Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Jan. 31, 2014 | Feb. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'H&R BLOCK INC | ' |
Entity Central Index Key | '0000012659 | ' |
Current Fiscal Year End Date | '--04-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 274,217,420 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and cash equivalents | $437,404 | $1,747,584 | $418,385 |
Cash and cash equivalents — restricted | 44,855 | 117,837 | 37,958 |
Receivables, less allowance for doubtful accounts of $42,716, $44,829 and $50,399 | 677,221 | 206,835 | 949,160 |
Prepaid expenses and other current assets | 345,231 | 390,087 | 331,046 |
Total current assets | 1,504,711 | 2,462,343 | 1,736,549 |
Mortgage loans held for investment, less allowance for loan losses of $11,563, $17,256 and $14,314 | 282,149 | 338,789 | 357,887 |
Investments in available-for-sale securities | 443,770 | 486,876 | 396,312 |
Property and equipment, at cost less accumulated depreciation and amortization of $469,733, $510,052 and $420,318 | 314,565 | 267,880 | 273,450 |
Intangible assets, net | 318,719 | 284,439 | 288,238 |
Goodwill | 437,386 | 434,782 | 435,256 |
Other assets | 213,987 | 262,670 | 444,804 |
Total assets | 3,515,287 | 4,537,779 | 3,932,496 |
Commercial Paper | 194,984 | 0 | 424,967 |
LIABILITIES: | ' | ' | ' |
Customer banking deposits | 806,887 | 936,464 | 1,036,968 |
Accounts payable, accrued expenses and other current liabilities | 520,121 | 523,921 | 479,660 |
Accrued salaries, wages and payroll taxes | 108,583 | 134,970 | 103,538 |
Accrued income taxes | 23,375 | 416,128 | 17,348 |
Current portion of long-term debt | 400,570 | 722 | 713 |
Total current liabilities | 2,054,520 | 2,012,205 | 2,063,194 |
Long-term debt | 505,959 | 905,958 | 906,012 |
Other noncurrent liabilities | 268,049 | 356,069 | 328,402 |
Total liabilities | 2,828,528 | 3,274,232 | 3,297,608 |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' |
STOCKHOLDERS’ EQUITY: | ' | ' | ' |
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 316,628,110 | 3,166 | 3,166 | 3,166 |
Convertible preferred stock, no par, stated value $0.01 per share, 500,000 shares authorized | ' | ' | ' |
Additional paid-in capital | 762,102 | 752,483 | 747,398 |
Accumulated other comprehensive income (loss) | -4,776 | 10,550 | 9,055 |
Retained earnings | 734,233 | 1,333,445 | 723,676 |
Less treasury shares, at cost | -807,966 | -836,097 | -848,407 |
Total stockholders’ equity | 686,759 | 1,263,547 | 634,888 |
Total liabilities and stockholders’ equity | $3,515,287 | $4,537,779 | $3,932,496 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | $42,716 | $50,399 | $44,829 |
Allowance for loan losses | 11,563 | 14,314 | 17,256 |
Accumulated depreciation and amortization | $469,733 | $420,318 | $510,052 |
Common stock, no par value | $0 | $0 | $0 |
Common stock, stated value per share | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 | 800,000,000 |
Common stock, shares issued | 316,628,110 | 316,628,110 | 316,628,110 |
Convertible preferred stock, stated value per share | $0.01 | $0.01 | $0.01 |
Convertible preferred stock, shares authorized | 500,000 | 500,000 | 500,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income And Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
REVENUES: | ' | ' | ' | ' |
Service revenues | $138,613 | $362,194 | $358,845 | $558,528 |
Product and other revenues | 23,788 | 71,485 | 43,268 | 89,171 |
Interest income | 37,369 | 38,300 | 59,192 | 58,032 |
Total revenues | 199,770 | 471,979 | 461,305 | 705,731 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Compensation and benefits | 160,830 | 160,081 | 267,668 | 254,430 |
Occupancy and equipment | 88,387 | 84,710 | 249,481 | 247,059 |
Provision for bad debt and loan losses | 31,420 | 43,028 | 45,760 | 51,398 |
Interest | 14,443 | 19,428 | 43,203 | 64,895 |
Depreciation of property and equipment | 23,054 | 18,381 | 60,002 | 49,111 |
Other | 45,403 | 51,990 | 128,340 | 116,160 |
Cost of revenues | 363,537 | 377,618 | 794,454 | 783,053 |
Total expenses | 537,985 | 564,615 | 1,159,691 | 1,135,855 |
Selling, general and administrative | 174,448 | 186,997 | 365,237 | 352,802 |
Operating loss | -338,215 | -92,636 | -698,386 | -430,124 |
Other income (expense), net | -9,610 | -3,632 | -13,295 | 2,299 |
Loss from continuing operations before income tax benefit | -347,825 | -96,268 | -711,681 | -427,825 |
Income tax benefit | -135,074 | -79,353 | -282,645 | -204,061 |
Net loss from continuing operations | -212,751 | -16,915 | -429,036 | -223,764 |
Net loss from discontinued operations | -1,960 | -793 | -5,805 | -6,628 |
NET LOSS | -214,711 | -17,708 | -434,841 | -230,392 |
BASIC AND DILUTED LOSS PER SHARE: | ' | ' | ' | ' |
Continuing operations (in usd per share) | ($0.78) | ($0.06) | ($1.57) | ($0.82) |
Discontinued operations (in usd per share) | $0 | ($0.01) | ($0.02) | ($0.02) |
Consolidated (in usd per share) | ($0.78) | ($0.07) | ($1.59) | ($0.84) |
DIVIDENDS PER SHARE (in usd per share) | $0.20 | $0.20 | $0.60 | $0.60 |
COMPREHENSIVE INCOME (LOSS): | ' | ' | ' | ' |
Net loss | -214,711 | -17,708 | -434,841 | -230,392 |
Unrealized gains (losses) on available-for-sale securities, net of taxes: | ' | ' | ' | ' |
Unrealized holding losses arising during the period, net of tax benefit of $(1,869), $(405), $(6,206) and $(122) | -2,926 | -605 | -9,503 | -248 |
Reclassification adjustment for gains included in income, net of taxes of $ -, $ - , $ - and $71 | 0 | 0 | 0 | -104 |
Change in foreign currency translation adjustments | -3,313 | 975 | -5,823 | -2,738 |
Other comprehensive income (loss) | -6,239 | 370 | -15,326 | -3,090 |
Comprehensive loss | ($220,950) | ($17,338) | ($450,167) | ($233,482) |
Consolidated_Statements_Of_Inc1
Consolidated Statements Of Income And Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Tax effect of unrealized holding gains (losses) arising during the year | ($1,869) | ($405) | ($6,206) | ($122) |
Tax effect of reclassification adjustment for gains included in income | $0 | $0 | $0 | $71 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Proceeds from Collection of Notes Receivable | $64,865 | $0 |
NET CASH USED IN OPERATING ACTIVITIES | -1,120,322 | -1,311,926 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of available-for-sale securities | -45,158 | -108,351 |
Maturities of and payments received on available-for-sale securities | 72,502 | 86,808 |
Principal payments on mortgage loans held for investment, net | 35,320 | 31,205 |
Purchases of property and equipment | -125,654 | -96,063 |
Payments to Acquire Businesses, Net of Cash Acquired | 37,865 | 20,662 |
Franchise loans: | ' | ' |
Loans funded | -62,039 | -68,874 |
Payments received | 17,893 | 9,594 |
Other, net | 12,227 | -13,973 |
Net cash provided by (used in) investing activities | -67,909 | -180,316 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Repayments of Commercial Paper | 80,930 | 789,271 |
Proceeds from Issuance of Commercial Paper | 275,914 | 1,214,238 |
Repayments of Long-term Debt | 0 | -636,621 |
Proceeds from Issuance of Long-term Debt | 0 | 497,185 |
Customer banking deposits, net | -124,947 | 208,753 |
Dividends paid | -164,134 | -162,692 |
Repurchase of common stock, including shares surrendered | -6,047 | -340,298 |
Proceeds from exercise of stock options | 28,083 | 11,529 |
Other, net | -29,872 | -36,113 |
Net cash used in financing activities | -101,933 | -33,290 |
Effects of exchange rates on cash | -20,016 | -417 |
Net decrease in cash and cash equivalents | -1,310,180 | -1,525,949 |
Cash and cash equivalents at beginning of the period | 1,747,584 | 1,944,334 |
Cash and cash equivalents at end of the period | 437,404 | 418,385 |
SUPPLEMENTARY CASH FLOW DATA: | ' | ' |
Income taxes paid, net of refunds received | 87,672 | 104,986 |
Interest paid on borrowings | 43,297 | 62,160 |
Interest paid on deposits | 1,696 | 4,377 |
Transfers of foreclosed loans to other assets | 6,389 | 7,208 |
Accrued additions to property and equipment | 4,113 | 1,001 |
Transfer of mortgage loans held for investment to held for sale | $7,608 | $0 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
Basis of Presentation - The consolidated balance sheets as of January 31, 2014 and 2013, the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended January 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2014 and 2013 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows at January 31, 2014 and 2013 and for all periods presented have been made. | |
“H&R Block,” “the Company,” “we,” “our” and “us” are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2013 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2013 or for the year then ended, are derived from our April 30, 2013 Annual Report to Shareholders on Form 10-K. | |
Management Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, allowance for loan losses, valuation allowances based on future taxable income, reserves for uncertain tax positions and related matters. Estimates have been prepared on the basis of the most current and best information available as of each balance sheet date. As such, actual results could differ materially from those estimates. | |
Seasonality of Business - Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of January through April. Therefore, results for interim periods are not indicative of results to be expected for the full year. |
HR_Block_Bank_HR_Block_Bank
H&R Block Bank H&R Block Bank | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
H&R Block Bank | ' | ||||||||||||||||
Discontinued operations consist of our former Business Services segment and SCC. We sold or ceased to operate all businesses within our former Business Services segment in fiscal year 2012. SCC exited its mortgage business in fiscal year 2008. | |||||||||||||||||
Results of our discontinued operations are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Pretax income (loss) from operations: | |||||||||||||||||
RSM and related businesses | $ | 265 | $ | (511 | ) | $ | (1,571 | ) | $ | (204 | ) | ||||||
Mortgage | (3,389 | ) | (765 | ) | (7,825 | ) | (10,639 | ) | |||||||||
(3,124 | ) | (1,276 | ) | (9,396 | ) | (10,843 | ) | ||||||||||
Income tax benefit | (1,164 | ) | (483 | ) | (3,591 | ) | (4,215 | ) | |||||||||
Net loss from discontinued operations | $ | (1,960 | ) | $ | (793 | ) | $ | (5,805 | ) | $ | (6,628 | ) | |||||
Loss_Per_Share_and_Stockholder
Loss Per Share and Stockholders' Equity | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Basic and diluted loss per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 5.7 million shares for the three and nine months ended January 31, 2014, and 7.7 million shares for the three and nine months ended January 31, 2013, as the effect would be antidilutive due to the net loss from continuing operations during those periods. | |||||||||||||||||
The computations of basic and diluted earnings per share from continuing operations are as follows: | |||||||||||||||||
(in 000s, except per share amounts) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss from continuing operations attributable to shareholders | $ | (212,751 | ) | $ | (16,915 | ) | $ | (429,036 | ) | $ | (223,764 | ) | |||||
Amounts allocated to participating securities | (88 | ) | (62 | ) | (242 | ) | (199 | ) | |||||||||
Net loss from continuing operations attributable to common shareholders | $ | (212,839 | ) | $ | (16,977 | ) | $ | (429,278 | ) | $ | (223,963 | ) | |||||
Basic weighted average common shares | 274,110 | 271,542 | 273,699 | 273,281 | |||||||||||||
Potential dilutive shares | — | — | — | — | |||||||||||||
Dilutive weighted average common shares | 274,110 | 271,542 | 273,699 | 273,281 | |||||||||||||
Loss per share from continuing operations attributable to common shareholders: | |||||||||||||||||
Basic | $ | (0.78 | ) | $ | (0.06 | ) | $ | (1.57 | ) | $ | (0.82 | ) | |||||
Diluted | (0.78 | ) | (0.06 | ) | (1.57 | ) | (0.82 | ) | |||||||||
During the nine months ended January 31, 2013, we purchased and immediately retired 21.3 million shares of our common stock at a cost of $315.0 million. | |||||||||||||||||
During the nine months ended January 31, 2014, we acquired 0.2 million shares of our common stock at an aggregate cost of $6.0 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the nine months ended January 31, 2013, we acquired 0.2 million shares at an aggregate cost of $2.8 million for similar purposes. | |||||||||||||||||
During the nine months ended January 31, 2014 and 2013, we issued 1.8 million and 1.3 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards. | |||||||||||||||||
During the nine months ended January 31, 2014, we granted equity awards equivalent to 0.9 million shares under our stock-based compensation plans, consisting primarily of nonvested units. Nonvested units generally either vest over a three-year period with one-third vesting each year or cliff vest at the end of a three-year period. Stock-based compensation expense of our continuing operations totaled $4.7 million and $15.5 million for the three and nine months ended January 31, 2014, respectively, and $3.7 million and $11.5 million for the three and nine months ended January 31, 2013, respectively. As of January 31, 2014, unrecognized compensation cost for stock options totaled $1.4 million, and for nonvested shares and units totaled $28.2 million. |
Investments
Investments | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
AVAILABLE-FOR-SALE – The amortized cost and fair value of securities classified as available-for-sale (AFS) are summarized below: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses (1) | ||||||||||||||||
As of January 31, 2014: | |||||||||||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | $ | 449,097 | $ | 3,201 | $ | (12,903 | ) | $ | 439,395 | ||||||||
Municipal bonds | 4,134 | 241 | — | 4,375 | |||||||||||||
$ | 453,231 | $ | 3,442 | $ | (12,903 | ) | $ | 443,770 | |||||||||
As of January 31, 2013: | |||||||||||||||||
Short-term: | |||||||||||||||||
Municipal bonds | $ | 1,000 | $ | 1 | $ | — | $ | 1,001 | |||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | 386,741 | 5,825 | (780 | ) | 391,786 | ||||||||||||
Municipal bonds | 4,192 | 334 | — | 4,526 | |||||||||||||
390,933 | 6,159 | (780 | ) | 396,312 | |||||||||||||
$ | 391,933 | $ | 6,160 | $ | (780 | ) | $ | 397,313 | |||||||||
As of April 30, 2013: | |||||||||||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | $ | 476,450 | $ | 6,592 | $ | (664 | ) | $ | 482,378 | ||||||||
Municipal bonds | 4,178 | 320 | — | 4,498 | |||||||||||||
$ | 480,628 | $ | 6,912 | $ | (664 | ) | $ | 486,876 | |||||||||
(1) | As of January 31, 2014, mortgage-backed securities with a cost of $25.8 million and gross unrealized losses of $2.8 million had been in a continuous loss position for more than twelve months. As of January 31, 2013 and April 30, 2013, we had no securities that had been in a continuous loss position for more than twelve months. | ||||||||||||||||
We did not sell any AFS securities during the nine months ended January 31, 2014. During the nine months ended January 31, 2013, we received proceeds of $5.2 million from the sale of AFS securities and recorded a gross realized gain of $0.2 million on this sale. | |||||||||||||||||
We did not record any other-than-temporary impairments of AFS securities during the nine months ended January 31, 2014 and 2013. Unrealized losses on our AFS securities have not been recognized into income because the securities include an explicit guarantee of the U. S. Government or an implied guarantee of a government-sponsored enterprise, management does not have the intent to sell and it is not more likely than not it will be required to sell the AFS securities before their anticipated recovery, and the decline in fair value is largely due to changes in market interest rates. | |||||||||||||||||
Contractual maturities of AFS debt securities at January 31, 2014, occur at varying dates over the next 29 years, and are set forth in the table below. | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||
Maturing in: | |||||||||||||||||
Two to five years | $ | 4,134 | $ | 4,375 | |||||||||||||
Beyond | 449,097 | 439,395 | |||||||||||||||
$ | 453,231 | $ | 443,770 | ||||||||||||||
Receivables
Receivables | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | ' | ||||||||||||||||||||||||
Receivables | ' | ||||||||||||||||||||||||
Short-term receivables consist of the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Loans to franchisees | $ | 104,841 | $ | 110,560 | $ | 65,413 | |||||||||||||||||||
Receivables for tax preparation and related fees | 60,162 | 250,566 | 49,356 | ||||||||||||||||||||||
Canadian CashBack receivables | 10,099 | 13,052 | 47,658 | ||||||||||||||||||||||
Emerald Advance lines of credit | 444,590 | 462,576 | 23,218 | ||||||||||||||||||||||
Royalties from franchisees | 30,309 | 69,627 | 10,722 | ||||||||||||||||||||||
RAC fees receivable | 13,413 | 31,680 | — | ||||||||||||||||||||||
Credit cards | 5,610 | 4,220 | 7,733 | ||||||||||||||||||||||
Other | 50,913 | 51,708 | 53,134 | ||||||||||||||||||||||
719,937 | 993,989 | 257,234 | |||||||||||||||||||||||
Allowance for doubtful accounts | (42,716 | ) | (44,829 | ) | (50,399 | ) | |||||||||||||||||||
$ | 677,221 | $ | 949,160 | $ | 206,835 | ||||||||||||||||||||
We recognize revenue for tax preparation services when tax returns are electronically filed. We did not recognize revenue and related receivables for 1.8 million tax returns in our fiscal third quarter. | |||||||||||||||||||||||||
The short-term portions of Emerald Advance lines of credit (EAs), loans made to franchisees, CashBack balances (as discussed below) and credit card balances are included in receivables, while the long-term portions are included in other assets in the consolidated balance sheets. These amounts are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans | CashBack | Credit Cards | ||||||||||||||||||||||
to Franchisees | |||||||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Short-term | $ | 444,590 | $ | 104,841 | $ | 10,099 | $ | 5,610 | |||||||||||||||||
Long-term | 5,555 | 114,676 | — | 11,378 | |||||||||||||||||||||
$ | 450,145 | $ | 219,517 | $ | 10,099 | $ | 16,988 | ||||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Short-term | $ | 462,576 | $ | 110,560 | $ | 13,052 | $ | 4,220 | |||||||||||||||||
Long-term | 10,465 | 127,274 | — | 16,045 | |||||||||||||||||||||
$ | 473,041 | $ | 237,834 | $ | 13,052 | $ | 20,265 | ||||||||||||||||||
As of April 30, 2013: | |||||||||||||||||||||||||
Short-term | $ | 23,218 | $ | 65,413 | $ | 47,658 | $ | 7,733 | |||||||||||||||||
Long-term | 9,819 | 103,047 | — | 15,538 | |||||||||||||||||||||
$ | 33,037 | $ | 168,460 | $ | 47,658 | $ | 23,271 | ||||||||||||||||||
EAs – We review the credit quality of our EA receivables based on pools, which are segmented by the year of origination, with older years being deemed more unlikely to be repaid. Amounts as of January 31, 2014, by year of origination, are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicator – Year of origination: | |||||||||||||||||||||||||
2014 | $ | 415,081 | |||||||||||||||||||||||
2013 | 7,295 | ||||||||||||||||||||||||
2012 | 1,006 | ||||||||||||||||||||||||
2011 | 1,912 | ||||||||||||||||||||||||
2010 and prior | 6,199 | ||||||||||||||||||||||||
Revolving loans | 18,652 | ||||||||||||||||||||||||
$ | 450,145 | ||||||||||||||||||||||||
As of January 31, 2014 and 2013 and April 30, 2013, $25.7 million, $30.7 million and $30.0 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively. | |||||||||||||||||||||||||
Loans to Franchisees – Loans made to franchisees as of January 31, 2014 and 2013 and April 30, 2013, consisted of $132.3 million, $144.5 million and $121.2 million, respectively, in term loans made primarily to finance the purchase of franchises and $87.2 million, $93.3 million and $47.3 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs. | |||||||||||||||||||||||||
As of January 31, 2014 and April 30, 2013, loans with a principal amount of $0.6 million and $0.1 million, respectively, were more than 30 days past due, while we had no loans more than 30 days past due at January 31, 2013. We had no loans to franchisees on non-accrual status. | |||||||||||||||||||||||||
Canadian CashBack Program – During the tax season our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency for a fee (the CashBack program). Refunds advanced under the CashBack program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. CashBack amounts are generally received within 60 days of filing the client's return. In September of each fiscal year, any balances more than 90 days old are charged-off against the related allowance. As of January 31, 2014 and 2013 and April 30, 2013, $0.5 million, $1.3 million and $1.8 million of CashBack balances were more than 60 days old, respectively. | |||||||||||||||||||||||||
Long-Term Note Receivable – We had a note receivable in the amount of $54.0 million due from McGladrey & Pullen LLP (M&P) related to the sale of RSM McGladrey, Inc. (RSM) in November 2011. This note was scheduled to mature in May 2017, along with all accrued interest. In December 2013, we received full payment in cash totaling $64.9 million, which included outstanding principal and accrued interest. | |||||||||||||||||||||||||
Allowance for Doubtful Accounts – Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the nine months ended January 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans | CashBack | Credit Cards | All Other | Total | ||||||||||||||||||||
to Franchisees | |||||||||||||||||||||||||
Balances as of May 1, 2013 | $ | 7,390 | $ | — | $ | 2,769 | $ | 7,304 | $ | 40,240 | $ | 57,703 | |||||||||||||
Provision | 24,787 | 42 | 248 | 6,785 | 5,417 | 37,279 | |||||||||||||||||||
Charge-offs | — | (2 | ) | (1,667 | ) | (8,654 | ) | (39,412 | ) | (49,735 | ) | ||||||||||||||
Balances as of January 31, 2014 | $ | 32,177 | $ | 40 | $ | 1,350 | $ | 5,435 | $ | 6,245 | $ | 45,247 | |||||||||||||
Balances as of May 1, 2012 | $ | 6,200 | $ | — | $ | 2,279 | $ | — | $ | 36,110 | $ | 44,589 | |||||||||||||
Provision | 25,519 | 42 | 385 | 4,255 | 10,281 | 40,482 | |||||||||||||||||||
Charge-offs | — | — | (1,292 | ) | — | (38,950 | ) | (40,242 | ) | ||||||||||||||||
Balances as of January 31, 2013 | $ | 31,719 | $ | 42 | $ | 1,372 | $ | 4,255 | $ | 7,441 | $ | 44,829 | |||||||||||||
There have been no changes to our methodology for estimating our allowance for doubtful accounts during fiscal year 2014. |
Mortgage_Loans_Held_For_Invest
Mortgage Loans Held For Investment And Related Assets | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ||||||||||||||||||||||||
Mortgage Loans Held For Investment And Related Assets | ' | ||||||||||||||||||||||||
The composition of our mortgage loan portfolio is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Adjustable-rate loans | $ | 158,369 | 54 | % | $ | 203,624 | 55 | % | $ | 191,093 | 55 | % | |||||||||||||
Fixed-rate loans | 132,956 | 46 | % | 168,515 | 45 | % | 159,142 | 45 | % | ||||||||||||||||
291,325 | 100 | % | 372,139 | 100 | % | 350,235 | 100 | % | |||||||||||||||||
Unamortized deferred fees and costs | 2,387 | 3,004 | 2,868 | ||||||||||||||||||||||
Less: Allowance for loan losses | (11,563 | ) | (17,256 | ) | (14,314 | ) | |||||||||||||||||||
$ | 282,149 | $ | 357,887 | $ | 338,789 | ||||||||||||||||||||
Our loan loss allowance as a percent of mortgage loans was 4.0% as of January 31, 2014, compared to 4.6% as of January 31, 2013 and 4.1% as of April 30, 2013. | |||||||||||||||||||||||||
Activity in the allowance for loan losses for the nine months ended January 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the period | $ | 14,314 | $ | 26,540 | |||||||||||||||||||||
Provision | 7,224 | 10,250 | |||||||||||||||||||||||
Recoveries | 3,250 | 2,745 | |||||||||||||||||||||||
Charge-offs | (13,225 | ) | (22,279 | ) | |||||||||||||||||||||
Balance at end of the period | $ | 11,563 | $ | 17,256 | |||||||||||||||||||||
During fiscal year 2014, we transferred $7.6 million of mortgage loans into the held-for-sale portfolio from the held-for-investment portfolio. At the time of the transfer, the amount by which cost exceeded fair value totaled $2.9 million. This write-down to fair value was recorded as a provision during the nine months ended January 31, 2014 and subsequently charged-off. These loans were sold during fiscal year 2014. | |||||||||||||||||||||||||
When determining our allowance for loan losses, we evaluate loans less than 60 days past due on a pooled basis, while loans we consider impaired, including those loans more than 60 days past due or modified as a troubled debt restructuring (TDR), are evaluated individually. The balance of these loans and the related allowance is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Portfolio | Related | Portfolio | Related | Portfolio | Related | ||||||||||||||||||||
Balance | Allowance | Balance | Allowance | Balance | Allowance | ||||||||||||||||||||
Pooled (less than 60 days past due) | $ | 169,404 | $ | 4,979 | $ | 219,345 | $ | 6,670 | $ | 207,319 | $ | 5,628 | |||||||||||||
Impaired: | |||||||||||||||||||||||||
Individually (TDRs) | 44,635 | 4,371 | 59,295 | 5,013 | 55,061 | 4,924 | |||||||||||||||||||
Individually (60 days or more past due) | 77,286 | 2,213 | 93,499 | 5,573 | 87,855 | 3,762 | |||||||||||||||||||
$ | 291,325 | $ | 11,563 | $ | 372,139 | $ | 17,256 | $ | 350,235 | $ | 14,314 | ||||||||||||||
Detail of our mortgage loans held for investment and the related allowance as of January 31, 2014 is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Outstanding Principal Balance | Loan Loss Allowance | % 30+ Days | |||||||||||||||||||||||
Amount | % of Principal | Past Due | |||||||||||||||||||||||
Purchased from SCC | $ | 166,265 | $ | 9,343 | 5.6 | % | 29.6 | % | |||||||||||||||||
All other | 125,060 | 2,220 | 1.8 | % | 7.6 | % | |||||||||||||||||||
$ | 291,325 | $ | 11,563 | 4 | % | 20.1 | % | ||||||||||||||||||
Credit quality indicators as of January 31, 2014 include the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicators | Purchased from SCC | All Other | Total Portfolio | ||||||||||||||||||||||
Occupancy status: | |||||||||||||||||||||||||
Owner occupied | $ | 121,743 | $ | 81,619 | $ | 203,362 | |||||||||||||||||||
Non-owner occupied | 44,522 | 43,441 | 87,963 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Documentation level: | |||||||||||||||||||||||||
Full documentation | $ | 55,477 | $ | 90,345 | $ | 145,822 | |||||||||||||||||||
Limited documentation | 5,059 | 13,281 | 18,340 | ||||||||||||||||||||||
Stated income | 91,796 | 13,265 | 105,061 | ||||||||||||||||||||||
No documentation | 13,933 | 8,169 | 22,102 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Internal risk rating: | |||||||||||||||||||||||||
High | $ | 49,226 | $ | — | $ | 49,226 | |||||||||||||||||||
Medium | 117,039 | — | 117,039 | ||||||||||||||||||||||
Low | — | 125,060 | 125,060 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Loans given our internal risk rating of “high” were originated by Sand Canyon Corporation, formerly known as Option One Mortgage Corporation, and its subsidiaries (SCC), and generally had no documentation or were based on stated income. Loans given our internal risk rating of “medium” were originated by SCC and were generally full documentation or based on stated income, with loan-to-value ratios at origination of more than 80%, and were made to borrowers with credit scores below 700 at origination. Loans given our internal risk rating of “low” were generally obtained from parties other than SCC, with loan-to-value ratios at origination of less than 80% and were made to borrowers with credit scores greater than 700 at origination. | |||||||||||||||||||||||||
Our mortgage loans held for investment include concentrations of loans to borrowers in certain states, which may result in increased exposure to loss as a result of changes in real estate values and underlying economic or market conditions related to a particular geographical location. Approximately 59% of our mortgage loan portfolio consists of loans to borrowers located in the states of Florida, California, New York and Wisconsin. | |||||||||||||||||||||||||
Detail of the aging of the mortgage loans in our portfolio as of January 31, 2014 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Less than 60 | 60 – 89 Days | 90+ Days | Total | Current | Total | ||||||||||||||||||||
Days Past Due | Past Due | Past Due(1) | Past Due | ||||||||||||||||||||||
Purchased from SCC | $ | 14,721 | $ | 923 | $ | 51,663 | $ | 67,307 | $ | 98,958 | $ | 166,265 | |||||||||||||
All other | 6,054 | 437 | 8,915 | 15,406 | 109,654 | 125,060 | |||||||||||||||||||
$ | 20,775 | $ | 1,360 | $ | 60,578 | $ | 82,713 | $ | 208,612 | $ | 291,325 | ||||||||||||||
(1) | We do not accrue interest on loans past due 90 days or more. | ||||||||||||||||||||||||
Information related to our non-accrual loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 64,573 | $ | 76,235 | $ | 70,327 | |||||||||||||||||||
Other | 12,325 | 15,761 | 14,906 | ||||||||||||||||||||||
76,898 | 91,996 | 85,233 | |||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||
Purchased from SCC | 4,221 | 3,460 | 3,719 | ||||||||||||||||||||||
Other | 957 | 504 | 502 | ||||||||||||||||||||||
5,178 | 3,964 | 4,221 | |||||||||||||||||||||||
Total non-accrual loans | $ | 82,076 | $ | 95,960 | $ | 89,454 | |||||||||||||||||||
Information related to impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Balance | Balance | Total | Related Allowance | ||||||||||||||||||||||
With Allowance | With No Allowance | Impaired Loans | |||||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 28,037 | $ | 73,873 | $ | 101,910 | $ | 5,341 | |||||||||||||||||
Other | 5,030 | 14,982 | 20,012 | 1,243 | |||||||||||||||||||||
$ | 33,067 | $ | 88,855 | $ | 121,922 | $ | 6,584 | ||||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 38,938 | $ | 88,671 | $ | 127,609 | $ | 8,470 | |||||||||||||||||
Other | 6,757 | 18,428 | 25,185 | 2,116 | |||||||||||||||||||||
$ | 45,695 | $ | 107,099 | $ | 152,794 | $ | 10,586 | ||||||||||||||||||
As of April 30, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 33,791 | $ | 84,592 | $ | 118,383 | $ | 6,573 | |||||||||||||||||
Other | 7,601 | 16,932 | 24,533 | 2,113 | |||||||||||||||||||||
$ | 41,392 | $ | 101,524 | $ | 142,916 | $ | 8,686 | ||||||||||||||||||
Information related to the allowance for impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Portion of total allowance for loan losses allocated to impaired loans and TDR loans: | |||||||||||||||||||||||||
Based on collateral value method | $ | 2,213 | $ | 5,573 | $ | 3,762 | |||||||||||||||||||
Based on discounted cash flow method | 4,371 | 5,013 | 4,924 | ||||||||||||||||||||||
$ | 6,584 | $ | 10,586 | $ | 8,686 | ||||||||||||||||||||
Information related to activities of our non-performing assets is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Average impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 116,061 | $ | 137,703 | |||||||||||||||||||||
All other | 22,607 | 25,879 | |||||||||||||||||||||||
$ | 138,668 | $ | 163,582 | ||||||||||||||||||||||
Interest income on impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 2,496 | $ | 2,940 | |||||||||||||||||||||
All other | 224 | 232 | |||||||||||||||||||||||
$ | 2,720 | $ | 3,172 | ||||||||||||||||||||||
Interest income on impaired loans recognized on a cash basis on non-accrual status: | |||||||||||||||||||||||||
Purchased from SCC | $ | 2,438 | $ | 2,881 | |||||||||||||||||||||
All other | 220 | 214 | |||||||||||||||||||||||
$ | 2,658 | $ | 3,095 | ||||||||||||||||||||||
Activity related to our real estate owned (REO) is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance, beginning of the period | $ | 13,968 | $ | 14,972 | |||||||||||||||||||||
Additions | 6,389 | 7,208 | |||||||||||||||||||||||
Sales | (10,975 | ) | (6,652 | ) | |||||||||||||||||||||
Impairments | (1,152 | ) | (1,676 | ) | |||||||||||||||||||||
Balance, end of the period | $ | 8,230 | $ | 13,852 | |||||||||||||||||||||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill And Intangible Assets | ' | ||||||||||||
Changes in the carrying amount of goodwill of our Tax Services segment for the nine months ended January 31, 2014 and 2013 are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Goodwill | Accumulated Impairment Losses | Net | |||||||||||
Balances as of April 30, 2013 | $ | 467,079 | $ | (32,297 | ) | $ | 434,782 | ||||||
Acquisitions | 5,206 | — | 5,206 | ||||||||||
Disposals and foreign currency changes, net | (2,602 | ) | — | (2,602 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of January 31, 2014 | $ | 469,683 | $ | (32,297 | ) | $ | 437,386 | ||||||
Balances as of April 30, 2012 | $ | 459,863 | $ | (32,297 | ) | $ | 427,566 | ||||||
Acquisitions | 7,650 | — | 7,650 | ||||||||||
Disposals and foreign currency changes, net | 40 | — | 40 | ||||||||||
Impairments | — | — | — | ||||||||||
Balances as of January 31, 2013 | $ | 467,553 | $ | (32,297 | ) | $ | 435,256 | ||||||
We test goodwill for impairment annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value. | |||||||||||||
Components of the intangible assets of our Tax Services segment are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | ||||||||||||
Amount | |||||||||||||
As of January 31, 2014: | |||||||||||||
Reacquired franchise rights | $ | 233,675 | $ | (23,120 | ) | $ | 210,555 | ||||||
Customer relationships | 121,055 | (56,283 | ) | 64,772 | |||||||||
Internally-developed software | 98,012 | (70,964 | ) | 27,048 | |||||||||
Noncompete agreements | 24,573 | (22,028 | ) | 2,545 | |||||||||
Franchise agreements | 19,201 | (6,614 | ) | 12,587 | |||||||||
Purchased technology | 14,800 | (13,588 | ) | 1,212 | |||||||||
Trade name | 300 | (300 | ) | — | |||||||||
$ | 511,616 | $ | (192,897 | ) | $ | 318,719 | |||||||
As of January 31, 2013: | |||||||||||||
Reacquired franchise rights | $ | 214,330 | $ | (17,174 | ) | $ | 197,156 | ||||||
Customer relationships | 108,596 | (52,820 | ) | 55,776 | |||||||||
Internally-developed software | 87,909 | (71,194 | ) | 16,715 | |||||||||
Noncompete agreements | 23,054 | (21,627 | ) | 1,427 | |||||||||
Franchise agreements | 19,201 | (5,334 | ) | 13,867 | |||||||||
Purchased technology | 14,800 | (11,911 | ) | 2,889 | |||||||||
Trade name | 1,300 | (892 | ) | 408 | |||||||||
$ | 469,190 | $ | (180,952 | ) | $ | 288,238 | |||||||
As of April 30, 2013: | |||||||||||||
Reacquired franchise rights | $ | 214,330 | $ | (18,204 | ) | $ | 196,126 | ||||||
Customer relationships | 100,719 | (48,733 | ) | 51,986 | |||||||||
Internally-developed software | 91,745 | (72,764 | ) | 18,981 | |||||||||
Noncompete agreements | 23,058 | (21,728 | ) | 1,330 | |||||||||
Franchise agreements | 19,201 | (5,654 | ) | 13,547 | |||||||||
Purchased technology | 14,800 | (12,331 | ) | 2,469 | |||||||||
Trade name | 300 | (300 | ) | — | |||||||||
$ | 464,153 | $ | (179,714 | ) | $ | 284,439 | |||||||
Amortization of intangible assets of continuing operations for the three and nine months ended January 31, 2014 was $8.8 million and $21.4 million, respectively. Amortization of intangible assets of continuing operations for the three and nine months ended January 31, 2013 was $6.3 million and $19.6 million, respectively. Estimated amortization of intangible assets for fiscal years 2014, 2015, 2016, 2017 and 2018 is $30.4 million, $32.9 million, $25.5 million, $19.7 million and $16.6 million, respectively. |
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||
We use the following classification of financial instruments pursuant to the fair value hierarchy methodologies for assets measured at fair value: | |||||||||||||||||||||||||
▪ | Level 1 – inputs to the valuation are quoted prices in an active market for identical assets. | ||||||||||||||||||||||||
▪ | Level 2 – inputs to the valuation include quoted prices for similar assets in active markets utilizing a third-party pricing service to determine fair value. | ||||||||||||||||||||||||
▪ | Level 3 – valuation is based on significant inputs that are unobservable in the market and our own estimates of assumptions that we believe market participants would use in pricing the asset. | ||||||||||||||||||||||||
Financial instruments are presented in the tables that follow by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, as a result of an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. | |||||||||||||||||||||||||
The following table presents the assets that were remeasured at fair value on a recurring basis during the nine months ended January 31, 2014 and 2013: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Gains (losses) | |||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 439,395 | $ | — | $ | 439,395 | $ | — | $ | (9,702 | ) | ||||||||||||||
Municipal bonds | 4,375 | — | 4,375 | — | 241 | ||||||||||||||||||||
$ | 443,770 | $ | — | $ | 443,770 | $ | — | $ | (9,461 | ) | |||||||||||||||
As a percentage of total assets | 12.6 | % | — | % | 12.6 | % | — | % | |||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 391,786 | $ | — | $ | 391,786 | $ | — | $ | 5,045 | |||||||||||||||
Municipal bonds | 5,527 | — | 5,527 | — | 335 | ||||||||||||||||||||
$ | 397,313 | $ | — | $ | 397,313 | $ | — | $ | 5,380 | ||||||||||||||||
As a percentage of total assets | 10.1 | % | — | % | 10.1 | % | — | % | |||||||||||||||||
Our investments in mortgage-backed securities and municipal bonds are carried at fair value on a recurring basis with gains and losses reported as a component of other comprehensive income, except for losses assessed to be other than temporary. These include certain agency and agency-sponsored mortgage-backed securities and municipal bonds. Quoted market prices are not available for these securities, as they are not actively traded and have fewer observable transactions. As a result, we use third-party pricing services to determine fair value and classify the securities as Level 2. The third-party pricing services' models are based on market data and utilize available trade, bid and other market information for similar securities. The fair values provided by the third-party pricing services are regularly reviewed by management. Annually, a sample of prices supplied by the third-party pricing service is validated by comparison to prices obtained from other third party sources. There were no transfers of AFS securities between hierarchy levels during the nine months ended January 31, 2014 and 2013. | |||||||||||||||||||||||||
The following table presents the assets that were remeasured at fair value on a non-recurring basis during the nine months ended January 31, 2014 and 2013: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Losses | |||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
REO | $ | 8,723 | $ | — | $ | — | $ | 8,723 | $ | (437 | ) | ||||||||||||||
Impaired mortgage loans held for investment | 71,053 | — | — | 71,053 | (4,022 | ) | |||||||||||||||||||
$ | 79,776 | $ | — | $ | — | $ | 79,776 | $ | (4,459 | ) | |||||||||||||||
As a percentage of total assets | 2.3 | % | — | % | — | % | 2.3 | % | |||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
REO | $ | 14,683 | $ | — | $ | — | $ | 14,683 | $ | (350 | ) | ||||||||||||||
Impaired mortgage loans held for investment | 87,949 | — | — | 87,949 | (8,509 | ) | |||||||||||||||||||
$ | 102,632 | $ | — | $ | — | $ | 102,632 | $ | (8,859 | ) | |||||||||||||||
As a percentage of total assets | 2.6 | % | — | % | — | % | 2.6 | % | |||||||||||||||||
The following methods were used to estimate the fair value of each class of financial instrument above: | |||||||||||||||||||||||||
▪ | REO includes foreclosed properties securing mortgage loans. Foreclosed assets are recorded at estimated fair value, generally based on independent market prices or appraised values of the collateral, less costs to sell upon foreclosure. The assets are remeasured quarterly based on independent appraisals or broker price opinions. Subsequent holding period gains and losses arising from the sale of REO are reported when realized. Because our REO is valued based on significant inputs that are unobservable in the market and our own estimates of assumptions that we believe market participants would use in pricing the asset, these assets are classified as Level 3. | ||||||||||||||||||||||||
▪ | The fair value of impaired mortgage loans held for investment is generally based on the net present value of discounted cash flows for TDR loans or the appraised value of the underlying collateral for all other loans. Impaired and TDR loans are required to be evaluated at least annually, based on HRB Bank's Loan Policy. Impaired loans are typically remeasured every nine months, while TDRs are evaluated quarterly. These loans are classified as Level 3. | ||||||||||||||||||||||||
We have established various controls and procedures to ensure that the unobservable inputs used in the fair value measurement of these instruments are appropriate. Appraisals are obtained from certified appraisers and reviewed internally by HRB Bank’s asset management group. The inputs and assumptions used in our discounted cash flow model for TDRs are reviewed and approved by HRB Bank management each time the balances are remeasured. Significant changes in fair value from the previous measurement are presented to HRB Bank management for approval. There were no changes to the unobservable inputs used in determining the fair values of our Level 3 financial assets. | |||||||||||||||||||||||||
The following table presents the quantitative information about our Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Fair Value at January 31, 2014 | Valuation | Unobservable Input | Range | ||||||||||||||||||||||
Technique | (Weighted Average) | ||||||||||||||||||||||||
REO | $ | 8,230 | Third party | Cost to list/sell | 5% – 34%(5%) | ||||||||||||||||||||
pricing | Loss severity | 0% – 100%(53%) | |||||||||||||||||||||||
Impaired mortgage loans held for investment – non TDRs | $ | 75,073 | Collateral- | Cost to list/sell | 0% – 159%(9%) | ||||||||||||||||||||
based | Time to sell (months) | 24(24) | |||||||||||||||||||||||
Collateral depreciation | (132%) – 100%(41%) | ||||||||||||||||||||||||
Loss severity | 0% – 100%(60%) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – TDRs | $ | 40,264 | Discounted | Aged default performance | 26% – 41%(33%) | ||||||||||||||||||||
cash flow | Loss severity | 0% – 22%(6%) | |||||||||||||||||||||||
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||
The carrying amounts and estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | 30-Apr-13 | ||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 437,404 | $ | 437,404 | $ | 418,385 | $ | 418,385 | $ | 1,747,584 | $ | 1,747,584 | |||||||||||||
Cash and cash equivalents – restricted | 44,855 | 44,855 | 37,958 | 37,958 | 117,837 | 117,837 | |||||||||||||||||||
Receivables, net – short-term | 677,221 | 679,590 | 949,160 | 949,160 | 206,835 | 206,810 | |||||||||||||||||||
Mortgage loans held for investment, net | 282,149 | 195,282 | 357,887 | 217,019 | 338,789 | 210,858 | |||||||||||||||||||
Investments in AFS securities | 443,770 | 443,770 | 397,313 | 397,313 | 486,876 | 486,876 | |||||||||||||||||||
Receivables, net – long-term | 134,046 | 133,623 | 158,228 | 158,228 | 125,048 | 134,283 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deposits | 808,008 | 810,486 | 1,041,942 | 1,042,282 | 938,331 | 934,019 | |||||||||||||||||||
Long-term borrowings | 906,529 | 953,944 | 906,725 | 946,793 | 906,680 | 964,630 | |||||||||||||||||||
Contingent consideration payments | 10,523 | 10,523 | 10,871 | 10,871 | 11,277 | 11,277 | |||||||||||||||||||
Fair value estimates, methods and assumptions are set forth below. The fair value was not estimated for assets and liabilities that are not considered financial instruments. | |||||||||||||||||||||||||
▪ | Cash and cash equivalents, including restricted – Fair value approximates the carrying amount (Level 1). | ||||||||||||||||||||||||
▪ | Receivables – short-term – For short-term balances with the exception of credit card receivables, the carrying values reported in the balance sheet approximate fair market value due to the relative short-term nature of the respective instruments (Level 1). The fair value of credit card balances is determined using market pricing sources based on projected future cash flows of the pooled assets and performance characteristics (Level 3). | ||||||||||||||||||||||||
▪ | Investments in available-for-sale securities – We use a third-party pricing service to determine fair value. The service's pricing model is based on market data and utilizes available trade, bid and other market information for similar securities (Level 2). | ||||||||||||||||||||||||
▪ | Mortgage loans held for investment, net – The fair value of mortgage loans held for investment is determined using market pricing sources based on projected future cash flows of each individual asset, and loan characteristics including channel and performance characteristics (Level 3). | ||||||||||||||||||||||||
▪ | Receivables – long-term – The carrying values for the long-term portion of loans to franchisees approximate fair market value due to the variable interest rates (Level 1). Long-term EA receivables are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates. The fair value of credit card balances is determined using market pricing sources based on projected future cash flows of the pooled assets and performance characteristics (Level 3). | ||||||||||||||||||||||||
▪ | Deposits – The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, checking, money market and savings accounts, is equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities (Level 3). | ||||||||||||||||||||||||
▪ | Long-term borrowings – The fair value of our Senior Notes is based on quotes from multiple banks. (Level 2). | ||||||||||||||||||||||||
▪ | Contingent consideration payments – Fair value approximates the carrying amount (Level 3). |
Income_Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
We file a consolidated federal income tax return in the United States with the Internal Revenue Service (IRS) and file tax returns in various state and foreign jurisdictions. Tax returns are typically examined and settled at either the exam level or through an appeal process. | |
In August 2013, we received written approval from the IRS Joint Committee on Taxation of the settlement of all issues related to the examination of our 2008 through 2010 federal income tax returns. The resulting reduction in uncertain tax benefits has had an immaterial impact on our tax expense in the fiscal year. The Company’s U.S. federal consolidated tax returns for 2011 and 2012 are currently under examination. | |
We had gross unrecognized tax benefits of $127.5 million, $146.6 million and $146.4 million as of January 31, 2014 and 2013 and April 30, 2013, respectively. The gross unrecognized tax benefits decreased $18.9 million and $59.8 million during the nine months ended January 31, 2014 and 2013, respectively. The decrease in unrecognized tax benefits during the nine months ending January 31, 2014 is primarily due to the settlement with the IRS of tax years 2008-2010. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $35 million before January 31, 2015. The anticipated decrease is due to the expiration of statutes of limitations and anticipated settlements of state audit issues, of which $23.2 million is included in accrued income taxes in our consolidated balance sheet. The remaining liability for uncertain positions is classified as long-term and is included in other noncurrent liabilities in the consolidated balance sheet. | |
Consistent with prior years, our operating loss for the nine months ended January 31, 2014 is expected to be offset by income in the fourth quarter due to the established pattern of seasonality in our primary business operations. As such, management has determined that it is more-likely-than-not that realization of tax benefits recorded in our financial statements will occur in our fiscal year. The amount of tax benefit recorded reflects management’s estimate of the annual effective tax rate applied to the year-to-date loss from continuing operations. Certain discrete tax adjustments are also reflected in income tax expense for the periods presented. | |
Excluding discrete items, management’s estimate of the annualized effective tax rate for the nine months ended January 31, 2014 and 2013 was 39.2% and 38.7%, respectively. Our effective tax rate for continuing operations, including the effects of discrete income tax items, was 39.7% and 47.7% for the nine months ended January 31, 2014 and 2013, respectively. Due to losses in both periods, a discrete tax benefit in either period increases the tax rate while an item of discrete tax expense decreases the tax rate. During the nine months ended January 31, 2014, a net discrete tax benefit of $3.7 million was recorded compared to a net discrete tax benefit of $38.7 million in the same period of the prior year. The difference in discrete items was almost all attributed to settlements with tax authorities and expiration of statute of limitations in the prior year. Due to the seasonal nature of our business, the effective tax rate through our third quarter typically is not indicative of the rate for our full fiscal year. |
Interest_Income_And_Interest_E
Interest Income And Interest Expense | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Interest Income And Interest Expense [Abstract] | ' | ||||||||||||||||
Interest Income And Interest Expense | ' | ||||||||||||||||
The following table shows the components of interest income and expense: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income: | |||||||||||||||||
Emerald Advance lines of credit | $ | 27,656 | $ | 28,399 | $ | 28,602 | $ | 30,074 | |||||||||
Mortgage loans, net | 3,409 | 4,120 | 10,582 | 12,705 | |||||||||||||
Loans to franchisees | 2,396 | 2,651 | 7,069 | 7,397 | |||||||||||||
AFS securities | 2,430 | 1,713 | 7,284 | 5,105 | |||||||||||||
Credit cards | 642 | 844 | 2,505 | 844 | |||||||||||||
Other | 836 | 573 | 3,150 | 1,907 | |||||||||||||
$ | 37,369 | $ | 38,300 | $ | 59,192 | $ | 58,032 | ||||||||||
Interest expense: | |||||||||||||||||
Borrowings | $ | 13,872 | $ | 17,642 | $ | 41,476 | $ | 60,391 | |||||||||
Deposits | 571 | 1,786 | 1,727 | 4,504 | |||||||||||||
$ | 14,443 | $ | 19,428 | $ | 43,203 | $ | 64,895 | ||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments And Contingencies | ' | ||||||||
Changes in deferred revenue balances related to our Peace of Mind (POM) program, the current portion of which is included in accounts payable, accrued expenses and other current liabilities and the long-term portion of which is included in other noncurrent liabilities in the consolidated balance sheets, are as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 146,286 | $ | 141,080 | |||||
Amounts deferred for new guarantees issued | 16,686 | 14,202 | |||||||
Revenue recognized on previous deferrals | (59,661 | ) | (57,505 | ) | |||||
Balance, end of the period | $ | 103,311 | $ | 97,777 | |||||
We accrued $15.2 million, $14.9 million and $18.0 million as of January 31, 2014 and 2013 and April 30, 2013, respectively, related to estimated losses under our standard guarantee which is included with our standard in-office tax preparation services. The current portion of this liability is included in accounts payable, accrued expenses and other current liabilities and the long-term portion is included in other noncurrent liabilities in the consolidated balance sheets. | |||||||||
We have accrued estimated contingent consideration payments totaling $10.5 million, $10.9 million and $11.3 million as of January 31, 2014 and 2013 and April 30, 2013, respectively, related to acquisitions, with the short-term amount recorded in accounts payable, accrued expenses and deposits and the long-term portion included in other noncurrent liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ materially from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations. | |||||||||
We have contractual commitments to fund certain franchisees requesting revolving lines of credit. Our total obligation under these lines of credit was $90.9 million at January 31, 2014, and net of amounts drawn and outstanding, our remaining commitments to fund totaled $19.4 million. | |||||||||
We maintain compensating balances with certain financial institutions that are creditors in our $1.5 billion unsecured committed line of credit governed by a Credit and Guarantee Agreement (2012 CLOC), which are not legally restricted as to withdrawal. These balances totaled $0.8 million as of January 31, 2014. | |||||||||
We may enter into contracts that include embedded indemnifications that have characteristics similar to guarantees. Typically, these indemnifications do not provide a stated maximum exposure and the terms of the indemnities may vary, in many cases limited only by the applicable statute of limitations. Accruals for these obligations have been established when appropriate. Historically, payments made under these types of contractual arrangements have not been material. See note 11 and note 12 to the consolidated financial statements for additional discussion regarding guarantees and indemnifications. | |||||||||
We evaluated our financial interests in variable interest entities (VIEs) as of January 31, 2014 and determined that there have been no significant changes related to those financial interests. | |||||||||
SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. | |||||||||
Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. These representations and warranties varied based on the nature of the transaction and the buyer's or insurer's requirements, but generally pertained to the ownership of the loan, the validity of the lien securing the loan, borrower fraud, the loan's compliance with the criteria for inclusion in the transaction, including compliance with SCC's underwriting standards or loan criteria established by the buyer, ability to deliver required documentation, and compliance with applicable laws. Representations and warranties related to borrower fraud in whole loan sale transactions to institutional investors, which represented approximately 68% of the disposal of loans originated in calendar years 2005, 2006 and 2007, included a “knowledge qualifier” limiting SCC's liability to those instances where SCC had knowledge of the fraud at the time the loans were sold. Representations and warranties made in other sale transactions effectively did not include a knowledge qualifier as to borrower fraud. SCC believes it would have an obligation to repurchase a loan or indemnify certain parties with respect to a claim for a breach of a representation and warranty only if such breach materially and adversely affects the value of the mortgage loan, or a securitization insurer's or certificate holder's interest in the mortgage loan, and the mortgage loan has not been liquidated, although there is limited and conflicting case law on the liquidated loan defense issue. Such claims together with any settlement arrangements related to these losses are collectively referred to as “representation and warranty claims.” | |||||||||
Representation and warranty claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination and borrower fraud for loans originated in calendar years 2006 and 2007. SCC has received $2.1 billion in claims since May 1, 2008, of which $190 million were received in fiscal year 2013 and $1.1 billion in fiscal year 2012. SCC received new claims totaling $70.3 million during the nine months ended January 31, 2014, all of which were initiated by parties with whom SCC has tolling agreements. These tolling agreements toll the running of any applicable statute of limitations related to potential lawsuits regarding representation and warranty claims and other claims against SCC. Claims totaling approximately $1.2 million remained subject to review as of January 31, 2014, none of which represent a reassertion of previously denied claims. | |||||||||
SETTLEMENT ACTIONS - SCC has entered into tolling agreements with the counterparties that initiated all of the new claims received by SCC during the nine months ended January 31, 2014. Beginning in the fourth quarter of fiscal year 2013 and continuing in fiscal year 2014, SCC has been engaged in discussions with these counterparties regarding the bulk settlement of previously denied and potential future claims. Based on settlement discussions with these counterparties, SCC believes a bulk settlement approach, rather than the loan-by-loan resolution process, will be needed to resolve all of the representation and warranty and other claims that are the subject of these discussions. In the event that current efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result. | |||||||||
SCC continues to engage in a loan-by-loan review of new requests for repurchase. SCC will continue to vigorously contest any request for repurchase when it has concluded that a valid basis for repurchase does not exist. SCC's decision whether to engage in bulk settlement discussions is based on factors that vary by counterparty or type of counterparty and include the considerations used by SCC in determining its loss estimate, described below under "Liability for Estimated Contingent Losses." | |||||||||
LIABILITY FOR ESTIMATED CONTINGENT LOSSES - SCC records a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. Development of loss estimates is subjective, subject to a high degree of management judgment, and estimates may vary significantly period to period. SCC's loss estimate as of January 31, 2014 considers the experience gained through discussions with counterparties, and an assessment of, among other things, historical claim results, threatened claims, terms and provisions of related agreements, counterparty willingness to pursue a settlement, legal standing of counterparties to provide a comprehensive settlement, the potential pro-rata realization of the claims as compared to all similar claims and other relevant facts and circumstances when developing its estimate of probable loss. The estimate is based on the best information currently available, significant management judgment, and a number of factors, including developments in case law and those factors mentioned above, that are subject to change. Changes in any one of these factors could significantly impact the estimate. | |||||||||
The liability is included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 158,765 | $ | 130,018 | |||||
Provisions | — | — | |||||||
Payments | — | (11,253 | ) | ||||||
Balance, end of the period | $ | 158,765 | $ | 118,765 | |||||
SCC is taking the legal position, where appropriate, for both contractual representation and warranty claims and similar claims in litigation, that a valid representation and warranty claim cannot be made with respect to a mortgage loan that has been liquidated. There is limited and conflicting case law on this issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and are subject to appeal. It is anticipated that the liquidated mortgage loan defense will be the subject of future judicial decisions. Until the validity of the liquidated loan defense is further clarified by the courts or other developments occur, SCC's estimated accrual for representation and warranty will not take this defense into account. | |||||||||
ESTIMATED RANGE OF POSSIBLE LOSS - SCC believes it is reasonably possible that future representation and warranty losses may vary from amounts recorded for these exposures. SCC currently estimates that the range of reasonably possible loss could be up to approximately $40 million in excess of amounts accrued. This estimated range is based on currently available information, significant management judgment and a number of assumptions that are subject to change. The actual loss that may be incurred could be more or less than our accrual or the estimate of reasonably possible losses. | |||||||||
INDEMNIFICATION OBLIGATIONS - As described more fully in note 11, losses may also be incurred with respect to various indemnification claims by underwriters and depositors in securitization transactions in which SCC participated. Losses from these indemnification claims are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims is probable, have not accrued a liability for these claims and are not able to estimate a reasonably possible loss or range of loss for these claims. Accordingly, neither the accrued liability described above totaling $158.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above of up to approximately $40 million, includes any possible losses which may arise from these indemnification claims. There can be no assurances as to the outcome or impact of these indemnification claims. In the event of unfavorable outcomes on these claims, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. |
Litigation_And_Related_Conting
Litigation And Related Contingencies | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Litigation And Related Contingencies [Abstract] | ' | ||||||||
Litigation And Related Contingencies | ' | ||||||||
We are a defendant in a large number of litigation matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, are sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or a claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement numerous claims over an extended period of time. | |||||||||
The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. | |||||||||
In addition to litigation matters, we are also subject to other claims and regulatory loss contingencies arising out of our business activities, including as described below. | |||||||||
We accrue liabilities for litigation, other claims and regulatory loss contingencies and any related settlements (such litigation, claims, contingencies and settlements are sometimes referred to, individually, as a "matter" and, collectively, as "matters") when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been accrued for a number of the matters noted below. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range. | |||||||||
For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated at January 31, 2014. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of January 31, 2014 and 2013 and April 30, 2013, we accrued liabilities of $20.9 million, $18.9 million and $11.9 million, respectively. | |||||||||
For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. For those matters, and for matters where a liability has been accrued, as of January 31, 2014, we estimate the range of reasonably possible loss could be up to approximately $33 million in excess of amounts accrued, of which 21% relates to our discontinued operations. This estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Those matters for which an estimate is not reasonably possible are not included within this estimated range. Therefore, this estimated range of reasonably possible loss represents what we believe to be an estimate of reasonably possible loss only for certain matters meeting these criteria. It does not represent our maximum loss exposure. | |||||||||
For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation and related contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | |||||||||
In the event of unfavorable outcomes in these matters, including certain of the lawsuits and claims described below, the amounts that may be required to be paid to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. Certain of these matters are described in more detail below. | |||||||||
LITIGATION AND OTHER CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – Although SCC ceased its mortgage loan origination activities in December 2007 and sold its loan servicing business in April 2008, SCC and the Company have been, remain, or may in the future be subject to regulatory loss contingencies, claims, including indemnification claims, and lawsuits pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These contingencies, claims and lawsuits include actions by regulators, third parties seeking indemnification, including depositors and underwriters, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these contingencies, claims and lawsuits allege discriminatory or unfair and deceptive loan origination and servicing practices, fraud and other common law torts, rights to indemnification and violations of securities laws, the Truth in Lending Act (TILA), Equal Credit Opportunity Act and the Fair Housing Act. Given the impact of the financial crisis on the non-prime mortgage environment, the aggregate volume of these matters is substantial although it is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters, including certain of the lawsuits and claims described below, it is not possible to estimate a reasonably possible loss or range of loss due to, among other things, the inherent uncertainties involved in these matters, some of which are beyond the Company's control, and the indeterminate damages sought in some of these matters. | |||||||||
On December 9, 2009, a putative class action lawsuit was filed in the United States District Court for the Central District of California against SCC and H&R Block, Inc. styled Jeanne Drake, et al. v. Option One Mortgage Corp., et al. (Case No. SACV09-1450 CJC). Plaintiffs allege breach of contract, promissory fraud, intentional interference with contractual relations, wrongful withholding of wages and unfair business practices in connection with not paying severance benefits to employees when their employment transitioned to American Home Mortgage Servicing, Inc. (now known as Homeward Residential, Inc. (Homeward)) in connection with the sale of certain assets and operations of SCC. Plaintiffs seek to recover severance benefits of approximately $8 million, interest and attorney’s fees, in addition to penalties and punitive damages on certain claims. On September 2, 2011, the court granted summary judgment in favor of the defendants on all claims. Plaintiffs filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable nor have we established a loss contingency related to this matter. We believe SCC has meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC-related entities, H&R Block, Inc. and other entities, arising out of FHLB-Chicago’s purchase of residential mortgage-backed securities (RMBSs). The plaintiff seeks rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities collateralized by loans originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $37 million remains outstanding. The plaintiff agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, filed motions to dismiss, which the court denied. Defendants moved for leave to appeal and the circuit court denied the motion. The parties are currently engaged in discovery. We have not concluded that a loss related to this matter is probable nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On February 22, 2012, a lawsuit was filed by SCC against Homeward in the Supreme Court of the State of New York, County of New York, styled Sand Canyon Corporation v. American Home Mortgage Servicing, Inc. (Index No. 650504/2012), alleging breach of contract and breach of the implied covenant of good faith and fair dealing in connection with the Cooperation Agreement entered into with SCC in connection with SCC’s sale of its mortgage loan servicing business to the defendant in 2008. SCC is seeking relief to, among other things, require the defendant to provide loan files only by the method prescribed in applicable agreements. The court denied the defendant's motion to dismiss and an appellate court affirmed. The case has been remanded to the trial court and is proceeding there. | |||||||||
On May 31, 2012, a lawsuit was filed by Homeward in the Supreme Court of the State of New York, County of New York, against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Index No. 651885/2012). SCC removed the case to the United States District Court for the Southern District of New York on June 28, 2012 (Case No. 12-cv-5067). Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-2 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract, anticipatory breach, indemnity and declaratory judgment in connection with alleged losses incurred as a result of the breach of representations and warranties relating to loans sold to the trust and representation and warranties related to SCC. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses, as well as a repurchase of all loans due to alleged misrepresentations by SCC as to itself and representations given as to the loans' compliance with its underwriting standards and the value of underlying real estate. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On September 28, 2012, a second lawsuit was filed by Homeward in the District Court for the Southern District of New York against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 12-cv-7319). Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-3 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 96 loans sold to the trust. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which was granted in part and denied in part on February 14, 2014. The court granted dismissal of Plaintiff’s claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. The court denied dismissal of Plaintiff’s remaining claims for breach of various representations and warranties under the Mortgage Loan Purchase Agreement. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 5, 2013, a third lawsuit was filed by Homeward in the District Court for the Southern District of New York against SCC. The suit, styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 13-cv-2107), was filed as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 159 loans sold to the trust. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
Underwriters and depositors are, or have been, involved in multiple lawsuits related to securitization transactions in which SCC participated. These lawsuits allege or alleged a variety of claims, including violations of federal and state securities law and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 18 lawsuits in which SCC received notice of a claim for indemnification of losses and expenses involve original investments of approximately $14 billion. The outstanding principal amount of these investments is approximately $4 billion. Because SCC has not been a party to these lawsuits (with the exception of the Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation case discussed above) and has not had control of this litigation or any settlements thereof, SCC does not have precise information about the amount of damages or other remedies being asserted, the defenses to the claims in such lawsuits or the terms of any settlements of such lawsuits. Additional lawsuits against the underwriters or depositors may be filed in the future, and SCC may receive additional notices of claims for indemnification from underwriters or depositors with respect to existing or new lawsuits or settlements of such lawsuits. We have not concluded that a loss related to any of these indemnification claims is probable, nor have we accrued a liability related to any of these claims. Certain of the notices received included, and future notices may include, a reservation of rights that encompasses a right of contribution which may become operative if indemnification is unavailable or insufficient to cover all of the losses and expenses involved. We believe SCC has meritorious defenses to these indemnification claims and intends to defend them vigorously, but there can be no assurance as to their outcome or their impact. In the event of unfavorable outcomes on these claims, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 3, 2012, the Nevada Attorney General issued a subpoena to SCC indicating it was conducting an investigation concerning “the alleged commission of a practice declared to be unlawful under the Nevada Deceptive Trade Practices Act.” No complaint has been filed to date. SCC plans to continue to cooperate with the Nevada Attorney General. | |||||||||
EMPLOYMENT-RELATED CLAIMS AND LITIGATION – On January 25, 2010, a wage and hour class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Barbara Petroski, et al. v. H&R Block Eastern Enterprises, Inc., et al., (Case No. 10-00075-CV-W-DW). The plaintiffs generally allege failure to compensate tax professionals nationwide for training that is required to be eligible for rehire the following tax season, and seek compensatory damages, liquidated damages, statutory penalties, pre-judgment interest, attorneys' fees and costs. A conditional class was certified under the Fair Labor Standards Act in March 2011 (consisting of tax professionals nationwide who worked in company-owned offices and who were not compensated for such training on or after April 15, 2007). Two classes were also certified under state laws in California and New York (consisting of tax professionals who worked in company-owned offices in California and New York and who were not compensated for such training on or after March 4, 2006 and on or after March 4, 2004, respectively). We filed a motion to decertify the classes, along with a motion for summary judgment on all claims. On April 8, 2013, the court granted summary judgment in our favor on all claims. The plaintiffs filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this matter and intend to defend them vigorously, but there can be no assurances as to the outcome of the matter or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
RAL AND RAC LITIGATION – A series of putative class action lawsuits were filed against us in various federal courts beginning on November 17, 2011 concerning the refund anticipation loan (RAL) and refund anticipation check (RAC) products. The plaintiffs generally allege we engaged in unfair, deceptive or fraudulent acts in violation of various state consumer protection laws by facilitating RALs that were accompanied by allegedly inaccurate TILA disclosures, and by offering RACs without any TILA disclosures. Certain plaintiffs also allege violation of disclosure requirements of various state statutes expressly governing RALs and provisions of those statutes prohibiting tax preparers from charging or retaining certain fees. Collectively, the plaintiffs seek to represent clients who purchased RAL or RAC products in up to forty-two states and the District of Columbia during timeframes ranging from 2007 to the present. The plaintiffs seek equitable relief, disgorgement of profits, compensatory and statutory damages, restitution, civil penalties, attorneys' fees and costs. These cases were consolidated by the Judicial Panel on Multidistrict Litigation into a single proceeding in the United States District Court for the Northern District of Illinois for coordinated pretrial proceedings, styled IN RE: H&R Block Refund Anticipation Loan Litigation (MDL No. 2373/No: 1:12-CV-02973-JBG ). We filed a motion to compel arbitration, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in these cases and intend to defend the cases vigorously, but there can be no assurances as to the outcome of these cases or their impact on our consolidated financial position, results of operations and cash flows. | |||||||||
COMPLIANCE FEE LITIGATION – On April 16, 2012, a putative class action lawsuit was filed against us in the Circuit Court of Jackson County, Missouri styled Manuel H. Lopez III v. H&R Block, Inc., et al. (Case # 1216CV12290) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all Missouri citizens who were charged the compliance fee, and asserts claims of violation of the Missouri Merchandising Practices Act, money had and received, and unjust enrichment. We filed a motion to compel arbitration of the 2011 claims. The court denied the motion. We filed an appeal, which remains pending. The trial court case is stayed pending the outcome of the appeal. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to the outcome of the case or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 19, 2012, a putative class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Ronald Perras v. H&R Block, Inc., et al. (Case No. 4:12-cv-00450-DGK) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserts claims of violation of various state consumer laws, money had and received, and unjust enrichment. The plaintiff filed a motion for class certification in September 2013. The court subsequently granted our motion to compel arbitration of the 2011 claims and stayed all proceedings with respect to the 2011 claims. The case is continuing to proceed on the 2012 claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to the outcome of the case or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
FORM 8863 LITIGATION - A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013 (including, by way of example, Danielle Pooley v. H&R Block, Inc., No. 1:13-cv-01549-JBS-KMW (D.N.J. Mar. 13, 2013); Arthur Green and Amy Hamilton v. H&R Block, Inc., et al., No. 4:13-cv-11206 (E.D. Mich. Mar. 19, 2013); Juan Ortega v. H&R Block, Inc., et al., No. 2:13-cv-02023-MMM-RZ (C.D. Cal. Mar. 20, 2013); and Nikki R. Nevill v. H&R Block, Inc., et al., No. 1316-CV07264 (Jackson Cnty., Mo. Cir. Ct. Mar. 21, 2013)). Taken together, the plaintiffs in these actions purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The plaintiffs seek damages, pre-judgment interest, attorneys' fees and costs. In August 2013, the plaintiff in the state court action voluntarily dismissed her case without prejudice. On October 10, 2013, the Judicial Panel on Multidistrict Litigation granted our petition to consolidate the federal lawsuits for coordinated pretrial proceedings in the United States District Court for the Western District of Missouri in a proceeding styled IN RE: H&R BLOCK IRS FORM 8863 LITIGATION (MDL No. 2474/Case No. 4:13-MD-02474-FJG). We filed a motion to compel arbitration and to strike class allegations relating to clients who agreed to arbitrate their claims, which remains pending. We have not concluded that a loss related to these lawsuits is probable, nor have we accrued a liability related to these lawsuits. We believe we have meritorious defenses to the claims in these cases and intend to defend the cases vigorously, but there can be no assurances as to the outcome of these cases or their impact on our consolidated financial position, results of operations and cash flows. | |||||||||
EXPRESS IRA LITIGATION – On January 2, 2008, the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations. | |||||||||
LITIGATION AND CLAIMS PERTAINING TO THE DISCONTINUED OPERATIONS OF RSM MCGLADREY – On April 17, 2009, a shareholder derivative complaint was filed by Brian Menezes, derivatively and on behalf of nominal defendant International Textile Group, Inc. against McGladrey Capital Markets LLC (MCM) and others in the Court of Common Pleas, Greenville County, South Carolina (C.A. No. 2009-CP-23-3346) styled Brian P. Menezes, Derivatively on Behalf of Nominal Defendant, International Textile Group, Inc. (f/k/a Safety Components International, Inc.) v. McGladrey Capital Markets, LLC (f/k/a RSM EquiCo Capital Markets, LLC), et al. Plaintiffs filed an amended complaint in October 2011 styled In re International Textile Group Merger Litigation, adding a putative class action claim. Plaintiffs allege claims of aiding and abetting, civil conspiracy, gross negligence and breach of fiduciary duty against MCM in connection with a fairness opinion MCM provided to the Special Committee of Safety Components International, Inc. (SCI) in 2006 regarding the merger between International Textile Group, Inc. and SCI. Plaintiffs seek actual and punitive damages, pre-judgment interest, attorneys' fees and costs. On February 8, 2012, the court dismissed plaintiffs' civil conspiracy claim against all defendants. A class was certified on the remaining claims on November 20, 2012. The court granted summary judgment in favor of MCM on June 3, 2013 on the breach of fiduciary duty claim. To avoid the cost and inherent risk associated with litigation, the parties signed a memorandum of understanding to resolve the case, which is subject to approval by the court. The court granted preliminary approval of the settlement on February 19, 2014. A final approval hearing is set for June 23, 2014. A portion of our loss contingency accrual is related to this lawsuit for the amount of loss that we consider probable and reasonably estimable. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
In connection with the sale of RSM and MCM, we indemnified the buyers against certain litigation matters. The indemnities are not subject to a stated term or limit. A portion of our accrual is related to these indemnity obligations. | |||||||||
OTHER – We are from time to time a party to claims, lawsuits, investigations, loss contingencies and related settlements not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated. We believe we have meritorious defenses to each of these matters, and we are defending or intend to defend them vigorously. The amounts claimed in these matters are substantial in some instances; however, the ultimate liability with respect to such matters is difficult to predict. | |||||||||
We are also a party to claims and lawsuits that we consider to be ordinary, routine litigation incidental to our business, including, but not limited to, claims and lawsuits concerning the preparation of customers' income tax returns, the fees charged customers for various services and products, relationships with franchisees, intellectual property disputes, marketing and other competitor disputes, employment matters and contract disputes. While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
The liability is included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 158,765 | $ | 130,018 | |||||
Provisions | — | — | |||||||
Payments | — | (11,253 | ) | ||||||
Balance, end of the period | $ | 158,765 | $ | 118,765 | |||||
Loss_Contingencies_Arising_Fro
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Notes) | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations | ' | ||||||||
Changes in deferred revenue balances related to our Peace of Mind (POM) program, the current portion of which is included in accounts payable, accrued expenses and other current liabilities and the long-term portion of which is included in other noncurrent liabilities in the consolidated balance sheets, are as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 146,286 | $ | 141,080 | |||||
Amounts deferred for new guarantees issued | 16,686 | 14,202 | |||||||
Revenue recognized on previous deferrals | (59,661 | ) | (57,505 | ) | |||||
Balance, end of the period | $ | 103,311 | $ | 97,777 | |||||
We accrued $15.2 million, $14.9 million and $18.0 million as of January 31, 2014 and 2013 and April 30, 2013, respectively, related to estimated losses under our standard guarantee which is included with our standard in-office tax preparation services. The current portion of this liability is included in accounts payable, accrued expenses and other current liabilities and the long-term portion is included in other noncurrent liabilities in the consolidated balance sheets. | |||||||||
We have accrued estimated contingent consideration payments totaling $10.5 million, $10.9 million and $11.3 million as of January 31, 2014 and 2013 and April 30, 2013, respectively, related to acquisitions, with the short-term amount recorded in accounts payable, accrued expenses and deposits and the long-term portion included in other noncurrent liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ materially from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations. | |||||||||
We have contractual commitments to fund certain franchisees requesting revolving lines of credit. Our total obligation under these lines of credit was $90.9 million at January 31, 2014, and net of amounts drawn and outstanding, our remaining commitments to fund totaled $19.4 million. | |||||||||
We maintain compensating balances with certain financial institutions that are creditors in our $1.5 billion unsecured committed line of credit governed by a Credit and Guarantee Agreement (2012 CLOC), which are not legally restricted as to withdrawal. These balances totaled $0.8 million as of January 31, 2014. | |||||||||
We may enter into contracts that include embedded indemnifications that have characteristics similar to guarantees. Typically, these indemnifications do not provide a stated maximum exposure and the terms of the indemnities may vary, in many cases limited only by the applicable statute of limitations. Accruals for these obligations have been established when appropriate. Historically, payments made under these types of contractual arrangements have not been material. See note 11 and note 12 to the consolidated financial statements for additional discussion regarding guarantees and indemnifications. | |||||||||
We evaluated our financial interests in variable interest entities (VIEs) as of January 31, 2014 and determined that there have been no significant changes related to those financial interests. | |||||||||
SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. | |||||||||
Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. These representations and warranties varied based on the nature of the transaction and the buyer's or insurer's requirements, but generally pertained to the ownership of the loan, the validity of the lien securing the loan, borrower fraud, the loan's compliance with the criteria for inclusion in the transaction, including compliance with SCC's underwriting standards or loan criteria established by the buyer, ability to deliver required documentation, and compliance with applicable laws. Representations and warranties related to borrower fraud in whole loan sale transactions to institutional investors, which represented approximately 68% of the disposal of loans originated in calendar years 2005, 2006 and 2007, included a “knowledge qualifier” limiting SCC's liability to those instances where SCC had knowledge of the fraud at the time the loans were sold. Representations and warranties made in other sale transactions effectively did not include a knowledge qualifier as to borrower fraud. SCC believes it would have an obligation to repurchase a loan or indemnify certain parties with respect to a claim for a breach of a representation and warranty only if such breach materially and adversely affects the value of the mortgage loan, or a securitization insurer's or certificate holder's interest in the mortgage loan, and the mortgage loan has not been liquidated, although there is limited and conflicting case law on the liquidated loan defense issue. Such claims together with any settlement arrangements related to these losses are collectively referred to as “representation and warranty claims.” | |||||||||
Representation and warranty claims received by SCC have primarily related to alleged breaches of representations and warranties related to a loan's compliance with the underwriting standards established by SCC at origination and borrower fraud for loans originated in calendar years 2006 and 2007. SCC has received $2.1 billion in claims since May 1, 2008, of which $190 million were received in fiscal year 2013 and $1.1 billion in fiscal year 2012. SCC received new claims totaling $70.3 million during the nine months ended January 31, 2014, all of which were initiated by parties with whom SCC has tolling agreements. These tolling agreements toll the running of any applicable statute of limitations related to potential lawsuits regarding representation and warranty claims and other claims against SCC. Claims totaling approximately $1.2 million remained subject to review as of January 31, 2014, none of which represent a reassertion of previously denied claims. | |||||||||
SETTLEMENT ACTIONS - SCC has entered into tolling agreements with the counterparties that initiated all of the new claims received by SCC during the nine months ended January 31, 2014. Beginning in the fourth quarter of fiscal year 2013 and continuing in fiscal year 2014, SCC has been engaged in discussions with these counterparties regarding the bulk settlement of previously denied and potential future claims. Based on settlement discussions with these counterparties, SCC believes a bulk settlement approach, rather than the loan-by-loan resolution process, will be needed to resolve all of the representation and warranty and other claims that are the subject of these discussions. In the event that current efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result. | |||||||||
SCC continues to engage in a loan-by-loan review of new requests for repurchase. SCC will continue to vigorously contest any request for repurchase when it has concluded that a valid basis for repurchase does not exist. SCC's decision whether to engage in bulk settlement discussions is based on factors that vary by counterparty or type of counterparty and include the considerations used by SCC in determining its loss estimate, described below under "Liability for Estimated Contingent Losses." | |||||||||
LIABILITY FOR ESTIMATED CONTINGENT LOSSES - SCC records a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. Development of loss estimates is subjective, subject to a high degree of management judgment, and estimates may vary significantly period to period. SCC's loss estimate as of January 31, 2014 considers the experience gained through discussions with counterparties, and an assessment of, among other things, historical claim results, threatened claims, terms and provisions of related agreements, counterparty willingness to pursue a settlement, legal standing of counterparties to provide a comprehensive settlement, the potential pro-rata realization of the claims as compared to all similar claims and other relevant facts and circumstances when developing its estimate of probable loss. The estimate is based on the best information currently available, significant management judgment, and a number of factors, including developments in case law and those factors mentioned above, that are subject to change. Changes in any one of these factors could significantly impact the estimate. | |||||||||
The liability is included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 158,765 | $ | 130,018 | |||||
Provisions | — | — | |||||||
Payments | — | (11,253 | ) | ||||||
Balance, end of the period | $ | 158,765 | $ | 118,765 | |||||
SCC is taking the legal position, where appropriate, for both contractual representation and warranty claims and similar claims in litigation, that a valid representation and warranty claim cannot be made with respect to a mortgage loan that has been liquidated. There is limited and conflicting case law on this issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and are subject to appeal. It is anticipated that the liquidated mortgage loan defense will be the subject of future judicial decisions. Until the validity of the liquidated loan defense is further clarified by the courts or other developments occur, SCC's estimated accrual for representation and warranty will not take this defense into account. | |||||||||
ESTIMATED RANGE OF POSSIBLE LOSS - SCC believes it is reasonably possible that future representation and warranty losses may vary from amounts recorded for these exposures. SCC currently estimates that the range of reasonably possible loss could be up to approximately $40 million in excess of amounts accrued. This estimated range is based on currently available information, significant management judgment and a number of assumptions that are subject to change. The actual loss that may be incurred could be more or less than our accrual or the estimate of reasonably possible losses. | |||||||||
INDEMNIFICATION OBLIGATIONS - As described more fully in note 11, losses may also be incurred with respect to various indemnification claims by underwriters and depositors in securitization transactions in which SCC participated. Losses from these indemnification claims are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims is probable, have not accrued a liability for these claims and are not able to estimate a reasonably possible loss or range of loss for these claims. Accordingly, neither the accrued liability described above totaling $158.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above of up to approximately $40 million, includes any possible losses which may arise from these indemnification claims. There can be no assurances as to the outcome or impact of these indemnification claims. In the event of unfavorable outcomes on these claims, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
Discontinued operations consist of our former Business Services segment and SCC. We sold or ceased to operate all businesses within our former Business Services segment in fiscal year 2012. SCC exited its mortgage business in fiscal year 2008. | |||||||||||||||||
Results of our discontinued operations are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Pretax income (loss) from operations: | |||||||||||||||||
RSM and related businesses | $ | 265 | $ | (511 | ) | $ | (1,571 | ) | $ | (204 | ) | ||||||
Mortgage | (3,389 | ) | (765 | ) | (7,825 | ) | (10,639 | ) | |||||||||
(3,124 | ) | (1,276 | ) | (9,396 | ) | (10,843 | ) | ||||||||||
Income tax benefit | (1,164 | ) | (483 | ) | (3,591 | ) | (4,215 | ) | |||||||||
Net loss from discontinued operations | $ | (1,960 | ) | $ | (793 | ) | $ | (5,805 | ) | $ | (6,628 | ) | |||||
Regulatory_Capital_Requirement
Regulatory Capital Requirements Of HRB Bank | 9 Months Ended | ||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||
Regulatory Capital Requirements Of HRB Bank | ' | ||||||||||||||||||||||
The following table sets forth HRB Bank's regulatory capital requirements calculated in its Call Report, as filed with the Federal Financial Institutions Examination Council (FFIEC): | |||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||
Actual | Minimum | Minimum to be | |||||||||||||||||||||
Capital Requirement | Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 517,031 | 72.5 | % | $ | 57,023 | 8 | % | $ | 71,279 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 508,015 | 71.3 | % | N/A | N/A | 42,768 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 508,015 | 37.1 | % | 164,404 | 12 | % | (5) | 68,502 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 508,015 | 37.1 | % | 20,550 | 1.5 | % | N/A | N/A | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 469,979 | 61.9 | % | $ | 60,747 | 8 | % | $ | 75,934 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 460,341 | 60.6 | % | N/A | N/A | 45,561 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 460,341 | 29.7 | % | 62,041 | 12 | % | (5) | 77,551 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 460,341 | 29.7 | % | 23,265 | 1.5 | % | N/A | N/A | |||||||||||||||
As of March 31, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 506,734 | 131.6 | % | $ | 30,806 | 8 | % | $ | 38,508 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 501,731 | 130.3 | % | N/A | N/A | 23,105 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 501,731 | 25.5 | % | 236,315 | 12 | % | (5) | 98,464 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 501,731 | 25.5 | % | 29,539 | 1.5 | % | N/A | N/A | |||||||||||||||
(1) | Total risk-based capital divided by risk-weighted assets. | ||||||||||||||||||||||
(2) | Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets. | ||||||||||||||||||||||
(3) | Tier 1 (core) capital divided by adjusted total assets. | ||||||||||||||||||||||
(4) | Tangible capital divided by tangible assets. | ||||||||||||||||||||||
(5) | Effective April 5, 2012, the minimum capital requirement was changed to 4% by the OCC, although HRB Bank plans to maintain a minimum of 12.0% leverage capital at the end of each calendar quarter. | ||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require HRB Bank to maintain minimum amounts and ratios of tangible equity, total risk-based capital and Tier 1 capital, as set forth in the table above. As of January 31, 2014, HRB Bank’s leverage ratio was 37.1%. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Results of our continuing operations by reportable segment are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
REVENUES : | |||||||||||||||||
Tax Services | $ | 193,996 | $ | 464,634 | $ | 443,727 | $ | 684,706 | |||||||||
Corporate and eliminations | 5,774 | 7,345 | 17,578 | 21,025 | |||||||||||||
$ | 199,770 | $ | 471,979 | $ | 461,305 | $ | 705,731 | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | |||||||||||||||||
Tax Services | $ | (322,099 | ) | $ | (64,189 | ) | $ | (625,807 | ) | $ | (335,203 | ) | |||||
Corporate and eliminations | (25,726 | ) | (32,079 | ) | (85,874 | ) | (92,622 | ) | |||||||||
$ | (347,825 | ) | $ | (96,268 | ) | $ | (711,681 | ) | $ | (427,825 | ) | ||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 9 Months Ended | ||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||
Block Financial is an indirect, 100% owned subsidiary of the Company. Block Financial is the Issuer and the Company is the full and unconditional Guarantor of the Senior Notes issued on October 25, 2012 and October 26, 2004, our 2012 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. | |||||||||||||||||||||
Nine months ended January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 102,840 | $ | 360,095 | $ | (1,630 | ) | $ | 461,305 | ||||||||||
Cost of revenues | — | 121,925 | 674,159 | (1,630 | ) | 794,454 | |||||||||||||||
Selling, general and administrative | — | 25,753 | 339,484 | — | 365,237 | ||||||||||||||||
Total expenses | — | 147,678 | 1,013,643 | (1,630 | ) | 1,159,691 | |||||||||||||||
Operating loss | — | (44,838 | ) | (653,548 | ) | — | (698,386 | ) | |||||||||||||
Other income (expense), net | (711,681 | ) | 1,938 | (15,233 | ) | 711,681 | (13,295 | ) | |||||||||||||
Loss from continuing operations before tax benefit | (711,681 | ) | (42,900 | ) | (668,781 | ) | 711,681 | (711,681 | ) | ||||||||||||
Income tax benefit | (282,645 | ) | (3,999 | ) | (278,646 | ) | 282,645 | (282,645 | ) | ||||||||||||
Net loss from continuing operations | (429,036 | ) | (38,901 | ) | (390,135 | ) | 429,036 | (429,036 | ) | ||||||||||||
Net loss from discontinued operations | (5,805 | ) | (4,834 | ) | (971 | ) | 5,805 | (5,805 | ) | ||||||||||||
Net loss | (434,841 | ) | (43,735 | ) | (391,106 | ) | 434,841 | (434,841 | ) | ||||||||||||
Other comprehensive loss | (15,326 | ) | (9,668 | ) | (5,658 | ) | 15,326 | (15,326 | ) | ||||||||||||
Comprehensive loss | $ | (450,167 | ) | $ | (53,403 | ) | $ | (396,764 | ) | $ | 450,167 | $ | (450,167 | ) | |||||||
Nine months ended January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 98,531 | $ | 608,773 | $ | (1,573 | ) | $ | 705,731 | ||||||||||
Cost of revenues | — | 137,146 | 647,476 | (1,569 | ) | 783,053 | |||||||||||||||
Selling, general and administrative | — | 26,288 | 326,518 | (4 | ) | 352,802 | |||||||||||||||
Total expenses | — | 163,434 | 973,994 | (1,573 | ) | 1,135,855 | |||||||||||||||
Operating loss | — | (64,903 | ) | (365,221 | ) | — | (430,124 | ) | |||||||||||||
Other income (expense), net | (427,825 | ) | (2,428 | ) | 4,727 | 427,825 | 2,299 | ||||||||||||||
Loss from continuing operations before tax benefit | (427,825 | ) | (67,331 | ) | (360,494 | ) | 427,825 | (427,825 | ) | ||||||||||||
Income tax benefit | (204,061 | ) | (46,374 | ) | (157,687 | ) | 204,061 | (204,061 | ) | ||||||||||||
Net loss from continuing operations | (223,764 | ) | (20,957 | ) | (202,807 | ) | 223,764 | (223,764 | ) | ||||||||||||
Net loss from discontinued operations | (6,628 | ) | (6,503 | ) | (125 | ) | 6,628 | (6,628 | ) | ||||||||||||
Net loss | (230,392 | ) | (27,460 | ) | (202,932 | ) | 230,392 | (230,392 | ) | ||||||||||||
Other comprehensive loss | (3,090 | ) | (315 | ) | (2,775 | ) | 3,090 | (3,090 | ) | ||||||||||||
Comprehensive loss | $ | (233,482 | ) | $ | (27,775 | ) | $ | (205,707 | ) | $ | 233,482 | $ | (233,482 | ) | |||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 181,483 | $ | 256,541 | $ | (620 | ) | $ | 437,404 | ||||||||||
Cash & cash equivalents — restricted | — | 4,883 | 39,972 | — | 44,855 | ||||||||||||||||
Receivables, net | — | 529,954 | 147,267 | — | 677,221 | ||||||||||||||||
Mortgage loans held for investment, net | — | 282,149 | — | — | 282,149 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 756,105 | — | 756,105 | ||||||||||||||||
Investments in subsidiaries | 2,845,467 | — | 1,079 | (2,845,467 | ) | 1,079 | |||||||||||||||
Amounts due from affiliates | — | 542,657 | 2,167,747 | (2,710,404 | ) | — | |||||||||||||||
Other assets | 9,708 | 598,966 | 707,800 | — | 1,316,474 | ||||||||||||||||
Total assets | $ | 2,855,175 | $ | 2,140,092 | $ | 4,076,511 | $ | (5,556,491 | ) | $ | 3,515,287 | ||||||||||
Customer deposits | $ | — | $ | 807,507 | $ | — | $ | (620 | ) | $ | 806,887 | ||||||||||
Commercial paper borrowings | — | 194,984 | — | — | 194,984 | ||||||||||||||||
Long-term debt | — | 897,365 | 9,164 | — | 906,529 | ||||||||||||||||
Other liabilities | 669 | 237,199 | 682,260 | — | 920,128 | ||||||||||||||||
Amounts due to affiliates | 2,167,747 | — | 542,657 | (2,710,404 | ) | — | |||||||||||||||
Stockholders’ equity | 686,759 | 3,037 | 2,842,430 | (2,845,467 | ) | 686,759 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,855,175 | $ | 2,140,092 | $ | 4,076,511 | $ | (5,556,491 | ) | $ | 3,515,287 | ||||||||||
As of January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 294,816 | $ | 124,102 | $ | (533 | ) | $ | 418,385 | ||||||||||
Cash & cash equivalents — restricted | — | 1,613 | 36,345 | — | 37,958 | ||||||||||||||||
Receivables, net | 963 | 555,418 | 392,779 | — | 949,160 | ||||||||||||||||
Mortgage loans held for investment, net | — | 357,887 | — | — | 357,887 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 723,491 | — | 723,491 | ||||||||||||||||
Investments in subsidiaries | 2,834,612 | 556 | — | (2,834,612 | ) | 556 | |||||||||||||||
Amounts due from affiliates | 62 | 496,760 | 2,208,626 | (2,705,448 | ) | — | |||||||||||||||
Other assets | 8,244 | 630,999 | 805,816 | — | 1,445,059 | ||||||||||||||||
Total assets | $ | 2,843,881 | $ | 2,338,049 | $ | 4,291,159 | $ | (5,540,593 | ) | $ | 3,932,496 | ||||||||||
Customer deposits | $ | — | $ | 1,037,501 | $ | — | $ | (533 | ) | $ | 1,036,968 | ||||||||||
Commercial paper borrowings | — | 424,967 | — | — | 424,967 | ||||||||||||||||
Long-term debt | — | 896,848 | 9,877 | — | 906,725 | ||||||||||||||||
Other liabilities | 367 | 251,833 | 676,748 | — | 928,948 | ||||||||||||||||
Amounts due to affiliates | 2,208,626 | — | 496,822 | (2,705,448 | ) | — | |||||||||||||||
Stockholders’ equity | 634,888 | (273,100 | ) | 3,107,712 | (2,834,612 | ) | 634,888 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,843,881 | $ | 2,338,049 | $ | 4,291,159 | $ | (5,540,593 | ) | $ | 3,932,496 | ||||||||||
As of April 30, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 558,110 | $ | 1,192,197 | $ | (2,723 | ) | $ | 1,747,584 | ||||||||||
Cash & cash equivalents — restricted | — | 75,096 | 42,741 | — | 117,837 | ||||||||||||||||
Receivables, net | 769 | 99,844 | 106,222 | — | 206,835 | ||||||||||||||||
Mortgage loans held for investment, net | — | 338,789 | — | — | 338,789 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 719,221 | — | 719,221 | ||||||||||||||||
Investments in subsidiaries | 3,444,442 | 473 | — | (3,444,442 | ) | 473 | |||||||||||||||
Amounts due from affiliates | — | 410,590 | 2,189,625 | (2,600,215 | ) | — | |||||||||||||||
Other assets | 8,390 | 645,166 | 753,484 | — | 1,407,040 | ||||||||||||||||
Total assets | $ | 3,453,601 | $ | 2,128,068 | $ | 5,003,490 | $ | (6,047,380 | ) | $ | 4,537,779 | ||||||||||
Customer deposits | $ | — | $ | 939,187 | $ | — | $ | (2,723 | ) | $ | 936,464 | ||||||||||
Long-term debt | — | 896,978 | 9,702 | — | 906,680 | ||||||||||||||||
Other liabilities | 429 | 245,862 | 1,184,797 | — | 1,431,088 | ||||||||||||||||
Amounts due to affiliates | 2,189,625 | — | 410,590 | (2,600,215 | ) | — | |||||||||||||||
Stockholders’ equity | 1,263,547 | 46,041 | 3,398,401 | (3,444,442 | ) | 1,263,547 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,453,601 | $ | 2,128,068 | $ | 5,003,490 | $ | (6,047,380 | ) | $ | 4,537,779 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | (in 000s) | ||||||||||||||||||||
Nine months ended January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash used in operating activities | $ | (309 | ) | $ | (347,188 | ) | $ | (772,825 | ) | $ | — | $ | (1,120,322 | ) | |||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (45,158 | ) | — | — | (45,158 | ) | ||||||||||||||
Maturities and payments received on AFS securities | — | 72,502 | — | — | 72,502 | ||||||||||||||||
Mortgage loans held for investment, net | — | 35,320 | — | — | 35,320 | ||||||||||||||||
Capital expenditures | — | (59 | ) | (125,595 | ) | — | (125,654 | ) | |||||||||||||
Payments for business acquisitions, net | — | — | (37,865 | ) | — | (37,865 | ) | ||||||||||||||
Proceeds received on notes receivable | — | — | 64,865 | — | 64,865 | ||||||||||||||||
Loans made to franchisees | — | (62,039 | ) | — | — | (62,039 | ) | ||||||||||||||
Repayments from franchisees | — | 17,893 | — | — | 17,893 | ||||||||||||||||
Intercompany advances (payments) | 142,407 | — | — | (142,407 | ) | — | |||||||||||||||
Other, net | — | 6,384 | 5,843 | — | 12,227 | ||||||||||||||||
Net cash provided by (used in) investing activities | 142,407 | 24,843 | (92,752 | ) | (142,407 | ) | (67,909 | ) | |||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of commercial paper | — | (80,930 | ) | — | — | (80,930 | ) | ||||||||||||||
Proceeds from commercial paper | — | 275,914 | — | — | 275,914 | ||||||||||||||||
Customer banking deposits, net | — | (127,050 | ) | — | 2,103 | (124,947 | ) | ||||||||||||||
Dividends paid | (164,134 | ) | — | — | — | (164,134 | ) | ||||||||||||||
Repurchase of common stock | (6,047 | ) | — | — | — | (6,047 | ) | ||||||||||||||
Proceeds from stock options | 28,083 | — | — | — | 28,083 | ||||||||||||||||
Intercompany advances (payments) | — | (122,216 | ) | (20,191 | ) | 142,407 | — | ||||||||||||||
Other, net | — | — | (29,872 | ) | — | (29,872 | ) | ||||||||||||||
Net cash used in financing activities | (142,098 | ) | (54,282 | ) | (50,063 | ) | 144,510 | (101,933 | ) | ||||||||||||
Effects of exchange rates on cash | — | — | (20,016 | ) | — | (20,016 | ) | ||||||||||||||
Net decrease in cash | — | (376,627 | ) | (935,656 | ) | 2,103 | (1,310,180 | ) | |||||||||||||
Cash – beginning of the period | — | 558,110 | 1,192,197 | (2,723 | ) | 1,747,584 | |||||||||||||||
Cash – end of the period | $ | — | $ | 181,483 | $ | 256,541 | $ | (620 | ) | $ | 437,404 | ||||||||||
Nine months ended January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash used in operating activities: | $ | (158 | ) | $ | (408,904 | ) | $ | (902,864 | ) | $ | — | $ | (1,311,926 | ) | |||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (108,351 | ) | — | — | (108,351 | ) | ||||||||||||||
Maturities and payments received on AFS securities | — | 86,756 | 52 | — | 86,808 | ||||||||||||||||
Mortgage loans held for investment, net | — | 31,205 | — | — | 31,205 | ||||||||||||||||
Capital expenditures | — | (58 | ) | (96,005 | ) | — | (96,063 | ) | |||||||||||||
Payments for business acquisitions, net | — | — | (20,662 | ) | — | (20,662 | ) | ||||||||||||||
Loans made to franchisees | — | (68,874 | ) | — | — | (68,874 | ) | ||||||||||||||
Repayments from franchisees | — | 9,594 | — | — | 9,594 | ||||||||||||||||
Net intercompany advances | 491,619 | — | — | (491,619 | ) | — | |||||||||||||||
Other, net | — | (21,879 | ) | 7,906 | — | (13,973 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 491,619 | (71,607 | ) | (108,709 | ) | (491,619 | ) | (180,316 | ) | ||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of commercial paper | — | (789,271 | ) | — | — | (789,271 | ) | ||||||||||||||
Proceeds from commercial paper | — | 1,214,238 | — | — | 1,214,238 | ||||||||||||||||
Repayments of long-term debt | — | (605,790 | ) | (30,831 | ) | — | (636,621 | ) | |||||||||||||
Proceeds from long-term debt | — | 497,185 | — | — | 497,185 | ||||||||||||||||
Customer banking deposits, net | — | 208,443 | — | 310 | 208,753 | ||||||||||||||||
Dividends paid | (162,692 | ) | — | — | — | (162,692 | ) | ||||||||||||||
Repurchase of common stock | (340,298 | ) | — | — | — | (340,298 | ) | ||||||||||||||
Proceeds from stock options | 11,529 | — | — | — | 11,529 | ||||||||||||||||
Net intercompany advances | — | (251,638 | ) | (239,981 | ) | 491,619 | — | ||||||||||||||
Other, net | — | (12,987 | ) | (23,126 | ) | — | (36,113 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (491,461 | ) | 260,180 | (293,938 | ) | 491,929 | (33,290 | ) | |||||||||||||
Effects of exchange rates on cash | — | — | (417 | ) | — | (417 | ) | ||||||||||||||
Net decrease in cash | — | (220,331 | ) | (1,305,928 | ) | 310 | (1,525,949 | ) | |||||||||||||
Cash – beginning of the period | — | 515,147 | 1,430,030 | (843 | ) | 1,944,334 | |||||||||||||||
Cash – end of the period | $ | — | $ | 294,816 | $ | 124,102 | $ | (533 | ) | $ | 418,385 | ||||||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Jan. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation - The consolidated balance sheets as of January 31, 2014 and 2013, the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended January 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2014 and 2013 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows at January 31, 2014 and 2013 and for all periods presented have been made. | |
“H&R Block,” “the Company,” “we,” “our” and “us” are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2013 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2013 or for the year then ended, are derived from our April 30, 2013 Annual Report to Shareholders on Form 10-K. | |
Management Estimates | ' |
Management Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, allowance for loan losses, valuation allowances based on future taxable income, reserves for uncertain tax positions and related matters. Estimates have been prepared on the basis of the most current and best information available as of each balance sheet date. As such, actual results could differ materially from those estimates. |
Loss_Per_Share_and_Stockholder1
Loss Per Share and Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Computations Of Basic And Diluted Earnings Per Share | ' | ||||||||||||||||
The computations of basic and diluted earnings per share from continuing operations are as follows: | |||||||||||||||||
(in 000s, except per share amounts) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss from continuing operations attributable to shareholders | $ | (212,751 | ) | $ | (16,915 | ) | $ | (429,036 | ) | $ | (223,764 | ) | |||||
Amounts allocated to participating securities | (88 | ) | (62 | ) | (242 | ) | (199 | ) | |||||||||
Net loss from continuing operations attributable to common shareholders | $ | (212,839 | ) | $ | (16,977 | ) | $ | (429,278 | ) | $ | (223,963 | ) | |||||
Basic weighted average common shares | 274,110 | 271,542 | 273,699 | 273,281 | |||||||||||||
Potential dilutive shares | — | — | — | — | |||||||||||||
Dilutive weighted average common shares | 274,110 | 271,542 | 273,699 | 273,281 | |||||||||||||
Loss per share from continuing operations attributable to common shareholders: | |||||||||||||||||
Basic | $ | (0.78 | ) | $ | (0.06 | ) | $ | (1.57 | ) | $ | (0.82 | ) | |||||
Diluted | (0.78 | ) | (0.06 | ) | (1.57 | ) | (0.82 | ) |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Amortized Cost And Fair Value Of Securities Available-For-Sale | ' | ||||||||||||||||
The amortized cost and fair value of securities classified as available-for-sale (AFS) are summarized below: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses (1) | ||||||||||||||||
As of January 31, 2014: | |||||||||||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | $ | 449,097 | $ | 3,201 | $ | (12,903 | ) | $ | 439,395 | ||||||||
Municipal bonds | 4,134 | 241 | — | 4,375 | |||||||||||||
$ | 453,231 | $ | 3,442 | $ | (12,903 | ) | $ | 443,770 | |||||||||
As of January 31, 2013: | |||||||||||||||||
Short-term: | |||||||||||||||||
Municipal bonds | $ | 1,000 | $ | 1 | $ | — | $ | 1,001 | |||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | 386,741 | 5,825 | (780 | ) | 391,786 | ||||||||||||
Municipal bonds | 4,192 | 334 | — | 4,526 | |||||||||||||
390,933 | 6,159 | (780 | ) | 396,312 | |||||||||||||
$ | 391,933 | $ | 6,160 | $ | (780 | ) | $ | 397,313 | |||||||||
As of April 30, 2013: | |||||||||||||||||
Long-term: | |||||||||||||||||
Mortgage-backed securities | $ | 476,450 | $ | 6,592 | $ | (664 | ) | $ | 482,378 | ||||||||
Municipal bonds | 4,178 | 320 | — | 4,498 | |||||||||||||
$ | 480,628 | $ | 6,912 | $ | (664 | ) | $ | 486,876 | |||||||||
(1) | As of January 31, 2014, mortgage-backed securities with a cost of $25.8 million and gross unrealized losses of $2.8 million had been in a continuous loss position for more than twelve months. As of January 31, 2013 and April 30, 2013, we had no securities that had been in a continuous loss position for more than twelve months. | ||||||||||||||||
Contractual Maturities Of AFS Debt Securities At Varying Dates Over The Next 30 Years | ' | ||||||||||||||||
Contractual maturities of AFS debt securities at January 31, 2014, occur at varying dates over the next 29 years, and are set forth in the table below. | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||
Maturing in: | |||||||||||||||||
Two to five years | $ | 4,134 | $ | 4,375 | |||||||||||||
Beyond | 449,097 | 439,395 | |||||||||||||||
$ | 453,231 | $ | 443,770 | ||||||||||||||
Receivables_Tables
Receivables (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | ' | ||||||||||||||||||||||||
Schedule Of Short-Term Receivables | ' | ||||||||||||||||||||||||
Short-term receivables consist of the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Loans to franchisees | $ | 104,841 | $ | 110,560 | $ | 65,413 | |||||||||||||||||||
Receivables for tax preparation and related fees | 60,162 | 250,566 | 49,356 | ||||||||||||||||||||||
Canadian CashBack receivables | 10,099 | 13,052 | 47,658 | ||||||||||||||||||||||
Emerald Advance lines of credit | 444,590 | 462,576 | 23,218 | ||||||||||||||||||||||
Royalties from franchisees | 30,309 | 69,627 | 10,722 | ||||||||||||||||||||||
RAC fees receivable | 13,413 | 31,680 | — | ||||||||||||||||||||||
Credit cards | 5,610 | 4,220 | 7,733 | ||||||||||||||||||||||
Other | 50,913 | 51,708 | 53,134 | ||||||||||||||||||||||
719,937 | 993,989 | 257,234 | |||||||||||||||||||||||
Allowance for doubtful accounts | (42,716 | ) | (44,829 | ) | (50,399 | ) | |||||||||||||||||||
$ | 677,221 | $ | 949,160 | $ | 206,835 | ||||||||||||||||||||
Schedule Of Loans Receivable | ' | ||||||||||||||||||||||||
The short-term portions of Emerald Advance lines of credit (EAs), loans made to franchisees, CashBack balances (as discussed below) and credit card balances are included in receivables, while the long-term portions are included in other assets in the consolidated balance sheets. These amounts are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans | CashBack | Credit Cards | ||||||||||||||||||||||
to Franchisees | |||||||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Short-term | $ | 444,590 | $ | 104,841 | $ | 10,099 | $ | 5,610 | |||||||||||||||||
Long-term | 5,555 | 114,676 | — | 11,378 | |||||||||||||||||||||
$ | 450,145 | $ | 219,517 | $ | 10,099 | $ | 16,988 | ||||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Short-term | $ | 462,576 | $ | 110,560 | $ | 13,052 | $ | 4,220 | |||||||||||||||||
Long-term | 10,465 | 127,274 | — | 16,045 | |||||||||||||||||||||
$ | 473,041 | $ | 237,834 | $ | 13,052 | $ | 20,265 | ||||||||||||||||||
As of April 30, 2013: | |||||||||||||||||||||||||
Short-term | $ | 23,218 | $ | 65,413 | $ | 47,658 | $ | 7,733 | |||||||||||||||||
Long-term | 9,819 | 103,047 | — | 15,538 | |||||||||||||||||||||
$ | 33,037 | $ | 168,460 | $ | 47,658 | $ | 23,271 | ||||||||||||||||||
Schedule Of Receivables Based On Year Of Origination | ' | ||||||||||||||||||||||||
mounts as of January 31, 2014, by year of origination, are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicator – Year of origination: | |||||||||||||||||||||||||
2014 | $ | 415,081 | |||||||||||||||||||||||
2013 | 7,295 | ||||||||||||||||||||||||
2012 | 1,006 | ||||||||||||||||||||||||
2011 | 1,912 | ||||||||||||||||||||||||
2010 and prior | 6,199 | ||||||||||||||||||||||||
Revolving loans | 18,652 | ||||||||||||||||||||||||
$ | 450,145 | ||||||||||||||||||||||||
Schedule Of Activity In The Allowance For Doubtful Accounts | ' | ||||||||||||||||||||||||
Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the nine months ended January 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans | CashBack | Credit Cards | All Other | Total | ||||||||||||||||||||
to Franchisees | |||||||||||||||||||||||||
Balances as of May 1, 2013 | $ | 7,390 | $ | — | $ | 2,769 | $ | 7,304 | $ | 40,240 | $ | 57,703 | |||||||||||||
Provision | 24,787 | 42 | 248 | 6,785 | 5,417 | 37,279 | |||||||||||||||||||
Charge-offs | — | (2 | ) | (1,667 | ) | (8,654 | ) | (39,412 | ) | (49,735 | ) | ||||||||||||||
Balances as of January 31, 2014 | $ | 32,177 | $ | 40 | $ | 1,350 | $ | 5,435 | $ | 6,245 | $ | 45,247 | |||||||||||||
Balances as of May 1, 2012 | $ | 6,200 | $ | — | $ | 2,279 | $ | — | $ | 36,110 | $ | 44,589 | |||||||||||||
Provision | 25,519 | 42 | 385 | 4,255 | 10,281 | 40,482 | |||||||||||||||||||
Charge-offs | — | — | (1,292 | ) | — | (38,950 | ) | (40,242 | ) | ||||||||||||||||
Balances as of January 31, 2013 | $ | 31,719 | $ | 42 | $ | 1,372 | $ | 4,255 | $ | 7,441 | $ | 44,829 | |||||||||||||
Mortgage_Loans_Held_For_Invest1
Mortgage Loans Held For Investment And Related Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ||||||||||||||||||||||||
Schedule Of Mortgage Loan Portfolio | ' | ||||||||||||||||||||||||
The composition of our mortgage loan portfolio is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Adjustable-rate loans | $ | 158,369 | 54 | % | $ | 203,624 | 55 | % | $ | 191,093 | 55 | % | |||||||||||||
Fixed-rate loans | 132,956 | 46 | % | 168,515 | 45 | % | 159,142 | 45 | % | ||||||||||||||||
291,325 | 100 | % | 372,139 | 100 | % | 350,235 | 100 | % | |||||||||||||||||
Unamortized deferred fees and costs | 2,387 | 3,004 | 2,868 | ||||||||||||||||||||||
Less: Allowance for loan losses | (11,563 | ) | (17,256 | ) | (14,314 | ) | |||||||||||||||||||
$ | 282,149 | $ | 357,887 | $ | 338,789 | ||||||||||||||||||||
Schedule Of Allowance For Loan Losses | ' | ||||||||||||||||||||||||
Activity in the allowance for loan losses for the nine months ended January 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the period | $ | 14,314 | $ | 26,540 | |||||||||||||||||||||
Provision | 7,224 | 10,250 | |||||||||||||||||||||||
Recoveries | 3,250 | 2,745 | |||||||||||||||||||||||
Charge-offs | (13,225 | ) | (22,279 | ) | |||||||||||||||||||||
Balance at end of the period | $ | 11,563 | $ | 17,256 | |||||||||||||||||||||
Schedule Of Portfolio Balance And Related Allowance | ' | ||||||||||||||||||||||||
The balance of these loans and the related allowance is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Portfolio | Related | Portfolio | Related | Portfolio | Related | ||||||||||||||||||||
Balance | Allowance | Balance | Allowance | Balance | Allowance | ||||||||||||||||||||
Pooled (less than 60 days past due) | $ | 169,404 | $ | 4,979 | $ | 219,345 | $ | 6,670 | $ | 207,319 | $ | 5,628 | |||||||||||||
Impaired: | |||||||||||||||||||||||||
Individually (TDRs) | 44,635 | 4,371 | 59,295 | 5,013 | 55,061 | 4,924 | |||||||||||||||||||
Individually (60 days or more past due) | 77,286 | 2,213 | 93,499 | 5,573 | 87,855 | 3,762 | |||||||||||||||||||
$ | 291,325 | $ | 11,563 | $ | 372,139 | $ | 17,256 | $ | 350,235 | $ | 14,314 | ||||||||||||||
Schedule Of Mortgage Loans Held For Investment And The Related Allowance | ' | ||||||||||||||||||||||||
Detail of our mortgage loans held for investment and the related allowance as of January 31, 2014 is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Outstanding Principal Balance | Loan Loss Allowance | % 30+ Days | |||||||||||||||||||||||
Amount | % of Principal | Past Due | |||||||||||||||||||||||
Purchased from SCC | $ | 166,265 | $ | 9,343 | 5.6 | % | 29.6 | % | |||||||||||||||||
All other | 125,060 | 2,220 | 1.8 | % | 7.6 | % | |||||||||||||||||||
$ | 291,325 | $ | 11,563 | 4 | % | 20.1 | % | ||||||||||||||||||
Schedule Of Credit Quality Indicators | ' | ||||||||||||||||||||||||
Credit quality indicators as of January 31, 2014 include the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicators | Purchased from SCC | All Other | Total Portfolio | ||||||||||||||||||||||
Occupancy status: | |||||||||||||||||||||||||
Owner occupied | $ | 121,743 | $ | 81,619 | $ | 203,362 | |||||||||||||||||||
Non-owner occupied | 44,522 | 43,441 | 87,963 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Documentation level: | |||||||||||||||||||||||||
Full documentation | $ | 55,477 | $ | 90,345 | $ | 145,822 | |||||||||||||||||||
Limited documentation | 5,059 | 13,281 | 18,340 | ||||||||||||||||||||||
Stated income | 91,796 | 13,265 | 105,061 | ||||||||||||||||||||||
No documentation | 13,933 | 8,169 | 22,102 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Internal risk rating: | |||||||||||||||||||||||||
High | $ | 49,226 | $ | — | $ | 49,226 | |||||||||||||||||||
Medium | 117,039 | — | 117,039 | ||||||||||||||||||||||
Low | — | 125,060 | 125,060 | ||||||||||||||||||||||
$ | 166,265 | $ | 125,060 | $ | 291,325 | ||||||||||||||||||||
Schedule Of Past Due Mortgage Loans | ' | ||||||||||||||||||||||||
Our mortgage loans held for investment include concentrations of loans to borrowers in certain states, which may result in increased exposure to lo | |||||||||||||||||||||||||
Schedule Of Non-Accrual Loans | ' | ||||||||||||||||||||||||
Information related to our non-accrual loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 64,573 | $ | 76,235 | $ | 70,327 | |||||||||||||||||||
Other | 12,325 | 15,761 | 14,906 | ||||||||||||||||||||||
76,898 | 91,996 | 85,233 | |||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||
Purchased from SCC | 4,221 | 3,460 | 3,719 | ||||||||||||||||||||||
Other | 957 | 504 | 502 | ||||||||||||||||||||||
5,178 | 3,964 | 4,221 | |||||||||||||||||||||||
Total non-accrual loans | $ | 82,076 | $ | 95,960 | $ | 89,454 | |||||||||||||||||||
Information Related To Impaired Loans | ' | ||||||||||||||||||||||||
Information related to impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Balance | Balance | Total | Related Allowance | ||||||||||||||||||||||
With Allowance | With No Allowance | Impaired Loans | |||||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 28,037 | $ | 73,873 | $ | 101,910 | $ | 5,341 | |||||||||||||||||
Other | 5,030 | 14,982 | 20,012 | 1,243 | |||||||||||||||||||||
$ | 33,067 | $ | 88,855 | $ | 121,922 | $ | 6,584 | ||||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 38,938 | $ | 88,671 | $ | 127,609 | $ | 8,470 | |||||||||||||||||
Other | 6,757 | 18,428 | 25,185 | 2,116 | |||||||||||||||||||||
$ | 45,695 | $ | 107,099 | $ | 152,794 | $ | 10,586 | ||||||||||||||||||
As of April 30, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 33,791 | $ | 84,592 | $ | 118,383 | $ | 6,573 | |||||||||||||||||
Other | 7,601 | 16,932 | 24,533 | 2,113 | |||||||||||||||||||||
$ | 41,392 | $ | 101,524 | $ | 142,916 | $ | 8,686 | ||||||||||||||||||
Schedule Of Allowance For Impaired Loans | ' | ||||||||||||||||||||||||
Information related to the allowance for impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | April 30, 2013 | ||||||||||||||||||||||
Portion of total allowance for loan losses allocated to impaired loans and TDR loans: | |||||||||||||||||||||||||
Based on collateral value method | $ | 2,213 | $ | 5,573 | $ | 3,762 | |||||||||||||||||||
Based on discounted cash flow method | 4,371 | 5,013 | 4,924 | ||||||||||||||||||||||
$ | 6,584 | $ | 10,586 | $ | 8,686 | ||||||||||||||||||||
Information Related To Activities Of Non-Performing Assets | ' | ||||||||||||||||||||||||
Information related to activities of our non-performing assets is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Average impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 116,061 | $ | 137,703 | |||||||||||||||||||||
All other | 22,607 | 25,879 | |||||||||||||||||||||||
$ | 138,668 | $ | 163,582 | ||||||||||||||||||||||
Interest income on impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 2,496 | $ | 2,940 | |||||||||||||||||||||
All other | 224 | 232 | |||||||||||||||||||||||
$ | 2,720 | $ | 3,172 | ||||||||||||||||||||||
Interest income on impaired loans recognized on a cash basis on non-accrual status: | |||||||||||||||||||||||||
Purchased from SCC | $ | 2,438 | $ | 2,881 | |||||||||||||||||||||
All other | 220 | 214 | |||||||||||||||||||||||
$ | 2,658 | $ | 3,095 | ||||||||||||||||||||||
Schedule Of Real Estate Owned | ' | ||||||||||||||||||||||||
Activity related to our real estate owned (REO) is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance, beginning of the period | $ | 13,968 | $ | 14,972 | |||||||||||||||||||||
Additions | 6,389 | 7,208 | |||||||||||||||||||||||
Sales | (10,975 | ) | (6,652 | ) | |||||||||||||||||||||
Impairments | (1,152 | ) | (1,676 | ) | |||||||||||||||||||||
Balance, end of the period | $ | 8,230 | $ | 13,852 | |||||||||||||||||||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 9 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule Of Goodwill | ' | ||||||||||||
Changes in the carrying amount of goodwill of our Tax Services segment for the nine months ended January 31, 2014 and 2013 are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Goodwill | Accumulated Impairment Losses | Net | |||||||||||
Balances as of April 30, 2013 | $ | 467,079 | $ | (32,297 | ) | $ | 434,782 | ||||||
Acquisitions | 5,206 | — | 5,206 | ||||||||||
Disposals and foreign currency changes, net | (2,602 | ) | — | (2,602 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of January 31, 2014 | $ | 469,683 | $ | (32,297 | ) | $ | 437,386 | ||||||
Balances as of April 30, 2012 | $ | 459,863 | $ | (32,297 | ) | $ | 427,566 | ||||||
Acquisitions | 7,650 | — | 7,650 | ||||||||||
Disposals and foreign currency changes, net | 40 | — | 40 | ||||||||||
Impairments | — | — | — | ||||||||||
Balances as of January 31, 2013 | $ | 467,553 | $ | (32,297 | ) | $ | 435,256 | ||||||
Schedule Of Intangible Assets | ' | ||||||||||||
Components of the intangible assets of our Tax Services segment are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Carrying | Amortization | ||||||||||||
Amount | |||||||||||||
As of January 31, 2014: | |||||||||||||
Reacquired franchise rights | $ | 233,675 | $ | (23,120 | ) | $ | 210,555 | ||||||
Customer relationships | 121,055 | (56,283 | ) | 64,772 | |||||||||
Internally-developed software | 98,012 | (70,964 | ) | 27,048 | |||||||||
Noncompete agreements | 24,573 | (22,028 | ) | 2,545 | |||||||||
Franchise agreements | 19,201 | (6,614 | ) | 12,587 | |||||||||
Purchased technology | 14,800 | (13,588 | ) | 1,212 | |||||||||
Trade name | 300 | (300 | ) | — | |||||||||
$ | 511,616 | $ | (192,897 | ) | $ | 318,719 | |||||||
As of January 31, 2013: | |||||||||||||
Reacquired franchise rights | $ | 214,330 | $ | (17,174 | ) | $ | 197,156 | ||||||
Customer relationships | 108,596 | (52,820 | ) | 55,776 | |||||||||
Internally-developed software | 87,909 | (71,194 | ) | 16,715 | |||||||||
Noncompete agreements | 23,054 | (21,627 | ) | 1,427 | |||||||||
Franchise agreements | 19,201 | (5,334 | ) | 13,867 | |||||||||
Purchased technology | 14,800 | (11,911 | ) | 2,889 | |||||||||
Trade name | 1,300 | (892 | ) | 408 | |||||||||
$ | 469,190 | $ | (180,952 | ) | $ | 288,238 | |||||||
As of April 30, 2013: | |||||||||||||
Reacquired franchise rights | $ | 214,330 | $ | (18,204 | ) | $ | 196,126 | ||||||
Customer relationships | 100,719 | (48,733 | ) | 51,986 | |||||||||
Internally-developed software | 91,745 | (72,764 | ) | 18,981 | |||||||||
Noncompete agreements | 23,058 | (21,728 | ) | 1,330 | |||||||||
Franchise agreements | 19,201 | (5,654 | ) | 13,547 | |||||||||
Purchased technology | 14,800 | (12,331 | ) | 2,469 | |||||||||
Trade name | 300 | (300 | ) | — | |||||||||
$ | 464,153 | $ | (179,714 | ) | $ | 284,439 | |||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Assets Remeasured At Fair Value On Recurring Basis | ' | ||||||||||||||||||||||||
The following table presents the assets that were remeasured at fair value on a recurring basis during the nine months ended January 31, 2014 and 2013: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Gains (losses) | |||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 439,395 | $ | — | $ | 439,395 | $ | — | $ | (9,702 | ) | ||||||||||||||
Municipal bonds | 4,375 | — | 4,375 | — | 241 | ||||||||||||||||||||
$ | 443,770 | $ | — | $ | 443,770 | $ | — | $ | (9,461 | ) | |||||||||||||||
As a percentage of total assets | 12.6 | % | — | % | 12.6 | % | — | % | |||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 391,786 | $ | — | $ | 391,786 | $ | — | $ | 5,045 | |||||||||||||||
Municipal bonds | 5,527 | — | 5,527 | — | 335 | ||||||||||||||||||||
$ | 397,313 | $ | — | $ | 397,313 | $ | — | $ | 5,380 | ||||||||||||||||
As a percentage of total assets | 10.1 | % | — | % | 10.1 | % | — | % | |||||||||||||||||
Assets Remeasured At Fair Value On Non-Recurring Basis | ' | ||||||||||||||||||||||||
The following table presents the assets that were remeasured at fair value on a non-recurring basis during the nine months ended January 31, 2014 and 2013: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Losses | |||||||||||||||||||||
As of January 31, 2014: | |||||||||||||||||||||||||
REO | $ | 8,723 | $ | — | $ | — | $ | 8,723 | $ | (437 | ) | ||||||||||||||
Impaired mortgage loans held for investment | 71,053 | — | — | 71,053 | (4,022 | ) | |||||||||||||||||||
$ | 79,776 | $ | — | $ | — | $ | 79,776 | $ | (4,459 | ) | |||||||||||||||
As a percentage of total assets | 2.3 | % | — | % | — | % | 2.3 | % | |||||||||||||||||
As of January 31, 2013: | |||||||||||||||||||||||||
REO | $ | 14,683 | $ | — | $ | — | $ | 14,683 | $ | (350 | ) | ||||||||||||||
Impaired mortgage loans held for investment | 87,949 | — | — | 87,949 | (8,509 | ) | |||||||||||||||||||
$ | 102,632 | $ | — | $ | — | $ | 102,632 | $ | (8,859 | ) | |||||||||||||||
As a percentage of total assets | 2.6 | % | — | % | — | % | 2.6 | % | |||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ' | ||||||||||||||||||||||||
The following table presents the quantitative information about our Level 3 fair value measurements, which utilize significant unobservable internally-developed inputs: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Fair Value at January 31, 2014 | Valuation | Unobservable Input | Range | ||||||||||||||||||||||
Technique | (Weighted Average) | ||||||||||||||||||||||||
REO | $ | 8,230 | Third party | Cost to list/sell | 5% – 34%(5%) | ||||||||||||||||||||
pricing | Loss severity | 0% – 100%(53%) | |||||||||||||||||||||||
Impaired mortgage loans held for investment – non TDRs | $ | 75,073 | Collateral- | Cost to list/sell | 0% – 159%(9%) | ||||||||||||||||||||
based | Time to sell (months) | 24(24) | |||||||||||||||||||||||
Collateral depreciation | (132%) – 100%(41%) | ||||||||||||||||||||||||
Loss severity | 0% – 100%(60%) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – TDRs | $ | 40,264 | Discounted | Aged default performance | 26% – 41%(33%) | ||||||||||||||||||||
cash flow | Loss severity | 0% – 22%(6%) | |||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | ||||||||||||||||||||||||
The carrying amounts and estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | January 31, 2014 | January 31, 2013 | 30-Apr-13 | ||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 437,404 | $ | 437,404 | $ | 418,385 | $ | 418,385 | $ | 1,747,584 | $ | 1,747,584 | |||||||||||||
Cash and cash equivalents – restricted | 44,855 | 44,855 | 37,958 | 37,958 | 117,837 | 117,837 | |||||||||||||||||||
Receivables, net – short-term | 677,221 | 679,590 | 949,160 | 949,160 | 206,835 | 206,810 | |||||||||||||||||||
Mortgage loans held for investment, net | 282,149 | 195,282 | 357,887 | 217,019 | 338,789 | 210,858 | |||||||||||||||||||
Investments in AFS securities | 443,770 | 443,770 | 397,313 | 397,313 | 486,876 | 486,876 | |||||||||||||||||||
Receivables, net – long-term | 134,046 | 133,623 | 158,228 | 158,228 | 125,048 | 134,283 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Deposits | 808,008 | 810,486 | 1,041,942 | 1,042,282 | 938,331 | 934,019 | |||||||||||||||||||
Long-term borrowings | 906,529 | 953,944 | 906,725 | 946,793 | 906,680 | 964,630 | |||||||||||||||||||
Contingent consideration payments | 10,523 | 10,523 | 10,871 | 10,871 | 11,277 | 11,277 | |||||||||||||||||||
Interest_Income_And_Interest_E1
Interest Income And Interest Expense (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Interest Income And Interest Expense [Abstract] | ' | ||||||||||||||||
Schedule Of Interest Income And Expense Of Continuing Operations | ' | ||||||||||||||||
The following table shows the components of interest income and expense: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income: | |||||||||||||||||
Emerald Advance lines of credit | $ | 27,656 | $ | 28,399 | $ | 28,602 | $ | 30,074 | |||||||||
Mortgage loans, net | 3,409 | 4,120 | 10,582 | 12,705 | |||||||||||||
Loans to franchisees | 2,396 | 2,651 | 7,069 | 7,397 | |||||||||||||
AFS securities | 2,430 | 1,713 | 7,284 | 5,105 | |||||||||||||
Credit cards | 642 | 844 | 2,505 | 844 | |||||||||||||
Other | 836 | 573 | 3,150 | 1,907 | |||||||||||||
$ | 37,369 | $ | 38,300 | $ | 59,192 | $ | 58,032 | ||||||||||
Interest expense: | |||||||||||||||||
Borrowings | $ | 13,872 | $ | 17,642 | $ | 41,476 | $ | 60,391 | |||||||||
Deposits | 571 | 1,786 | 1,727 | 4,504 | |||||||||||||
$ | 14,443 | $ | 19,428 | $ | 43,203 | $ | 64,895 | ||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule Of Deferred Revenue Related To The Peace Of Mind Program | ' | ||||||||
Changes in deferred revenue balances related to our Peace of Mind (POM) program, the current portion of which is included in accounts payable, accrued expenses and other current liabilities and the long-term portion of which is included in other noncurrent liabilities in the consolidated balance sheets, are as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 146,286 | $ | 141,080 | |||||
Amounts deferred for new guarantees issued | 16,686 | 14,202 | |||||||
Revenue recognized on previous deferrals | (59,661 | ) | (57,505 | ) | |||||
Balance, end of the period | $ | 103,311 | $ | 97,777 | |||||
Loss_Contingencies_Arising_Fro1
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Tables) | 9 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Litigation And Related Contingencies | ' | ||||||||
We are a defendant in a large number of litigation matters, arising both in the ordinary course of business and otherwise, including as described below. The matters described below are not all of the lawsuits to which we are subject. In some of the matters, very large or indeterminate amounts, including punitive damages, are sought. U.S. jurisdictions permit considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. We believe that the monetary relief which may be specified in a lawsuit or a claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement numerous claims over an extended period of time. | |||||||||
The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain. Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. | |||||||||
In addition to litigation matters, we are also subject to other claims and regulatory loss contingencies arising out of our business activities, including as described below. | |||||||||
We accrue liabilities for litigation, other claims and regulatory loss contingencies and any related settlements (such litigation, claims, contingencies and settlements are sometimes referred to, individually, as a "matter" and, collectively, as "matters") when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been accrued for a number of the matters noted below. If a range of loss is estimated, and some amount within that range appears to be a better estimate than any other amount within that range, then that amount is accrued. If no amount within the range can be identified as a better estimate than any other amount, we accrue the minimum amount in the range. | |||||||||
For such matters where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, no accrual has been made. It is possible that such matters could require us to pay damages or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated at January 31, 2014. While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of January 31, 2014 and 2013 and April 30, 2013, we accrued liabilities of $20.9 million, $18.9 million and $11.9 million, respectively. | |||||||||
For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. For those matters, and for matters where a liability has been accrued, as of January 31, 2014, we estimate the range of reasonably possible loss could be up to approximately $33 million in excess of amounts accrued, of which 21% relates to our discontinued operations. This estimated range of reasonably possible loss is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. Those matters for which an estimate is not reasonably possible are not included within this estimated range. Therefore, this estimated range of reasonably possible loss represents what we believe to be an estimate of reasonably possible loss only for certain matters meeting these criteria. It does not represent our maximum loss exposure. | |||||||||
For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the reasonably possible loss or range of loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation and related contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | |||||||||
In the event of unfavorable outcomes in these matters, including certain of the lawsuits and claims described below, the amounts that may be required to be paid to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. Certain of these matters are described in more detail below. | |||||||||
LITIGATION AND OTHER CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – Although SCC ceased its mortgage loan origination activities in December 2007 and sold its loan servicing business in April 2008, SCC and the Company have been, remain, or may in the future be subject to regulatory loss contingencies, claims, including indemnification claims, and lawsuits pertaining to SCC's mortgage business activities that occurred prior to such termination and sale. These contingencies, claims and lawsuits include actions by regulators, third parties seeking indemnification, including depositors and underwriters, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others alleged to be similarly situated. Among other things, these contingencies, claims and lawsuits allege discriminatory or unfair and deceptive loan origination and servicing practices, fraud and other common law torts, rights to indemnification and violations of securities laws, the Truth in Lending Act (TILA), Equal Credit Opportunity Act and the Fair Housing Act. Given the impact of the financial crisis on the non-prime mortgage environment, the aggregate volume of these matters is substantial although it is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters, including certain of the lawsuits and claims described below, it is not possible to estimate a reasonably possible loss or range of loss due to, among other things, the inherent uncertainties involved in these matters, some of which are beyond the Company's control, and the indeterminate damages sought in some of these matters. | |||||||||
On December 9, 2009, a putative class action lawsuit was filed in the United States District Court for the Central District of California against SCC and H&R Block, Inc. styled Jeanne Drake, et al. v. Option One Mortgage Corp., et al. (Case No. SACV09-1450 CJC). Plaintiffs allege breach of contract, promissory fraud, intentional interference with contractual relations, wrongful withholding of wages and unfair business practices in connection with not paying severance benefits to employees when their employment transitioned to American Home Mortgage Servicing, Inc. (now known as Homeward Residential, Inc. (Homeward)) in connection with the sale of certain assets and operations of SCC. Plaintiffs seek to recover severance benefits of approximately $8 million, interest and attorney’s fees, in addition to penalties and punitive damages on certain claims. On September 2, 2011, the court granted summary judgment in favor of the defendants on all claims. Plaintiffs filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable nor have we established a loss contingency related to this matter. We believe SCC has meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On October 15, 2010, the Federal Home Loan Bank of Chicago (FHLB-Chicago) filed a lawsuit in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. against multiple defendants, including various SCC-related entities, H&R Block, Inc. and other entities, arising out of FHLB-Chicago’s purchase of residential mortgage-backed securities (RMBSs). The plaintiff seeks rescission and damages under state securities law and for common law negligent misrepresentation in connection with its purchase of two securities collateralized by loans originated and securitized by SCC. These two securities had a total initial principal amount of approximately $50 million, of which approximately $37 million remains outstanding. The plaintiff agreed to voluntarily dismiss H&R Block, Inc. from the suit. The remaining defendants, including SCC, filed motions to dismiss, which the court denied. Defendants moved for leave to appeal and the circuit court denied the motion. The parties are currently engaged in discovery. We have not concluded that a loss related to this matter is probable nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On February 22, 2012, a lawsuit was filed by SCC against Homeward in the Supreme Court of the State of New York, County of New York, styled Sand Canyon Corporation v. American Home Mortgage Servicing, Inc. (Index No. 650504/2012), alleging breach of contract and breach of the implied covenant of good faith and fair dealing in connection with the Cooperation Agreement entered into with SCC in connection with SCC’s sale of its mortgage loan servicing business to the defendant in 2008. SCC is seeking relief to, among other things, require the defendant to provide loan files only by the method prescribed in applicable agreements. The court denied the defendant's motion to dismiss and an appellate court affirmed. The case has been remanded to the trial court and is proceeding there. | |||||||||
On May 31, 2012, a lawsuit was filed by Homeward in the Supreme Court of the State of New York, County of New York, against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Index No. 651885/2012). SCC removed the case to the United States District Court for the Southern District of New York on June 28, 2012 (Case No. 12-cv-5067). Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-2 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract, anticipatory breach, indemnity and declaratory judgment in connection with alleged losses incurred as a result of the breach of representations and warranties relating to loans sold to the trust and representation and warranties related to SCC. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses, as well as a repurchase of all loans due to alleged misrepresentations by SCC as to itself and representations given as to the loans' compliance with its underwriting standards and the value of underlying real estate. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On September 28, 2012, a second lawsuit was filed by Homeward in the District Court for the Southern District of New York against SCC styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 12-cv-7319). Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2006-3 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 96 loans sold to the trust. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which was granted in part and denied in part on February 14, 2014. The court granted dismissal of Plaintiff’s claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. The court denied dismissal of Plaintiff’s remaining claims for breach of various representations and warranties under the Mortgage Loan Purchase Agreement. The case is proceeding on the remaining claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 5, 2013, a third lawsuit was filed by Homeward in the District Court for the Southern District of New York against SCC. The suit, styled Homeward Residential, Inc. v. Sand Canyon Corporation (Case No. 13-cv-2107), was filed as a related matter to the September 2012 Homeward suit mentioned above. In this April 2013 lawsuit, Plaintiff, in its capacity as the master servicer for Option One Mortgage Loan Trust 2007-4 and for the benefit of the trustee and the certificate holders of such trust, asserts claims for breach of contract and indemnity in connection with losses allegedly incurred as a result of the breach of representations and warranties relating to 159 loans sold to the trust. Plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. SCC filed a motion to dismiss. Plaintiff thereafter filed an amended complaint. SCC filed a motion to dismiss the amended complaint, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We believe SCC has meritorious defenses to the claims in this case and intends to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
Underwriters and depositors are, or have been, involved in multiple lawsuits related to securitization transactions in which SCC participated. These lawsuits allege or alleged a variety of claims, including violations of federal and state securities law and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 18 lawsuits in which SCC received notice of a claim for indemnification of losses and expenses involve original investments of approximately $14 billion. The outstanding principal amount of these investments is approximately $4 billion. Because SCC has not been a party to these lawsuits (with the exception of the Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation case discussed above) and has not had control of this litigation or any settlements thereof, SCC does not have precise information about the amount of damages or other remedies being asserted, the defenses to the claims in such lawsuits or the terms of any settlements of such lawsuits. Additional lawsuits against the underwriters or depositors may be filed in the future, and SCC may receive additional notices of claims for indemnification from underwriters or depositors with respect to existing or new lawsuits or settlements of such lawsuits. We have not concluded that a loss related to any of these indemnification claims is probable, nor have we accrued a liability related to any of these claims. Certain of the notices received included, and future notices may include, a reservation of rights that encompasses a right of contribution which may become operative if indemnification is unavailable or insufficient to cover all of the losses and expenses involved. We believe SCC has meritorious defenses to these indemnification claims and intends to defend them vigorously, but there can be no assurance as to their outcome or their impact. In the event of unfavorable outcomes on these claims, the amount required to discharge or settle them could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 3, 2012, the Nevada Attorney General issued a subpoena to SCC indicating it was conducting an investigation concerning “the alleged commission of a practice declared to be unlawful under the Nevada Deceptive Trade Practices Act.” No complaint has been filed to date. SCC plans to continue to cooperate with the Nevada Attorney General. | |||||||||
EMPLOYMENT-RELATED CLAIMS AND LITIGATION – On January 25, 2010, a wage and hour class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Barbara Petroski, et al. v. H&R Block Eastern Enterprises, Inc., et al., (Case No. 10-00075-CV-W-DW). The plaintiffs generally allege failure to compensate tax professionals nationwide for training that is required to be eligible for rehire the following tax season, and seek compensatory damages, liquidated damages, statutory penalties, pre-judgment interest, attorneys' fees and costs. A conditional class was certified under the Fair Labor Standards Act in March 2011 (consisting of tax professionals nationwide who worked in company-owned offices and who were not compensated for such training on or after April 15, 2007). Two classes were also certified under state laws in California and New York (consisting of tax professionals who worked in company-owned offices in California and New York and who were not compensated for such training on or after March 4, 2006 and on or after March 4, 2004, respectively). We filed a motion to decertify the classes, along with a motion for summary judgment on all claims. On April 8, 2013, the court granted summary judgment in our favor on all claims. The plaintiffs filed an appeal, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this matter and intend to defend them vigorously, but there can be no assurances as to the outcome of the matter or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
RAL AND RAC LITIGATION – A series of putative class action lawsuits were filed against us in various federal courts beginning on November 17, 2011 concerning the refund anticipation loan (RAL) and refund anticipation check (RAC) products. The plaintiffs generally allege we engaged in unfair, deceptive or fraudulent acts in violation of various state consumer protection laws by facilitating RALs that were accompanied by allegedly inaccurate TILA disclosures, and by offering RACs without any TILA disclosures. Certain plaintiffs also allege violation of disclosure requirements of various state statutes expressly governing RALs and provisions of those statutes prohibiting tax preparers from charging or retaining certain fees. Collectively, the plaintiffs seek to represent clients who purchased RAL or RAC products in up to forty-two states and the District of Columbia during timeframes ranging from 2007 to the present. The plaintiffs seek equitable relief, disgorgement of profits, compensatory and statutory damages, restitution, civil penalties, attorneys' fees and costs. These cases were consolidated by the Judicial Panel on Multidistrict Litigation into a single proceeding in the United States District Court for the Northern District of Illinois for coordinated pretrial proceedings, styled IN RE: H&R Block Refund Anticipation Loan Litigation (MDL No. 2373/No: 1:12-CV-02973-JBG ). We filed a motion to compel arbitration, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in these cases and intend to defend the cases vigorously, but there can be no assurances as to the outcome of these cases or their impact on our consolidated financial position, results of operations and cash flows. | |||||||||
COMPLIANCE FEE LITIGATION – On April 16, 2012, a putative class action lawsuit was filed against us in the Circuit Court of Jackson County, Missouri styled Manuel H. Lopez III v. H&R Block, Inc., et al. (Case # 1216CV12290) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all Missouri citizens who were charged the compliance fee, and asserts claims of violation of the Missouri Merchandising Practices Act, money had and received, and unjust enrichment. We filed a motion to compel arbitration of the 2011 claims. The court denied the motion. We filed an appeal, which remains pending. The trial court case is stayed pending the outcome of the appeal. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to the outcome of the case or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
On April 19, 2012, a putative class action lawsuit was filed against us in the United States District Court for the Western District of Missouri styled Ronald Perras v. H&R Block, Inc., et al. (Case No. 4:12-cv-00450-DGK) concerning a compliance fee charged to retail tax clients in the 2011 and 2012 tax seasons. The plaintiff seeks to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserts claims of violation of various state consumer laws, money had and received, and unjust enrichment. The plaintiff filed a motion for class certification in September 2013. The court subsequently granted our motion to compel arbitration of the 2011 claims and stayed all proceedings with respect to the 2011 claims. The case is continuing to proceed on the 2012 claims. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to the outcome of the case or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
FORM 8863 LITIGATION - A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013 (including, by way of example, Danielle Pooley v. H&R Block, Inc., No. 1:13-cv-01549-JBS-KMW (D.N.J. Mar. 13, 2013); Arthur Green and Amy Hamilton v. H&R Block, Inc., et al., No. 4:13-cv-11206 (E.D. Mich. Mar. 19, 2013); Juan Ortega v. H&R Block, Inc., et al., No. 2:13-cv-02023-MMM-RZ (C.D. Cal. Mar. 20, 2013); and Nikki R. Nevill v. H&R Block, Inc., et al., No. 1316-CV07264 (Jackson Cnty., Mo. Cir. Ct. Mar. 21, 2013)). Taken together, the plaintiffs in these actions purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home® online tax services or tax preparation software, and allege breach of contract, negligence and violation of state consumer laws in connection with transmission of the form. The plaintiffs seek damages, pre-judgment interest, attorneys' fees and costs. In August 2013, the plaintiff in the state court action voluntarily dismissed her case without prejudice. On October 10, 2013, the Judicial Panel on Multidistrict Litigation granted our petition to consolidate the federal lawsuits for coordinated pretrial proceedings in the United States District Court for the Western District of Missouri in a proceeding styled IN RE: H&R BLOCK IRS FORM 8863 LITIGATION (MDL No. 2474/Case No. 4:13-MD-02474-FJG). We filed a motion to compel arbitration and to strike class allegations relating to clients who agreed to arbitrate their claims, which remains pending. We have not concluded that a loss related to these lawsuits is probable, nor have we accrued a liability related to these lawsuits. We believe we have meritorious defenses to the claims in these cases and intend to defend the cases vigorously, but there can be no assurances as to the outcome of these cases or their impact on our consolidated financial position, results of operations and cash flows. | |||||||||
EXPRESS IRA LITIGATION – On January 2, 2008, the Mississippi Attorney General in the Chancery Court of Hinds County, Mississippi First Judicial District (Case No. G 2008 6 S 2) filed a lawsuit regarding our former Express IRA product that is styled Jim Hood, Attorney for the State of Mississippi v. H&R Block, Inc., H&R Block Financial Advisors, Inc., et al. The complaint alleges fraudulent business practices, deceptive acts and practices, common law fraud and breach of fiduciary duty with respect to the sale of the product in Mississippi and seeks equitable relief, disgorgement of profits, damages and restitution, civil penalties and punitive damages. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
Although we sold H&R Block Financial Advisors, Inc. (HRBFA) effective November 1, 2008, we remain responsible for any liabilities relating to the Express IRA litigation, among other things, through an indemnification agreement. A portion of our accrual is related to these indemnity obligations. | |||||||||
LITIGATION AND CLAIMS PERTAINING TO THE DISCONTINUED OPERATIONS OF RSM MCGLADREY – On April 17, 2009, a shareholder derivative complaint was filed by Brian Menezes, derivatively and on behalf of nominal defendant International Textile Group, Inc. against McGladrey Capital Markets LLC (MCM) and others in the Court of Common Pleas, Greenville County, South Carolina (C.A. No. 2009-CP-23-3346) styled Brian P. Menezes, Derivatively on Behalf of Nominal Defendant, International Textile Group, Inc. (f/k/a Safety Components International, Inc.) v. McGladrey Capital Markets, LLC (f/k/a RSM EquiCo Capital Markets, LLC), et al. Plaintiffs filed an amended complaint in October 2011 styled In re International Textile Group Merger Litigation, adding a putative class action claim. Plaintiffs allege claims of aiding and abetting, civil conspiracy, gross negligence and breach of fiduciary duty against MCM in connection with a fairness opinion MCM provided to the Special Committee of Safety Components International, Inc. (SCI) in 2006 regarding the merger between International Textile Group, Inc. and SCI. Plaintiffs seek actual and punitive damages, pre-judgment interest, attorneys' fees and costs. On February 8, 2012, the court dismissed plaintiffs' civil conspiracy claim against all defendants. A class was certified on the remaining claims on November 20, 2012. The court granted summary judgment in favor of MCM on June 3, 2013 on the breach of fiduciary duty claim. To avoid the cost and inherent risk associated with litigation, the parties signed a memorandum of understanding to resolve the case, which is subject to approval by the court. The court granted preliminary approval of the settlement on February 19, 2014. A final approval hearing is set for June 23, 2014. A portion of our loss contingency accrual is related to this lawsuit for the amount of loss that we consider probable and reasonably estimable. We believe we have meritorious defenses to the claims in this case and intend to defend the case vigorously, but there can be no assurances as to its outcome or its impact on our consolidated financial position, results of operations and cash flows. | |||||||||
In connection with the sale of RSM and MCM, we indemnified the buyers against certain litigation matters. The indemnities are not subject to a stated term or limit. A portion of our accrual is related to these indemnity obligations. | |||||||||
OTHER – We are from time to time a party to claims, lawsuits, investigations, loss contingencies and related settlements not discussed herein arising out of our business operations. These matters may include actions by state attorneys general, other state regulators, federal regulators, individual plaintiffs, and cases in which plaintiffs seek to represent a class of others similarly situated. We believe we have meritorious defenses to each of these matters, and we are defending or intend to defend them vigorously. The amounts claimed in these matters are substantial in some instances; however, the ultimate liability with respect to such matters is difficult to predict. | |||||||||
We are also a party to claims and lawsuits that we consider to be ordinary, routine litigation incidental to our business, including, but not limited to, claims and lawsuits concerning the preparation of customers' income tax returns, the fees charged customers for various services and products, relationships with franchisees, intellectual property disputes, marketing and other competitor disputes, employment matters and contract disputes. While we cannot provide assurance that we will ultimately prevail in each instance, we believe the amount, if any, we are required to pay to discharge or settle these other matters will not have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
The liability is included in accounts payable, accrued expenses and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: | |||||||||
(in 000s) | |||||||||
Nine months ended January 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 158,765 | $ | 130,018 | |||||
Provisions | — | — | |||||||
Payments | — | (11,253 | ) | ||||||
Balance, end of the period | $ | 158,765 | $ | 118,765 | |||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||
Results of our discontinued operations are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Pretax income (loss) from operations: | |||||||||||||||||
RSM and related businesses | $ | 265 | $ | (511 | ) | $ | (1,571 | ) | $ | (204 | ) | ||||||
Mortgage | (3,389 | ) | (765 | ) | (7,825 | ) | (10,639 | ) | |||||||||
(3,124 | ) | (1,276 | ) | (9,396 | ) | (10,843 | ) | ||||||||||
Income tax benefit | (1,164 | ) | (483 | ) | (3,591 | ) | (4,215 | ) | |||||||||
Net loss from discontinued operations | $ | (1,960 | ) | $ | (793 | ) | $ | (5,805 | ) | $ | (6,628 | ) | |||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements Of HRB Bank (Tables) | 9 Months Ended | ||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||
HRB Bank's Regulatory Capital Requirements | ' | ||||||||||||||||||||||
The following table sets forth HRB Bank's regulatory capital requirements calculated in its Call Report, as filed with the Federal Financial Institutions Examination Council (FFIEC): | |||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||
Actual | Minimum | Minimum to be | |||||||||||||||||||||
Capital Requirement | Well Capitalized | ||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 517,031 | 72.5 | % | $ | 57,023 | 8 | % | $ | 71,279 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 508,015 | 71.3 | % | N/A | N/A | 42,768 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 508,015 | 37.1 | % | 164,404 | 12 | % | (5) | 68,502 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 508,015 | 37.1 | % | 20,550 | 1.5 | % | N/A | N/A | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 469,979 | 61.9 | % | $ | 60,747 | 8 | % | $ | 75,934 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 460,341 | 60.6 | % | N/A | N/A | 45,561 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 460,341 | 29.7 | % | 62,041 | 12 | % | (5) | 77,551 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 460,341 | 29.7 | % | 23,265 | 1.5 | % | N/A | N/A | |||||||||||||||
As of March 31, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 506,734 | 131.6 | % | $ | 30,806 | 8 | % | $ | 38,508 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 501,731 | 130.3 | % | N/A | N/A | 23,105 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 501,731 | 25.5 | % | 236,315 | 12 | % | (5) | 98,464 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 501,731 | 25.5 | % | 29,539 | 1.5 | % | N/A | N/A | |||||||||||||||
(1) | Total risk-based capital divided by risk-weighted assets. | ||||||||||||||||||||||
(2) | Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets. | ||||||||||||||||||||||
(3) | Tier 1 (core) capital divided by adjusted total assets. | ||||||||||||||||||||||
(4) | Tangible capital divided by tangible assets. | ||||||||||||||||||||||
(5) | Effective April 5, 2012, the minimum capital requirement was changed to 4% by the OCC, although HRB Bank plans to maintain a minimum of 12.0% leverage capital at the end of each calendar quarter. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operations By Reportable Operating Segment | ' | ||||||||||||||||
Results of our continuing operations by reportable segment are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
January 31, | January 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
REVENUES : | |||||||||||||||||
Tax Services | $ | 193,996 | $ | 464,634 | $ | 443,727 | $ | 684,706 | |||||||||
Corporate and eliminations | 5,774 | 7,345 | 17,578 | 21,025 | |||||||||||||
$ | 199,770 | $ | 471,979 | $ | 461,305 | $ | 705,731 | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | |||||||||||||||||
Tax Services | $ | (322,099 | ) | $ | (64,189 | ) | $ | (625,807 | ) | $ | (335,203 | ) | |||||
Corporate and eliminations | (25,726 | ) | (32,079 | ) | (85,874 | ) | (92,622 | ) | |||||||||
$ | (347,825 | ) | $ | (96,268 | ) | $ | (711,681 | ) | $ | (427,825 | ) | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Condensed Consolidating Statement of Cash Flows [Text Block] | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | (in 000s) | ||||||||||||||||||||
Nine months ended January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash used in operating activities | $ | (309 | ) | $ | (347,188 | ) | $ | (772,825 | ) | $ | — | $ | (1,120,322 | ) | |||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (45,158 | ) | — | — | (45,158 | ) | ||||||||||||||
Maturities and payments received on AFS securities | — | 72,502 | — | — | 72,502 | ||||||||||||||||
Mortgage loans held for investment, net | — | 35,320 | — | — | 35,320 | ||||||||||||||||
Capital expenditures | — | (59 | ) | (125,595 | ) | — | (125,654 | ) | |||||||||||||
Payments for business acquisitions, net | — | — | (37,865 | ) | — | (37,865 | ) | ||||||||||||||
Proceeds received on notes receivable | — | — | 64,865 | — | 64,865 | ||||||||||||||||
Loans made to franchisees | — | (62,039 | ) | — | — | (62,039 | ) | ||||||||||||||
Repayments from franchisees | — | 17,893 | — | — | 17,893 | ||||||||||||||||
Intercompany advances (payments) | 142,407 | — | — | (142,407 | ) | — | |||||||||||||||
Other, net | — | 6,384 | 5,843 | — | 12,227 | ||||||||||||||||
Net cash provided by (used in) investing activities | 142,407 | 24,843 | (92,752 | ) | (142,407 | ) | (67,909 | ) | |||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of commercial paper | — | (80,930 | ) | — | — | (80,930 | ) | ||||||||||||||
Proceeds from commercial paper | — | 275,914 | — | — | 275,914 | ||||||||||||||||
Customer banking deposits, net | — | (127,050 | ) | — | 2,103 | (124,947 | ) | ||||||||||||||
Dividends paid | (164,134 | ) | — | — | — | (164,134 | ) | ||||||||||||||
Repurchase of common stock | (6,047 | ) | — | — | — | (6,047 | ) | ||||||||||||||
Proceeds from stock options | 28,083 | — | — | — | 28,083 | ||||||||||||||||
Intercompany advances (payments) | — | (122,216 | ) | (20,191 | ) | 142,407 | — | ||||||||||||||
Other, net | — | — | (29,872 | ) | — | (29,872 | ) | ||||||||||||||
Net cash used in financing activities | (142,098 | ) | (54,282 | ) | (50,063 | ) | 144,510 | (101,933 | ) | ||||||||||||
Effects of exchange rates on cash | — | — | (20,016 | ) | — | (20,016 | ) | ||||||||||||||
Net decrease in cash | — | (376,627 | ) | (935,656 | ) | 2,103 | (1,310,180 | ) | |||||||||||||
Cash – beginning of the period | — | 558,110 | 1,192,197 | (2,723 | ) | 1,747,584 | |||||||||||||||
Cash – end of the period | $ | — | $ | 181,483 | $ | 256,541 | $ | (620 | ) | $ | 437,404 | ||||||||||
Nine months ended January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash used in operating activities: | $ | (158 | ) | $ | (408,904 | ) | $ | (902,864 | ) | $ | — | $ | (1,311,926 | ) | |||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (108,351 | ) | — | — | (108,351 | ) | ||||||||||||||
Maturities and payments received on AFS securities | — | 86,756 | 52 | — | 86,808 | ||||||||||||||||
Mortgage loans held for investment, net | — | 31,205 | — | — | 31,205 | ||||||||||||||||
Capital expenditures | — | (58 | ) | (96,005 | ) | — | (96,063 | ) | |||||||||||||
Payments for business acquisitions, net | — | — | (20,662 | ) | — | (20,662 | ) | ||||||||||||||
Loans made to franchisees | — | (68,874 | ) | — | — | (68,874 | ) | ||||||||||||||
Repayments from franchisees | — | 9,594 | — | — | 9,594 | ||||||||||||||||
Net intercompany advances | 491,619 | — | — | (491,619 | ) | — | |||||||||||||||
Other, net | — | (21,879 | ) | 7,906 | — | (13,973 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 491,619 | (71,607 | ) | (108,709 | ) | (491,619 | ) | (180,316 | ) | ||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of commercial paper | — | (789,271 | ) | — | — | (789,271 | ) | ||||||||||||||
Proceeds from commercial paper | — | 1,214,238 | — | — | 1,214,238 | ||||||||||||||||
Repayments of long-term debt | — | (605,790 | ) | (30,831 | ) | — | (636,621 | ) | |||||||||||||
Proceeds from long-term debt | — | 497,185 | — | — | 497,185 | ||||||||||||||||
Customer banking deposits, net | — | 208,443 | — | 310 | 208,753 | ||||||||||||||||
Dividends paid | (162,692 | ) | — | — | — | (162,692 | ) | ||||||||||||||
Repurchase of common stock | (340,298 | ) | — | — | — | (340,298 | ) | ||||||||||||||
Proceeds from stock options | 11,529 | — | — | — | 11,529 | ||||||||||||||||
Net intercompany advances | — | (251,638 | ) | (239,981 | ) | 491,619 | — | ||||||||||||||
Other, net | — | (12,987 | ) | (23,126 | ) | — | (36,113 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (491,461 | ) | 260,180 | (293,938 | ) | 491,929 | (33,290 | ) | |||||||||||||
Effects of exchange rates on cash | — | — | (417 | ) | — | (417 | ) | ||||||||||||||
Net decrease in cash | — | (220,331 | ) | (1,305,928 | ) | 310 | (1,525,949 | ) | |||||||||||||
Cash – beginning of the period | — | 515,147 | 1,430,030 | (843 | ) | 1,944,334 | |||||||||||||||
Cash – end of the period | $ | — | $ | 294,816 | $ | 124,102 | $ | (533 | ) | $ | 418,385 | ||||||||||
Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block] | ' | ||||||||||||||||||||
Nine months ended January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 102,840 | $ | 360,095 | $ | (1,630 | ) | $ | 461,305 | ||||||||||
Cost of revenues | — | 121,925 | 674,159 | (1,630 | ) | 794,454 | |||||||||||||||
Selling, general and administrative | — | 25,753 | 339,484 | — | 365,237 | ||||||||||||||||
Total expenses | — | 147,678 | 1,013,643 | (1,630 | ) | 1,159,691 | |||||||||||||||
Operating loss | — | (44,838 | ) | (653,548 | ) | — | (698,386 | ) | |||||||||||||
Other income (expense), net | (711,681 | ) | 1,938 | (15,233 | ) | 711,681 | (13,295 | ) | |||||||||||||
Loss from continuing operations before tax benefit | (711,681 | ) | (42,900 | ) | (668,781 | ) | 711,681 | (711,681 | ) | ||||||||||||
Income tax benefit | (282,645 | ) | (3,999 | ) | (278,646 | ) | 282,645 | (282,645 | ) | ||||||||||||
Net loss from continuing operations | (429,036 | ) | (38,901 | ) | (390,135 | ) | 429,036 | (429,036 | ) | ||||||||||||
Net loss from discontinued operations | (5,805 | ) | (4,834 | ) | (971 | ) | 5,805 | (5,805 | ) | ||||||||||||
Net loss | (434,841 | ) | (43,735 | ) | (391,106 | ) | 434,841 | (434,841 | ) | ||||||||||||
Other comprehensive loss | (15,326 | ) | (9,668 | ) | (5,658 | ) | 15,326 | (15,326 | ) | ||||||||||||
Comprehensive loss | $ | (450,167 | ) | $ | (53,403 | ) | $ | (396,764 | ) | $ | 450,167 | $ | (450,167 | ) | |||||||
Nine months ended January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 98,531 | $ | 608,773 | $ | (1,573 | ) | $ | 705,731 | ||||||||||
Cost of revenues | — | 137,146 | 647,476 | (1,569 | ) | 783,053 | |||||||||||||||
Selling, general and administrative | — | 26,288 | 326,518 | (4 | ) | 352,802 | |||||||||||||||
Total expenses | — | 163,434 | 973,994 | (1,573 | ) | 1,135,855 | |||||||||||||||
Operating loss | — | (64,903 | ) | (365,221 | ) | — | (430,124 | ) | |||||||||||||
Other income (expense), net | (427,825 | ) | (2,428 | ) | 4,727 | 427,825 | 2,299 | ||||||||||||||
Loss from continuing operations before tax benefit | (427,825 | ) | (67,331 | ) | (360,494 | ) | 427,825 | (427,825 | ) | ||||||||||||
Income tax benefit | (204,061 | ) | (46,374 | ) | (157,687 | ) | 204,061 | (204,061 | ) | ||||||||||||
Net loss from continuing operations | (223,764 | ) | (20,957 | ) | (202,807 | ) | 223,764 | (223,764 | ) | ||||||||||||
Net loss from discontinued operations | (6,628 | ) | (6,503 | ) | (125 | ) | 6,628 | (6,628 | ) | ||||||||||||
Net loss | (230,392 | ) | (27,460 | ) | (202,932 | ) | 230,392 | (230,392 | ) | ||||||||||||
Other comprehensive loss | (3,090 | ) | (315 | ) | (2,775 | ) | 3,090 | (3,090 | ) | ||||||||||||
Comprehensive loss | $ | (233,482 | ) | $ | (27,775 | ) | $ | (205,707 | ) | $ | 233,482 | $ | (233,482 | ) | |||||||
Schedule Of Condensed Consolidating Balance Sheet [Table Text Block] | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of January 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 181,483 | $ | 256,541 | $ | (620 | ) | $ | 437,404 | ||||||||||
Cash & cash equivalents — restricted | — | 4,883 | 39,972 | — | 44,855 | ||||||||||||||||
Receivables, net | — | 529,954 | 147,267 | — | 677,221 | ||||||||||||||||
Mortgage loans held for investment, net | — | 282,149 | — | — | 282,149 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 756,105 | — | 756,105 | ||||||||||||||||
Investments in subsidiaries | 2,845,467 | — | 1,079 | (2,845,467 | ) | 1,079 | |||||||||||||||
Amounts due from affiliates | — | 542,657 | 2,167,747 | (2,710,404 | ) | — | |||||||||||||||
Other assets | 9,708 | 598,966 | 707,800 | — | 1,316,474 | ||||||||||||||||
Total assets | $ | 2,855,175 | $ | 2,140,092 | $ | 4,076,511 | $ | (5,556,491 | ) | $ | 3,515,287 | ||||||||||
Customer deposits | $ | — | $ | 807,507 | $ | — | $ | (620 | ) | $ | 806,887 | ||||||||||
Commercial paper borrowings | — | 194,984 | — | — | 194,984 | ||||||||||||||||
Long-term debt | — | 897,365 | 9,164 | — | 906,529 | ||||||||||||||||
Other liabilities | 669 | 237,199 | 682,260 | — | 920,128 | ||||||||||||||||
Amounts due to affiliates | 2,167,747 | — | 542,657 | (2,710,404 | ) | — | |||||||||||||||
Stockholders’ equity | 686,759 | 3,037 | 2,842,430 | (2,845,467 | ) | 686,759 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,855,175 | $ | 2,140,092 | $ | 4,076,511 | $ | (5,556,491 | ) | $ | 3,515,287 | ||||||||||
As of January 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 294,816 | $ | 124,102 | $ | (533 | ) | $ | 418,385 | ||||||||||
Cash & cash equivalents — restricted | — | 1,613 | 36,345 | — | 37,958 | ||||||||||||||||
Receivables, net | 963 | 555,418 | 392,779 | — | 949,160 | ||||||||||||||||
Mortgage loans held for investment, net | — | 357,887 | — | — | 357,887 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 723,491 | — | 723,491 | ||||||||||||||||
Investments in subsidiaries | 2,834,612 | 556 | — | (2,834,612 | ) | 556 | |||||||||||||||
Amounts due from affiliates | 62 | 496,760 | 2,208,626 | (2,705,448 | ) | — | |||||||||||||||
Other assets | 8,244 | 630,999 | 805,816 | — | 1,445,059 | ||||||||||||||||
Total assets | $ | 2,843,881 | $ | 2,338,049 | $ | 4,291,159 | $ | (5,540,593 | ) | $ | 3,932,496 | ||||||||||
Customer deposits | $ | — | $ | 1,037,501 | $ | — | $ | (533 | ) | $ | 1,036,968 | ||||||||||
Commercial paper borrowings | — | 424,967 | — | — | 424,967 | ||||||||||||||||
Long-term debt | — | 896,848 | 9,877 | — | 906,725 | ||||||||||||||||
Other liabilities | 367 | 251,833 | 676,748 | — | 928,948 | ||||||||||||||||
Amounts due to affiliates | 2,208,626 | — | 496,822 | (2,705,448 | ) | — | |||||||||||||||
Stockholders’ equity | 634,888 | (273,100 | ) | 3,107,712 | (2,834,612 | ) | 634,888 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,843,881 | $ | 2,338,049 | $ | 4,291,159 | $ | (5,540,593 | ) | $ | 3,932,496 | ||||||||||
As of April 30, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 558,110 | $ | 1,192,197 | $ | (2,723 | ) | $ | 1,747,584 | ||||||||||
Cash & cash equivalents — restricted | — | 75,096 | 42,741 | — | 117,837 | ||||||||||||||||
Receivables, net | 769 | 99,844 | 106,222 | — | 206,835 | ||||||||||||||||
Mortgage loans held for investment, net | — | 338,789 | — | — | 338,789 | ||||||||||||||||
Intangible assets and goodwill, net | — | — | 719,221 | — | 719,221 | ||||||||||||||||
Investments in subsidiaries | 3,444,442 | 473 | — | (3,444,442 | ) | 473 | |||||||||||||||
Amounts due from affiliates | — | 410,590 | 2,189,625 | (2,600,215 | ) | — | |||||||||||||||
Other assets | 8,390 | 645,166 | 753,484 | — | 1,407,040 | ||||||||||||||||
Total assets | $ | 3,453,601 | $ | 2,128,068 | $ | 5,003,490 | $ | (6,047,380 | ) | $ | 4,537,779 | ||||||||||
Customer deposits | $ | — | $ | 939,187 | $ | — | $ | (2,723 | ) | $ | 936,464 | ||||||||||
Long-term debt | — | 896,978 | 9,702 | — | 906,680 | ||||||||||||||||
Other liabilities | 429 | 245,862 | 1,184,797 | — | 1,431,088 | ||||||||||||||||
Amounts due to affiliates | 2,189,625 | — | 410,590 | (2,600,215 | ) | — | |||||||||||||||
Stockholders’ equity | 1,263,547 | 46,041 | 3,398,401 | (3,444,442 | ) | 1,263,547 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,453,601 | $ | 2,128,068 | $ | 5,003,490 | $ | (6,047,380 | ) | $ | 4,537,779 | ||||||||||
Loss_Per_Share_and_Stockholder2
Loss Per Share and Stockholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net loss from continuing operations attributable to shareholders | ($212,751,000) | ($16,915,000) | ($429,036,000) | ($223,764,000) |
Amounts allocated to participating securities | -88,000 | -62,000 | -242,000 | -199,000 |
Net loss from continuing operations attributable to common shareholders | -212,839,000 | -16,977,000 | -429,278,000 | -223,963,000 |
Basic weighted average common shares (in shares) | 274,110,000 | 271,542,000 | 273,699,000 | 273,281,000 |
Potential dilutive shares (in shares) | 0 | 0 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 274,110,000 | 271,542,000 | 273,699,000 | 273,281,000 |
Basic (in usd per share) | ($0.78) | ($0.06) | ($1.57) | ($0.82) |
Narrative Details [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | ' | ' | 5,700,000 | 7,700,000 |
Shares repurchased and retired (in shares) | ' | ' | ' | 21,300,000 |
Share repurchase and retired, value | ' | ' | 315,000,000 | ' |
Shares repurchased during the period, (in shares) | ' | ' | 200,000 | 200,000 |
Shares repurchased during the period, Value | ' | ' | 6,000,000 | 2,800,000 |
Shares issued during period (in shares) | ' | ' | 1,800,000 | 1,300,000 |
Nonvested units granted | ' | ' | 900,000 | ' |
Stock-based compensation | 4,700,000 | 3,700,000 | 15,500,000 | 11,500,000 |
Unrecognized compensation costs, options | 1,400,000 | ' | 1,400,000 | ' |
Unrecognized compensation costs, nonvested shares and units | $28,200,000 | ' | $28,200,000 | ' |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Proceeds from Sale of Available-for-sale Securities | ' | $5.20 |
Period Over Which Contractual Maturities of AFS Debt Securities Occurs | '29 years | ' |
Available-for-sale Securities, Gross Realized Gains | ' | 0.2 |
Mortgage-Backed Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Mortgage-backed securities, cost | 25.8 | ' |
Mortgage-backed securities, gross unrealized loss | 2.8 | ' |
Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Tax returns prepared but not yet filed [Line Items] | $1,800,000 | ' | ' | ' |
Document Fiscal Year Focus | ' | '2014 | ' | ' |
Impaired non-accrual status term, days | ' | '60 days | ' | ' |
Total Portfolio | 291,325,000 | 291,325,000 | 372,139,000 | 350,235,000 |
Proceeds from Collection of Notes Receivable | ' | 64,865,000 | 0 | ' |
Loans to franchisees | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Receivables, net | 219,517,000 | 219,517,000 | 237,834,000 | 168,460,000 |
Financing Receivable, Recorded Investment, Past Due | 600,000 | 600,000 | 0 | 100,000 |
Emerald Advance lines of credit | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Non-accrual status loans | 25,700,000 | 25,700,000 | 30,700,000 | 30,000,000 |
Receivables, net | 450,145,000 | 450,145,000 | 473,041,000 | 33,037,000 |
Term Loans | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Receivables, net | 132,300,000 | 132,300,000 | 144,500,000 | 121,200,000 |
Revolving Lines Of Credit | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Receivables, net | 87,200,000 | 87,200,000 | 93,300,000 | 47,300,000 |
Receivables for tax preparation and related fees | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Receivables, net | 10,099,000 | 10,099,000 | 13,052,000 | 47,658,000 |
Short-term | 500,000 | 500,000 | 1,300,000 | 1,800,000 |
Royalties from franchisees | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Receivables, net | 16,988,000 | 16,988,000 | 20,265,000 | 23,271,000 |
McGladrey & Pullen LLP | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Note receivable, discontinued operation | $54,000,000 | $54,000,000 | ' | ' |
Investments_Amortized_Cost_And
Investments (Amortized Cost And Fair Value Of Securities Available-For-Sale) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | |||||||||||
Mortgage-Backed Securities | Short-Term | Long-Term | Long-Term | Long-Term | Long-Term | Long-Term | Long-Term | Long-Term | |||||||||||||||
Municipal Bonds | Mortgage-Backed Securities | Mortgage-Backed Securities | Mortgage-Backed Securities | Municipal Bonds | Municipal Bonds | Municipal Bonds | |||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Investments in available-for-sale securities, Amortized Cost | $453,231,000 | $480,628,000 | $391,933,000 | ' | $1,000,000 | $390,933,000 | $449,097,000 | $476,450,000 | $386,741,000 | $4,134,000 | $4,178,000 | $4,192,000 | |||||||||||
Gross Unrealized Gains | 3,442,000 | 6,912,000 | 6,160,000 | ' | 1,000 | 6,159,000 | 3,201,000 | 6,592,000 | 5,825,000 | 241,000 | 320,000 | 334,000 | |||||||||||
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 12,903,000 | [1] | 664,000 | [1] | 780,000 | [1] | ' | 0 | [1] | 780,000 | [1] | 12,903,000 | [1] | 664,000 | [1] | 780,000 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
Investments in available-for-sale securities, Fair Value | 443,770,000 | 486,876,000 | 397,313,000 | ' | 1,001,000 | 396,312,000 | 439,395,000 | 482,378,000 | 391,786,000 | 4,375,000 | 4,498,000 | 4,526,000 | |||||||||||
Mortgage-backed securities, cost | ' | ' | ' | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Mortgage-backed securities, gross unrealized loss | ' | ' | ' | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | As of January 31, 2014, mortgage-backed securities with a cost of $25.8 million and gross unrealized losses of $2.8 million had been in a continuous loss position for more than twelve months. As of January 31, 2013 and April 30, 2013, we had no securities that had been in a continuous loss position for more than twelve months. |
Receivables_Schedule_Of_ShortT
Receivables (Schedule Of Short-Term Receivables) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | $719,937 | $257,234 | $993,989 |
Allowance for doubtful accounts | -42,716 | -50,399 | -44,829 |
Receivables, net | 677,221 | 206,835 | 949,160 |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 104,841 | 65,413 | 110,560 |
Canadian CashBack receivables | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 60,162 | 49,356 | 250,566 |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 10,099 | 47,658 | 13,052 |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 444,590 | 23,218 | 462,576 |
Credit cards | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 30,309 | 10,722 | 69,627 |
Refund Anticipation Check Fees [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 13,413 | 0 | 31,680 |
Royalties from franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 5,610 | 7,733 | 4,220 |
Other | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | $50,913 | $53,134 | $51,708 |
Investments_Contractual_Maturi
Investments (Contractual Maturities Of AFS Debt Securities At Varying Dates Over The Next 30 Years) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Contractual maturities of AFS debt securities, Cost Basis, Total | $453,231 | $480,628 | $391,933 |
Contractual maturities of AFS debt securities, Fair Value, Total | 443,770 | 486,876 | 397,313 |
Two to Five Years [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Contractual maturities of AFS debt securities, Cost Basis, Total | 4,134 | ' | ' |
Contractual maturities of AFS debt securities, Fair Value, Total | 4,375 | ' | ' |
Beyond [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Contractual maturities of AFS debt securities, Cost Basis, Total | 449,097 | ' | ' |
Contractual maturities of AFS debt securities, Fair Value, Total | $439,395 | ' | ' |
Receivables_Schedule_Of_Loans_
Receivables (Schedule Of Loans Receivable) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | $719,937 | $257,234 | $993,989 |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | 444,590 | 23,218 | 462,576 |
Long-term | 5,555 | 9,819 | 10,465 |
Receivables, net | 450,145 | 33,037 | 473,041 |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | 104,841 | 65,413 | 110,560 |
Long-term | 114,676 | 103,047 | 127,274 |
Receivables, net | 219,517 | 168,460 | 237,834 |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | 10,099 | 47,658 | 13,052 |
Long-term | 0 | 0 | 0 |
Receivables, net | 10,099 | 47,658 | 13,052 |
Royalties from franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | 5,610 | 7,733 | 4,220 |
Long-term | 11,378 | 15,538 | 16,045 |
Receivables, net | $16,988 | $23,271 | $20,265 |
Receivables_Schedule_Of_Receiv
Receivables (Schedule Of Receivables Based On Year Of Origination) (Details) (Emerald Advance lines of credit, USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | $450,145 |
Year Of Origination2014 | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | 415,081 |
Year Of Origination 2013 | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | 7,295 |
Year Of Origination 2012 | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | 1,006 |
Year Of Origination 2011 | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | 1,912 |
Year Of Origination 2010 And Prior | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | 6,199 |
Revolving Loans | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Receivables, Net | $18,652 |
Receivables_Schedule_Of_Activi
Receivables (Schedule Of Activity In The Allowance For Doubtful Accounts) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | $57,703 | $44,589 |
Provision | 37,279 | 40,482 |
Charge-offs | -49,735 | -40,242 |
Ending balance | 45,247 | 44,829 |
Emerald Advance lines of credit | ' | ' |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | 7,390 | 6,200 |
Provision | 24,787 | 25,519 |
Charge-offs | 0 | 0 |
Ending balance | 32,177 | 31,719 |
Loans to franchisees | ' | ' |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | 0 | 0 |
Provision | 42 | 42 |
Charge-offs | -2 | 0 |
Ending balance | 40 | 42 |
Receivables for tax preparation and related fees | ' | ' |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | 2,769 | 2,279 |
Provision | 248 | 385 |
Charge-offs | -1,667 | -1,292 |
Ending balance | 1,350 | 1,372 |
Royalties from franchisees | ' | ' |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | 7,304 | 0 |
Provision | 6,785 | 4,255 |
Charge-offs | -8,654 | 0 |
Ending balance | 5,435 | 4,255 |
All Other | ' | ' |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' |
Beginning balance | 40,240 | 36,110 |
Provision | 5,417 | 10,281 |
Charge-offs | -39,412 | -38,950 |
Ending balance | $6,245 | $7,441 |
Mortgage_Loans_Held_For_Invest2
Mortgage Loans Held For Investment And Related Assets (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Transfer of mortgage loans held for investment to held for sale | $7,608 | $0 | ' |
Allowance as Percent of Principal | 4.00% | 4.60% | 4.10% |
Percentage of mortgage loan portfolio consisting of borrowers from Florida, California, New York, and Wisconsin | 59.00% | ' | ' |
Minimum Credit Score | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loan-to-value at origination in order to have internal risk rating of medium | 80.00% | ' | ' |
Minimum credit score to be given internal risk rating of low | 700 | ' | ' |
Maximum Credit Score | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loan-to-value at origination in order to have internal risk rating of medium | 80.00% | ' | ' |
Maximum credit score to be given internal risk rating of medium | 700 | ' | ' |
Maximum [Member] | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Allowance for Credit Losses, Period at Which Collectively Evaluated for Impairment | '60 days | ' | ' |
Minimum [Member] | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Allowance for Credit Losses, Period at Which Indivudally Evaluated for Impairment | '60 days | ' | ' |
Fair Value, Measurements, Recurring [Member] | Mortgage Loans Held for Sale [Member] | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Gain (Loss) on Investments | $2,900 | ' | ' |
Mortgage_Loans_Held_For_Invest3
Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loan Portfolio) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ' | ' | ' |
Adjustable-rate loans | ($158,369) | ($191,093) | ($203,624) | ' |
Adjustable-rate loans, percent of total loans | 54.00% | 55.00% | 55.00% | ' |
Fixed-rate loans | -132,956 | -159,142 | -168,515 | ' |
Fixed-rate loans, percent of Total loans | 46.00% | 45.00% | 45.00% | ' |
Total loans | 291,325 | 350,235 | 372,139 | ' |
Total loans, percent of Total loans | 100.00% | 100.00% | 100.00% | ' |
Unamortized deferred fees and costs | 2,387 | 2,868 | 3,004 | ' |
Less: Allowance for loan losses | -11,563 | -14,314 | -17,256 | -26,540 |
Total | $282,149 | $338,789 | $357,887 | ' |
Mortgage_Loans_Held_For_Invest4
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Loan Losses) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Loans and Leases Rollforward [Roll Forward] | ' | ' |
Balance at beginning of the period | $14,314 | $26,540 |
Provision | 7,224 | 10,250 |
Recoveries | 3,250 | 2,745 |
Charge-offs | -13,225 | -22,279 |
Balance at end of the period | $11,563 | $17,256 |
Mortgage_Loans_Held_For_Invest5
Mortgage Loans Held For Investment And Related Assets (Schedule Of Portfolio Balance And Related Allowance) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | $291,325 | $350,235 | $372,139 |
Related Allowance | 11,563 | 14,314 | 17,256 |
Pooled (less than 60 days past due) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 169,404 | 207,319 | 219,345 |
Related Allowance | 4,979 | 5,628 | 6,670 |
Individually (TDRs) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 44,635 | 55,061 | 59,295 |
Related Allowance | 4,371 | 4,924 | 5,013 |
Individually (60 days or more past due) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 77,286 | 87,855 | 93,499 |
Related Allowance | $2,213 | $3,762 | $5,573 |
Mortgage_Loans_Held_For_Invest6
Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loans Held For Investment And The Related Allowance) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | $291,325 | $350,235 | $372,139 |
Loan Loss Allowance, Amount | 11,563 | 14,314 | 17,256 |
Loan Loss Allowance, % of Principal | 4.00% | 4.10% | 4.60% |
% 30 Days Past Due | 20.10% | ' | ' |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | 166,265 | ' | ' |
Loan Loss Allowance, Amount | 9,343 | ' | ' |
Loan Loss Allowance, % of Principal | 5.60% | ' | ' |
% 30 Days Past Due | 29.60% | ' | ' |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | 125,060 | ' | ' |
Loan Loss Allowance, Amount | $2,220 | ' | ' |
Loan Loss Allowance, % of Principal | 1.80% | ' | ' |
% 30 Days Past Due | 7.60% | ' | ' |
Mortgage_Loans_Held_For_Invest7
Mortgage Loans Held For Investment And Related Assets (Schedule Of Credit Quality Indicators) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | $291,325 | $350,235 | $372,139 |
Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 203,362 | ' | ' |
Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 87,963 | ' | ' |
Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 145,822 | ' | ' |
Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 18,340 | ' | ' |
Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 105,061 | ' | ' |
Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 22,102 | ' | ' |
Internal Risk Rating, High | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 49,226 | ' | ' |
Internal Risk Rating, Medium | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 117,039 | ' | ' |
Internal Risk Rating, Low | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 125,060 | ' | ' |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 166,265 | ' | ' |
Purchased From SCC | Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 121,743 | ' | ' |
Purchased From SCC | Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 44,522 | ' | ' |
Purchased From SCC | Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 55,477 | ' | ' |
Purchased From SCC | Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 5,059 | ' | ' |
Purchased From SCC | Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 91,796 | ' | ' |
Purchased From SCC | Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 13,933 | ' | ' |
Purchased From SCC | Internal Risk Rating, High | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 49,226 | ' | ' |
Purchased From SCC | Internal Risk Rating, Medium | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 117,039 | ' | ' |
Purchased From SCC | Internal Risk Rating, Low | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | ' | ' | ' |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 125,060 | ' | ' |
All Other | Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 81,619 | ' | ' |
All Other | Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 43,441 | ' | ' |
All Other | Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 90,345 | ' | ' |
All Other | Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 13,281 | ' | ' |
All Other | Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 13,265 | ' | ' |
All Other | Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 8,169 | ' | ' |
All Other | Internal Risk Rating, High | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | ' | ' | ' |
All Other | Internal Risk Rating, Medium | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | ' | ' | ' |
All Other | Internal Risk Rating, Low | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | $125,060 | ' | ' |
Mortgage_Loans_Held_For_Invest8
Mortgage Loans Held For Investment And Related Assets (Schedule Of Past Due Mortgage Loans) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | |
In Thousands, unless otherwise specified | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | $291,325 | $350,235 | $372,139 | |
Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 166,265 | ' | ' | |
All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 125,060 | ' | ' | |
Less than 60 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 20,775 | ' | ' | |
Less than 60 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 14,721 | ' | ' | |
Less than 60 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 6,054 | ' | ' | |
60 – 89 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 1,360 | ' | ' | |
60 – 89 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 923 | ' | ' | |
60 – 89 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 437 | ' | ' | |
90 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 60,578 | [1] | ' | ' |
90 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 51,663 | [1] | ' | ' |
90 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 8,915 | [1] | ' | ' |
Total Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 82,713 | ' | ' | |
Total Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 67,307 | ' | ' | |
Total Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 15,406 | ' | ' | |
Current | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 208,612 | ' | ' | |
Current | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 98,958 | ' | ' | |
Current | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | $109,654 | ' | ' | |
[1] | We do not accrue interest on loans past due 90 days or more. |
Mortgage_Loans_Held_For_Invest9
Mortgage Loans Held For Investment And Related Assets (Schedule Of Non-Accrual Loans) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | $76,898 | $85,233 | $91,996 |
Financing receivable modifications to recorded investments | 5,178 | 4,221 | 3,964 |
Total non-accrual loans | 82,076 | 89,454 | 95,960 |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | 64,573 | 70,327 | 76,235 |
Financing receivable modifications to recorded investments | 4,221 | 3,719 | 3,460 |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | 12,325 | 14,906 | 15,761 |
Financing receivable modifications to recorded investments | $957 | $502 | $504 |
Recovered_Sheet1
Mortgage Loans Held For Investment And Related Assets (Information Related To Impaired Loans) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | $121,922 | $142,916 | $152,794 |
Related Allowance | 6,584 | 8,686 | 10,586 |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 101,910 | 118,383 | 127,609 |
Related Allowance | 5,341 | 6,573 | 8,470 |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 20,012 | 24,533 | 25,185 |
Related Allowance | 1,243 | 2,113 | 2,116 |
Balance With Allowance | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 33,067 | 41,392 | 45,695 |
Balance With Allowance | Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 28,037 | 33,791 | 38,938 |
Balance With Allowance | All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 5,030 | 7,601 | 6,757 |
Balance With No Allowance | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 88,855 | 101,524 | 107,099 |
Balance With No Allowance | Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 73,873 | 84,592 | 88,671 |
Balance With No Allowance | All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | $14,982 | $16,932 | $18,428 |
Recovered_Sheet2
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Impaired Loans) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ' | ' |
Based on collateral value method | $2,213 | $3,762 | $5,573 |
Based on discounted cash flow method | 4,371 | 4,924 | 5,013 |
Total allowance for loans | $6,584 | $8,686 | $10,586 |
Recovered_Sheet3
Mortgage Loans Held For Investment And Related Assets (Information Related To Activities Of Non-Performing Assets) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | $138,668 | $163,582 |
Interest income on impaired loans | 2,720 | 3,172 |
Interest income on impaired loans recognized on a cash basis on non-accrual status | 2,658 | 3,095 |
Purchased From SCC | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | 116,061 | 137,703 |
Interest income on impaired loans | 2,496 | 2,940 |
Interest income on impaired loans recognized on a cash basis on non-accrual status | 2,438 | 2,881 |
All Other | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | 22,607 | 25,879 |
Interest income on impaired loans | 224 | 232 |
Interest income on impaired loans recognized on a cash basis on non-accrual status | $220 | $214 |
Recovered_Sheet4
Mortgage Loans Held For Investment And Related Assets (Schedule Of Real Estate Owned) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Real Estate Owned Valuation Allowance [Roll Forward] | ' | ' |
Balance, beginning of the period | $13,968 | $14,972 |
Additions | 6,389 | 7,208 |
Sales | -10,975 | -6,652 |
Real Estate Owned, Valuation Allowance, Period Increase (Decrease) | 1,152 | 1,676 |
Balance, end of the period | ' | $13,852 |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization of intangible assets | $8.80 | $6.30 | $21.40 | $19.60 |
Estimated amortization, 2014 | 30.4 | ' | 30.4 | ' |
Estimated amortization, 2015 | 32.9 | ' | 32.9 | ' |
Estimated amortization, 2016 | 25.5 | ' | 25.5 | ' |
Estimated amortization, 2017 | 19.7 | ' | 19.7 | ' |
Estimated amortization, 2018 | $16.60 | ' | $16.60 | ' |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Schedule Of Goodwill) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Goodwill [Roll Forward] | ' | ' |
Goodwill before impairment losses, beginning balance | $467,079 | $459,863 |
Accumulated impairment losses, beginning balance | -32,297 | -32,297 |
Goodwill, beginning balance | 434,782 | 427,566 |
Acquisitions | 5,206 | 7,650 |
Disposals and foreign currency changes, net | -2,602 | 40 |
Impairments | 0 | 0 |
Goodwill before impairment losses, ending balance | 469,683 | 467,553 |
Accumulated impairment losses, ending balance | -32,297 | -32,297 |
Goodwill, ending balance | $437,386 | $435,256 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | |||
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | $511,616 | $464,153 | $469,190 |
Accumulated Amortization | -192,897 | -179,714 | -180,952 |
Net | 318,719 | 284,439 | 288,238 |
Tax Services | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 98,012 | 91,745 | 87,909 |
Accumulated Amortization | -70,964 | -72,764 | -71,194 |
Net | 27,048 | 18,981 | 16,715 |
Tax Services | Reacquired Franchise Rights | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 233,675 | 214,330 | 214,330 |
Accumulated Amortization | -23,120 | -18,204 | -17,174 |
Net | 210,555 | 196,126 | 197,156 |
Tax Services | Customer Relationships | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 121,055 | 100,719 | 108,596 |
Accumulated Amortization | -56,283 | -48,733 | -52,820 |
Net | 64,772 | 51,986 | 55,776 |
Tax Services | Noncompete Agreements | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 24,573 | 23,058 | 23,054 |
Accumulated Amortization | -22,028 | -21,728 | -21,627 |
Net | 2,545 | 1,330 | 1,427 |
Tax Services | Franchise Agreements | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 19,201 | 19,201 | 19,201 |
Accumulated Amortization | -6,614 | -5,654 | -5,334 |
Net | 12,587 | 13,547 | 13,867 |
Tax Services | Purchased Technology | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 14,800 | 14,800 | 14,800 |
Accumulated Amortization | -13,588 | -12,331 | -11,911 |
Net | 1,212 | 2,469 | 2,889 |
Tax Services | Trade Name | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 300 | 300 | 1,300 |
Accumulated Amortization | -300 | -300 | -892 |
Net | $0 | $0 | $408 |
Fair_Value_Measurement_Assets_
Fair Value Measurement (Assets Remeasured At Fair Value On Recurring Basis) (Details) (Fair Value, Measurements, Recurring, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total, Gain (loss) on financial instruments | ($9,461) | $5,380 |
Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets at fair value | 443,770 | 397,313 |
As a percentage of total assets | 12.60% | 10.10% |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets at fair value | 0 | 0 |
As a percentage of total assets | 0.00% | 0.00% |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets at fair value | 443,770 | 397,313 |
As a percentage of total assets | 12.60% | 10.10% |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total financial assets at fair value | 0 | 0 |
As a percentage of total assets | 0.00% | 0.00% |
Mortgage-Backed Securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Gain on investments | -9,702 | 5,045 |
Mortgage-Backed Securities | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 439,395 | 391,786 |
Mortgage-Backed Securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Mortgage-Backed Securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 439,395 | 391,786 |
Mortgage-Backed Securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Municipal Bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Gain on investments | 241 | 335 |
Municipal Bonds | Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 4,375 | 5,527 |
Municipal Bonds | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 0 | 0 |
Municipal Bonds | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | 4,375 | 5,527 |
Municipal Bonds | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments | $0 | $0 |
Fair_Value_Measurement_Assets_1
Fair Value Measurement (Assets Remeasured At Fair Value On Non-Recurring Basis) (Details) (Non-Recurring, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loss, REO | ($437) | ($350) |
Loss, Impaired mortgage loans held for investment | -4,022 | -8,509 |
Total, Gain (loss) on financial instruments | -4,459 | -8,859 |
Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
REO | 8,723 | 14,683 |
Impaired mortgage loans held for investment | 71,053 | 87,949 |
Total financial assets at fair value | 79,776 | 102,632 |
As a percentage of total assets | 2.30% | 2.60% |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
REO | 0 | 0 |
Impaired mortgage loans held for investment | 0 | 0 |
Total financial assets at fair value | 0 | 0 |
As a percentage of total assets | 0.00% | 0.00% |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
REO | 0 | 0 |
Impaired mortgage loans held for investment | 0 | 0 |
Total financial assets at fair value | 0 | 0 |
As a percentage of total assets | 0.00% | 0.00% |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
REO | 8,723 | 14,683 |
Impaired mortgage loans held for investment | 71,053 | 87,949 |
Total financial assets at fair value | $79,776 | $102,632 |
As a percentage of total assets | 2.30% | 2.60% |
Fair_Value_Measurement_Quantit
Fair Value Measurement (Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 |
In Thousands, unless otherwise specified | Third Party Pricing | Third Party Pricing | Third Party Pricing | Third Party Pricing | Collateral-Based | Collateral-Based | Collateral-Based | Collateral-Based | Collateral-Based | Discounted Cash Flow | Discounted Cash Flow | Discounted Cash Flow | Discounted Cash Flow | |||
REO | Minimum | Maximum | Weighted Average | Impaired Mortgage Loans Held For Investment - Non TDRs | Impaired Mortgage Loans Held For Investment - TDRs | Minimum | Maximum | Weighted Average | Impaired Mortgage Loans Held For Investment - Non TDRs | Minimum | Maximum | Weighted Average | ||||
REO | REO | REO | Impaired Mortgage Loans Held For Investment - Non TDRs | Impaired Mortgage Loans Held For Investment - Non TDRs | Impaired Mortgage Loans Held For Investment - Non TDRs | Impaired Mortgage Loans Held For Investment - TDRs | Impaired Mortgage Loans Held For Investment - TDRs | Impaired Mortgage Loans Held For Investment - TDRs | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate | $13,968 | $13,852 | $14,972 | $8,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | ' | ' | ' | $40,264 | ' | ' | ' | $75,073 | ' | ' | ' |
Cost to list/sell | ' | ' | ' | ' | 5.00% | 34.00% | 5.00% | ' | ' | 0.00% | 2.00% | 9.00% | ' | ' | ' | ' |
Loss severity | ' | ' | ' | ' | 0.00% | 100.00% | 53.00% | ' | ' | 0.00% | 100.00% | 60.00% | ' | 0.00% | 22.00% | 6.00% |
Time to sell (in months) | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | '24 months | ' | ' | ' | ' |
Collateral depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | -132.00% | 100.00% | 41.00% | ' | ' | ' | ' |
Aged default performance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.00% | 41.00% | 33.00% |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement Fair Value Of Financial Instruments (Summary Of Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | $437,404 | $1,747,584 | $418,385 | $1,944,334 |
Cash and cash equivalents, Estimated Fair Value | 437,404 | 1,747,584 | ' | ' |
Cash and cash equivalents - restricted, Carrying Amount | 44,855 | 117,837 | 37,958 | ' |
Cash and cash equivalents - restricted, Estimated Fair Value | 44,855 | 117,837 | ' | ' |
Receivables, net - short-term, Carrying Amount | 677,221 | 206,835 | 949,160 | ' |
Receivables, net - short-term, Estimated Fair Value | 679,590 | 206,810 | ' | ' |
Mortgage loans held for investment, less allowance for loan losses of $11,563, $17,256 and $14,314 | 282,149 | 338,789 | 357,887 | ' |
Loans Receivable, Fair Value Disclosure | 195,282 | 210,858 | ' | ' |
Investments in available-for-sale securities, Carrying Amount | 443,770 | 486,876 | 396,312 | ' |
Investments in available-for-sale securities, Estimated Fair Value | 443,770 | 486,876 | 397,313 | ' |
Receivables, net - long-term, Carrying Amount | 134,046 | 125,048 | ' | ' |
Receivables, net - long-term, Estimated Fair Value | 133,623 | 134,283 | ' | ' |
Total Portfolio | 291,325 | 350,235 | 372,139 | ' |
Deposits, Estimated Fair Value | 810,486 | 934,019 | ' | ' |
Long-term borrowings, Carrying Amount | 906,529 | 906,680 | ' | ' |
Long-term borrowings, Estimated Fair Value | 953,944 | 964,630 | ' | ' |
Cusiness Combination, Contingent Consideration, at Fair Value | 10,523 | 11,277 | ' | ' |
Business Combination, Contingent Consideration, Liability | 10,523 | 11,277 | ' | ' |
Level 1 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, Estimated Fair Value | ' | ' | 418,385 | ' |
Cash and cash equivalents - restricted, Estimated Fair Value | ' | ' | 37,958 | ' |
Receivables, net - short-term, Estimated Fair Value | ' | ' | 949,160 | ' |
Level 3 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Loans Receivable, Fair Value Disclosure | ' | ' | 217,019 | ' |
Long-term borrowings, Carrying Amount | ' | ' | 906,725 | ' |
Long-term borrowings, Estimated Fair Value | ' | ' | 946,793 | ' |
Cusiness Combination, Contingent Consideration, at Fair Value | ' | ' | 10,871 | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | 10,871 | ' |
Level 2 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Investments in available-for-sale securities, Estimated Fair Value | ' | ' | 397,313 | ' |
Level 1 And 3 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Receivables, net - long-term, Carrying Amount | ' | ' | 158,228 | ' |
Receivables, net - long-term, Estimated Fair Value | ' | ' | 158,228 | ' |
Deposits, Carrying Amount | ' | ' | 1,041,942 | ' |
Deposits, Estimated Fair Value | ' | ' | 1,042,282 | ' |
HRB Bank [Member] | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Deposits, Carrying Amount | $808,008 | $938,331 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2013 | Apr. 30, 2013 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | $127.50 | $127.50 | $146.60 | $146.40 |
Unrecognized Tax Benefits, Period Increase (Decrease) | ' | -18.9 | 59.8 | ' |
Effect of anticipated settlements of audit issues and expiring statutes of limitations | 35 | 35 | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Other Information | ' | '23.2 | ' | ' |
Effective tax rate, excluding discrete tax items | ' | 39.20% | 38.70% | ' |
Effective Income Tax Rate, Continuing Operations | ' | 39.70% | 47.70% | ' |
Net Discrete Tax Expense (Benefit) | $3.70 | ' | $38.70 | ' |
Interest_Income_And_Interest_E2
Interest Income And Interest Expense (Schedule Of Interest Income And Expense Of Continuing Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | $37,369 | $38,300 | $59,192 | $58,032 |
Interest expense | 14,443 | 19,428 | 43,203 | 64,895 |
Emerald Advance lines of credit | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 27,656 | 28,399 | 28,602 | 30,074 |
Mortgage Loans, Net | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 3,409 | 4,120 | 10,582 | 12,705 |
Loans to franchisees | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 2,396 | 2,651 | 7,069 | 7,397 |
AFS Securities | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 2,430 | 1,713 | 7,284 | 5,105 |
Credit cards | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 642 | 844 | 2,505 | 844 |
Other | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 836 | 573 | 3,150 | 1,907 |
Borrowings | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest expense | 13,872 | 17,642 | 41,476 | 60,391 |
Deposits | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest expense | $571 | $1,786 | $1,727 | $4,504 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Standard guarantee accrual amount | $15,200,000 | $18,000,000 | $14,900,000 |
Contingent business acquisition obligations | 10,523,000 | 11,277,000 | ' |
Lines of credit, total obligation | 90,900,000 | ' | ' |
Remaining franchise equity lines of credit-undrawn commitment | 19,400,000 | ' | ' |
Maximum funding by facility | 1,500,000,000 | ' | ' |
Financing Receivables, Line of Credit Facility, Compensating Balances | 800,000 | ' | ' |
Level 3 | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Contingent business acquisition obligations | ' | ' | $10,871,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Deferred Revenue Related To The Peace Of Mind Program) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Movement in Deferred Revenue [Roll Forward] | ' | ' |
Balance, beginning of the period | $146,286 | $141,080 |
Amounts deferred for new guarantees issued | 16,686 | 14,202 |
Revenue recognized on previous deferrals | -59,661 | -57,505 |
Balance, end of the period | $103,311 | $97,777 |
Litigation_And_Related_Conting1
Litigation And Related Contingencies (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Apr. 05, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Oct. 15, 2010 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 |
loan | Investigations, Legal Claims And Lawsuits | Maximum | Jeanne Drake, et al. v. Option One Mortgage Corp., et al [Member] | ederal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al [Member] | ederal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al [Member] | MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | ||||
Investigations, Legal Claims And Lawsuits | Pending Litigation [Member] | Pending Litigation [Member] | lawsuit | SCC [Member] | SCC [Member] | |||||||
Claims with Knowledge of Outstanding Principal Amount [Member] | ||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued obligations under indemnifications | $20,900,000 | $11,900,000 | ' | $18,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Liability for legal claims | ' | ' | ' | ' | ' | 33,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of legal liability related to discontinued operations | ' | ' | ' | ' | 21.00% | ' | ' | ' | ' | ' | ' | ' |
Claims for severance benefits | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' |
Initial principal on loans securitized | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' |
Principal outstanding on loans securitized | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' |
Loans Sold To Trust, With Claims of Breach of Contract and Indemnity | ' | ' | 159 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Lawsuits | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | ' | ' |
Estimated Litigation Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,000,000,000 | $4,000,000,000 |
Loss_Contingencies_Arising_Fro2
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations (Narrative) (Details) (USD $) | 9 Months Ended | 36 Months Ended | 60 Months Ended | 12 Months Ended | |||
Jan. 31, 2014 | Apr. 30, 2007 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2012 | Jan. 31, 2014 | Jan. 31, 2013 | |
SCC [Member] | SCC [Member] | SCC [Member] | SCC [Member] | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of fraud on originated loans | ' | 68.00% | ' | ' | ' | ' | ' |
Claims received for loans | $70,300,000 | ' | $2,100,000,000 | $190,000,000 | $1,100,000,000 | ' | ' |
Claims subject to review by SCC, amount | 1,200,000 | ' | ' | ' | ' | ' | ' |
Reassertion of previously denied claims | 0 | ' | ' | ' | ' | ' | ' |
Increase In Losses Due To Assumed One Percent Increase In Validity Rates And Loss Severities | 40,000,000 | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual, at Carrying Value | ' | ' | ' | $158,765,000 | $130,018,000 | $158,765,000 | $118,765,000 |
Loss_Contingencies_Arising_Fro3
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Details) (SCC [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
SCC [Member] | ' | ' |
Loss Contingency Accrual [Roll Forward] | ' | ' |
Balance, beginning of the period | $158,765 | $130,018 |
Provisions | 158,765 | 118,765 |
Payments | 0 | -11,253 |
Balance, end of the period | $0 | $0 |
Discontinued_Operations_Income
Discontinued Operations (Income (Loss) From Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Revenues | $0 | $0 | $0 | $0 |
Pretax income (loss) from operations | -3,124 | -1,276 | -9,396 | -10,843 |
Income taxes (benefit) | -1,164 | -483 | -3,591 | -4,215 |
Net income (loss) from discontinued operations | -1,960 | -793 | -5,805 | -6,628 |
RSM And Related Businesses | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Pretax income (loss) from operations | 265 | -511 | -1,571 | -204 |
Mortgage | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Pretax income (loss) from operations | ($3,389) | ($765) | ($7,825) | ($10,639) |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements Of HRB Bank (Narrative) (Details) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | |||
HRB Bank [Member] | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' | ' | ' | |||
Tier 1 capital ratio (leverage) | 37.10% | [1] | 25.50% | [1] | 29.70% | [1] | 37.10% |
[1] | Tier 1 (core) capital divided by adjusted total assets. |
Regulatory_Capital_Requirement3
Regulatory Capital Requirements Of HRB Bank (HRB Bank's Regulatory Capital Requirements) (Details) (USD $) | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Apr. 05, 2012 | |||
Banking and Thrift [Abstract] | ' | ' | ' | ' | ' | |||
Total risk-based capital ratio, Amount | ' | $517,031 | [1] | $506,734 | [1] | $469,979 | [1] | ' |
Total risk-based capital ratio | ' | 72.50% | [1] | 131.60% | [1] | 61.90% | [1] | ' |
Total risk-based capital ratio, Minimum Capital Requirement, Amount | ' | 57,023 | [1] | 30,806 | [1] | 60,747 | [1] | ' |
Total risk-based capital ratio, Minimum Capital Requirement, Ratio | ' | 8.00% | [1] | 8.00% | [1] | 8.00% | [1] | ' |
Total risk-based capital ratio, Minimum to be Well Capitalized, Amount | ' | 71,279 | [1] | 38,508 | [1] | 75,934 | [1] | ' |
Total risk-based capital ratio, Minimum to be Well Capitalized, Ratio | ' | 10.00% | [1] | 10.00% | [1] | 10.00% | [1] | ' |
Tier 1 risk-based capital ratio, Amount | ' | 508,015 | [2] | 501,731 | [2] | 460,341 | [2] | ' |
Tier 1 risk-based capital ratio | ' | 71.30% | [2] | 130.30% | [2] | 60.60% | [2] | ' |
Tier 1 risk-based capital ratio, Minimum to be Well Capitalized, Amount | ' | 42,768 | [2] | 23,105 | [2] | 45,561 | [2] | ' |
Tier 1 risk-based capital ratio, Minimum to be Well Capitalized, Ratio | ' | 6.00% | [2] | 6.00% | [2] | 6.00% | [2] | ' |
Tier 1 capital ratio (leverage), Amount | ' | 508,015 | [3] | 501,731 | [3] | 460,341 | [3] | ' |
Tier 1 capital ratio (leverage) | ' | 37.10% | [3] | 25.50% | [3] | 29.70% | [3] | ' |
Tier 1 capital ratio (leverage), Minimum Capital Requirement, Amount | ' | 164,404 | [3] | 236,315 | [3] | 62,041 | [3] | ' |
Tier 1 capital ratio (leverage), Minimum Capital Requirement, Ratio | ' | 12.00% | [3],[4] | 12.00% | [3],[4] | 12.00% | [3] | 4.00% |
Tier 1 capital ratio (leverage), Minimum to be Well Capitalized, Amount | ' | 68,502 | [3] | 98,464 | [3] | 77,551 | [3] | ' |
Tier 1 capital ratio (leverage), Minimum to be Well Capitalized, Ratio | ' | 5.00% | [3] | 5.00% | [3] | 5.00% | [3] | ' |
Tangible equity ratio, Amount | ' | 508,015 | [5] | 501,731 | [5] | 460,341 | [5] | ' |
Tangible equity ratio | ' | 37.10% | [5] | 25.50% | [5] | 29.70% | [5] | ' |
Tangible equity ratio, Minimum Capital Requirement, Amount | ' | $20,550 | [5] | $29,539 | [5] | $23,265 | [5] | ' |
Tangible equity ratio, Minimum Capital Requirement, Ratio | ' | 1.50% | [5] | 1.50% | [5] | 1.50% | [5] | ' |
Minimum leverage capital per calendar quarter | 12.00% | ' | ' | ' | ' | |||
[1] | Total risk-based capital divided by risk-weighted assets. | |||||||
[2] | Tier 1 (core) capital less deduction for low-level recourse and residual interest divided by risk-weighted assets. | |||||||
[3] | Tier 1 (core) capital divided by adjusted total assets. | |||||||
[4] | Effective April 5, 2012, the minimum capital requirement was changed to 4% by the OCC, although HRB Bank plans to maintain a minimum of 12.0% leverage capital at the end of each calendar quarter. | |||||||
[5] | Tangible capital divided by tangible assets. |
Segment_Information_Continuing
Segment Information (Continuing Operations By Reportable Operating Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | $199,770 | $471,979 | $461,305 | $705,731 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | -347,825 | -96,268 | -711,681 | -427,825 |
Tax Services | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 193,996 | 464,634 | 443,727 | 684,706 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | -322,099 | -64,189 | -625,807 | -335,203 |
Corporate And Eliminations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 5,774 | 7,345 | 17,578 | 21,025 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | ($25,726) | ($32,079) | ($85,874) | ($92,622) |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | $199,770 | $471,979 | $461,305 | $705,731 |
Cost of revenues | 363,537 | 377,618 | 794,454 | 783,053 |
Selling, general and administrative | 174,448 | 186,997 | 365,237 | 352,802 |
Total expenses | 537,985 | 564,615 | 1,159,691 | 1,135,855 |
Operating loss | -338,215 | -92,636 | -698,386 | -430,124 |
Other income (expense), net | -9,610 | -3,632 | -13,295 | 2,299 |
Loss from continuing operations before income tax benefit | -347,825 | -96,268 | -711,681 | -427,825 |
Income tax benefit | -135,074 | -79,353 | -282,645 | -204,061 |
Net loss from continuing operations | -212,751 | -16,915 | -429,036 | -223,764 |
Net loss from discontinued operations | -1,960 | -793 | -5,805 | -6,628 |
NET LOSS | -214,711 | -17,708 | -434,841 | -230,392 |
Other comprehensive loss | -6,239 | 370 | -15,326 | -3,090 |
Comprehensive loss | -220,950 | -17,338 | -450,167 | -233,482 |
Block Financial Issuer [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | 54,455 | 58,616 | 102,840 | 98,531 |
Cost of revenues | 55,634 | 68,333 | 121,925 | 137,146 |
Selling, general and administrative | 10,346 | 11,327 | 25,753 | 26,288 |
Total expenses | 65,980 | 79,660 | 147,678 | 163,434 |
Operating loss | -11,525 | -21,044 | -44,838 | -64,903 |
Other income (expense), net | 232 | -4,938 | 1,938 | -2,428 |
Loss from continuing operations before income tax benefit | -11,293 | -25,982 | -42,900 | -67,331 |
Income tax benefit | 7,602 | -31,416 | -3,999 | -46,374 |
Net loss from continuing operations | -18,895 | 5,434 | -38,901 | -20,957 |
Net loss from discontinued operations | -2,118 | -483 | -4,834 | -6,503 |
NET LOSS | -21,013 | 4,951 | -43,735 | -27,460 |
Other comprehensive loss | -3,052 | -569 | -9,668 | -315 |
Comprehensive loss | -24,065 | 4,382 | -53,403 | -27,775 |
Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | 146,755 | 414,858 | 360,095 | 608,773 |
Cost of revenues | 309,343 | 310,776 | 674,159 | 647,476 |
Selling, general and administrative | 164,102 | 175,674 | 339,484 | 326,518 |
Total expenses | 473,445 | 486,450 | 1,013,643 | 973,994 |
Operating loss | -326,690 | -71,592 | -653,548 | -365,221 |
Other income (expense), net | -9,842 | 1,306 | -15,233 | 4,727 |
Loss from continuing operations before income tax benefit | -336,532 | -70,286 | -668,781 | -360,494 |
Income tax benefit | -142,676 | -47,937 | -278,646 | -157,687 |
Net loss from continuing operations | -193,856 | -22,349 | -390,135 | -202,807 |
Net loss from discontinued operations | 158 | -310 | -971 | -125 |
NET LOSS | -193,698 | -22,659 | -391,106 | -202,932 |
Other comprehensive loss | -3,187 | 939 | -5,658 | -2,775 |
Comprehensive loss | -196,885 | -21,720 | -396,764 | -205,707 |
Intersegment Elimination [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | -1,440 | -1,495 | -1,630 | -1,573 |
Cost of revenues | -1,440 | -1,491 | -1,630 | -1,569 |
Selling, general and administrative | ' | -4 | ' | -4 |
Total expenses | -1,440 | -1,495 | -1,630 | -1,573 |
Operating loss | ' | ' | ' | ' |
Other income (expense), net | 347,825 | 96,268 | 711,681 | 427,825 |
Loss from continuing operations before income tax benefit | 347,825 | 96,268 | 711,681 | 427,825 |
Income tax benefit | 135,074 | 79,353 | 282,645 | 204,061 |
Net loss from continuing operations | 212,751 | 16,915 | 429,036 | 223,764 |
Net loss from discontinued operations | 1,960 | 793 | 5,805 | 6,628 |
NET LOSS | 214,711 | 17,708 | 434,841 | 230,392 |
Other comprehensive loss | 6,239 | -370 | 15,326 | 3,090 |
Comprehensive loss | 220,950 | 17,338 | 450,167 | 233,482 |
Parent Company [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' |
Cost of revenues | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' |
Total expenses | ' | ' | ' | ' |
Operating loss | ' | ' | ' | ' |
Other income (expense), net | -347,825 | -96,268 | -711,681 | -427,825 |
Loss from continuing operations before income tax benefit | -347,825 | -96,268 | -711,681 | -427,825 |
Income tax benefit | -135,074 | -79,353 | -282,645 | -204,061 |
Net loss from continuing operations | -212,751 | -16,915 | -429,036 | -223,764 |
Net loss from discontinued operations | -1,960 | -793 | -5,805 | -6,628 |
NET LOSS | -214,711 | -17,708 | -434,841 | -230,392 |
Other comprehensive loss | -6,239 | 370 | -15,326 | -3,090 |
Comprehensive loss | ($220,950) | ($17,338) | ($450,167) | ($233,482) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Balance Sheets) (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2012 | |
In Thousands, unless otherwise specified | |||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | |
Cash & cash equivalents | $437,404 | $1,747,584 | $418,385 | $1,944,334 | |
Cash and cash equivalents — restricted | 44,855 | 117,837 | 37,958 | ' | |
Receivables, net - short-term, Carrying Amount | 677,221 | 206,835 | 949,160 | ' | |
Mortgage loans held for investment, net | 282,149 | 338,789 | 357,887 | ' | |
Intangible assets and goodwill, net | 756,105 | 719,221 | 723,491 | ' | |
Investments in subsidiaries | 1,079 | 473 | 556 | ' | |
Amounts due from affiliates | 0 | 0 | 0 | [1] | ' |
Other assets | 1,316,474 | 1,407,040 | 1,445,059 | ' | |
Total assets | 3,515,287 | 4,537,779 | 3,932,496 | ' | |
Customer deposits | 806,887 | 936,464 | 1,036,968 | ' | |
Commercial Paper | 194,984 | 0 | 424,967 | ' | |
Long-term debt | 906,529 | 906,680 | 906,725 | ' | |
Other liabilities | 920,128 | 1,431,088 | 928,948 | ' | |
Amounts due to affiliates | ' | ' | ' | [1] | ' |
Stockholders’ equity | 686,759 | 1,263,547 | 634,888 | ' | |
Total liabilities and stockholders’ equity | 3,515,287 | 4,537,779 | 3,932,496 | ' | |
Block Financial Issuer [Member] | ' | ' | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | |
Cash & cash equivalents | 181,483 | 558,110 | 294,816 | 515,147 | |
Cash and cash equivalents — restricted | 4,883 | 75,096 | 1,613 | ' | |
Receivables, net - short-term, Carrying Amount | 529,954 | 99,844 | 555,418 | ' | |
Mortgage loans held for investment, net | 282,149 | 338,789 | 357,887 | ' | |
Intangible assets and goodwill, net | ' | ' | ' | ' | |
Investments in subsidiaries | ' | 473 | 556 | ' | |
Amounts due from affiliates | 542,657 | 410,590 | 496,760 | [1] | ' |
Other assets | 598,966 | 645,166 | 630,999 | ' | |
Total assets | 2,140,092 | 2,128,068 | 2,338,049 | ' | |
Customer deposits | 807,507 | 939,187 | 1,037,501 | ' | |
Commercial Paper | 194,984 | ' | 424,967 | ' | |
Long-term debt | 897,365 | 896,978 | 896,848 | ' | |
Other liabilities | 237,199 | 245,862 | 251,833 | ' | |
Amounts due to affiliates | ' | ' | ' | [1] | ' |
Stockholders’ equity | 3,037 | 46,041 | -273,100 | ' | |
Total liabilities and stockholders’ equity | 2,140,092 | 2,128,068 | 2,338,049 | ' | |
Subsidiaries [Member] | ' | ' | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | |
Cash & cash equivalents | 256,541 | 1,192,197 | 124,102 | 1,430,030 | |
Cash and cash equivalents — restricted | 39,972 | 42,741 | 36,345 | ' | |
Receivables, net - short-term, Carrying Amount | 147,267 | 106,222 | 392,779 | ' | |
Mortgage loans held for investment, net | ' | ' | ' | ' | |
Intangible assets and goodwill, net | 756,105 | 719,221 | 723,491 | ' | |
Investments in subsidiaries | 1,079 | ' | ' | ' | |
Amounts due from affiliates | 2,167,747 | 2,189,625 | 2,208,626 | [1] | ' |
Other assets | 707,800 | 753,484 | 805,816 | ' | |
Total assets | 4,076,511 | 5,003,490 | 4,291,159 | ' | |
Customer deposits | ' | ' | ' | ' | |
Commercial Paper | ' | ' | ' | ' | |
Long-term debt | 9,164 | 9,702 | 9,877 | ' | |
Other liabilities | 682,260 | 1,184,797 | 676,748 | ' | |
Amounts due to affiliates | 542,657 | 410,590 | 496,822 | [1] | ' |
Stockholders’ equity | 2,842,430 | 3,398,401 | 3,107,712 | ' | |
Total liabilities and stockholders’ equity | 4,076,511 | 5,003,490 | 4,291,159 | ' | |
Intersegment Elimination [Member] | ' | ' | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | |
Cash & cash equivalents | -620 | -2,723 | -533 | -843 | |
Cash and cash equivalents — restricted | ' | ' | ' | ' | |
Receivables, net - short-term, Carrying Amount | ' | ' | ' | ' | |
Mortgage loans held for investment, net | ' | ' | ' | ' | |
Intangible assets and goodwill, net | ' | ' | ' | ' | |
Investments in subsidiaries | -2,845,467 | -3,444,442 | -2,834,612 | ' | |
Amounts due from affiliates | -2,710,404 | -2,600,215 | -2,705,448 | [1] | ' |
Other assets | ' | ' | ' | ' | |
Total assets | -5,556,491 | -6,047,380 | -5,540,593 | ' | |
Customer deposits | -620 | -2,723 | -533 | ' | |
Commercial Paper | ' | ' | ' | ' | |
Long-term debt | ' | ' | ' | ' | |
Other liabilities | ' | ' | ' | ' | |
Amounts due to affiliates | -2,710,404 | -2,600,215 | -2,705,448 | [1] | ' |
Stockholders’ equity | -2,845,467 | -3,444,442 | -2,834,612 | ' | |
Total liabilities and stockholders’ equity | -5,556,491 | -6,047,380 | -5,540,593 | ' | |
Parent Company [Member] | ' | ' | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | |
Cash & cash equivalents | ' | ' | ' | ' | |
Cash and cash equivalents — restricted | ' | ' | ' | ' | |
Receivables, net - short-term, Carrying Amount | ' | 769 | 963 | ' | |
Mortgage loans held for investment, net | ' | ' | ' | ' | |
Intangible assets and goodwill, net | ' | ' | ' | ' | |
Investments in subsidiaries | 2,845,467 | 3,444,442 | 2,834,612 | ' | |
Amounts due from affiliates | 0 | 0 | 62 | [1] | ' |
Other assets | 9,708 | 8,390 | 8,244 | ' | |
Total assets | 2,855,175 | 3,453,601 | 2,843,881 | ' | |
Customer deposits | ' | ' | ' | ' | |
Commercial Paper | ' | ' | ' | ' | |
Long-term debt | ' | ' | ' | ' | |
Other liabilities | 669 | 429 | 367 | ' | |
Amounts due to affiliates | 2,167,747 | 2,189,625 | 2,208,626 | [1] | ' |
Stockholders’ equity | 686,759 | 1,263,547 | 634,888 | ' | |
Total liabilities and stockholders’ equity | $2,855,175 | $3,453,601 | $2,843,881 | ' | |
[1] | As of April 30, 2013 H&R Block, Inc.(Guarantor) Block Financial(Issuer) OtherSubsidiaries Eliminations ConsolidatedH&R BlockCash & cash equivalents $— $558,110 $1,192,197 $(2,723) $1,747,584Cash & cash equivalents — restricted — 75,096 42,741 — 117,837Receivables, net 769 99,844 106,222 — 206,835Mortgage loans held for investment, net — 338,789 — — 338,789Intangible assets and goodwill, net — — 719,221 — 719,221Investments in subsidiaries 3,444,442 473 — (3,444,442) 473Amounts due from affiliates — 410,590 2,189,625 (2,600,215) —Other assets 8,390 645,166 753,484 — 1,407,040Total assets $3,453,601 $2,128,068 $5,003,490 $(6,047,380) $4,537,779 Customer deposits $— $939,187 $— $(2,723) $936,464Long-term debt — 896,978 9,702 — 906,680Other liabilities 429 245,862 1,184,797 — 1,431,088Amounts due to affiliates 2,189,625 — 410,590 (2,600,215) —Stockholders’ equity 1,263,547 46,041 3,398,401 (3,444,442) 1,263,547Total liabilities and stockholders’ equity $3,453,601 $2,128,068 $5,003,490 $(6,047,380) $4,537,779 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Cash Flows) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable | $64,865 | $0 |
Net cash used in operating activities | -1,120,322 | -1,311,926 |
Purchases of AFS securities | -45,158 | -108,351 |
Maturities and payments received on AFS securities | 72,502 | 86,808 |
Mortgage loans held for investment, net | 35,320 | 31,205 |
Capital expenditures | -125,654 | -96,063 |
Payments to Acquire Businesses, Net of Cash Acquired | 37,865 | 20,662 |
Loans made to franchisees | -62,039 | -68,874 |
Repayments from franchisees | 17,893 | 9,594 |
Intercompany advances (payments) | ' | ' |
Other, net | 12,227 | -13,973 |
Net cash provided by (used in) investing activities | -67,909 | -180,316 |
Repayments of other borrowings | ' | -636,621 |
Proceeds from Issuance of Long-term Debt | 0 | 497,185 |
Customer banking deposits, net | -124,947 | 208,753 |
Dividends paid | -164,134 | -162,692 |
Repurchase of common stock | -6,047 | -340,298 |
Proceeds from stock options | 28,083 | 11,529 |
Intercompany advances (payments) | ' | ' |
Other, net | -29,872 | -36,113 |
Net cash used in financing activities | -101,933 | -33,290 |
Effects of exchange rates on cash | -20,016 | -417 |
Net decrease in cash and cash equivalents | -1,310,180 | -1,525,949 |
Cash & cash equivalents | 437,404 | 418,385 |
Repayments of Commercial Paper | 80,930 | 789,271 |
Proceeds from Issuance of Commercial Paper | 275,914 | 1,214,238 |
Parent Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable | 0 | ' |
Net cash used in operating activities | -309 | -158 |
Purchases of AFS securities | ' | ' |
Maturities and payments received on AFS securities | ' | ' |
Mortgage loans held for investment, net | ' | ' |
Capital expenditures | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | ' | ' |
Loans made to franchisees | ' | ' |
Repayments from franchisees | ' | ' |
Intercompany advances (payments) | 142,407 | 491,619 |
Other, net | ' | ' |
Net cash provided by (used in) investing activities | 142,407 | 491,619 |
Repayments of other borrowings | ' | ' |
Proceeds from Issuance of Long-term Debt | ' | ' |
Customer banking deposits, net | ' | ' |
Dividends paid | -164,134 | -162,692 |
Repurchase of common stock | -6,047 | -340,298 |
Proceeds from stock options | 28,083 | 11,529 |
Intercompany advances (payments) | ' | ' |
Other, net | ' | ' |
Net cash used in financing activities | -142,098 | -491,461 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | ' | ' |
Cash & cash equivalents | ' | ' |
Repayments of Commercial Paper | ' | ' |
Proceeds from Issuance of Commercial Paper | ' | ' |
Block Financial Issuer [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable | 0 | ' |
Net cash used in operating activities | -347,188 | -408,904 |
Purchases of AFS securities | -45,158 | -108,351 |
Maturities and payments received on AFS securities | 72,502 | 86,756 |
Mortgage loans held for investment, net | 35,320 | 31,205 |
Capital expenditures | -59 | -58 |
Payments to Acquire Businesses, Net of Cash Acquired | ' | ' |
Loans made to franchisees | -62,039 | -68,874 |
Repayments from franchisees | 17,893 | 9,594 |
Other, net | 6,384 | -21,879 |
Net cash provided by (used in) investing activities | 24,843 | -71,607 |
Repayments of other borrowings | ' | -605,790 |
Proceeds from Issuance of Long-term Debt | ' | 497,185 |
Customer banking deposits, net | -127,050 | 208,443 |
Dividends paid | ' | ' |
Repurchase of common stock | ' | ' |
Proceeds from stock options | ' | ' |
Intercompany advances (payments) | -122,216 | -251,638 |
Other, net | ' | -12,987 |
Net cash used in financing activities | -54,282 | 260,180 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | -376,627 | -220,331 |
Cash & cash equivalents | 181,483 | 294,816 |
Repayments of Commercial Paper | 80,930 | 789,271 |
Proceeds from Issuance of Commercial Paper | 275,914 | 1,214,238 |
Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable | 64,865 | ' |
Net cash used in operating activities | -772,825 | -902,864 |
Purchases of AFS securities | ' | ' |
Maturities and payments received on AFS securities | ' | 52 |
Mortgage loans held for investment, net | ' | ' |
Capital expenditures | -125,595 | -96,005 |
Payments to Acquire Businesses, Net of Cash Acquired | 37,865 | 20,662 |
Loans made to franchisees | ' | ' |
Repayments from franchisees | ' | ' |
Other, net | 5,843 | 7,906 |
Net cash provided by (used in) investing activities | -92,752 | -108,709 |
Repayments of other borrowings | ' | -30,831 |
Proceeds from Issuance of Long-term Debt | ' | ' |
Customer banking deposits, net | ' | ' |
Dividends paid | ' | ' |
Repurchase of common stock | ' | ' |
Proceeds from stock options | ' | ' |
Intercompany advances (payments) | -20,191 | -239,981 |
Other, net | -29,872 | -23,126 |
Net cash used in financing activities | -50,063 | -293,938 |
Effects of exchange rates on cash | -20,016 | -417 |
Net decrease in cash and cash equivalents | -935,656 | -1,305,928 |
Cash & cash equivalents | 256,541 | 124,102 |
Repayments of Commercial Paper | ' | ' |
Proceeds from Issuance of Commercial Paper | ' | ' |
Intersegment Elimination [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Proceeds from Collection of Notes Receivable | 0 | ' |
Net cash used in operating activities | ' | ' |
Purchases of AFS securities | ' | ' |
Maturities and payments received on AFS securities | ' | ' |
Mortgage loans held for investment, net | ' | ' |
Capital expenditures | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | ' | ' |
Loans made to franchisees | ' | ' |
Repayments from franchisees | ' | ' |
Intercompany advances (payments) | -142,407 | -491,619 |
Other, net | ' | ' |
Net cash provided by (used in) investing activities | -142,407 | -491,619 |
Repayments of other borrowings | ' | ' |
Proceeds from Issuance of Long-term Debt | ' | ' |
Customer banking deposits, net | 2,103 | 310 |
Dividends paid | ' | ' |
Repurchase of common stock | ' | ' |
Proceeds from stock options | ' | ' |
Intercompany advances (payments) | 142,407 | 491,619 |
Other, net | ' | ' |
Net cash used in financing activities | 144,510 | 491,929 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | 2,103 | 310 |
Cash & cash equivalents | -620 | -533 |
Repayments of Commercial Paper | ' | ' |
Proceeds from Issuance of Commercial Paper | ' | ' |