114,956 |  |  | 483,652 |  |  | — |  |  | 609,159 |
Long-term debt and line of credit borrowings |  | — |  |  | 1,485,426 |  |  | 6,364 |  |  | — |  |  | 1,491,790 |
Reserves for uncertain tax positions |  | 6,488 |  |  | 8,577 |  |  | 101,644 |  |  | — |  |  | 116,709 |
Deferred revenue and other noncurrent liabilities |  | — |  |  | 1,106 |  |  | 144,585 |  |  | — |  |  | 145,691 |
Amounts due to affiliates |  | 1,794,655 |  |  | — |  |  | 1,282,286 |  |  | (3,076,941 | ) |  | — |
Total liabilities |  | 1,811,694 |  |  | 1,610,065 |  |  | 2,018,531 |  |  | (3,076,941 | ) |  | 2,363,349 |
Stockholders' equity (deficiency) |  | (199,807 | ) |  | 96,216 |  |  | 1,611,887 |  |  | (1,708,103 | ) |  | (199,807 | )
Total liabilities and stockholders' equity |  | $ | 1,611,887 |  |  | $ | 1,706,281 |  |  | $ | 3,630,418 |  |  | $ | (4,785,044 | ) |  | $ | 2,163,542 |
CONDENSED CONSOLIDATING BALANCE SHEETS |  | (in 000s) |
As of April 30, 2017 |  | H&R Block, Inc. (Guarantor) |  |  | Block Financial (Issuer) |  |  | Other Subsidiaries |  |  | Eliminations |  |  | Consolidated H&R Block |
Cash & cash equivalents |  | $ | — |  |  | $ | 4,486 |  |  | $ | 1,006,845 |  |  | $ | — |  |  | $ | 1,011,331 |
Cash & cash equivalents - restricted |  | — |  |  | 8,060 |  |  | 98,148 |  |  | — |  |  | 106,208 |
Receivables, net |  | — |  |  | 61,250 |  |  | 101,525 |  |  | — |  |  | 162,775 |
Prepaid expenses and other current assets |  | — |  |  | 2,280 |  |  | 63,445 |  |  | — |  |  | 65,725 |
Total current assets |  | — |  |  | 76,076 |  |  | 1,269,963 |  |  | — |  |  | 1,346,039 |
Property and equipment, net |  | — |  |  | 78 |  |  | 263,749 |  |  | — |  |  | 263,827 |
Intangible assets, net |  | — |  |  | — |  |  | 409,364 |  |  | — |  |  | 409,364 |
Goodwill |  | — |  |  | — |  |  | 491,207 |  |  | — |  |  | 491,207 |
Deferred tax assets and income taxes receivable |  | 5,587 |  |  | 30,743 |  |  | 47,398 |  |  | — |  |  | 83,728 |
Investments in subsidiaries |  | 2,158,234 |  |  | — |  |  | 113,714 |  |  | (2,271,948 | ) |  | — |
Amounts due from affiliates |  | — |  |  | 1,493,195 |  |  | 2,194,294 |  |  | (3,687,489 | ) |  | — |
Other noncurrent assets |  | — |  |  | 51,829 |  |  | 48,114 |  |  | — |  |  | 99,943 |
Total assets |  | $ | 2,163,821 |  |  | $ | 1,651,921 |  |  | $ | 4,837,803 |  |  | $ | (5,959,437 | ) |  | $ | 2,694,108 |
Accounts payable and accrued expenses |  | $ | 2,086 |  |  | $ | 14,218 |  |  | $ | 200,724 |  |  | $ | — |  |  | $ | 217,028 |
Accrued salaries, wages and payroll taxes |  | — |  |  | 851 |  |  | 183,005 |  |  | — |  |  | 183,856 |
Accrued income taxes and reserves for uncertain tax positions |  | — |  |  | — |  |  | 348,199 |  |  | — |  |  | 348,199 |
Current portion of long-term debt |  | — |  |  | — |  |  | 981 |  |  | — |  |  | 981 |
Deferred revenue and other current liabilities |  | — |  |  | 26,759 |  |  | 162,457 |  |  | — |  |  | 189,216 |
Total current liabilities |  | 2,086 |  |  | 41,828 |  |  | 895,366 |  |  | — |  |  | 939,280 |
Long-term debt and line of credit borrowings |  | — |  |  | 1,487,389 |  |  | 5,628 |  |  | — |  |  | 1,493,017 |
Reserves for uncertain tax positions |  | 28,324 |  |  | 8,037 |  |  | 122,724 |  |  | — |  |  | 159,085 |
Deferred revenue and other noncurrent liabilities |  | — |  |  | 953 |  |  | 162,656 |  |  | — |  |  | 163,609 |
Amounts due to affiliates |  | 2,194,294 |  |  | — |  |  | 1,493,195 |  |  | (3,687,489 | ) |  | — |
Total liabilities |  | 2,224,704 |  |  | 1,538,207 |  |  | 2,679,569 |  |  | (3,687,489 | ) |  | 2,754,991 |
Stockholders' equity (deficiency) |  | (60,883 | ) |  | 113,714 |  |  | 2,158,234 |  |  | (2,271,948 | ) |  | (60,883 | )
Total liabilities and stockholders' equity |  | $ | 2,163,821 |  |  | $ | 1,651,921 |  |  | $ | 4,837,803 |  |  | $ | (5,959,437 | ) |  | $ | 2,694,108 |
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 | )
Loans made to franchisees |  | — |  |  | (4,527 | ) |  | — |  |  | — |  |  | (4,527 | )
Repayments from franchisees |  | — |  |  | 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 provided by financing activities |  | — |  |  | — |  |  | (11,407 | ) |  | (16,043 | ) |  | (27,450 | )
Effects of exchange rates on cash |  | — |  |  | — |  |  | 149 |  |  | — |  |  | 149 |
Net 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 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS |  | (in 000s) |
Three months ended July 31, 2016 |  | H&R Block, Inc. (Guarantor) |  |  | Block Financial (Issuer) |  |  | Other Subsidiaries |  |  | Eliminations |  |  | Consolidated H&R Block |
Net cash used in operating activities: |  | $ | — |  |  | $ | (57,943 | ) |  | $ | (400,021 | ) |  | $ | — |  |  | $ | (457,964 | )
Cash flows from investing: |  |  |  |  |  |  |  |  |  |
Principal payments on mortgage loans and sale of real estate owned, net |  | — |  |  | 9,573 |  |  | — |  |  | — |  |  | 9,573 |
Capital expenditures |  | — |  |  | (5 | ) |  | (6,241 | ) |  | — |  |  | (6,246 | )
Payments made for business acquisitions, net of cash acquired |  | — |  |  | — |  |  | (1,635 | ) |  | — |  |  | (1,635 | )
Loans made to franchisees |  | — |  |  | (2,202 | ) |  | (17 | ) |  | — |  |  | (2,219 | )
Repayments from franchisees |  | — |  |  | 6,305 |  |  | 168 |  |  | — |  |  | 6,473 |
Intercompany borrowings (payments) |  | — |  |  | 40,217 |  |  | (92,187 | ) |  | 51,970 |  |  | — |
Other, net |  | — |  |  | (1,072 | ) |  | 204 |  |  | — |  |  | (868 | )
Net cash provided by (used in) investing activities |  | — |  |  | 52,816 |  |  | (99,708 | ) |  | 51,970 |  |  | 5,078 |
Cash flows from financing: |  |  |  |  |  |  |  |  |  |
Dividends paid |  | (48,514 | ) |  | — |  |  | — |  |  | — |  |  | (48,514 | )
Repurchase of common stock, including shares surrendered |  | (45,312 | ) |  | — |  |  | — |  |  | — |  |  | (45,312 | )
Proceeds from exercise of stock options |  | 1,639 |  |  | — |  |  | — |  |  | — |  |  | 1,639 |
Intercompany borrowings (payments) |  | 92,187 |  |  | — |  |  | (40,217 | ) |  | (51,970 | ) |  | — |
Other, net |  | — |  |  | — |  |  | (24,779 | ) |  | — |  |  | (24,779 | )
Net cash used in financing activities |  | — |  |  | — |  |  | (64,996 | ) |  | (51,970 | ) |  | (116,966 | )
Effects of exchange rates on cash |  | — |  |  | — |  |  | (2,163 | ) |  | — |  |  | (2,163 | )
Net decrease in cash, cash equivalents and restricted cash |  | — |  |  | (5,127 | ) |  | (566,888 | ) |  | — |  |  | (572,015 | )
Cash, cash equivalents and restricted cash, beginning of period |  | — |  |  | 38,029 |  |  | 962,882 |  |  | — |  |  | 1,000,911 |
Cash, cash equivalents and restricted cash, end of period |  | $ | — |  |  | $ | 32,902 |  |  | $ | 395,994 |  |  | $ | — |  |  | $ | 428,896 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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