Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Oct. 31, 2014 | Nov. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Oct-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
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 | ' | 275,168,156 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations And Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
REVENUES: | ' | ' | ' | ' |
Service revenues | $115,442 | $112,432 | $230,915 | $220,232 |
Royalty, product and other revenues | 9,756 | 11,282 | 18,570 | 19,480 |
Interest income | 9,430 | 10,626 | 18,729 | 21,823 |
Total revenues | 134,628 | 134,340 | 268,214 | 261,535 |
Cost of revenues: | ' | ' | ' | ' |
Compensation and benefits | 69,381 | 60,526 | 121,236 | 106,838 |
Occupancy and equipment | 87,626 | 82,358 | 170,932 | 161,094 |
Provision for bad debt and loan losses | 385 | 2,849 | 4,749 | 14,340 |
Interest | 13,983 | 14,314 | 27,923 | 28,760 |
Depreciation and amortization | 28,429 | 22,095 | 53,514 | 40,715 |
Other | 35,876 | 39,235 | 68,992 | 80,326 |
Cost of revenues | 221,697 | 207,063 | 419,423 | 403,313 |
Selling, general and administrative: | ' | ' | ' | ' |
Marketing and advertising | 12,513 | 13,601 | 20,658 | 20,724 |
Compensation and benefits | 54,353 | 54,818 | 115,317 | 107,865 |
Depreciation and amortization | 10,500 | 4,573 | 19,101 | 8,827 |
Other selling, general and administrative | 20,013 | 21,100 | 39,503 | 53,373 |
Selling, general and administrative | 97,379 | 94,092 | 194,579 | 190,789 |
Total operating expenses | 319,076 | 301,155 | 614,002 | 594,102 |
Other income (expense), net | -2,282 | 1,254 | -2,963 | -3,685 |
Interest Expense, Debt | 13,843 | 13,801 | 27,638 | 27,604 |
Loss from continuing operations before income tax benefit | -200,573 | -179,362 | -376,389 | -363,856 |
Income tax benefit | -87,346 | -76,347 | -154,311 | -147,571 |
Net loss from continuing operations | -113,227 | -103,015 | -222,078 | -216,285 |
Net income (loss) from discontinued operations, net of tax (benefits) of $766 and ($1,218), ($3,798) and $(2,427) | 1,229 | -1,928 | -6,152 | -3,845 |
NET LOSS | -111,998 | -104,943 | -228,230 | -220,130 |
BASIC AND DILUTED LOSS PER SHARE: | ' | ' | ' | ' |
Continuing operations (in usd per share) | ($0.41) | ($0.38) | ($0.81) | ($0.79) |
Discontinued operations (in usd per share) | $0 | ($0.01) | ($0.02) | ($0.01) |
Consolidated (in usd per share) | ($0.41) | ($0.39) | ($0.83) | ($0.80) |
DIVIDENDS PAID PER SHARE (in usd per share) | $0.20 | $0.20 | $0.40 | $0.40 |
COMPREHENSIVE INCOME (LOSS): | ' | ' | ' | ' |
NET LOSS | -111,998 | -104,943 | -228,230 | -220,130 |
Unrealized gains (losses) on securities, net of taxes: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | 5,493 | 1,138 | 4,770 | -6,577 |
Reclassification adjustment for gains included in income | -589 | 0 | -15 | 0 |
Change in foreign currency translation adjustments | -3,810 | 582 | -3,355 | -2,510 |
Other comprehensive income (loss) | 1,094 | 1,720 | 1,400 | -9,087 |
Comprehensive loss | ($110,904) | ($103,223) | ($226,830) | ($229,217) |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Tax benefit on discontinued operations | $766 | ($1,218) | ($3,798) | ($2,427) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and cash equivalents | $627,490 | $2,185,307 | $790,772 |
Cash and cash equivalents - restricted | 55,543 | 115,319 | 47,521 |
Receivables, less allowance for doubtful accounts of $51,746, $52,969 and $52,578 | 107,705 | 191,618 | 131,701 |
Prepaid expenses and other current assets | 285,463 | 198,267 | 225,660 |
Investments in available-for-sale securities | 381,180 | 423,495 | ' |
Total current assets | 1,457,381 | 3,114,006 | 1,195,654 |
Mortgage loans held for investment, less allowance for loan losses of $9,761, $12,704 and $11,272 | 251,092 | 268,428 | 295,907 |
Investments in available-for-sale securities | 9,774 | 4,329 | 465,344 |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | 318,225 | 304,911 | 311,157 |
Intangible assets, net | 414,045 | 355,622 | 296,213 |
Goodwill | 464,182 | 436,117 | 442,812 |
Other assets | 176,591 | 210,116 | 267,426 |
Total assets | 3,091,290 | 4,693,529 | 3,274,513 |
LIABILITIES: | ' | ' | ' |
Customer banking deposits | 454,860 | 769,785 | 655,129 |
Accounts payable, accrued expenses and other current liabilities | 436,830 | 569,007 | 426,994 |
Accrued salaries, wages and payroll taxes | 36,215 | 167,032 | 41,584 |
Accrued income taxes | 147,000 | 406,655 | 22,475 |
Current portion of long-term debt | 772 | 400,637 | 400,503 |
Total current liabilities | 1,075,677 | 2,313,116 | 1,546,685 |
Long-term debt | 505,588 | 505,837 | 506,078 |
Other noncurrent liabilities | 271,349 | 318,027 | 266,775 |
Total liabilities | 1,852,614 | 3,136,980 | 2,319,538 |
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 | 772,662 | 766,654 | 757,828 |
Accumulated other comprehensive income | 6,577 | 5,177 | 1,463 |
Retained earnings | 1,250,465 | 1,589,297 | 1,003,842 |
Less treasury shares, at cost | -794,194 | -807,745 | -811,324 |
Total stockholders' equity | 1,238,676 | 1,556,549 | 954,975 |
Total liabilities and stockholders' equity | $3,091,290 | $4,693,529 | $3,274,513 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | $51,746 | $52,578 | $52,969 |
Allowance for loan losses | 9,761 | 11,272 | 12,704 |
Accumulated depreciation and amortization | $491,153 | $446,049 | $449,738 |
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_Cas
Consolidated Statements Of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Repayments of Long-term Debt | $400,000 | $0 |
NET CASH USED IN OPERATING ACTIVITIES | -627,577 | -492,373 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of available-for-sale securities | -100 | -45,158 |
Maturities of and payments received on available-for-sale securities | 49,013 | 55,615 |
Principal payments on mortgage loans held for investment, net | 13,451 | 24,340 |
Purchases of property and equipment | -70,927 | -86,926 |
Payments made for business acquisitions, net of cash acquired | 94,230 | 20,927 |
Franchise loans: | ' | ' |
Loans funded | -18,251 | -22,114 |
Payments received | 29,637 | 15,883 |
Other, net | 10,685 | 15,255 |
Net cash provided by (used in) investing activities | -80,722 | -64,032 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Customer banking deposits, net | -316,269 | -275,800 |
Dividends paid | -109,871 | -109,324 |
Proceeds from exercise of stock options | 14,477 | 24,536 |
Other, net | -33,639 | -31,948 |
Net cash used in financing activities | -845,302 | -392,536 |
Effects of exchange rates on cash | -4,216 | -7,871 |
Net decrease in cash and cash equivalents | -1,557,817 | -956,812 |
Cash and cash equivalents at beginning of the period | 2,185,307 | 1,747,584 |
Cash and cash equivalents at end of the period | 627,490 | 790,772 |
SUPPLEMENTARY CASH FLOW DATA: | ' | ' |
Income taxes paid, net of refunds received | 157,680 | 116,099 |
Interest paid on borrowings | 27,379 | 27,804 |
Interest paid on deposits | 341 | 1,180 |
Transfers of foreclosed loans to other assets | 3,155 | 3,889 |
Accrued additions to property and equipment | 3,243 | 6,729 |
Transfer of mortgage loans held for investment to held for sale | 0 | 7,608 |
Conversion of investment security | $5,000 | $0 |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 6 Months Ended |
Oct. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
BASIS OF PRESENTATION – The consolidated balance sheets as of October 31, 2014 and 2013, the consolidated statements of operations and comprehensive income (loss) for the three and six months ended October 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the six months ended October 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 as of October 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 accounting principles generally accepted in the U. S. (GAAP) 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, 2014 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2014 or for the year then ended are derived from our April 30, 2014 Annual Report to Shareholders on Form 10-K. | |
MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP 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, valuation allowances on deferred tax assets, reserves for uncertain tax positions and related matters. Estimates have been prepared based on the 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 February through April. Therefore, results for interim periods are not indicative of results to be expected for the full year. | |
DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation (including its subsidiaries, collectively, SCC), which exited its mortgage business in fiscal year 2008. See notes 13 and 14 for additional information on litigation, claims and other loss contingencies related to our discontinued operations. |
HR_Block_Bank_HR_Block_Bank
H&R Block Bank H&R Block Bank | 6 Months Ended |
Oct. 31, 2014 | |
H&R Block Bank [Abstract] | ' |
H&R Block Bank | ' |
NOTE 2: H&R BLOCK BANK | |
In April 2014, our subsidiaries, H&R Block Bank (HRB Bank) and Block Financial LLC, the sole shareholder of HRB Bank (Block Financial), entered into a definitive Purchase and Assumption Agreement (P&A Agreement) with BofI Federal Bank, a federal savings bank (BofI). The P&A Agreement is subject to various closing conditions, including the receipt of certain required approvals, entry into certain additional agreements, and the fulfillment of various other customary conditions. If the closing conditions (including regulatory approvals) are satisfied, we will complete a transaction in which we will sell assets and assign certain liabilities, including all of HRB Bank's deposit liabilities, to BofI (P&A Transaction). The parties to the P&A Agreement entered into a Letter Agreement, effective October 23, 2014 (Letter Agreement), which, among other things, extended the date after which any party is permitted to terminate the P&A Agreement from October 31, 2014 to May 31, 2015. The Letter Agreement was filed as an exhibit to our current report on Form 8-K on October 23, 2014. | |
Due to the lack of regulatory approval, we do not expect to consummate the P&A Transaction this calendar year. Therefore, we will continue offering financial services products to our clients through HRB Bank for the upcoming tax season. | |
If a closing had occurred as of October 31, 2014, we would have made a cash payment to BofI for the difference in the carrying value of assets sold and the carrying value of liabilities (including deposit liabilities) transferred of approximately $437 million. The amount of the cash payment made at closing will primarily be equal to the carrying value of the liabilities to be transferred since the carrying value of the assets to be transferred is immaterial. Due to the seasonality of our business, the timing of any closing of the P&A Transaction will impact the amount of deposit liabilities transferred. In connection with the closing we intend to liquidate the available-for-sale (AFS) securities held by HRB Bank, which totaled $381 million at October 31, 2014. | |
In connection with the additional agreements expected to be entered into upon the closing of the P&A Transaction, BofI would offer H&R Block-branded financial products distributed by the Company to the Company's clients. An operating subsidiary of the Company would provide certain marketing, servicing and operational support to BofI with respect to such financial products. | |
The P&A Transaction is part of a three-step transaction pursuant to which the Company plans to divest HRB Bank (Divestiture Transaction), including: (1) the conversion of HRB Bank from a federal savings bank to a national bank; (2) the sale of certain HRB Bank assets to and assignment of certain liabilities (including all deposit liabilities) to BofI in the P&A Transaction; and (3) the merger of HRB Bank with and into Block Financial. | |
H&R Block, Inc., H&R Block Group, Inc. and Block Financial (our Holding Companies) are savings and loan holding companies (SLHCs) because they control HRB Bank. By consummating the Divestiture Transaction, our Holding Companies would cease to be SLHCs and would no longer be subject to regulation by the Board of Governors of the Federal Reserve System (Federal Reserve) as SLHCs or to the regulatory capital requirements applicable to SLHCs. | |
The obligations of the parties to complete the P&A Transaction are subject to the fulfillment of numerous conditions, including regulatory approval. We cannot be certain when or if the conditions to the P&A Transaction will be satisfied, or whether the P&A Transaction will be completed. In addition, there may be changes to the terms and conditions of the P&A Agreement and other contemplated agreements as part of the regulatory approval process. |
Loss_Per_Share_and_Stockholder
Loss Per Share and Stockholders' Equity | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Loss Per Share and Stockholders' Equity | ' | ||||||||||||||||
NOTE 3: LOSS PER SHARE AND STOCKHOLDERS' EQUITY | |||||||||||||||||
LOSS 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 5.4 million shares for the three and six months ended October 31, 2014, and 6.0 million shares for the three and six months ended October 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 October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss from continuing operations attributable to shareholders | $ | (113,227 | ) | $ | (103,015 | ) | $ | (222,078 | ) | $ | (216,285 | ) | |||||
Amounts allocated to participating securities | (97 | ) | (92 | ) | (186 | ) | (154 | ) | |||||||||
Net loss from continuing operations attributable to common shareholders | $ | (113,324 | ) | $ | (103,107 | ) | $ | (222,264 | ) | $ | (216,439 | ) | |||||
Basic weighted average common shares | 275,106 | 273,907 | 274,841 | 273,494 | |||||||||||||
Potential dilutive shares | — | — | — | — | |||||||||||||
Dilutive weighted average common shares | 275,106 | 273,907 | 274,841 | 273,494 | |||||||||||||
Loss per share from continuing operations attributable to common shareholders: | |||||||||||||||||
Basic | $ | (0.41 | ) | $ | (0.38 | ) | $ | (0.81 | ) | $ | (0.79 | ) | |||||
Diluted | (0.41 | ) | (0.38 | ) | (0.81 | ) | (0.79 | ) | |||||||||
STOCK-BASED COMPENSATION – During the six months ended October 31, 2014, we acquired 0.3 million shares of our common stock at an aggregate cost of $10.2 million. These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the six months ended October 31, 2013, we acquired 0.2 million shares at an aggregate cost of $5.3 million for similar purposes. | |||||||||||||||||
During the six months ended October 31, 2014 and 2013, we issued 1.2 million and 1.6 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards. | |||||||||||||||||
During the six months ended October 31, 2014, we granted equity awards equivalent to 1.0 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 $7.1 million and $14.6 million for the three and six months ended October 31, 2014, respectively, and $6.2 million and $10.8 million for the three and six months ended October 31, 2013, respectively. As of October 31, 2014, unrecognized compensation cost for stock options totaled $0.4 million, and for nonvested shares and units totaled $43.2 million. | |||||||||||||||||
OTHER COMPREHENSIVE INCOME – Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Foreign Currency | Unrealized Gain (Loss) | Total | |||||||||||||||
Translation Adjustments | on AFS Securities | ||||||||||||||||
Balances as of May 1, 2014 | $ | 3,334 | $ | 1,843 | $ | 5,177 | |||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||
Gross gains (losses) arising during the year | (3,355 | ) | 7,483 | 4,128 | |||||||||||||
Income taxes | — | 2,713 | 2,713 | ||||||||||||||
(3,355 | ) | 4,770 | 1,415 | ||||||||||||||
Amounts reclassified to net income: | |||||||||||||||||
Gross amount reclassified | — | (24 | ) | (24 | ) | ||||||||||||
Income taxes | — | (9 | ) | (9 | ) | ||||||||||||
— | (15 | ) | (15 | ) | |||||||||||||
Net other comprehensive income (loss) | (3,355 | ) | 4,755 | 1,400 | |||||||||||||
Balances as of October 31, 2014 | $ | (21 | ) | $ | 6,598 | $ | 6,577 | ||||||||||
Balances as of May 1, 2013 | $ | 6,809 | $ | 3,741 | $ | 10,550 | |||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||
Gross losses arising during the year | (2,510 | ) | (10,914 | ) | (13,424 | ) | |||||||||||
Income taxes | — | (4,337 | ) | (4,337 | ) | ||||||||||||
Net other comprehensive loss | (2,510 | ) | (6,577 | ) | (9,087 | ) | |||||||||||
Balances as of October 31, 2013 | $ | 4,299 | $ | (2,836 | ) | $ | 1,463 | ||||||||||
Gross amounts reclassified out of accumulated other comprehensive income are included in other income (expense), net in the consolidated statements of operations. |
Receivables
Receivables | 6 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | ' | ||||||||||||||||||||||||
Receivables | ' | ||||||||||||||||||||||||
NOTE 4: RECEIVABLES | |||||||||||||||||||||||||
Receivables consist of the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Short-term | Long-term | Short-term | Long-term | Short-term | Long-term | ||||||||||||||||||||
Loans to franchisees | $ | 62,568 | $ | 84,462 | $ | 70,390 | $ | 108,874 | $ | 63,716 | $ | 90,747 | |||||||||||||
Receivables for tax preparation and related fees | 36,369 | — | 35,927 | — | 45,619 | — | |||||||||||||||||||
Cash Back® receivables | 1,955 | — | 2,036 | — | 48,812 | — | |||||||||||||||||||
Emerald Advance lines of credit | 20,073 | 2,778 | 21,692 | 6,161 | 20,577 | 3,862 | |||||||||||||||||||
Royalties from franchisees | 10,060 | — | 10,732 | — | 9,978 | — | |||||||||||||||||||
Note receivable | — | — | — | 62,786 | — | — | |||||||||||||||||||
Other | 28,426 | 14,565 | 43,893 | 23,868 | 55,494 | 17,186 | |||||||||||||||||||
159,451 | 101,805 | 184,670 | 201,689 | 244,196 | 111,795 | ||||||||||||||||||||
Allowance for doubtful accounts | (51,746 | ) | — | (52,969 | ) | (3,092 | ) | (52,578 | ) | — | |||||||||||||||
$ | 107,705 | $ | 101,805 | $ | 131,701 | $ | 198,597 | $ | 191,618 | $ | 111,795 | ||||||||||||||
Balances presented above as short-term are included in receivables, while the long-term portions are included in other assets in the consolidated balance sheets. | |||||||||||||||||||||||||
LOANS TO FRANCHISEES – Franchisee loan balances as of October 31, 2014 and 2013 and April 30, 2014, consisted of $100.6 million, $126.3 million and $109.1 million, respectively, in term loans made primarily to finance the purchase of franchises and $46.4 million, $53.0 million and $45.4 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs. | |||||||||||||||||||||||||
As of October 31, 2014 and 2013, loans with a principal balance of $2.4 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 April 30, 2014. We had no loans to franchisees on non-accrual status. | |||||||||||||||||||||||||
CANADIAN CASH BACK® PROGRAM – Refunds advanced under the Cash Back program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Cash Back amounts are generally received within 60 days of filing the client's return. As of October 31, 2014 and 2013 and April 30, 2014, $27 thousand, $0.1 million and $1.9 million of Cash Back balances were more than 60 days old, respectively. | |||||||||||||||||||||||||
H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our H&R Block Emerald Advance® lines of credit (EA) receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of October 31, 2014, by year of origination, are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicator – Year of origination: | |||||||||||||||||||||||||
2014 | $ | 3,802 | |||||||||||||||||||||||
2013 | 1,553 | ||||||||||||||||||||||||
2012 and prior | 4,412 | ||||||||||||||||||||||||
Revolving loans | 13,084 | ||||||||||||||||||||||||
$ | 22,851 | ||||||||||||||||||||||||
As of October 31, 2014 and 2013 and April 30, 2014, $20.0 million, $26.2 million and $20.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively. | |||||||||||||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS – Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the six months ended October 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans to | Cash Back ® | All Other | Total | |||||||||||||||||||||
Franchisees | |||||||||||||||||||||||||
Balances as of May 1, 2014 | $ | 7,530 | $ | — | $ | 3,002 | $ | 42,046 | $ | 52,578 | |||||||||||||||
Provision | 380 | — | 149 | 2,195 | 2,724 | ||||||||||||||||||||
Charge-offs | — | — | (1,074 | ) | (2,482 | ) | (3,556 | ) | |||||||||||||||||
Balances as of October 31, 2014 | $ | 7,910 | $ | — | $ | 2,077 | $ | 41,759 | $ | 51,746 | |||||||||||||||
Balances as of May 1, 2013 | $ | 7,390 | $ | — | $ | 2,769 | $ | 47,544 | $ | 57,703 | |||||||||||||||
Provision | — | — | 188 | 5,923 | 6,111 | ||||||||||||||||||||
Charge-offs | — | — | (479 | ) | (7,274 | ) | (7,753 | ) | |||||||||||||||||
Balances as of October 31, 2013 | $ | 7,390 | $ | — | $ | 2,478 | $ | 46,193 | $ | 56,061 | |||||||||||||||
Mortgage_Loans_Held_For_Invest
Mortgage Loans Held For Investment And Related Assets | 6 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ||||||||||||||||||||||||
Mortgage Loans Held For Investment And Related Assets | ' | ||||||||||||||||||||||||
NOTE 5: MORTGAGE LOANS HELD FOR INVESTMENT | |||||||||||||||||||||||||
The composition of our mortgage loan portfolio is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Adjustable-rate loans | $ | 138,808 | 54 | % | $ | 165,289 | 54 | % | $ | 149,480 | 54 | % | |||||||||||||
Fixed-rate loans | 119,920 | 46 | % | 140,814 | 46 | % | 127,943 | 46 | % | ||||||||||||||||
258,728 | 100 | % | 306,103 | 100 | % | 277,423 | 100 | % | |||||||||||||||||
Unamortized deferred fees and costs | 2,125 | 2,508 | 2,277 | ||||||||||||||||||||||
Less: Allowance for loan losses | (9,761 | ) | (12,704 | ) | (11,272 | ) | |||||||||||||||||||
$ | 251,092 | $ | 295,907 | $ | 268,428 | ||||||||||||||||||||
Our loan loss allowance as a percent of mortgage loans was 3.8% as of October 31, 2014, compared to 4.2% as of October 31, 2013 and 4.1% as of April 30, 2014. | |||||||||||||||||||||||||
Activity in the allowance for loan losses for the six months ended October 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Six months ended October 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the period | $ | 11,272 | $ | 14,314 | |||||||||||||||||||||
Provision | 735 | 7,224 | |||||||||||||||||||||||
Recoveries | 911 | 2,409 | |||||||||||||||||||||||
Charge-offs | (3,157 | ) | (11,243 | ) | |||||||||||||||||||||
Balance at end of the period | $ | 9,761 | $ | 12,704 | |||||||||||||||||||||
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 | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Portfolio | Related | Portfolio | Related | Portfolio | Related | ||||||||||||||||||||
Balance | Allowance | Balance | Allowance | Balance | Allowance | ||||||||||||||||||||
Pooled (less than 60 days past due) | $ | 147,614 | $ | 3,768 | $ | 178,497 | $ | 5,523 | $ | 158,496 | $ | 4,508 | |||||||||||||
Impaired: | |||||||||||||||||||||||||
Individually (TDRs) | 40,201 | 4,237 | 47,011 | 4,598 | 43,865 | 4,346 | |||||||||||||||||||
Individually (60 days or more past due) | 70,913 | 1,756 | 80,595 | 2,583 | 75,062 | 2,418 | |||||||||||||||||||
$ | 258,728 | $ | 9,761 | $ | 306,103 | $ | 12,704 | $ | 277,423 | $ | 11,272 | ||||||||||||||
Detail of our mortgage loans held for investment and the related allowance as of October 31, 2014 is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Outstanding Principal Balance | Loan Loss Allowance | % 30+ Days | |||||||||||||||||||||||
Amount | % of Principal | Past Due | |||||||||||||||||||||||
Purchased from SCC | $ | 148,833 | $ | 7,847 | 5.3 | % | 27.9 | % | |||||||||||||||||
All other | 109,895 | 1,914 | 1.7 | % | 6.9 | % | |||||||||||||||||||
$ | 258,728 | $ | 9,761 | 3.8 | % | 19 | % | ||||||||||||||||||
Credit quality indicators as of October 31, 2014 include the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicators | Purchased from SCC | All Other | Total Portfolio | ||||||||||||||||||||||
Occupancy status: | |||||||||||||||||||||||||
Owner occupied | $ | 109,069 | $ | 72,767 | $ | 181,836 | |||||||||||||||||||
Non-owner occupied | 39,764 | 37,128 | 76,892 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Documentation level: | |||||||||||||||||||||||||
Full documentation | $ | 49,157 | $ | 77,974 | $ | 127,131 | |||||||||||||||||||
Limited documentation | 4,676 | 12,114 | 16,790 | ||||||||||||||||||||||
Stated income | 83,074 | 12,305 | 95,379 | ||||||||||||||||||||||
No documentation | 11,926 | 7,502 | 19,428 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Internal risk rating: | |||||||||||||||||||||||||
High | $ | 41,758 | $ | — | $ | 41,758 | |||||||||||||||||||
Medium | 107,075 | — | 107,075 | ||||||||||||||||||||||
Low | — | 109,895 | 109,895 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Loans given our internal risk rating of "high" generally had no documentation or were based on stated income. Loans given our internal risk rating of "medium" generally had full documentation or were 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" generally had 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 52% of our mortgage loan portfolio consists of loans to borrowers located in the states of Florida, California and New York. | |||||||||||||||||||||||||
Detail of the aging of the mortgage loans in our portfolio as of October 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 | $ | 11,199 | $ | 324 | $ | 47,514 | $ | 59,037 | $ | 89,796 | $ | 148,833 | |||||||||||||
All other | 4,613 | 78 | 7,530 | 12,221 | 97,674 | 109,895 | |||||||||||||||||||
$ | 15,812 | $ | 402 | $ | 55,044 | $ | 71,258 | $ | 187,470 | $ | 258,728 | ||||||||||||||
(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 | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 60,254 | $ | 67,641 | $ | 61,767 | |||||||||||||||||||
Other | 11,439 | 12,723 | 12,528 | ||||||||||||||||||||||
71,693 | 80,364 | 74,295 | |||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||
Purchased from SCC | 5,059 | 3,832 | 4,648 | ||||||||||||||||||||||
Other | 940 | 881 | 951 | ||||||||||||||||||||||
5,999 | 4,713 | 5,599 | |||||||||||||||||||||||
Total non-accrual loans | $ | 77,692 | $ | 85,077 | $ | 79,894 | |||||||||||||||||||
Information related to impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Balance | Balance | Total | Related Allowance | ||||||||||||||||||||||
With Allowance | With No Allowance | Impaired Loans | |||||||||||||||||||||||
As of October 31, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 25,494 | $ | 68,138 | $ | 93,632 | $ | 4,984 | |||||||||||||||||
Other | 3,732 | 13,750 | 17,482 | 1,009 | |||||||||||||||||||||
$ | 29,226 | $ | 81,888 | $ | 111,114 | $ | 5,993 | ||||||||||||||||||
As of October 31, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 30,100 | $ | 77,052 | $ | 107,152 | $ | 5,762 | |||||||||||||||||
Other | 5,196 | 15,258 | 20,454 | 1,419 | |||||||||||||||||||||
$ | 35,296 | $ | 92,310 | $ | 127,606 | $ | 7,181 | ||||||||||||||||||
As of April 30, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 27,924 | $ | 71,075 | $ | 98,999 | $ | 3,239 | |||||||||||||||||
Other | 5,176 | 14,752 | 19,928 | 3,525 | |||||||||||||||||||||
$ | 33,100 | $ | 85,827 | $ | 118,927 | $ | 6,764 | ||||||||||||||||||
Information related to the allowance for impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Portion of total allowance for loan losses allocated to impaired loans and TDR loans: | |||||||||||||||||||||||||
Based on collateral value method | $ | 1,756 | $ | 2,583 | $ | 2,418 | |||||||||||||||||||
Based on discounted cash flow method | 4,237 | 4,598 | 4,346 | ||||||||||||||||||||||
$ | 5,993 | $ | 7,181 | $ | 6,764 | ||||||||||||||||||||
Information related to activities of our non-performing assets is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Six months ended October 31, | 2014 | 2013 | |||||||||||||||||||||||
Average impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 99,706 | $ | 121,532 | |||||||||||||||||||||
All other | 19,404 | 23,646 | |||||||||||||||||||||||
$ | 119,110 | $ | 145,178 | ||||||||||||||||||||||
Investments
Investments | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
NOTE 6: INVESTMENTS | |||||||||||||||||
The amortized cost and fair value of securities classified as AFS are summarized below: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of October 31, 2014: | |||||||||||||||||
Mortgage-backed securities | $ | 371,297 | $ | 9,783 | $ | — | $ | 381,080 | |||||||||
Municipal bonds | 4,091 | 151 | — | 4,242 | |||||||||||||
Common stock | 5,000 | 532 | — | 5,532 | |||||||||||||
U.S. treasury bills | 100 | — | — | 100 | |||||||||||||
$ | 380,488 | $ | 10,466 | $ | — | $ | 390,954 | ||||||||||
As of October 31, 2013: | |||||||||||||||||
Mortgage-backed securities | 465,861 | 4,422 | (9,348 | ) | 460,935 | ||||||||||||
Municipal bonds | 4,149 | 260 | — | 4,409 | |||||||||||||
$ | 470,010 | $ | 4,682 | $ | (9,348 | ) | $ | 465,344 | |||||||||
As of April 30, 2014: | |||||||||||||||||
Mortgage-backed securities | $ | 420,697 | $ | 2,798 | $ | — | $ | 423,495 | |||||||||
Municipal bonds | 4,120 | 209 | — | 4,329 | |||||||||||||
$ | 424,817 | $ | 3,007 | $ | — | $ | 427,824 | ||||||||||
Substantially all AFS debt securities held as of October 31, 2014 mature after five years. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 6 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill And Intangible Assets | ' | ||||||||||||
NOTE 7: GOODWILL AND INTANGIBLE ASSETS | |||||||||||||
Changes in the carrying amount of goodwill of our Tax Services segment for the six months ended October 31, 2014 and 2013 are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Goodwill | Accumulated Impairment Losses | Net | |||||||||||
Balances as of April 30, 2014 | $ | 468,414 | $ | (32,297 | ) | $ | 436,117 | ||||||
Acquisitions | 28,378 | — | 28,378 | ||||||||||
Disposals and foreign currency changes, net | (313 | ) | — | (313 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of October 31, 2014 | $ | 496,479 | $ | (32,297 | ) | $ | 464,182 | ||||||
Balances as of April 30, 2013 | $ | 467,079 | $ | (32,297 | ) | $ | 434,782 | ||||||
Acquisitions | 9,207 | — | 9,207 | ||||||||||
Disposals and foreign currency changes, net | (1,177 | ) | — | (1,177 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of October 31, 2013 | $ | 475,109 | $ | (32,297 | ) | $ | 442,812 | ||||||
The increase in goodwill resulted from acquired franchisee and competitor businesses during the period. | |||||||||||||
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 October 31, 2014: | |||||||||||||
Reacquired franchise rights | $ | 278,159 | $ | (33,721 | ) | $ | 244,438 | ||||||
Customer relationships | 148,407 | (66,714 | ) | 81,693 | |||||||||
Internally-developed software | 110,140 | (77,925 | ) | 32,215 | |||||||||
Noncompete agreements | 28,960 | (22,774 | ) | 6,186 | |||||||||
Franchise agreements | 19,201 | (7,574 | ) | 11,627 | |||||||||
Purchased technology | 54,700 | (16,814 | ) | 37,886 | |||||||||
$ | 639,567 | $ | (225,522 | ) | $ | 414,045 | |||||||
As of October 31, 2013: | |||||||||||||
Reacquired franchise rights | $ | 222,371 | $ | (20,414 | ) | $ | 201,957 | ||||||
Customer relationships | 109,237 | (53,501 | ) | 55,736 | |||||||||
Internally-developed software | 98,738 | (76,517 | ) | 22,221 | |||||||||
Noncompete agreements | 23,659 | (21,898 | ) | 1,761 | |||||||||
Franchise agreements | 19,201 | (6,294 | ) | 12,907 | |||||||||
Purchased technology | 14,800 | (13,169 | ) | 1,631 | |||||||||
$ | 488,006 | $ | (191,793 | ) | $ | 296,213 | |||||||
As of April 30, 2014: | |||||||||||||
Reacquired franchise rights | $ | 233,749 | $ | (26,136 | ) | $ | 207,613 | ||||||
Customer relationships | 123,110 | (59,521 | ) | 63,589 | |||||||||
Internally-developed software | 101,162 | (72,598 | ) | 28,564 | |||||||||
Noncompete agreements | 24,694 | (22,223 | ) | 2,471 | |||||||||
Franchise agreements | 19,201 | (6,934 | ) | 12,267 | |||||||||
Purchased technology | 54,900 | (13,782 | ) | 41,118 | |||||||||
$ | 556,816 | $ | (201,194 | ) | $ | 355,622 | |||||||
Amortization of intangible assets for the three and six months ended October 31, 2014 was $13.2 million and $24.5 million, respectively. Amortization of intangible assets for the three and six months ended October 31, 2013 was $6.5 million and $12.6 million, respectively. Estimated amortization of intangible assets for fiscal years 2015, 2016, 2017, 2018 and 2019 is $52.0 million, $48.1 million, $40.6 million, $35.8 million and $31.5 million, respectively. | |||||||||||||
The increase in intangible assets resulted primarily from acquired franchisee and competitor businesses during the period. The weighted-average life of the acquired assets is as follows: | |||||||||||||
Assets acquired | Weighted-Average Life (in years) | ||||||||||||
Reacquired franchise rights | 6 | ||||||||||||
Customer relationships | 5 | ||||||||||||
Internally-developed software | 5 | ||||||||||||
Noncompete agreements | 5 | ||||||||||||
Total | 6 | ||||||||||||
LongTerm_Debt_LongTerm_Debt
Long-Term Debt Long-Term Debt | 6 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Long-term Debt, Unclassified [Abstract] | ' | ||||||||||||
Long-term Debt | ' | ||||||||||||
NOTE 8: LONG-TERM DEBT | |||||||||||||
The components of long-term debt are as follows: | |||||||||||||
(in 000s) | |||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||
Senior Notes, 5.500%, due November 2022 | $ | 497,753 | $ | 497,471 | $ | 497,612 | |||||||
Senior Notes, 5.125%, due October 2014 | — | 399,765 | 399,882 | ||||||||||
Capital lease obligation | 8,607 | 9,345 | 8,980 | ||||||||||
506,360 | 906,581 | 906,474 | |||||||||||
Less: Current portion | (772 | ) | (400,503 | ) | (400,637 | ) | |||||||
$ | 505,588 | $ | 506,078 | $ | 505,837 | ||||||||
Our 5.125% Senior Notes with a principal balance of $400 million matured in October 2014 and, utilizing available cash on hand, we repaid them according to their terms. |
Fair_Value
Fair Value | 6 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||
NOTE 9: FAIR VALUE | |||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||||||||||||||
Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Our investments in AFS securities 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. Our AFS securities 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. There were no transfers of AFS securities between hierarchy levels during the six months ended October 31, 2014 and 2013. See note 6 for details of our AFS securities that were remeasured at fair value on a recurring basis during the six months ended October 31, 2014 and 2013 and the unrealized gains or losses on those remeasurements. | |||||||||||||||||||||||||
The following table presents the assets that were remeasured at fair value on a non-recurring basis during the six months ended October 31, 2014 and 2013 and the losses on those remeasurements: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Losses | |||||||||||||||||||||
As of October 31, 2014: | |||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 62,300 | $ | — | $ | — | $ | 62,300 | $ | (1,440 | ) | ||||||||||||||
As a percentage of total assets | 2 | % | — | % | — | % | 2 | % | |||||||||||||||||
As of October 31, 2013: | |||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 76,148 | $ | — | $ | — | $ | 76,148 | $ | (2,353 | ) | ||||||||||||||
As a percentage of total assets | 2.3 | % | — | % | — | % | 2.3 | % | |||||||||||||||||
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 remeasured at least annually, based on HRB Bank's loan policy. 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 as of October 31, 2014 | Valuation | Unobservable Input | Range | ||||||||||||||||||||||
Technique | (Weighted Average) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – non TDRs | $ | 69,157 | Collateral- | Cost to list/sell | 0% – 190%(9%) | ||||||||||||||||||||
based | Time to sell (months) | 24 (24) | |||||||||||||||||||||||
Collateral depreciation | (166%) – 100%(39%) | ||||||||||||||||||||||||
Loss severity | 0% – 100%(61%) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – TDRs | $ | 35,964 | Discounted | Aged default performance | 24% – 38%(31%) | ||||||||||||||||||||
cash flow | Loss severity | 0% – 22%(7%) | |||||||||||||||||||||||
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||
The carrying amounts and estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | 30-Apr-14 | ||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 627,490 | $ | 627,490 | $ | 790,772 | $ | 790,772 | $ | 2,185,307 | $ | 2,185,307 | |||||||||||||
Cash and cash equivalents - restricted | 55,543 | 55,543 | 47,521 | 47,521 | 115,319 | 115,319 | |||||||||||||||||||
Receivables, net - short-term | 107,705 | 107,705 | 131,701 | 133,884 | 191,618 | 191,618 | |||||||||||||||||||
Mortgage loans held for investment, net | 251,092 | 192,411 | 295,907 | 211,690 | 268,428 | 192,281 | |||||||||||||||||||
Investments in AFS securities | 390,954 | 390,954 | 465,344 | 465,344 | 427,824 | 427,824 | |||||||||||||||||||
Receivables, net - long-term | 101,805 | 101,805 | 198,597 | 206,481 | 111,795 | 111,795 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Customer banking deposits | 455,308 | 452,351 | 656,305 | 656,300 | 770,288 | 765,376 | |||||||||||||||||||
Long-term debt | 506,360 | 550,332 | 906,581 | 947,350 | 906,474 | 955,050 | |||||||||||||||||||
Contingent consideration payments | 10,555 | 10,555 | 12,454 | 12,454 | 9,206 | 9,206 | |||||||||||||||||||
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, net - short-term - For short-term balances 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). | ||||||||||||||||||||||||
▪ | 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). | ||||||||||||||||||||||||
▪ | Investments in AFS securities - For mortgage-backed 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). The fair value of our investment in common stock is determined based on quoted market prices (Level 1). | ||||||||||||||||||||||||
▪ | Receivables, net - long-term - The carrying values for the long-term portion of loans to franchisees approximate fair market value due to variable interest rates, low historical delinquency rates and franchise territories serving as collateral (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. | ||||||||||||||||||||||||
▪ | Customer banking 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 debt - 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 | 6 Months Ended |
Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE 10: INCOME TAXES | |
We file a consolidated federal income tax return in the United States (U.S.) with the Internal Revenue Service (IRS) and file tax returns in various state and foreign jurisdictions. Tax returns are typically examined and settled upon completion of the examination, with tax controversies settled either at the exam level or through the appeals process. The Company's U.S. federal consolidated tax returns for 2011 and 2012 are currently under examination. | |
We had gross unrecognized tax benefits of $112.9 million, $129.8 million and $111.5 million as of October 31, 2014 and 2013 and April 30, 2014, respectively. The gross unrecognized tax benefits increased $1.4 million and decreased $16.6 million during the six months ended October 31, 2014 and 2013, respectively. The increase in unrecognized tax benefits during the six months ending October 31, 2014 is related to various current year federal and state tax positions offset by benefits from tax positions expiring due to statutes of limitations. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $18 million within the next twelve months. The anticipated decrease is due to the expiration of statutes of limitations and anticipated settlements of federal and state audit issues. The portion of unrecognized benefits expected to be cash settled within the next twelve months amounts to $11.6 million and is included in accrued income taxes on our consolidated balance sheet. The remaining liability for uncertain tax positions is classified as long-term and is included in other noncurrent liabilities in the consolidated balance sheet. | |
Consistent with prior years, our pretax loss for the six months ended October 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 six months ended October 31, 2014 and 2013 was 37.8% and 38.7%, respectively. Our effective tax rate for continuing operations, including the effects of discrete income tax items was 41.0% and 40.6% for the six months ended October 31, 2014 and 2013, respectively. Due to the loss 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 six months ended October 31, 2014, a net discrete tax benefit of $12.1 million was recorded compared to a net discrete tax benefit of $6.9 million in the same period of the prior year. Virtually all of the $12.1 million current year discrete tax benefit was recorded in the second quarter. This benefit was due largely to tax reserves released resulting from tax positions expiring due to statutes of limitations. Due to the seasonal nature of our business, the effective tax rate through our second quarter may not be indicative of the rate for our full fiscal year. |
Interest_Income_And_Interest_E
Interest Income And Interest Expense | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Interest Income And Interest Expense [Abstract] | ' | ||||||||||||||||
Interest Income And Interest Expense | ' | ||||||||||||||||
NOTE 11: INTEREST INCOME AND INTEREST EXPENSE | |||||||||||||||||
The following table shows the components of interest income and expense: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income: | |||||||||||||||||
Mortgage loans, net | 2,989 | 3,631 | $ | 5,967 | $ | 7,173 | |||||||||||
Loans to franchisees | 1,890 | 2,384 | 3,961 | 4,673 | |||||||||||||
AFS securities | 2,133 | 2,513 | 4,403 | 4,854 | |||||||||||||
Other | 2,418 | 2,098 | 4,398 | 5,123 | |||||||||||||
$ | 9,430 | $ | 10,626 | $ | 18,729 | $ | 21,823 | ||||||||||
Interest expense: | |||||||||||||||||
Borrowings | $ | 13,843 | $ | 13,801 | $ | 27,638 | $ | 27,604 | |||||||||
Deposits | 140 | 513 | 285 | 1,156 | |||||||||||||
$ | 13,983 | $ | 14,314 | $ | 27,923 | $ | 28,760 | ||||||||||
The presentation of interest expense from borrowings in the amount of $13.8 million and $27.6 million for the three and six months ended October 31, 2013, respectively, has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption. |
Commitments_And_Contingencies
Commitments And Contingencies | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments And Contingencies | ' | ||||||||
NOTE 12: 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) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 145,237 | $ | 146,286 | |||||
Amounts deferred for new guarantees issued | 2,104 | 1,840 | |||||||
Revenue recognized on previous deferrals | (40,816 | ) | (46,977 | ) | |||||
Balance, end of the period | $ | 106,525 | $ | 101,149 | |||||
We accrued $10.7 million, $16.7 million and $11.4 million as of October 31, 2014 and 2013 and April 30, 2014, 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 $10.6 million, $12.5 million and $9.2 million as of October 31, 2014 and 2013 and April 30, 2014, respectively, related to acquisitions, with the short-term amount recorded in accounts payable, accrued expenses and other current liabilities 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 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 franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $81.0 million at October 31, 2014, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $34.5 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. We had no material compensating balances as of October 31, 2014. These balances may fluctuate significantly over the course of any fiscal year. | |||||||||
NOTE 14: LOSS CONTINGENCIES ARISING FROM REPRESENTATIONS AND WARRANTIES OF OUR DISCONTINUED MORTGAGE OPERATIONS | |||||||||
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, who generally securitized such loans, 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 were generally securitized by such investors, 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 only if it breached a representation and warranty and such breach materially and adversely affects the value of the mortgage loan or certificate holder's interest in the mortgage loan. SCC also would assert that it has no liability for the failure to repurchase any mortgage loan that has been liquidated prior to a repurchase demand, although there is conflicting case law on the liquidated loan defense issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and are subject to appeal. 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 claims representing an original principal amount of $2.1 billion since May 1, 2008, of which $1.8 billion were received prior to fiscal year 2013. | |||||||||
SETTLEMENT ACTIONS – SCC has entered into tolling agreements with the counterparties that have made and are expected to assert a significant majority of previously denied and possible future representation and warranty claims. 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. | |||||||||
Beginning in the fourth quarter of fiscal year 2013 and continuing through the second quarter of fiscal year 2015, 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. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. The amount to be paid under the settlement agreement is fully covered by prior accruals. In the event that the ongoing efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result. | |||||||||
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 accrues 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 subject to a high degree of management judgment and estimates may vary significantly period to period. SCC's loss estimate as of October 31, 2014 is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and the factors mentioned below. These factors include the terms of prior bulk settlements, the terms expected to result from ongoing bulk settlement discussions, 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, bulk settlement methodologies used and publicly disclosed by other market participants, the potential pro-rata realization of the claims as compared to all claims and other relevant facts and circumstances when developing its estimate of probable loss. SCC believes that the most significant of these factors are the terms expected to result from ongoing bulk settlement discussions, which have been primarily influenced by the bulk settlement methodologies used and publicly disclosed by other market participants and the anticipated pro-rata realization of the claims of particular counterparties as compared to the anticipated realization if all claims and litigation were resolved together with payment of SCC's related administration and legal expense. Changes in any one of the factors mentioned above 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) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 183,765 | $ | 158,765 | |||||
Provisions | 10,000 | — | |||||||
Payments | — | — | |||||||
Balance, end of the period | $ | 193,765 | $ | 158,765 | |||||
In December 2013, a decision by the New York intermediate appellate court, ACE Securities Corp. v. DB Structured Products, Inc., held that, under New York law, which governs many RMBS transactions into which SCC entered, the six-year statute of limitations starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. That decision has been applied by the state and federal courts in several RMBS lawsuits not involving SCC, resulting in the dismissal of claims involving representations and warranties made more than six years prior to the initiation of the lawsuit. Unless overturned by New York's highest appellate court, which has taken the case for review, this decision would apply to claims and lawsuits brought against SCC where New York law governs. However, this decision would not affect representation and warranty claims and lawsuits SCC has received or may receive, for example, where the statute of limitations has been tolled by agreement or a suit was timely filed. In addition, if the ACE decision is overturned, it could result in representation and warranty claims being asserted that were previously thought to be time-barred. It is also possible that in response to the statute of limitations rulings, parties seeking to pursue representation and warranty claims or lawsuits with respect to trusts where the statute of limitations for representation and warranty claims against the originator has run, may pursue alternate legal theories of recovery or assert claims against other contractual parties. SCC has not accrued liabilities for claims not subject to a tolling arrangement or not asserted prior to the expiration of the applicable statute of limitations. The impact on SCC, if any, of the ACE decision being overturned or from alternative legal theories or assertions is unclear. | |||||||||
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 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. In the event the liquidated loan defense is further clarified by the courts or other developments occur, the liquidated loan defense may be a factor in SCC's estimated accrual for representation and warranty claims where such defense may be applicable. | |||||||||
SCC believes it is reasonably possible that future representation and warranty losses may vary from amounts accrued for these exposures. SCC currently believes the aggregate range of reasonably possible losses in excess of amounts accrued is not material. This estimated range is based on the best information currently available, significant management judgment and a number of factors that are subject to change, including developments in case law and the factors mentioned above. The actual loss that may be incurred could differ materially from our accrual or the estimate of reasonably possible losses. | |||||||||
As described more fully in note 13, 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 $193.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above, 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 business and our consolidated financial position, results of operations and cash flows. | |||||||||
If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC's related administration and legal expense, exceeds SCC's net assets, the creditors of SCC, or a bankruptcy trustee if SCC were to file or be forced into bankruptcy, may attempt to assert claims against us for payment of SCC's obligations. SCC's principal assets, as of October 31, 2014, total approximately $520 million and consist primarily of an intercompany note receivable and a deferred tax asset. We believe our legal position is strong on any potential corporate veil-piercing arguments; however, if this position is challenged and not upheld, it could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows. |
Litigation_And_Related_Conting
Litigation And Related Contingencies | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Litigation And Related Contingencies [Abstract] | ' | ||||||||
Litigation And Related Contingencies | ' | ||||||||
NOTE 13: LITIGATION AND RELATED CONTINGENCIES | |||||||||
We are a defendant in numerous 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 of 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 claims and other loss contingencies arising out of our business activities, including as described below. | |||||||||
We accrue liabilities for litigation, claims and other loss contingencies and any related settlements (each 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 as of October 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 October 31, 2014 and 2013 and April 30, 2014, we accrued liabilities of $10.3 million, $20.6 million and $23.7 million, respectively, for matters other than those described in note 14. | |||||||||
For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. 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 those matters, and for matters where a liability has been accrued, as of October 31, 2014, we believe the aggregate range of reasonably possible losses in excess of amounts accrued is not material. | |||||||||
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 courts on motions or appeals, analysis by experts, or the status of any settlement negotiations. | |||||||||
On a quarterly and annual basis, we review relevant information with respect to litigation and other loss contingencies and update our accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable. | |||||||||
We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously, but there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and consolidated financial position, results of operations and cash flows. | |||||||||
LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, OR OTHER LOSS CONTINGENCIES 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 or the Company have been, remain, or may in the future be subject to litigation, claims, including indemnification claims, and other loss contingencies 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 or may allege discriminatory or unfair and deceptive loan origination and servicing (including debt collection, foreclosure and eviction) practices, other common law torts, rights to indemnification and contribution, breach of contract, violations of securities laws and a variety of federal statutes, including the Truth in Lending Act (TILA), Equal Credit Opportunity Act, Fair Housing Act, Real Estate Settlement Procedures Act (RESPA), Home Ownership & Equity Protection Act (HOEPA), as well as similar state statutes. 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 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 $34 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. The defendants moved for leave to appeal and the circuit court denied the motion. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable. | |||||||||
On May 31, 2012, a lawsuit was filed by Homeward Residential, Inc. (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). The 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 SCC and to loans sold to the trust. The 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 as to the loans' compliance with its underwriting standards and the value of underlying real estate. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase, anticipatory breach, indemnity, and declaratory judgment. 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. | |||||||||
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). The 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. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. 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. | |||||||||
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, the 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. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. 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. | |||||||||
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 laws and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 19 lawsuits in which SCC received notice of a claim for indemnification of losses and expenses, involved 38 securitization transactions with original investments of approximately $14 billion (of which the outstanding principal amount 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. SCC therefore cannot reasonably estimate the amount of potential losses or associated fees and expenses that may be incurred in connection with such lawsuits, which may be material. 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. 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 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. | |||||||||
LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS – | |||||||||
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 ). On July 23, 2014, the MDL court granted our motion to compel arbitration of the claims of the named plaintiffs and stayed the cases pending arbitration. The MDL court subsequently certified its July 23 order for interlocutory appeal. On October 16, 2014, Plaintiffs filed a petition for permission to appeal with the Seventh Circuit Court of Appeals, 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. | |||||||||
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. On May 6, 2014, the Missouri Court of Appeals, Western District, reversed the ruling of the trial court and remanded the case for further consideration of the motion. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. | |||||||||
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. In November 2013, the court compelled arbitration of the 2011 claims and stayed all proceedings with respect to those claims. On June 20, 2014, the court denied class certification of the remaining 2012 claims. Plaintiff filed an appeal of the denial of class certification to the Eighth Circuit Court of Appeals, 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. | |||||||||
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. Taken together, the plaintiffs in these lawsuits 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 remaining 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). On July 11, 2014, the MDL court granted our motion to compel arbitration for those named plaintiffs who agreed to arbitrate their claims. Plaintiffs filed a consolidated class action complaint in October 2014. We filed a motion to strike class allegations in the consolidated complaint relating to clients who agreed to arbitration, 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. | |||||||||
LITIGATION, CLAIMS AND OTHER LOSS CONTINGENCIES PERTAINING TO OTHER DISCONTINUED OPERATIONS – | |||||||||
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. | |||||||||
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. | |||||||||
RSM McGladrey and Related Businesses. 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. The plaintiffs filed an amended complaint in October 2011 styled In re International Textile Group Merger Litigation, adding a putative class action claim. The 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. The plaintiffs seek actual and punitive damages, pre-judgment interest, attorneys' fees and costs. On February 8, 2012, the court dismissed the 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 was subject to approval by the court. The court granted preliminary approval of the settlement on February 19, 2014 and final approval on September 2, 2014. We previously recorded a liability for our estimate of the expected loss. The amount we paid under the settlement did not exceed the amount we previously accrued. | |||||||||
In connection with the sale of RSM McGladrey, Inc. (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 litigation, claims and other loss contingencies 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. | |||||||||
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 business or our consolidated financial position, results of operations and cash flows. | |||||||||
We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
(in 000s) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 183,765 | $ | 158,765 | |||||
Provisions | 10,000 | — | |||||||
Payments | — | — | |||||||
Balance, end of the period | $ | 193,765 | $ | 158,765 | |||||
Loss_Contingencies_Arising_Fro
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations | ' | ||||||||
NOTE 12: 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) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 145,237 | $ | 146,286 | |||||
Amounts deferred for new guarantees issued | 2,104 | 1,840 | |||||||
Revenue recognized on previous deferrals | (40,816 | ) | (46,977 | ) | |||||
Balance, end of the period | $ | 106,525 | $ | 101,149 | |||||
We accrued $10.7 million, $16.7 million and $11.4 million as of October 31, 2014 and 2013 and April 30, 2014, 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 $10.6 million, $12.5 million and $9.2 million as of October 31, 2014 and 2013 and April 30, 2014, respectively, related to acquisitions, with the short-term amount recorded in accounts payable, accrued expenses and other current liabilities 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 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 franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $81.0 million at October 31, 2014, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $34.5 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. We had no material compensating balances as of October 31, 2014. These balances may fluctuate significantly over the course of any fiscal year. | |||||||||
NOTE 14: LOSS CONTINGENCIES ARISING FROM REPRESENTATIONS AND WARRANTIES OF OUR DISCONTINUED MORTGAGE OPERATIONS | |||||||||
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, who generally securitized such loans, 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 were generally securitized by such investors, 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 only if it breached a representation and warranty and such breach materially and adversely affects the value of the mortgage loan or certificate holder's interest in the mortgage loan. SCC also would assert that it has no liability for the failure to repurchase any mortgage loan that has been liquidated prior to a repurchase demand, although there is conflicting case law on the liquidated loan defense issue. These decisions are from lower courts, are inconsistent in their analysis and receptivity to this defense, and are subject to appeal. 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 claims representing an original principal amount of $2.1 billion since May 1, 2008, of which $1.8 billion were received prior to fiscal year 2013. | |||||||||
SETTLEMENT ACTIONS – SCC has entered into tolling agreements with the counterparties that have made and are expected to assert a significant majority of previously denied and possible future representation and warranty claims. 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. | |||||||||
Beginning in the fourth quarter of fiscal year 2013 and continuing through the second quarter of fiscal year 2015, 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. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. The amount to be paid under the settlement agreement is fully covered by prior accruals. In the event that the ongoing efforts to settle are not successful, SCC believes claim volumes may increase or litigation may result. | |||||||||
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 accrues 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 subject to a high degree of management judgment and estimates may vary significantly period to period. SCC's loss estimate as of October 31, 2014 is based on the best information currently available, significant management judgment, and a number of factors that are subject to change, including developments in case law and the factors mentioned below. These factors include the terms of prior bulk settlements, the terms expected to result from ongoing bulk settlement discussions, 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, bulk settlement methodologies used and publicly disclosed by other market participants, the potential pro-rata realization of the claims as compared to all claims and other relevant facts and circumstances when developing its estimate of probable loss. SCC believes that the most significant of these factors are the terms expected to result from ongoing bulk settlement discussions, which have been primarily influenced by the bulk settlement methodologies used and publicly disclosed by other market participants and the anticipated pro-rata realization of the claims of particular counterparties as compared to the anticipated realization if all claims and litigation were resolved together with payment of SCC's related administration and legal expense. Changes in any one of the factors mentioned above 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) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 183,765 | $ | 158,765 | |||||
Provisions | 10,000 | — | |||||||
Payments | — | — | |||||||
Balance, end of the period | $ | 193,765 | $ | 158,765 | |||||
In December 2013, a decision by the New York intermediate appellate court, ACE Securities Corp. v. DB Structured Products, Inc., held that, under New York law, which governs many RMBS transactions into which SCC entered, the six-year statute of limitations starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. That decision has been applied by the state and federal courts in several RMBS lawsuits not involving SCC, resulting in the dismissal of claims involving representations and warranties made more than six years prior to the initiation of the lawsuit. Unless overturned by New York's highest appellate court, which has taken the case for review, this decision would apply to claims and lawsuits brought against SCC where New York law governs. However, this decision would not affect representation and warranty claims and lawsuits SCC has received or may receive, for example, where the statute of limitations has been tolled by agreement or a suit was timely filed. In addition, if the ACE decision is overturned, it could result in representation and warranty claims being asserted that were previously thought to be time-barred. It is also possible that in response to the statute of limitations rulings, parties seeking to pursue representation and warranty claims or lawsuits with respect to trusts where the statute of limitations for representation and warranty claims against the originator has run, may pursue alternate legal theories of recovery or assert claims against other contractual parties. SCC has not accrued liabilities for claims not subject to a tolling arrangement or not asserted prior to the expiration of the applicable statute of limitations. The impact on SCC, if any, of the ACE decision being overturned or from alternative legal theories or assertions is unclear. | |||||||||
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 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. In the event the liquidated loan defense is further clarified by the courts or other developments occur, the liquidated loan defense may be a factor in SCC's estimated accrual for representation and warranty claims where such defense may be applicable. | |||||||||
SCC believes it is reasonably possible that future representation and warranty losses may vary from amounts accrued for these exposures. SCC currently believes the aggregate range of reasonably possible losses in excess of amounts accrued is not material. This estimated range is based on the best information currently available, significant management judgment and a number of factors that are subject to change, including developments in case law and the factors mentioned above. The actual loss that may be incurred could differ materially from our accrual or the estimate of reasonably possible losses. | |||||||||
As described more fully in note 13, 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 $193.8 million, nor the estimated range of reasonably possible losses in excess of the amount accrued described above, 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 business and our consolidated financial position, results of operations and cash flows. | |||||||||
If the amount that SCC is ultimately required to pay with respect to claims and litigation related to its past sales and securitizations of mortgage loans, together with payment of SCC's related administration and legal expense, exceeds SCC's net assets, the creditors of SCC, or a bankruptcy trustee if SCC were to file or be forced into bankruptcy, may attempt to assert claims against us for payment of SCC's obligations. SCC's principal assets, as of October 31, 2014, total approximately $520 million and consist primarily of an intercompany note receivable and a deferred tax asset. We believe our legal position is strong on any potential corporate veil-piercing arguments; however, if this position is challenged and not upheld, it could have a material adverse effect on our business and our consolidated financial position, results of operations and cash flows. |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 6 Months Ended | ||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||||||||
NOTE 15: 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 September 30, 2014: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 595,148 | 199.4 | % | $ | 23,877 | 8 | % | $ | 29,846 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 591,293 | 198.1 | % | N/A | N/A | 17,908 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 591,293 | 54.3 | % | 130,689 | 12 | % | (5) | 54,454 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 591,293 | 54.3 | % | 16,336 | 1.5 | % | N/A | N/A | |||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 506,449 | 140 | % | $ | 28,950 | 8 | % | $ | 36,188 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 501,720 | 138.6 | % | N/A | N/A | 21,713 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 501,720 | 40.4 | % | 148,869 | 12 | % | (5) | 62,029 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 501,720 | 40.4 | % | 18,609 | 1.5 | % | N/A | N/A | |||||||||||||||
As of March 31, 2014: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 563,899 | 168.5 | % | $ | 26,771 | 8 | % | $ | 33,464 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 559,572 | 167.2 | % | N/A | N/A | 20,079 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 559,572 | 32.1 | % | 209,041 | 12 | % | (5) | 87,101 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 559,572 | 32.1 | % | 26,130 | 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 October 31, 2014, HRB Bank's leverage ratio was 53.8%. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
NOTE 16: SEGMENT INFORMATION | |||||||||||||||||
Results of our continuing operations by reportable segment are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Three months ended October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
REVENUES : | |||||||||||||||||
Tax Services | $ | 128,683 | $ | 128,040 | $ | 257,763 | $ | 249,731 | |||||||||
Corporate and eliminations | 5,945 | 6,300 | 10,451 | 11,804 | |||||||||||||
$ | 134,628 | $ | 134,340 | $ | 268,214 | $ | 261,535 | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | |||||||||||||||||
Tax Services | $ | (176,642 | ) | $ | (159,314 | ) | $ | (327,202 | ) | $ | (303,708 | ) | |||||
Corporate and eliminations | (23,931 | ) | (20,048 | ) | (49,187 | ) | (60,148 | ) | |||||||||
$ | (200,573 | ) | $ | (179,362 | ) | $ | (376,389 | ) | $ | (363,856 | ) | ||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 6 Months Ended | ||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||
NOTE 17: CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | |||||||||||||||||||||
Block Financial is a 100% owned subsidiary of the Company. Block Financial is the Issuer and the Company is the full and unconditional Guarantor of the Senior Notes issued on October 25, 2012, 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. | |||||||||||||||||||||
Certain amounts included in the following statements of operations for the three and six months ended October 31, 2013, the statements of cash flows for the six months ended October 31, 2013, and the balance sheet as of October 31, 2013 have been restated to correct errors in presentation. The statements of operations have been corrected to properly reflect equity earnings in subsidiaries of H&R Block, Inc. (Guarantor) in "Other income (expense), net" to include income taxes and discontinued operations which were previously shown on separate lines. The balance sheet has been corrected to properly reflect a classified balance sheet and to show the investment in Block Financial by Other Subsidiaries. The statements of cash flows have been corrected to properly reflect intercompany borrowings and payments as either investing or financing activities, as appropriate. These restatements impacted disclosures required by this note, but had no impact on the consolidated financial statements as of and for the three and six months ended October 31, 2013. | |||||||||||||||||||||
Additionally, as discussed in note 11, the presentation of interest expense on borrowings for the three and six months ended October 31, 2013 has been restated to correct errors in presentation. We reclassified such interest expense from cost of revenues to a separate caption. | |||||||||||||||||||||
Six months ended October 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 44,751 | $ | 223,556 | $ | (93 | ) | $ | 268,214 | ||||||||||
Cost of revenues | — | 22,658 | 396,853 | (88 | ) | 419,423 | |||||||||||||||
Selling, general and administrative | — | 9,197 | 185,387 | (5 | ) | 194,579 | |||||||||||||||
Total operating expenses | — | 31,855 | 582,240 | (93 | ) | 614,002 | |||||||||||||||
Other income (expense), net | (233,646 | ) | 1,396 | (19,076 | ) | 248,363 | (2,963 | ) | |||||||||||||
Interest expense on borrowings | — | 27,436 | 202 | — | 27,638 | ||||||||||||||||
Loss from continuing operations before tax benefit | (233,646 | ) | (13,144 | ) | (377,962 | ) | 248,363 | (376,389 | ) | ||||||||||||
Income tax benefit | (5,416 | ) | (9,663 | ) | (139,232 | ) | — | (154,311 | ) | ||||||||||||
Net loss from continuing operations | (228,230 | ) | (3,481 | ) | (238,730 | ) | 248,363 | (222,078 | ) | ||||||||||||
Net income (loss) from discontinued operations | — | (8,843 | ) | 2,691 | — | (6,152 | ) | ||||||||||||||
Net loss | (228,230 | ) | (12,324 | ) | (236,039 | ) | 248,363 | (228,230 | ) | ||||||||||||
Other comprehensive income | 1,400 | 4,261 | 1,400 | (5,661 | ) | 1,400 | |||||||||||||||
Comprehensive loss | $ | (226,830 | ) | $ | (8,063 | ) | $ | (234,639 | ) | $ | 242,702 | $ | (226,830 | ) | |||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | (in 000s) | ||||||||||||||||||||
Six months ended October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 48,385 | $ | 213,340 | $ | (190 | ) | $ | 261,535 | ||||||||||
Cost of revenues | — | 38,906 | 364,597 | (190 | ) | 403,313 | |||||||||||||||
Selling, general and administrative | — | 15,407 | 175,382 | — | 190,789 | ||||||||||||||||
Total operating expenses | — | 54,313 | 539,979 | (190 | ) | 594,102 | |||||||||||||||
Other income (expense), net (1) | (220,130 | ) | 1,706 | (5,391 | ) | 220,130 | (3,685 | ) | |||||||||||||
Interest expense on borrowings (1) | — | 27,385 | 219 | — | 27,604 | ||||||||||||||||
Loss from continuing operations before tax benefit | (220,130 | ) | (31,607 | ) | (332,249 | ) | 220,130 | (363,856 | ) | ||||||||||||
Income tax benefit (1) | — | (11,601 | ) | (135,970 | ) | — | (147,571 | ) | |||||||||||||
Net loss from continuing operations | (220,130 | ) | (20,006 | ) | (196,279 | ) | 220,130 | (216,285 | ) | ||||||||||||
Net loss from discontinued operations (1) | — | (2,716 | ) | (1,129 | ) | — | (3,845 | ) | |||||||||||||
Net loss | (220,130 | ) | (22,722 | ) | (197,408 | ) | 220,130 | (220,130 | ) | ||||||||||||
Other comprehensive loss | (9,087 | ) | (6,616 | ) | (2,471 | ) | 9,087 | (9,087 | ) | ||||||||||||
Comprehensive loss | $ | (229,217 | ) | $ | (29,338 | ) | $ | (199,879 | ) | $ | 229,217 | $ | (229,217 | ) | |||||||
(1) | Amounts have been restated, including the presentation of interest expense on borrowings, and equity in earnings of subsidiaries net of income taxes and discontinued operations. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 389,915 | $ | 401,303 | $ | (446 | ) | $ | 790,772 | ||||||||||
Cash & cash equivalents - restricted | — | 6,795 | 40,726 | — | 47,521 | ||||||||||||||||
Receivables, net | — | 99,867 | 31,834 | — | 131,701 | ||||||||||||||||
Prepaid expenses and other current assets | — | 14,543 | 217,662 | (6,545 | ) | 225,660 | |||||||||||||||
Total current assets | — | 511,120 | 691,525 | (6,991 | ) | 1,195,654 | |||||||||||||||
Mortgage loans held for investment, net | — | 295,907 | — | — | 295,907 | ||||||||||||||||
Investments in AFS securities | — | 460,935 | 4,409 | — | 465,344 | ||||||||||||||||
Property and equipment, net | — | 145 | 311,012 | — | 311,157 | ||||||||||||||||
Intangible assets, net | — | — | 296,213 | — | 296,213 | ||||||||||||||||
Goodwill | — | — | 442,812 | — | 442,812 | ||||||||||||||||
Investments in subsidiaries (1) | 3,114,988 | — | 26,962 | (3,141,950 | ) | — | |||||||||||||||
Amounts due from affiliates | — | 397,526 | 2,167,944 | (2,565,470 | ) | — | |||||||||||||||
Other assets | 8,512 | 140,811 | 118,103 | — | 267,426 | ||||||||||||||||
Total assets | $ | 3,123,500 | $ | 1,806,444 | $ | 4,058,980 | $ | (5,714,411 | ) | $ | 3,274,513 | ||||||||||
Customer banking deposits | $ | — | $ | 655,575 | $ | — | $ | (446 | ) | $ | 655,129 | ||||||||||
Accounts payable, accrued expenses and other current liabilities | 581 | 183,342 | 243,071 | — | 426,994 | ||||||||||||||||
Accrued salaries, wages and payroll taxes | — | 1,881 | 39,703 | — | 41,584 | ||||||||||||||||
Accrued income taxes | — | 29,020 | — | (6,545 | ) | 22,475 | |||||||||||||||
Current portion of long-term debt | — | 399,765 | 738 | — | 400,503 | ||||||||||||||||
Total current liabilities | 581 | 1,269,583 | 283,512 | (6,991 | ) | 1,546,685 | |||||||||||||||
Long-term debt | — | 497,471 | 8,607 | — | 506,078 | ||||||||||||||||
Other noncurrent liabilities | — | 12,428 | 254,347 | — | 266,775 | ||||||||||||||||
Amounts due to affiliates | 2,167,944 | — | 397,526 | (2,565,470 | ) | — | |||||||||||||||
Total liabilities | 2,168,525 | 1,779,482 | 943,992 | (2,572,461 | ) | 2,319,538 | |||||||||||||||
Stockholders' equity (1) | 954,975 | 26,962 | 3,114,988 | (3,141,950 | ) | 954,975 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 3,123,500 | $ | 1,806,444 | $ | 4,058,980 | $ | (5,714,411 | ) | $ | 3,274,513 | ||||||||||
Note: | Amounts have been restated to include the presentation of a classified balance sheet. | ||||||||||||||||||||
(1) | Amounts have been restated, including the presentation of the investment of Other Subsidiaries in Block Financial. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of April 30, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 612,376 | $ | 1,574,031 | $ | (1,100 | ) | $ | 2,185,307 | ||||||||||
Cash & cash equivalents - restricted | — | 67,463 | 47,856 | — | 115,319 | ||||||||||||||||
Receivables, net | — | 89,975 | 101,643 | — | 191,618 | ||||||||||||||||
Prepaid expenses and other current assets | — | 10,202 | 188,065 | — | 198,267 | ||||||||||||||||
Investments in AFS securities | — | 423,495 | — | — | 423,495 | ||||||||||||||||
Total current assets | — | 1,203,511 | 1,911,595 | (1,100 | ) | 3,114,006 | |||||||||||||||
Mortgage loans held for investment, net | — | 268,428 | — | — | 268,428 | ||||||||||||||||
Investments in AFS securities | — | — | 4,329 | — | 4,329 | ||||||||||||||||
Property and equipment, net | — | 121 | 304,790 | — | 304,911 | ||||||||||||||||
Intangible assets, net | — | — | 355,622 | — | 355,622 | ||||||||||||||||
Goodwill | — | — | 436,117 | — | 436,117 | ||||||||||||||||
Investments in subsidiaries | 904,331 | — | 60,902 | (965,233 | ) | — | |||||||||||||||
Amounts due from affiliates | 642,101 | 386,818 | 397 | (1,029,316 | ) | — | |||||||||||||||
Other assets | 11,271 | 173,168 | 25,677 | — | 210,116 | ||||||||||||||||
Total assets | $ | 1,557,703 | $ | 2,032,046 | $ | 3,099,429 | $ | (1,995,649 | ) | $ | 4,693,529 | ||||||||||
Customer banking deposits | $ | — | $ | 770,885 | $ | — | $ | (1,100 | ) | $ | 769,785 | ||||||||||
Accounts payable, accrued expenses and other current liabilities | 757 | 223,677 | 344,573 | — | 569,007 | ||||||||||||||||
Accrued salaries, wages and payroll taxes | — | 2,190 | 164,842 | — | 167,032 | ||||||||||||||||
Accrued income taxes | — | 71,132 | 335,523 | — | 406,655 | ||||||||||||||||
Current portion of long-term debt | — | 399,882 | 755 | — | 400,637 | ||||||||||||||||
Total current liabilities | 757 | 1,467,766 | 845,693 | (1,100 | ) | 2,313,116 | |||||||||||||||
Long-term debt | — | 497,612 | 8,225 | — | 505,837 | ||||||||||||||||
Other noncurrent liabilities | — | 5,766 | 312,261 | — | 318,027 | ||||||||||||||||
Amounts due to affiliates | 397 | — | 1,028,919 | (1,029,316 | ) | — | |||||||||||||||
Total liabilities | 1,154 | 1,971,144 | 2,195,098 | (1,030,416 | ) | 3,136,980 | |||||||||||||||
Stockholders' equity | 1,556,549 | 60,902 | 904,331 | (965,233 | ) | 1,556,549 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,557,703 | $ | 2,032,046 | $ | 3,099,429 | $ | (1,995,649 | ) | $ | 4,693,529 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | (in 000s) | ||||||||||||||||||||
Six months ended October 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash provided by (used in) operating activities: | $ | — | $ | 55,612 | $ | (683,189 | ) | $ | — | $ | (627,577 | ) | |||||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | — | (100 | ) | — | (100 | ) | ||||||||||||||
Maturities of and payments received on AFS securities | — | 49,013 | — | — | 49,013 | ||||||||||||||||
Principal payments on mortgage loans held for investment, net | — | 13,451 | — | — | 13,451 | ||||||||||||||||
Capital expenditures | — | (119 | ) | (70,808 | ) | — | (70,927 | ) | |||||||||||||
Payments made for business acquisitions, net of cash acquired | — | — | (94,230 | ) | — | (94,230 | ) | ||||||||||||||
Loans made to franchisees | — | (18,180 | ) | (71 | ) | — | (18,251 | ) | |||||||||||||
Repayments from franchisees | — | 29,404 | 233 | — | 29,637 | ||||||||||||||||
Intercompany payments/investments in subsidiaries | — | 400,000 | (109,031 | ) | (290,969 | ) | — | ||||||||||||||
Other, net | — | 4,372 | 6,313 | — | 10,685 | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 477,941 | (267,694 | ) | (290,969 | ) | (80,722 | ) | |||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of long-term debt | — | (400,000 | ) | — | — | (400,000 | ) | ||||||||||||||
Customer banking deposits, net | — | (317,095 | ) | — | 826 | (316,269 | ) | ||||||||||||||
Dividends paid | (109,871 | ) | — | — | — | (109,871 | ) | ||||||||||||||
Proceeds from exercise of stock options | 14,477 | — | — | — | 14,477 | ||||||||||||||||
Intercompany borrowings (repayments) | 105,641 | 3,390 | (400,000 | ) | 290,969 | — | |||||||||||||||
Other, net | (10,247 | ) | — | (23,392 | ) | — | (33,639 | ) | |||||||||||||
Net cash used in financing activities | — | (713,705 | ) | (423,392 | ) | 291,795 | (845,302 | ) | |||||||||||||
Effects of exchange rates on cash | — | — | (4,216 | ) | — | (4,216 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (180,152 | ) | (1,378,491 | ) | 826 | (1,557,817 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | — | 612,376 | 1,574,031 | (1,100 | ) | 2,185,307 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | — | $ | 432,224 | $ | 195,540 | $ | (274 | ) | $ | 627,490 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | (in 000s) | ||||||||||||||||||||
Six months ended October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash provided by (used in) operating activities: | $ | 799 | $ | 46,969 | $ | (540,141 | ) | $ | — | $ | (492,373 | ) | |||||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (45,158 | ) | — | — | (45,158 | ) | ||||||||||||||
Maturities of and payments received on AFS securities | — | 55,615 | — | — | 55,615 | ||||||||||||||||
Principal payments on mortgage loans held for investment, net | — | 24,340 | — | — | 24,340 | ||||||||||||||||
Capital expenditures | — | (57 | ) | (86,869 | ) | — | (86,926 | ) | |||||||||||||
Payments made for business acquisitions, net of cash acquired | — | — | (20,927 | ) | — | (20,927 | ) | ||||||||||||||
Loans made to franchisees | — | (22,114 | ) | — | — | (22,114 | ) | ||||||||||||||
Repayments from franchisees | — | 15,883 | — | — | 15,883 | ||||||||||||||||
Intercompany payments/investments in subsidiaries (1) | — | 23,036 | (89,318 | ) | 66,282 | — | |||||||||||||||
Other, net | — | 11,368 | 3,887 | — | 15,255 | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 62,913 | (193,227 | ) | 66,282 | (64,032 | ) | ||||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Customer banking deposits, net | — | (278,077 | ) | — | 2,277 | (275,800 | ) | ||||||||||||||
Dividends paid | (109,324 | ) | — | — | — | (109,324 | ) | ||||||||||||||
Proceeds from exercise of stock options | 24,536 | — | — | — | 24,536 | ||||||||||||||||
Intercompany borrowings (repayments) (1) | 89,318 | — | (23,036 | ) | (66,282 | ) | — | ||||||||||||||
Other, net | (5,329 | ) | — | (26,619 | ) | — | (31,948 | ) | |||||||||||||
Net cash used in financing activities | (799 | ) | (278,077 | ) | (49,655 | ) | (64,005 | ) | (392,536 | ) | |||||||||||
Effects of exchange rates on cash | — | — | (7,871 | ) | — | (7,871 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (168,195 | ) | (790,894 | ) | 2,277 | (956,812 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | — | 558,110 | 1,192,197 | (2,723 | ) | 1,747,584 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | — | $ | 389,915 | $ | 401,303 | $ | (446 | ) | $ | 790,772 | ||||||||||
-1 | Amounts have been restated, including the presentation of intercompany borrowings (payments) as either investing or financing activities. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Oct. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
– The consolidated balance sheets as of October 31, 2014 and 2013, the consolidated statements of operations and comprehensive income (loss) for the three and six months ended October 31, 2014 and 2013, and the condensed consolidated statements of cash flows for the six months ended October 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 as of October 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 accounting principles generally accepted in the U. S. (GAAP) 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, 2014 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2014 or for the year then ended are derived from our April 30, 2014 Annual Report to Shareholders on Form 10-K. | |
Management Estimates | ' |
MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP 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, valuation allowances on deferred tax assets, reserves for uncertain tax positions and related matters. Estimates have been prepared based on the 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) | 6 Months Ended | ||||||||||||||||
Oct. 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 October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss from continuing operations attributable to shareholders | $ | (113,227 | ) | $ | (103,015 | ) | $ | (222,078 | ) | $ | (216,285 | ) | |||||
Amounts allocated to participating securities | (97 | ) | (92 | ) | (186 | ) | (154 | ) | |||||||||
Net loss from continuing operations attributable to common shareholders | $ | (113,324 | ) | $ | (103,107 | ) | $ | (222,264 | ) | $ | (216,439 | ) | |||||
Basic weighted average common shares | 275,106 | 273,907 | 274,841 | 273,494 | |||||||||||||
Potential dilutive shares | — | — | — | — | |||||||||||||
Dilutive weighted average common shares | 275,106 | 273,907 | 274,841 | 273,494 | |||||||||||||
Loss per share from continuing operations attributable to common shareholders: | |||||||||||||||||
Basic | $ | (0.41 | ) | $ | (0.38 | ) | $ | (0.81 | ) | $ | (0.79 | ) | |||||
Diluted | (0.41 | ) | (0.38 | ) | (0.81 | ) | (0.79 | ) | |||||||||
Schedule of Comprehensive Income (Loss) | ' | ||||||||||||||||
OTHER COMPREHENSIVE INCOME – Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Foreign Currency | Unrealized Gain (Loss) | Total | |||||||||||||||
Translation Adjustments | on AFS Securities | ||||||||||||||||
Balances as of May 1, 2014 | $ | 3,334 | $ | 1,843 | $ | 5,177 | |||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||
Gross gains (losses) arising during the year | (3,355 | ) | 7,483 | 4,128 | |||||||||||||
Income taxes | — | 2,713 | 2,713 | ||||||||||||||
(3,355 | ) | 4,770 | 1,415 | ||||||||||||||
Amounts reclassified to net income: | |||||||||||||||||
Gross amount reclassified | — | (24 | ) | (24 | ) | ||||||||||||
Income taxes | — | (9 | ) | (9 | ) | ||||||||||||
— | (15 | ) | (15 | ) | |||||||||||||
Net other comprehensive income (loss) | (3,355 | ) | 4,755 | 1,400 | |||||||||||||
Balances as of October 31, 2014 | $ | (21 | ) | $ | 6,598 | $ | 6,577 | ||||||||||
Balances as of May 1, 2013 | $ | 6,809 | $ | 3,741 | $ | 10,550 | |||||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||||
Gross losses arising during the year | (2,510 | ) | (10,914 | ) | (13,424 | ) | |||||||||||
Income taxes | — | (4,337 | ) | (4,337 | ) | ||||||||||||
Net other comprehensive loss | (2,510 | ) | (6,577 | ) | (9,087 | ) | |||||||||||
Balances as of October 31, 2013 | $ | 4,299 | $ | (2,836 | ) | $ | 1,463 | ||||||||||
Receivables_Tables
Receivables (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | ' | ||||||||||||||||||||||||
Schedule Of Short-Term Receivables | ' | ||||||||||||||||||||||||
Receivables consist of the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Short-term | Long-term | Short-term | Long-term | Short-term | Long-term | ||||||||||||||||||||
Loans to franchisees | $ | 62,568 | $ | 84,462 | $ | 70,390 | $ | 108,874 | $ | 63,716 | $ | 90,747 | |||||||||||||
Receivables for tax preparation and related fees | 36,369 | — | 35,927 | — | 45,619 | — | |||||||||||||||||||
Cash Back® receivables | 1,955 | — | 2,036 | — | 48,812 | — | |||||||||||||||||||
Emerald Advance lines of credit | 20,073 | 2,778 | 21,692 | 6,161 | 20,577 | 3,862 | |||||||||||||||||||
Royalties from franchisees | 10,060 | — | 10,732 | — | 9,978 | — | |||||||||||||||||||
Note receivable | — | — | — | 62,786 | — | — | |||||||||||||||||||
Other | 28,426 | 14,565 | 43,893 | 23,868 | 55,494 | 17,186 | |||||||||||||||||||
159,451 | 101,805 | 184,670 | 201,689 | 244,196 | 111,795 | ||||||||||||||||||||
Allowance for doubtful accounts | (51,746 | ) | — | (52,969 | ) | (3,092 | ) | (52,578 | ) | — | |||||||||||||||
$ | 107,705 | $ | 101,805 | $ | 131,701 | $ | 198,597 | $ | 191,618 | $ | 111,795 | ||||||||||||||
Schedule Of Receivables Based On Year Of Origination | ' | ||||||||||||||||||||||||
These amounts as of October 31, 2014, by year of origination, are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicator – Year of origination: | |||||||||||||||||||||||||
2014 | $ | 3,802 | |||||||||||||||||||||||
2013 | 1,553 | ||||||||||||||||||||||||
2012 and prior | 4,412 | ||||||||||||||||||||||||
Revolving loans | 13,084 | ||||||||||||||||||||||||
$ | 22,851 | ||||||||||||||||||||||||
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 six months ended October 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
EAs | Loans to | Cash Back ® | All Other | Total | |||||||||||||||||||||
Franchisees | |||||||||||||||||||||||||
Balances as of May 1, 2014 | $ | 7,530 | $ | — | $ | 3,002 | $ | 42,046 | $ | 52,578 | |||||||||||||||
Provision | 380 | — | 149 | 2,195 | 2,724 | ||||||||||||||||||||
Charge-offs | — | — | (1,074 | ) | (2,482 | ) | (3,556 | ) | |||||||||||||||||
Balances as of October 31, 2014 | $ | 7,910 | $ | — | $ | 2,077 | $ | 41,759 | $ | 51,746 | |||||||||||||||
Balances as of May 1, 2013 | $ | 7,390 | $ | — | $ | 2,769 | $ | 47,544 | $ | 57,703 | |||||||||||||||
Provision | — | — | 188 | 5,923 | 6,111 | ||||||||||||||||||||
Charge-offs | — | — | (479 | ) | (7,274 | ) | (7,753 | ) | |||||||||||||||||
Balances as of October 31, 2013 | $ | 7,390 | $ | — | $ | 2,478 | $ | 46,193 | $ | 56,061 | |||||||||||||||
Mortgage_Loans_Held_For_Invest1
Mortgage Loans Held For Investment And Related Assets (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Oct. 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 | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||
Adjustable-rate loans | $ | 138,808 | 54 | % | $ | 165,289 | 54 | % | $ | 149,480 | 54 | % | |||||||||||||
Fixed-rate loans | 119,920 | 46 | % | 140,814 | 46 | % | 127,943 | 46 | % | ||||||||||||||||
258,728 | 100 | % | 306,103 | 100 | % | 277,423 | 100 | % | |||||||||||||||||
Unamortized deferred fees and costs | 2,125 | 2,508 | 2,277 | ||||||||||||||||||||||
Less: Allowance for loan losses | (9,761 | ) | (12,704 | ) | (11,272 | ) | |||||||||||||||||||
$ | 251,092 | $ | 295,907 | $ | 268,428 | ||||||||||||||||||||
Schedule Of Allowance For Loan Losses | ' | ||||||||||||||||||||||||
Activity in the allowance for loan losses for the six months ended October 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Six months ended October 31, | 2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the period | $ | 11,272 | $ | 14,314 | |||||||||||||||||||||
Provision | 735 | 7,224 | |||||||||||||||||||||||
Recoveries | 911 | 2,409 | |||||||||||||||||||||||
Charge-offs | (3,157 | ) | (11,243 | ) | |||||||||||||||||||||
Balance at end of the period | $ | 9,761 | $ | 12,704 | |||||||||||||||||||||
Schedule Of Portfolio Balance And Related Allowance | ' | ||||||||||||||||||||||||
The balance of these loans and the related allowance is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Portfolio | Related | Portfolio | Related | Portfolio | Related | ||||||||||||||||||||
Balance | Allowance | Balance | Allowance | Balance | Allowance | ||||||||||||||||||||
Pooled (less than 60 days past due) | $ | 147,614 | $ | 3,768 | $ | 178,497 | $ | 5,523 | $ | 158,496 | $ | 4,508 | |||||||||||||
Impaired: | |||||||||||||||||||||||||
Individually (TDRs) | 40,201 | 4,237 | 47,011 | 4,598 | 43,865 | 4,346 | |||||||||||||||||||
Individually (60 days or more past due) | 70,913 | 1,756 | 80,595 | 2,583 | 75,062 | 2,418 | |||||||||||||||||||
$ | 258,728 | $ | 9,761 | $ | 306,103 | $ | 12,704 | $ | 277,423 | $ | 11,272 | ||||||||||||||
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 October 31, 2014 is as follows: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Outstanding Principal Balance | Loan Loss Allowance | % 30+ Days | |||||||||||||||||||||||
Amount | % of Principal | Past Due | |||||||||||||||||||||||
Purchased from SCC | $ | 148,833 | $ | 7,847 | 5.3 | % | 27.9 | % | |||||||||||||||||
All other | 109,895 | 1,914 | 1.7 | % | 6.9 | % | |||||||||||||||||||
$ | 258,728 | $ | 9,761 | 3.8 | % | 19 | % | ||||||||||||||||||
Schedule Of Credit Quality Indicators | ' | ||||||||||||||||||||||||
Credit quality indicators as of October 31, 2014 include the following: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Credit Quality Indicators | Purchased from SCC | All Other | Total Portfolio | ||||||||||||||||||||||
Occupancy status: | |||||||||||||||||||||||||
Owner occupied | $ | 109,069 | $ | 72,767 | $ | 181,836 | |||||||||||||||||||
Non-owner occupied | 39,764 | 37,128 | 76,892 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Documentation level: | |||||||||||||||||||||||||
Full documentation | $ | 49,157 | $ | 77,974 | $ | 127,131 | |||||||||||||||||||
Limited documentation | 4,676 | 12,114 | 16,790 | ||||||||||||||||||||||
Stated income | 83,074 | 12,305 | 95,379 | ||||||||||||||||||||||
No documentation | 11,926 | 7,502 | 19,428 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Internal risk rating: | |||||||||||||||||||||||||
High | $ | 41,758 | $ | — | $ | 41,758 | |||||||||||||||||||
Medium | 107,075 | — | 107,075 | ||||||||||||||||||||||
Low | — | 109,895 | 109,895 | ||||||||||||||||||||||
$ | 148,833 | $ | 109,895 | $ | 258,728 | ||||||||||||||||||||
Schedule Of Past Due Mortgage Loans | ' | ||||||||||||||||||||||||
Detail of the aging of the mortgage loans in our portfolio as of October 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 | $ | 11,199 | $ | 324 | $ | 47,514 | $ | 59,037 | $ | 89,796 | $ | 148,833 | |||||||||||||
All other | 4,613 | 78 | 7,530 | 12,221 | 97,674 | 109,895 | |||||||||||||||||||
$ | 15,812 | $ | 402 | $ | 55,044 | $ | 71,258 | $ | 187,470 | $ | 258,728 | ||||||||||||||
(1) | We do not accrue interest on loans past due 90 days or more. | ||||||||||||||||||||||||
Schedule Of Non-Accrual Loans | ' | ||||||||||||||||||||||||
Information related to our non-accrual loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 60,254 | $ | 67,641 | $ | 61,767 | |||||||||||||||||||
Other | 11,439 | 12,723 | 12,528 | ||||||||||||||||||||||
71,693 | 80,364 | 74,295 | |||||||||||||||||||||||
TDRs: | |||||||||||||||||||||||||
Purchased from SCC | 5,059 | 3,832 | 4,648 | ||||||||||||||||||||||
Other | 940 | 881 | 951 | ||||||||||||||||||||||
5,999 | 4,713 | 5,599 | |||||||||||||||||||||||
Total non-accrual loans | $ | 77,692 | $ | 85,077 | $ | 79,894 | |||||||||||||||||||
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 October 31, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 25,494 | $ | 68,138 | $ | 93,632 | $ | 4,984 | |||||||||||||||||
Other | 3,732 | 13,750 | 17,482 | 1,009 | |||||||||||||||||||||
$ | 29,226 | $ | 81,888 | $ | 111,114 | $ | 5,993 | ||||||||||||||||||
As of October 31, 2013: | |||||||||||||||||||||||||
Purchased from SCC | $ | 30,100 | $ | 77,052 | $ | 107,152 | $ | 5,762 | |||||||||||||||||
Other | 5,196 | 15,258 | 20,454 | 1,419 | |||||||||||||||||||||
$ | 35,296 | $ | 92,310 | $ | 127,606 | $ | 7,181 | ||||||||||||||||||
As of April 30, 2014: | |||||||||||||||||||||||||
Purchased from SCC | $ | 27,924 | $ | 71,075 | $ | 98,999 | $ | 3,239 | |||||||||||||||||
Other | 5,176 | 14,752 | 19,928 | 3,525 | |||||||||||||||||||||
$ | 33,100 | $ | 85,827 | $ | 118,927 | $ | 6,764 | ||||||||||||||||||
Schedule Of Allowance For Impaired Loans | ' | ||||||||||||||||||||||||
Information related to the allowance for impaired loans is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||||||||||||||
Portion of total allowance for loan losses allocated to impaired loans and TDR loans: | |||||||||||||||||||||||||
Based on collateral value method | $ | 1,756 | $ | 2,583 | $ | 2,418 | |||||||||||||||||||
Based on discounted cash flow method | 4,237 | 4,598 | 4,346 | ||||||||||||||||||||||
$ | 5,993 | $ | 7,181 | $ | 6,764 | ||||||||||||||||||||
Information Related To Activities Of Non-Performing Assets | ' | ||||||||||||||||||||||||
Information related to activities of our non-performing assets is as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Six months ended October 31, | 2014 | 2013 | |||||||||||||||||||||||
Average impaired loans: | |||||||||||||||||||||||||
Purchased from SCC | $ | 99,706 | $ | 121,532 | |||||||||||||||||||||
All other | 19,404 | 23,646 | |||||||||||||||||||||||
$ | 119,110 | $ | 145,178 | ||||||||||||||||||||||
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Oct. 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 AFS are summarized below: | |||||||||||||||||
(in 000s) | |||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of October 31, 2014: | |||||||||||||||||
Mortgage-backed securities | $ | 371,297 | $ | 9,783 | $ | — | $ | 381,080 | |||||||||
Municipal bonds | 4,091 | 151 | — | 4,242 | |||||||||||||
Common stock | 5,000 | 532 | — | 5,532 | |||||||||||||
U.S. treasury bills | 100 | — | — | 100 | |||||||||||||
$ | 380,488 | $ | 10,466 | $ | — | $ | 390,954 | ||||||||||
As of October 31, 2013: | |||||||||||||||||
Mortgage-backed securities | 465,861 | 4,422 | (9,348 | ) | 460,935 | ||||||||||||
Municipal bonds | 4,149 | 260 | — | 4,409 | |||||||||||||
$ | 470,010 | $ | 4,682 | $ | (9,348 | ) | $ | 465,344 | |||||||||
As of April 30, 2014: | |||||||||||||||||
Mortgage-backed securities | $ | 420,697 | $ | 2,798 | $ | — | $ | 423,495 | |||||||||
Municipal bonds | 4,120 | 209 | — | 4,329 | |||||||||||||
$ | 424,817 | $ | 3,007 | $ | — | $ | 427,824 | ||||||||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 6 Months Ended | ||||||||||||
Oct. 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 six months ended October 31, 2014 and 2013 are as follows: | |||||||||||||
(in 000s) | |||||||||||||
Goodwill | Accumulated Impairment Losses | Net | |||||||||||
Balances as of April 30, 2014 | $ | 468,414 | $ | (32,297 | ) | $ | 436,117 | ||||||
Acquisitions | 28,378 | — | 28,378 | ||||||||||
Disposals and foreign currency changes, net | (313 | ) | — | (313 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of October 31, 2014 | $ | 496,479 | $ | (32,297 | ) | $ | 464,182 | ||||||
Balances as of April 30, 2013 | $ | 467,079 | $ | (32,297 | ) | $ | 434,782 | ||||||
Acquisitions | 9,207 | — | 9,207 | ||||||||||
Disposals and foreign currency changes, net | (1,177 | ) | — | (1,177 | ) | ||||||||
Impairments | — | — | — | ||||||||||
Balances as of October 31, 2013 | $ | 475,109 | $ | (32,297 | ) | $ | 442,812 | ||||||
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 October 31, 2014: | |||||||||||||
Reacquired franchise rights | $ | 278,159 | $ | (33,721 | ) | $ | 244,438 | ||||||
Customer relationships | 148,407 | (66,714 | ) | 81,693 | |||||||||
Internally-developed software | 110,140 | (77,925 | ) | 32,215 | |||||||||
Noncompete agreements | 28,960 | (22,774 | ) | 6,186 | |||||||||
Franchise agreements | 19,201 | (7,574 | ) | 11,627 | |||||||||
Purchased technology | 54,700 | (16,814 | ) | 37,886 | |||||||||
$ | 639,567 | $ | (225,522 | ) | $ | 414,045 | |||||||
As of October 31, 2013: | |||||||||||||
Reacquired franchise rights | $ | 222,371 | $ | (20,414 | ) | $ | 201,957 | ||||||
Customer relationships | 109,237 | (53,501 | ) | 55,736 | |||||||||
Internally-developed software | 98,738 | (76,517 | ) | 22,221 | |||||||||
Noncompete agreements | 23,659 | (21,898 | ) | 1,761 | |||||||||
Franchise agreements | 19,201 | (6,294 | ) | 12,907 | |||||||||
Purchased technology | 14,800 | (13,169 | ) | 1,631 | |||||||||
$ | 488,006 | $ | (191,793 | ) | $ | 296,213 | |||||||
As of April 30, 2014: | |||||||||||||
Reacquired franchise rights | $ | 233,749 | $ | (26,136 | ) | $ | 207,613 | ||||||
Customer relationships | 123,110 | (59,521 | ) | 63,589 | |||||||||
Internally-developed software | 101,162 | (72,598 | ) | 28,564 | |||||||||
Noncompete agreements | 24,694 | (22,223 | ) | 2,471 | |||||||||
Franchise agreements | 19,201 | (6,934 | ) | 12,267 | |||||||||
Purchased technology | 54,900 | (13,782 | ) | 41,118 | |||||||||
$ | 556,816 | $ | (201,194 | ) | $ | 355,622 | |||||||
LongTerm_Debt_LongTerm_Debt_Ta
Long-Term Debt Long-Term Debt (Tables) | 6 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Long-term Debt, Unclassified [Abstract] | ' | ||||||||||||
Components of Long-term Debt | ' | ||||||||||||
The components of long-term debt are as follows: | |||||||||||||
(in 000s) | |||||||||||||
As of | October 31, 2014 | October 31, 2013 | April 30, 2014 | ||||||||||
Senior Notes, 5.500%, due November 2022 | $ | 497,753 | $ | 497,471 | $ | 497,612 | |||||||
Senior Notes, 5.125%, due October 2014 | — | 399,765 | 399,882 | ||||||||||
Capital lease obligation | 8,607 | 9,345 | 8,980 | ||||||||||
506,360 | 906,581 | 906,474 | |||||||||||
Less: Current portion | (772 | ) | (400,503 | ) | (400,637 | ) | |||||||
$ | 505,588 | $ | 506,078 | $ | 505,837 | ||||||||
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Assets Remeasured At Fair Value On Non-Recurring Basis | ' | ||||||||||||||||||||||||
the six months ended October 31, 2014 and 2013 and the losses on those remeasurements: | |||||||||||||||||||||||||
(dollars in 000s) | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Losses | |||||||||||||||||||||
As of October 31, 2014: | |||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 62,300 | $ | — | $ | — | $ | 62,300 | $ | (1,440 | ) | ||||||||||||||
As a percentage of total assets | 2 | % | — | % | — | % | 2 | % | |||||||||||||||||
As of October 31, 2013: | |||||||||||||||||||||||||
Impaired mortgage loans held for investment | $ | 76,148 | $ | — | $ | — | $ | 76,148 | $ | (2,353 | ) | ||||||||||||||
As a percentage of total assets | 2.3 | % | — | % | — | % | 2.3 | % | |||||||||||||||||
Quantitative Information About Level 3 Fair Value Measurements | ' | ||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
Fair Value as of October 31, 2014 | Valuation | Unobservable Input | Range | ||||||||||||||||||||||
Technique | (Weighted Average) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – non TDRs | $ | 69,157 | Collateral- | Cost to list/sell | 0% – 190%(9%) | ||||||||||||||||||||
based | Time to sell (months) | 24 (24) | |||||||||||||||||||||||
Collateral depreciation | (166%) – 100%(39%) | ||||||||||||||||||||||||
Loss severity | 0% – 100%(61%) | ||||||||||||||||||||||||
Impaired mortgage loans held for investment – TDRs | $ | 35,964 | Discounted | Aged default performance | 24% – 38%(31%) | ||||||||||||||||||||
cash flow | Loss severity | 0% – 22%(7%) | |||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | ||||||||||||||||||||||||
The carrying amounts and estimated fair values of our financial instruments are as follows: | |||||||||||||||||||||||||
(in 000s) | |||||||||||||||||||||||||
As of | October 31, 2014 | October 31, 2013 | 30-Apr-14 | ||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 627,490 | $ | 627,490 | $ | 790,772 | $ | 790,772 | $ | 2,185,307 | $ | 2,185,307 | |||||||||||||
Cash and cash equivalents - restricted | 55,543 | 55,543 | 47,521 | 47,521 | 115,319 | 115,319 | |||||||||||||||||||
Receivables, net - short-term | 107,705 | 107,705 | 131,701 | 133,884 | 191,618 | 191,618 | |||||||||||||||||||
Mortgage loans held for investment, net | 251,092 | 192,411 | 295,907 | 211,690 | 268,428 | 192,281 | |||||||||||||||||||
Investments in AFS securities | 390,954 | 390,954 | 465,344 | 465,344 | 427,824 | 427,824 | |||||||||||||||||||
Receivables, net - long-term | 101,805 | 101,805 | 198,597 | 206,481 | 111,795 | 111,795 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Customer banking deposits | 455,308 | 452,351 | 656,305 | 656,300 | 770,288 | 765,376 | |||||||||||||||||||
Long-term debt | 506,360 | 550,332 | 906,581 | 947,350 | 906,474 | 955,050 | |||||||||||||||||||
Contingent consideration payments | 10,555 | 10,555 | 12,454 | 12,454 | 9,206 | 9,206 | |||||||||||||||||||
Interest_Income_And_Interest_E1
Interest Income And Interest Expense (Tables) | 6 Months Ended | ||||||||||||||||
Oct. 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 October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Interest income: | |||||||||||||||||
Mortgage loans, net | 2,989 | 3,631 | $ | 5,967 | $ | 7,173 | |||||||||||
Loans to franchisees | 1,890 | 2,384 | 3,961 | 4,673 | |||||||||||||
AFS securities | 2,133 | 2,513 | 4,403 | 4,854 | |||||||||||||
Other | 2,418 | 2,098 | 4,398 | 5,123 | |||||||||||||
$ | 9,430 | $ | 10,626 | $ | 18,729 | $ | 21,823 | ||||||||||
Interest expense: | |||||||||||||||||
Borrowings | $ | 13,843 | $ | 13,801 | $ | 27,638 | $ | 27,604 | |||||||||
Deposits | 140 | 513 | 285 | 1,156 | |||||||||||||
$ | 13,983 | $ | 14,314 | $ | 27,923 | $ | 28,760 | ||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 6 Months Ended | ||||||||
Oct. 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) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 145,237 | $ | 146,286 | |||||
Amounts deferred for new guarantees issued | 2,104 | 1,840 | |||||||
Revenue recognized on previous deferrals | (40,816 | ) | (46,977 | ) | |||||
Balance, end of the period | $ | 106,525 | $ | 101,149 | |||||
Loss_Contingencies_Arising_Fro1
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Tables) | 6 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Litigation And Related Contingencies | ' | ||||||||
NOTE 13: LITIGATION AND RELATED CONTINGENCIES | |||||||||
We are a defendant in numerous 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 of 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 claims and other loss contingencies arising out of our business activities, including as described below. | |||||||||
We accrue liabilities for litigation, claims and other loss contingencies and any related settlements (each 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 as of October 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 October 31, 2014 and 2013 and April 30, 2014, we accrued liabilities of $10.3 million, $20.6 million and $23.7 million, respectively, for matters other than those described in note 14. | |||||||||
For some matters where a liability has not been accrued, we are able to estimate a reasonably possible loss or range of loss. 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 those matters, and for matters where a liability has been accrued, as of October 31, 2014, we believe the aggregate range of reasonably possible losses in excess of amounts accrued is not material. | |||||||||
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 courts on motions or appeals, analysis by experts, or the status of any settlement negotiations. | |||||||||
On a quarterly and annual basis, we review relevant information with respect to litigation and other loss contingencies and update our accruals, disclosures and estimates of reasonably possible loss or range of loss based on such reviews. Costs incurred with defending matters are expensed as incurred. Any receivable for insurance recoveries is recorded separately from the corresponding liability, and only if recovery is determined to be probable and reasonably estimable. | |||||||||
We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously, but there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our business and consolidated financial position, results of operations and cash flows. | |||||||||
LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION CLAIMS, OR OTHER LOSS CONTINGENCIES 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 or the Company have been, remain, or may in the future be subject to litigation, claims, including indemnification claims, and other loss contingencies 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 or may allege discriminatory or unfair and deceptive loan origination and servicing (including debt collection, foreclosure and eviction) practices, other common law torts, rights to indemnification and contribution, breach of contract, violations of securities laws and a variety of federal statutes, including the Truth in Lending Act (TILA), Equal Credit Opportunity Act, Fair Housing Act, Real Estate Settlement Procedures Act (RESPA), Home Ownership & Equity Protection Act (HOEPA), as well as similar state statutes. 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 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 $34 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. The defendants moved for leave to appeal and the circuit court denied the motion. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable. | |||||||||
On May 31, 2012, a lawsuit was filed by Homeward Residential, Inc. (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). The 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 SCC and to loans sold to the trust. The 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 as to the loans' compliance with its underwriting standards and the value of underlying real estate. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure or repurchase, anticipatory breach, indemnity, and declaratory judgment. 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. | |||||||||
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). The 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. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. 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. | |||||||||
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, the 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. The plaintiff seeks specific performance of alleged repurchase obligations or damages to compensate the trust and its certificate holders for alleged actual and anticipated losses. In response to a motion filed by SCC, the court dismissed the plaintiff's claims for breach of the duty to cure and repurchase and for indemnification of its costs associated with the litigation. 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. | |||||||||
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 laws and common law fraud, based on alleged materially inaccurate or misleading disclosures. Based on information currently available to SCC, it believes that the 19 lawsuits in which SCC received notice of a claim for indemnification of losses and expenses, involved 38 securitization transactions with original investments of approximately $14 billion (of which the outstanding principal amount 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. SCC therefore cannot reasonably estimate the amount of potential losses or associated fees and expenses that may be incurred in connection with such lawsuits, which may be material. 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. 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 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. | |||||||||
LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS – | |||||||||
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 ). On July 23, 2014, the MDL court granted our motion to compel arbitration of the claims of the named plaintiffs and stayed the cases pending arbitration. The MDL court subsequently certified its July 23 order for interlocutory appeal. On October 16, 2014, Plaintiffs filed a petition for permission to appeal with the Seventh Circuit Court of Appeals, 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. | |||||||||
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. On May 6, 2014, the Missouri Court of Appeals, Western District, reversed the ruling of the trial court and remanded the case for further consideration of the motion. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. | |||||||||
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. In November 2013, the court compelled arbitration of the 2011 claims and stayed all proceedings with respect to those claims. On June 20, 2014, the court denied class certification of the remaining 2012 claims. Plaintiff filed an appeal of the denial of class certification to the Eighth Circuit Court of Appeals, 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. | |||||||||
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. Taken together, the plaintiffs in these lawsuits 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 remaining 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). On July 11, 2014, the MDL court granted our motion to compel arbitration for those named plaintiffs who agreed to arbitrate their claims. Plaintiffs filed a consolidated class action complaint in October 2014. We filed a motion to strike class allegations in the consolidated complaint relating to clients who agreed to arbitration, 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. | |||||||||
LITIGATION, CLAIMS AND OTHER LOSS CONTINGENCIES PERTAINING TO OTHER DISCONTINUED OPERATIONS – | |||||||||
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. | |||||||||
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. | |||||||||
RSM McGladrey and Related Businesses. 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. The plaintiffs filed an amended complaint in October 2011 styled In re International Textile Group Merger Litigation, adding a putative class action claim. The 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. The plaintiffs seek actual and punitive damages, pre-judgment interest, attorneys' fees and costs. On February 8, 2012, the court dismissed the 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 was subject to approval by the court. The court granted preliminary approval of the settlement on February 19, 2014 and final approval on September 2, 2014. We previously recorded a liability for our estimate of the expected loss. The amount we paid under the settlement did not exceed the amount we previously accrued. | |||||||||
In connection with the sale of RSM McGladrey, Inc. (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 litigation, claims and other loss contingencies 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. | |||||||||
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 business or our consolidated financial position, results of operations and cash flows. | |||||||||
We believe we have meritorious defenses to the claims asserted in the various matters described in this note, and we intend to defend them vigorously. The amounts claimed in the matters are substantial, however, and there can be no assurances as to their outcomes. In the event of unfavorable outcomes, it could require modifications to our operations; in addition, the amounts that may be required to be paid to discharge or settle the matters could be substantial and could have a material adverse impact on our consolidated financial position, results of operations and cash flows. | |||||||||
(in 000s) | |||||||||
Six months ended October 31, | 2014 | 2013 | |||||||
Balance, beginning of the period | $ | 183,765 | $ | 158,765 | |||||
Provisions | 10,000 | — | |||||||
Payments | — | — | |||||||
Balance, end of the period | $ | 193,765 | $ | 158,765 | |||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 6 Months Ended | ||||||||||||||||||||||
Oct. 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 September 30, 2014: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 595,148 | 199.4 | % | $ | 23,877 | 8 | % | $ | 29,846 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 591,293 | 198.1 | % | N/A | N/A | 17,908 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 591,293 | 54.3 | % | 130,689 | 12 | % | (5) | 54,454 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 591,293 | 54.3 | % | 16,336 | 1.5 | % | N/A | N/A | |||||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 506,449 | 140 | % | $ | 28,950 | 8 | % | $ | 36,188 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 501,720 | 138.6 | % | N/A | N/A | 21,713 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 501,720 | 40.4 | % | 148,869 | 12 | % | (5) | 62,029 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 501,720 | 40.4 | % | 18,609 | 1.5 | % | N/A | N/A | |||||||||||||||
As of March 31, 2014: | |||||||||||||||||||||||
Total risk-based capital ratio (1) | $ | 563,899 | 168.5 | % | $ | 26,771 | 8 | % | $ | 33,464 | 10 | % | |||||||||||
Tier 1 risk-based capital ratio (2) | 559,572 | 167.2 | % | N/A | N/A | 20,079 | 6 | % | |||||||||||||||
Tier 1 capital ratio (leverage) (3) | 559,572 | 32.1 | % | 209,041 | 12 | % | (5) | 87,101 | 5 | % | |||||||||||||
Tangible equity ratio (4) | 559,572 | 32.1 | % | 26,130 | 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) | 6 Months Ended | ||||||||||||||||
Oct. 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 October 31, | Six months ended October 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
REVENUES : | |||||||||||||||||
Tax Services | $ | 128,683 | $ | 128,040 | $ | 257,763 | $ | 249,731 | |||||||||
Corporate and eliminations | 5,945 | 6,300 | 10,451 | 11,804 | |||||||||||||
$ | 134,628 | $ | 134,340 | $ | 268,214 | $ | 261,535 | ||||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | |||||||||||||||||
Tax Services | $ | (176,642 | ) | $ | (159,314 | ) | $ | (327,202 | ) | $ | (303,708 | ) | |||||
Corporate and eliminations | (23,931 | ) | (20,048 | ) | (49,187 | ) | (60,148 | ) | |||||||||
$ | (200,573 | ) | $ | (179,362 | ) | $ | (376,389 | ) | $ | (363,856 | ) | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended | ||||||||||||||||||||
Oct. 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) | ||||||||||||||||||||
Six months ended October 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash provided by (used in) operating activities: | $ | — | $ | 55,612 | $ | (683,189 | ) | $ | — | $ | (627,577 | ) | |||||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | — | (100 | ) | — | (100 | ) | ||||||||||||||
Maturities of and payments received on AFS securities | — | 49,013 | — | — | 49,013 | ||||||||||||||||
Principal payments on mortgage loans held for investment, net | — | 13,451 | — | — | 13,451 | ||||||||||||||||
Capital expenditures | — | (119 | ) | (70,808 | ) | — | (70,927 | ) | |||||||||||||
Payments made for business acquisitions, net of cash acquired | — | — | (94,230 | ) | — | (94,230 | ) | ||||||||||||||
Loans made to franchisees | — | (18,180 | ) | (71 | ) | — | (18,251 | ) | |||||||||||||
Repayments from franchisees | — | 29,404 | 233 | — | 29,637 | ||||||||||||||||
Intercompany payments/investments in subsidiaries | — | 400,000 | (109,031 | ) | (290,969 | ) | — | ||||||||||||||
Other, net | — | 4,372 | 6,313 | — | 10,685 | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 477,941 | (267,694 | ) | (290,969 | ) | (80,722 | ) | |||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Repayments of long-term debt | — | (400,000 | ) | — | — | (400,000 | ) | ||||||||||||||
Customer banking deposits, net | — | (317,095 | ) | — | 826 | (316,269 | ) | ||||||||||||||
Dividends paid | (109,871 | ) | — | — | — | (109,871 | ) | ||||||||||||||
Proceeds from exercise of stock options | 14,477 | — | — | — | 14,477 | ||||||||||||||||
Intercompany borrowings (repayments) | 105,641 | 3,390 | (400,000 | ) | 290,969 | — | |||||||||||||||
Other, net | (10,247 | ) | — | (23,392 | ) | — | (33,639 | ) | |||||||||||||
Net cash used in financing activities | — | (713,705 | ) | (423,392 | ) | 291,795 | (845,302 | ) | |||||||||||||
Effects of exchange rates on cash | — | — | (4,216 | ) | — | (4,216 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (180,152 | ) | (1,378,491 | ) | 826 | (1,557,817 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | — | 612,376 | 1,574,031 | (1,100 | ) | 2,185,307 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | — | $ | 432,224 | $ | 195,540 | $ | (274 | ) | $ | 627,490 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | (in 000s) | ||||||||||||||||||||
Six months ended October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Net cash provided by (used in) operating activities: | $ | 799 | $ | 46,969 | $ | (540,141 | ) | $ | — | $ | (492,373 | ) | |||||||||
Cash flows from investing: | |||||||||||||||||||||
Purchases of AFS securities | — | (45,158 | ) | — | — | (45,158 | ) | ||||||||||||||
Maturities of and payments received on AFS securities | — | 55,615 | — | — | 55,615 | ||||||||||||||||
Principal payments on mortgage loans held for investment, net | — | 24,340 | — | — | 24,340 | ||||||||||||||||
Capital expenditures | — | (57 | ) | (86,869 | ) | — | (86,926 | ) | |||||||||||||
Payments made for business acquisitions, net of cash acquired | — | — | (20,927 | ) | — | (20,927 | ) | ||||||||||||||
Loans made to franchisees | — | (22,114 | ) | — | — | (22,114 | ) | ||||||||||||||
Repayments from franchisees | — | 15,883 | — | — | 15,883 | ||||||||||||||||
Intercompany payments/investments in subsidiaries (1) | — | 23,036 | (89,318 | ) | 66,282 | — | |||||||||||||||
Other, net | — | 11,368 | 3,887 | — | 15,255 | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 62,913 | (193,227 | ) | 66,282 | (64,032 | ) | ||||||||||||||
Cash flows from financing: | |||||||||||||||||||||
Customer banking deposits, net | — | (278,077 | ) | — | 2,277 | (275,800 | ) | ||||||||||||||
Dividends paid | (109,324 | ) | — | — | — | (109,324 | ) | ||||||||||||||
Proceeds from exercise of stock options | 24,536 | — | — | — | 24,536 | ||||||||||||||||
Intercompany borrowings (repayments) (1) | 89,318 | — | (23,036 | ) | (66,282 | ) | — | ||||||||||||||
Other, net | (5,329 | ) | — | (26,619 | ) | — | (31,948 | ) | |||||||||||||
Net cash used in financing activities | (799 | ) | (278,077 | ) | (49,655 | ) | (64,005 | ) | (392,536 | ) | |||||||||||
Effects of exchange rates on cash | — | — | (7,871 | ) | — | (7,871 | ) | ||||||||||||||
Net decrease in cash and cash equivalents | — | (168,195 | ) | (790,894 | ) | 2,277 | (956,812 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | — | 558,110 | 1,192,197 | (2,723 | ) | 1,747,584 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | — | $ | 389,915 | $ | 401,303 | $ | (446 | ) | $ | 790,772 | ||||||||||
Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block] | ' | ||||||||||||||||||||
Six months ended October 31, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 44,751 | $ | 223,556 | $ | (93 | ) | $ | 268,214 | ||||||||||
Cost of revenues | — | 22,658 | 396,853 | (88 | ) | 419,423 | |||||||||||||||
Selling, general and administrative | — | 9,197 | 185,387 | (5 | ) | 194,579 | |||||||||||||||
Total operating expenses | — | 31,855 | 582,240 | (93 | ) | 614,002 | |||||||||||||||
Other income (expense), net | (233,646 | ) | 1,396 | (19,076 | ) | 248,363 | (2,963 | ) | |||||||||||||
Interest expense on borrowings | — | 27,436 | 202 | — | 27,638 | ||||||||||||||||
Loss from continuing operations before tax benefit | (233,646 | ) | (13,144 | ) | (377,962 | ) | 248,363 | (376,389 | ) | ||||||||||||
Income tax benefit | (5,416 | ) | (9,663 | ) | (139,232 | ) | — | (154,311 | ) | ||||||||||||
Net loss from continuing operations | (228,230 | ) | (3,481 | ) | (238,730 | ) | 248,363 | (222,078 | ) | ||||||||||||
Net income (loss) from discontinued operations | — | (8,843 | ) | 2,691 | — | (6,152 | ) | ||||||||||||||
Net loss | (228,230 | ) | (12,324 | ) | (236,039 | ) | 248,363 | (228,230 | ) | ||||||||||||
Other comprehensive income | 1,400 | 4,261 | 1,400 | (5,661 | ) | 1,400 | |||||||||||||||
Comprehensive loss | $ | (226,830 | ) | $ | (8,063 | ) | $ | (234,639 | ) | $ | 242,702 | $ | (226,830 | ) | |||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | (in 000s) | ||||||||||||||||||||
Six months ended October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Total revenues | $ | — | $ | 48,385 | $ | 213,340 | $ | (190 | ) | $ | 261,535 | ||||||||||
Cost of revenues | — | 38,906 | 364,597 | (190 | ) | 403,313 | |||||||||||||||
Selling, general and administrative | — | 15,407 | 175,382 | — | 190,789 | ||||||||||||||||
Total operating expenses | — | 54,313 | 539,979 | (190 | ) | 594,102 | |||||||||||||||
Other income (expense), net (1) | (220,130 | ) | 1,706 | (5,391 | ) | 220,130 | (3,685 | ) | |||||||||||||
Interest expense on borrowings (1) | — | 27,385 | 219 | — | 27,604 | ||||||||||||||||
Loss from continuing operations before tax benefit | (220,130 | ) | (31,607 | ) | (332,249 | ) | 220,130 | (363,856 | ) | ||||||||||||
Income tax benefit (1) | — | (11,601 | ) | (135,970 | ) | — | (147,571 | ) | |||||||||||||
Net loss from continuing operations | (220,130 | ) | (20,006 | ) | (196,279 | ) | 220,130 | (216,285 | ) | ||||||||||||
Net loss from discontinued operations (1) | — | (2,716 | ) | (1,129 | ) | — | (3,845 | ) | |||||||||||||
Net loss | (220,130 | ) | (22,722 | ) | (197,408 | ) | 220,130 | (220,130 | ) | ||||||||||||
Other comprehensive loss | (9,087 | ) | (6,616 | ) | (2,471 | ) | 9,087 | (9,087 | ) | ||||||||||||
Comprehensive loss | $ | (229,217 | ) | $ | (29,338 | ) | $ | (199,879 | ) | $ | 229,217 | $ | (229,217 | ) | |||||||
(1) | Amounts have been restated, including the presentation of interest expense on borrowings, and equity in earnings of subsidiaries net of income taxes and discontinued operations. | ||||||||||||||||||||
Schedule Of Condensed Consolidating Balance Sheet [Table Text Block] | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of October 31, 2013 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 389,915 | $ | 401,303 | $ | (446 | ) | $ | 790,772 | ||||||||||
Cash & cash equivalents - restricted | — | 6,795 | 40,726 | — | 47,521 | ||||||||||||||||
Receivables, net | — | 99,867 | 31,834 | — | 131,701 | ||||||||||||||||
Prepaid expenses and other current assets | — | 14,543 | 217,662 | (6,545 | ) | 225,660 | |||||||||||||||
Total current assets | — | 511,120 | 691,525 | (6,991 | ) | 1,195,654 | |||||||||||||||
Mortgage loans held for investment, net | — | 295,907 | — | — | 295,907 | ||||||||||||||||
Investments in AFS securities | — | 460,935 | 4,409 | — | 465,344 | ||||||||||||||||
Property and equipment, net | — | 145 | 311,012 | — | 311,157 | ||||||||||||||||
Intangible assets, net | — | — | 296,213 | — | 296,213 | ||||||||||||||||
Goodwill | — | — | 442,812 | — | 442,812 | ||||||||||||||||
Investments in subsidiaries (1) | 3,114,988 | — | 26,962 | (3,141,950 | ) | — | |||||||||||||||
Amounts due from affiliates | — | 397,526 | 2,167,944 | (2,565,470 | ) | — | |||||||||||||||
Other assets | 8,512 | 140,811 | 118,103 | — | 267,426 | ||||||||||||||||
Total assets | $ | 3,123,500 | $ | 1,806,444 | $ | 4,058,980 | $ | (5,714,411 | ) | $ | 3,274,513 | ||||||||||
Customer banking deposits | $ | — | $ | 655,575 | $ | — | $ | (446 | ) | $ | 655,129 | ||||||||||
Accounts payable, accrued expenses and other current liabilities | 581 | 183,342 | 243,071 | — | 426,994 | ||||||||||||||||
Accrued salaries, wages and payroll taxes | — | 1,881 | 39,703 | — | 41,584 | ||||||||||||||||
Accrued income taxes | — | 29,020 | — | (6,545 | ) | 22,475 | |||||||||||||||
Current portion of long-term debt | — | 399,765 | 738 | — | 400,503 | ||||||||||||||||
Total current liabilities | 581 | 1,269,583 | 283,512 | (6,991 | ) | 1,546,685 | |||||||||||||||
Long-term debt | — | 497,471 | 8,607 | — | 506,078 | ||||||||||||||||
Other noncurrent liabilities | — | 12,428 | 254,347 | — | 266,775 | ||||||||||||||||
Amounts due to affiliates | 2,167,944 | — | 397,526 | (2,565,470 | ) | — | |||||||||||||||
Total liabilities | 2,168,525 | 1,779,482 | 943,992 | (2,572,461 | ) | 2,319,538 | |||||||||||||||
Stockholders' equity (1) | 954,975 | 26,962 | 3,114,988 | (3,141,950 | ) | 954,975 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 3,123,500 | $ | 1,806,444 | $ | 4,058,980 | $ | (5,714,411 | ) | $ | 3,274,513 | ||||||||||
Note: | Amounts have been restated to include the presentation of a classified balance sheet. | ||||||||||||||||||||
(1) | Amounts have been restated, including the presentation of the investment of Other Subsidiaries in Block Financial. | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | (in 000s) | ||||||||||||||||||||
As of April 30, 2014 | H&R Block, Inc. | Block Financial | Other | Eliminations | Consolidated | ||||||||||||||||
(Guarantor) | (Issuer) | Subsidiaries | H&R Block | ||||||||||||||||||
Cash & cash equivalents | $ | — | $ | 612,376 | $ | 1,574,031 | $ | (1,100 | ) | $ | 2,185,307 | ||||||||||
Cash & cash equivalents - restricted | — | 67,463 | 47,856 | — | 115,319 | ||||||||||||||||
Receivables, net | — | 89,975 | 101,643 | — | 191,618 | ||||||||||||||||
Prepaid expenses and other current assets | — | 10,202 | 188,065 | — | 198,267 | ||||||||||||||||
Investments in AFS securities | — | 423,495 | — | — | 423,495 | ||||||||||||||||
Total current assets | — | 1,203,511 | 1,911,595 | (1,100 | ) | 3,114,006 | |||||||||||||||
Mortgage loans held for investment, net | — | 268,428 | — | — | 268,428 | ||||||||||||||||
Investments in AFS securities | — | — | 4,329 | — | 4,329 | ||||||||||||||||
Property and equipment, net | — | 121 | 304,790 | — | 304,911 | ||||||||||||||||
Intangible assets, net | — | — | 355,622 | — | 355,622 | ||||||||||||||||
Goodwill | — | — | 436,117 | — | 436,117 | ||||||||||||||||
Investments in subsidiaries | 904,331 | — | 60,902 | (965,233 | ) | — | |||||||||||||||
Amounts due from affiliates | 642,101 | 386,818 | 397 | (1,029,316 | ) | — | |||||||||||||||
Other assets | 11,271 | 173,168 | 25,677 | — | 210,116 | ||||||||||||||||
Total assets | $ | 1,557,703 | $ | 2,032,046 | $ | 3,099,429 | $ | (1,995,649 | ) | $ | 4,693,529 | ||||||||||
Customer banking deposits | $ | — | $ | 770,885 | $ | — | $ | (1,100 | ) | $ | 769,785 | ||||||||||
Accounts payable, accrued expenses and other current liabilities | 757 | 223,677 | 344,573 | — | 569,007 | ||||||||||||||||
Accrued salaries, wages and payroll taxes | — | 2,190 | 164,842 | — | 167,032 | ||||||||||||||||
Accrued income taxes | — | 71,132 | 335,523 | — | 406,655 | ||||||||||||||||
Current portion of long-term debt | — | 399,882 | 755 | — | 400,637 | ||||||||||||||||
Total current liabilities | 757 | 1,467,766 | 845,693 | (1,100 | ) | 2,313,116 | |||||||||||||||
Long-term debt | — | 497,612 | 8,225 | — | 505,837 | ||||||||||||||||
Other noncurrent liabilities | — | 5,766 | 312,261 | — | 318,027 | ||||||||||||||||
Amounts due to affiliates | 397 | — | 1,028,919 | (1,029,316 | ) | — | |||||||||||||||
Total liabilities | 1,154 | 1,971,144 | 2,195,098 | (1,030,416 | ) | 3,136,980 | |||||||||||||||
Stockholders' equity | 1,556,549 | 60,902 | 904,331 | (965,233 | ) | 1,556,549 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 1,557,703 | $ | 2,032,046 | $ | 3,099,429 | $ | (1,995,649 | ) | $ | 4,693,529 | ||||||||||
HR_Block_Bank_Details
H&R Block Bank (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Customer Deposits | $437,000 | ' | ' |
Investments in available-for-sale securities | 381,180 | 423,495 | ' |
HRB Bank [Member] | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Customer Deposits | $455,308 | $770,288 | ' |
Loss_Per_Share_and_Stockholder2
Loss Per Share and Stockholders' Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($21,000) | $4,299,000 | ($21,000) | $4,299,000 | $3,334,000 | $6,809,000 | |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 6,598,000 | -2,836,000 | 6,598,000 | -2,836,000 | 1,843,000 | 3,741,000 | |
Accumulated other comprehensive income | 6,577,000 | 1,463,000 | 6,577,000 | 1,463,000 | 5,177,000 | 10,550,000 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | ' | ' | 4,128,000 | -13,424,000 | ' | ' | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | ' | ' | 2,713,000 | -4,337,000 | ' | ' | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ' | ' | 1,415,000 | ' | ' | ' | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | ' | ' | 0 | [1] | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | ' | ' | -24,000 | [1] | ' | ' | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | ' | ' | 0 | ' | ' | ' | |
Tax effect of reclassification adjustment for gains included in income | ' | ' | -9,000 | ' | ' | ' | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | ' | ' | 0 | ' | ' | ' | |
Reclassification adjustment for gains included in income | -589,000 | 0 | -15,000 | 0 | ' | ' | |
Change in foreign currency translation adjustments | -3,810,000 | 582,000 | -3,355,000 | -2,510,000 | ' | ' | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ' | ' | 4,755,000 | -6,577,000 | ' | ' | |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | 1,400,000 | -9,087,000 | ' | ' | |
Net loss from continuing operations attributable to shareholders | -113,227,000 | -103,015,000 | -222,078,000 | -216,285,000 | ' | ' | |
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | 97,000 | 92,000 | 186,000 | 154,000 | ' | ' | |
Net loss from continuing operations attributable to common shareholders | -113,324,000 | -103,107,000 | -222,264,000 | -216,439,000 | ' | ' | |
Basic weighted average common shares (in shares) | 275,106,000 | 273,907,000 | 274,841,000 | 273,494,000 | ' | ' | |
Potential dilutive shares (in shares) | 0 | 0 | 0 | 0 | ' | ' | |
Weighted Average Number of Shares Outstanding, Diluted | 275,106,000 | 273,907,000 | 274,841,000 | 273,494,000 | ' | ' | |
Basic (in usd per share) | ($0.41) | ($0.38) | ($0.81) | ($0.79) | ' | ' | |
Narrative Details [Abstract] | ' | ' | ' | ' | ' | ' | |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | ' | ' | 5,400,000 | 6,000,000 | ' | ' | |
Shares repurchased during the period, (in shares) | ' | ' | 300,000 | 200,000 | ' | ' | |
Shares repurchased during the period, Value | ' | ' | 10,200,000 | 5,300,000 | ' | ' | |
Shares issued during period (in shares) | ' | ' | 1,200,000 | 1,600,000 | ' | ' | |
Nonvested units granted | ' | ' | 1,000,000 | ' | ' | ' | |
Stock-based compensation | 7,100,000 | 6,200,000 | 14,600,000 | 10,800,000 | ' | ' | |
Unrecognized compensation costs, options | 400,000 | ' | 400,000 | ' | ' | ' | |
Unrecognized compensation costs, nonvested shares and units | 43,200,000 | ' | 43,200,000 | ' | ' | ' | |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | ' | ' | -3,355,000 | -2,510,000 | ' | ' | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | ' | ' | 0 | 0 | ' | ' | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ' | ' | -3,355,000 | ' | ' | ' | |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | ' | ' | 7,483,000 | -10,914,000 | ' | ' | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | ' | ' | 2,713,000 | -4,337,000 | ' | ' | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ' | ' | $4,770,000 | ' | ' | ' | |
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Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | 6 Months Ended | ||
Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Document Fiscal Year Focus | '2015 | ' | ' |
Impaired non-accrual status term, days | '60 days | ' | ' |
Total Portfolio | $258,728,000 | $277,423,000 | $306,103,000 |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due | 2,400,000 | 100,000 | 0 |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Non-accrual status loans | 20,000,000 | 20,700,000 | 26,200,000 |
Term Loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, net | 100,600,000 | 109,100,000 | 126,300,000 |
Revolving Lines Of Credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, net | 46,400,000 | 45,400,000 | 53,000,000 |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Short-term | $0 | $1,900,000 | $100,000 |
Receivables_Schedule_Of_ShortT
Receivables (Schedule Of Short-Term Receivables) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts Receivable, Gross, Current | $159,451 | $244,196 | $184,670 |
Accounts Receivable, Gross, Noncurrent | 101,805 | 111,795 | 201,689 |
Allowance for doubtful accounts | -51,746 | -52,578 | -52,969 |
Allowance for Doubtful Accounts Receivable, Noncurrent | 0 | 0 | -3,092 |
Receivables, net | 107,705 | 191,618 | 131,701 |
Accounts Receivable, Net, Noncurrent | 101,805 | 111,795 | 198,597 |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 63,716 | 70,390 |
Accounts Receivable, Gross, Current | 62,568 | ' | ' |
Accounts Receivable, Gross, Noncurrent | 84,462 | 90,747 | 108,874 |
Allowance for doubtful accounts | 0 | 0 | ' |
Cash BackB. receivables | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 45,619 | 35,927 |
Accounts Receivable, Gross, Current | 36,369 | ' | ' |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | 0 |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 48,812 | 2,036 |
Accounts Receivable, Gross, Current | 1,955 | ' | ' |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | 0 |
Allowance for doubtful accounts | -2,077 | -3,002 | ' |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 20,577 | 21,692 |
Accounts Receivable, Gross, Current | 20,073 | ' | ' |
Accounts Receivable, Gross, Noncurrent | 2,778 | 3,862 | 6,161 |
Allowance for doubtful accounts | -7,910 | -7,530 | ' |
Note receivable | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 9,978 | 10,732 |
Accounts Receivable, Gross, Current | 10,060 | ' | ' |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | ' |
Royalties from franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | 0 | 0 | 0 |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | 62,786 |
Other | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Receivables, gross | ' | 55,494 | 43,893 |
Accounts Receivable, Gross, Current | 28,426 | ' | ' |
Accounts Receivable, Gross, Noncurrent | $14,565 | $17,186 | $23,868 |
Receivables_Schedule_Of_Loans_
Receivables (Schedule Of Loans Receivable) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts Receivable, Gross, Current | $159,451 | $244,196 | $184,670 |
Accounts Receivable, Gross, Noncurrent | 101,805 | 111,795 | 201,689 |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts Receivable, Gross, Current | 20,073 | ' | ' |
Short-term | ' | 20,577 | 21,692 |
Accounts Receivable, Gross, Noncurrent | 2,778 | 3,862 | 6,161 |
Financing Receivable, Gross | 22,851 | ' | ' |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts Receivable, Gross, Current | 62,568 | ' | ' |
Short-term | ' | 63,716 | 70,390 |
Accounts Receivable, Gross, Noncurrent | 84,462 | 90,747 | 108,874 |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts Receivable, Gross, Current | 1,955 | ' | ' |
Short-term | ' | 48,812 | 2,036 |
Accounts Receivable, Gross, Noncurrent | $0 | $0 | $0 |
Receivables_Schedule_Of_Receiv
Receivables (Schedule Of Receivables Based On Year Of Origination) (Details) (Emerald Advance lines of credit, USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Financing Receivable, Gross | $22,851 |
Year Of Origination2014 | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Financing Receivable, Gross | 3,802 |
Year Of Origination2013 [Member] [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Financing Receivable, Gross | 1,553 |
Year Of Origination 2012 and prior | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Financing Receivable, Gross | 4,412 |
Revolving Loans | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Financing Receivable, Gross | $13,084 |
Receivables_Schedule_Of_Activi
Receivables (Schedule Of Activity In The Allowance For Doubtful Accounts) (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | $51,746 | $52,969 | $52,578 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' | ' |
Beginning balance | ' | 57,703 | ' |
Provision | 2,724 | 6,111 | ' |
Charge-offs | -3,556 | -7,753 | ' |
Ending balance | ' | 56,061 | ' |
Emerald Advance lines of credit | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | 7,910 | ' | 7,530 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' | ' |
Beginning balance | ' | 7,390 | ' |
Provision | 380 | 0 | ' |
Charge-offs | 0 | 0 | ' |
Ending balance | ' | 7,390 | ' |
Loans to franchisees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | 0 | ' | 0 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' | ' |
Beginning balance | ' | 0 | ' |
Provision | 0 | 0 | ' |
Charge-offs | 0 | 0 | ' |
Ending balance | ' | 0 | ' |
Receivables for tax preparation and related fees | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | 2,077 | ' | 3,002 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' | ' |
Beginning balance | ' | 2,769 | ' |
Provision | 149 | 188 | ' |
Charge-offs | -1,074 | -479 | ' |
Ending balance | ' | 2,478 | ' |
All Other | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for doubtful accounts | 41,759 | ' | 42,046 |
Allowance for Doubtful Accounts [Roll Forward] | ' | ' | ' |
Beginning balance | ' | 47,544 | ' |
Provision | 2,195 | 5,923 | ' |
Charge-offs | -2,482 | -7,274 | ' |
Ending balance | ' | $46,193 | ' |
Mortgage_Loans_Held_For_Invest2
Mortgage Loans Held For Investment And Related Assets (Narrative) (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Transfer of mortgage loans held for investment to held for sale | $0 | $7,608 | ' |
Allowance as Percent of Principal | 3.80% | 4.20% | 4.10% |
Percentage of mortgage loan portfolio consisting of borrowers from Florida, California, New York, and Wisconsin | 52.00% | ' | ' |
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 | ' | ' |
Mortgage_Loans_Held_For_Invest3
Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loan Portfolio) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ' | ' | ' |
Adjustable-rate loans | $138,808 | $149,480 | $165,289 | ' |
Adjustable-rate loans, percent of total loans | 54.00% | 54.00% | 54.00% | ' |
Fixed-rate loans | 119,920 | 127,943 | 140,814 | ' |
Fixed-rate loans, percent of Total loans | 46.00% | 46.00% | 46.00% | ' |
Total loans | 258,728 | 277,423 | 306,103 | ' |
Total loans, percent of Total loans | 100.00% | 100.00% | 100.00% | ' |
Unamortized deferred fees and costs | 2,125 | 2,277 | 2,508 | ' |
Less: Allowance for loan losses | -9,761 | -11,272 | -12,704 | -14,314 |
Total | $251,092 | $268,428 | $295,907 | ' |
Mortgage_Loans_Held_For_Invest4
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Loan Losses) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Loans and Leases Rollforward [Roll Forward] | ' | ' |
Balance at beginning of the period | $11,272 | $14,314 |
Provision | 735 | 7,224 |
Recoveries | 911 | 2,409 |
Charge-offs | -3,157 | -11,243 |
Balance at end of the period | $9,761 | $12,704 |
Mortgage_Loans_Held_For_Invest5
Mortgage Loans Held For Investment And Related Assets (Schedule Of Portfolio Balance And Related Allowance) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | $258,728 | $277,423 | $306,103 |
Related Allowance | 9,761 | 11,272 | 12,704 |
Pooled (less than 60 days past due) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 147,614 | 158,496 | 178,497 |
Related Allowance | 3,768 | 4,508 | 5,523 |
Individually (TDRs) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 40,201 | 43,865 | 47,011 |
Related Allowance | 4,237 | 4,346 | 4,598 |
Individually (60 days or more past due) | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Portfolio Balance | 70,913 | 75,062 | 80,595 |
Related Allowance | $1,756 | $2,418 | $2,583 |
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 $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | $258,728 | $277,423 | $306,103 |
Loan Loss Allowance, Amount | 9,761 | 11,272 | 12,704 |
Loan Loss Allowance, % of Principal | 3.80% | 4.10% | 4.20% |
% 30 Days Past Due | 19.00% | ' | ' |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | 148,833 | ' | ' |
Loan Loss Allowance, Amount | 7,847 | ' | ' |
Loan Loss Allowance, % of Principal | 5.30% | ' | ' |
% 30 Days Past Due | 27.90% | ' | ' |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Outstanding Principal Balance | 109,895 | ' | ' |
Loan Loss Allowance, Amount | $1,914 | ' | ' |
Loan Loss Allowance, % of Principal | 1.70% | ' | ' |
% 30 Days Past Due | 6.90% | ' | ' |
Mortgage_Loans_Held_For_Invest7
Mortgage Loans Held For Investment And Related Assets (Schedule Of Credit Quality Indicators) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | $258,728 | $277,423 | $306,103 |
Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 181,836 | ' | ' |
Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 76,892 | ' | ' |
Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 127,131 | ' | ' |
Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 16,790 | ' | ' |
Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 95,379 | ' | ' |
Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 19,428 | ' | ' |
Internal Risk Rating, High | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 41,758 | ' | ' |
Internal Risk Rating, Medium | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 107,075 | ' | ' |
Internal Risk Rating, Low | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 109,895 | ' | ' |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 148,833 | ' | ' |
Purchased From SCC | Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 109,069 | ' | ' |
Purchased From SCC | Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 39,764 | ' | ' |
Purchased From SCC | Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 49,157 | ' | ' |
Purchased From SCC | Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 4,676 | ' | ' |
Purchased From SCC | Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 83,074 | ' | ' |
Purchased From SCC | Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 11,926 | ' | ' |
Purchased From SCC | Internal Risk Rating, High | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 41,758 | ' | ' |
Purchased From SCC | Internal Risk Rating, Medium | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 107,075 | ' | ' |
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 | 109,895 | ' | ' |
All Other | Occupancy Status, Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 72,767 | ' | ' |
All Other | Occupancy Status, Non-Owner Occupied | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 37,128 | ' | ' |
All Other | Documentation Level, Full Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 77,974 | ' | ' |
All Other | Documentation Level, Limited Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 12,114 | ' | ' |
All Other | Documentation Level, Stated Income | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 12,305 | ' | ' |
All Other | Documentation Level, No Documentation | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Total Portfolio | 7,502 | ' | ' |
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 | $109,895 | ' | ' |
Mortgage_Loans_Held_For_Invest8
Mortgage Loans Held For Investment And Related Assets (Schedule Of Past Due Mortgage Loans) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | |
In Thousands, unless otherwise specified | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | $258,728 | $277,423 | $306,103 | |
Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 148,833 | ' | ' | |
All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 109,895 | ' | ' | |
Less than 60 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 15,812 | ' | ' | |
Less than 60 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 11,199 | ' | ' | |
Less than 60 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 4,613 | ' | ' | |
60 b 89 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 402 | ' | ' | |
60 b 89 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 324 | ' | ' | |
60 b 89 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 78 | ' | ' | |
90 Days Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 55,044 | [1] | ' | ' |
90 Days Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 47,514 | [1] | ' | ' |
90 Days Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 7,530 | [1] | ' | ' |
Total Past Due | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 71,258 | ' | ' | |
Total Past Due | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 59,037 | ' | ' | |
Total Past Due | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 12,221 | ' | ' | |
Current | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 187,470 | ' | ' | |
Current | Purchased From SCC | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | 89,796 | ' | ' | |
Current | All Other | ' | ' | ' | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' | |
Total Portfolio | $97,674 | ' | ' | |
[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 $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | $71,693 | $74,295 | $80,364 |
Financing receivable modifications to recorded investments | 5,999 | 5,599 | 4,713 |
Total non-accrual loans | 77,692 | 79,894 | 85,077 |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | 60,254 | 61,767 | 67,641 |
Financing receivable modifications to recorded investments | 5,059 | 4,648 | 3,832 |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Loans receivable recorded investment non-accrual status | 11,439 | 12,528 | 12,723 |
Financing receivable modifications to recorded investments | $940 | $951 | $881 |
Recovered_Sheet1
Mortgage Loans Held For Investment And Related Assets (Information Related To Impaired Loans) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | $111,114 | $118,927 | $127,606 |
Related Allowance | 5,993 | 6,764 | 7,181 |
Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 93,632 | 98,999 | 107,152 |
Related Allowance | 4,984 | 3,239 | 5,762 |
All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 17,482 | 19,928 | 20,454 |
Related Allowance | 1,009 | 3,525 | 1,419 |
Balance With Allowance | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 29,226 | 33,100 | 35,296 |
Balance With Allowance | Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 25,494 | 27,924 | 30,100 |
Balance With Allowance | All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 3,732 | 5,176 | 5,196 |
Balance With No Allowance | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 81,888 | 85,827 | 92,310 |
Balance With No Allowance | Purchased From SCC | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | 68,138 | 71,075 | 77,052 |
Balance With No Allowance | All Other | ' | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' | ' |
Impaired Loans Balance | $13,750 | $14,752 | $15,258 |
Recovered_Sheet2
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Impaired Loans) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Mortgage Loans Held For Investment And Related Assets [Abstract] | ' | ' | ' |
Based on collateral value method | $1,756 | $2,418 | $2,583 |
Based on discounted cash flow method | 4,237 | 4,346 | 4,598 |
Total allowance for loans | $5,993 | $6,764 | $7,181 |
Recovered_Sheet3
Mortgage Loans Held For Investment And Related Assets (Information Related To Activities Of Non-Performing Assets) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | $119,110 | $145,178 |
Purchased From SCC | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | 99,706 | 121,532 |
All Other | ' | ' |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ' | ' |
Average impaired loans | $19,404 | $23,646 |
Investments_Amortized_Cost_And
Investments (Amortized Cost And Fair Value Of Securities Available-For-Sale) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investments in available-for-sale securities, Amortized Cost | $380,488 | $424,817 | $470,010 |
Gross Unrealized Gains | 10,466 | 3,007 | 4,682 |
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 0 | 0 | -9,348 |
Investments in available-for-sale securities, Fair Value | 390,954 | 427,824 | 465,344 |
Long-Term | Mortgage-Backed Securities | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investments in available-for-sale securities, Amortized Cost | 371,297 | 420,697 | 465,861 |
Gross Unrealized Gains | 9,783 | 2,798 | 4,422 |
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 0 | 0 | -9,348 |
Investments in available-for-sale securities, Fair Value | 381,080 | 423,495 | 460,935 |
Long-Term | Municipal Bonds | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investments in available-for-sale securities, Amortized Cost | 4,091 | 4,120 | 4,149 |
Gross Unrealized Gains | 151 | 209 | 260 |
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 0 | 0 | 0 |
Investments in available-for-sale securities, Fair Value | 4,242 | 4,329 | 4,409 |
Long-Term | Common Stock [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investments in available-for-sale securities, Amortized Cost | 5,000 | ' | ' |
Gross Unrealized Gains | 532 | ' | ' |
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 0 | ' | ' |
Investments in available-for-sale securities, Fair Value | 5,532 | ' | ' |
Long-Term | US Treasury Bill Securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investments in available-for-sale securities, Amortized Cost | 100 | ' | ' |
Gross Unrealized Gains | 0 | ' | ' |
Available For Sale Securities, Gross Unrealized Loss, Accumulated In Investments | 0 | ' | ' |
Investments in available-for-sale securities, Fair Value | $100 | ' | ' |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization | $13.20 | $6.50 | $24.50 | $12.60 |
Estimated amortization, 2015 | 52 | ' | 52 | ' |
Estimated amortization, 2016 | 48.1 | ' | 48.1 | ' |
Estimated amortization, 2017 | 40.6 | ' | 40.6 | ' |
Estimated amortization, 2018 | 35.8 | ' | 35.8 | ' |
Estimated amortization, 2019 | $31.50 | ' | $31.50 | ' |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets (Schedule Of Goodwill) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Goodwill [Roll Forward] | ' | ' |
Goodwill before impairment losses, beginning balance | $468,414 | $467,079 |
Accumulated impairment losses, beginning balance | -32,297 | -32,297 |
Goodwill, beginning balance | 436,117 | 434,782 |
Acquisitions | 28,378 | 9,207 |
Disposals and foreign currency changes, net | -313 | -1,177 |
Impairments | 0 | 0 |
Goodwill before impairment losses, ending balance | 496,479 | 475,109 |
Accumulated impairment losses, ending balance | -32,297 | -32,297 |
Goodwill, ending balance | $464,182 | $442,812 |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | $639,567 | $556,816 | $488,006 |
Accumulated Amortization | -225,522 | -201,194 | -191,793 |
Net | 414,045 | 355,622 | 296,213 |
Tax Services [Member] | Reacquired Franchise Rights [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 278,159 | 233,749 | 222,371 |
Accumulated Amortization | -33,721 | -26,136 | -20,414 |
Net | 244,438 | 207,613 | 201,957 |
Tax Services [Member] | Customer Relationships [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 148,407 | 123,110 | 109,237 |
Accumulated Amortization | -66,714 | -59,521 | -53,501 |
Net | 81,693 | 63,589 | 55,736 |
Tax Services [Member] | Software and Software Development Costs [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 110,140 | 101,162 | 98,738 |
Accumulated Amortization | -77,925 | -72,598 | -76,517 |
Net | 32,215 | 28,564 | 22,221 |
Tax Services [Member] | Noncompete Agreements [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 28,960 | 24,694 | 23,659 |
Accumulated Amortization | -22,774 | -22,223 | -21,898 |
Net | 6,186 | 2,471 | 1,761 |
Tax Services [Member] | Franchise Agreements | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 19,201 | 19,201 | 19,201 |
Accumulated Amortization | -7,574 | -6,934 | -6,294 |
Net | 11,627 | 12,267 | 12,907 |
Tax Services [Member] | Purchased Technology | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Gross Carrying Amount | 54,700 | 54,900 | 14,800 |
Accumulated Amortization | -16,814 | -13,782 | -13,169 |
Net | $37,886 | $41,118 | $1,631 |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets Schedule of Acquired Intangible Assets and Useful Lives (Details) | 6 Months Ended |
Oct. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years |
Reacquired Franchise Rights [Member] | Tax Services [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years |
Customer Relationships [Member] | Tax Services [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years |
Software and Software Development Costs [Member] | Tax Services [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years |
Noncompete Agreements [Member] | Tax Services [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt Long-Term Debt (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Long-term Debt | $506,360 | $906,474 | ' |
Capital Lease Obligations | 8,607 | 8,980 | 9,345 |
Long-term debt | 506,360 | 906,474 | 906,581 |
Long-term Debt, Current Maturities | -772 | -400,637 | -400,503 |
Long-term Debt, Excluding Current Maturities | 505,588 | 505,837 | 506,078 |
5.5% Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term Debt | 497,753 | 497,612 | 497,471 |
5.125% Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | 5.13% | ' | ' |
Long-term Debt | $0 | $399,882 | $399,765 |
Fair_Value_Assets_Remeasured_A
Fair Value (Assets Remeasured At Fair Value On Non-Recurring Basis) (Details) (Non-Recurring, USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Loss, Impaired mortgage loans held for investment | ($1,440) | ($2,353) |
Total | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired mortgage loans held for investment | 62,300 | 76,148 |
As a percentage of total assets | 2.00% | 2.30% |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired mortgage loans held for investment | 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] | ' | ' |
Impaired mortgage loans held for investment | 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] | ' | ' |
Impaired mortgage loans held for investment | $62,300 | $76,148 |
As a percentage of total assets | 2.00% | 2.30% |
Fair_Value_Quantitative_Inform
Fair Value (Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Third Party Pricing | Minimum | REO | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 5.00% |
Loss severity | 0.00% |
Third Party Pricing | Maximum | REO | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 34.00% |
Loss severity | 100.00% |
Third Party Pricing | Weighted Average | REO | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 5.00% |
Loss severity | 53.00% |
Collateral-Based | Impaired Mortgage Loans Held For Investment - Non TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Time to sell (in months) | '24 months |
Collateral-Based | Impaired Mortgage Loans Held For Investment - TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair value | 35,964 |
Collateral-Based | Minimum | Impaired Mortgage Loans Held For Investment - Non TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 0.00% |
Loss severity | 0.00% |
Collateral depreciation | -166.00% |
Collateral-Based | Maximum | Impaired Mortgage Loans Held For Investment - Non TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 1.90% |
Loss severity | 100.00% |
Collateral depreciation | 100.00% |
Collateral-Based | Weighted Average | Impaired Mortgage Loans Held For Investment - Non TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Cost to list/sell | 9.00% |
Loss severity | 61.00% |
Time to sell (in months) | '24 months |
Collateral depreciation | 39.00% |
Discounted Cash Flow | Impaired Mortgage Loans Held For Investment - Non TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair value | 69,157 |
Discounted Cash Flow | Minimum | Impaired Mortgage Loans Held For Investment - TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Loss severity | 0.00% |
Aged default performance | 24.00% |
Discounted Cash Flow | Maximum | Impaired Mortgage Loans Held For Investment - TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Loss severity | 22.00% |
Aged default performance | 38.00% |
Discounted Cash Flow | Weighted Average | Impaired Mortgage Loans Held For Investment - TDRs | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Loss severity | 7.00% |
Aged default performance | 31.00% |
Fair_Value_Fair_Value_Summary_
Fair Value Fair Value (Summary Of Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | $627,490 | $2,185,307 | $790,772 | $1,747,584 |
Cash and cash equivalents, Estimated Fair Value | 627,490 | 2,185,307 | ' | ' |
Cash and cash equivalents - restricted, Carrying Amount | 55,543 | 115,319 | 47,521 | ' |
Cash and cash equivalents - restricted, Estimated Fair Value | 55,543 | 115,319 | ' | ' |
Receivables, net - short-term, Carrying Amount | 107,705 | 191,618 | 131,701 | ' |
Receivables, net - short-term, Estimated Fair Value | 107,705 | 191,618 | ' | ' |
Mortgage loans held for investment, less allowance for loan losses of $9,761, $12,704 and $11,272 | 251,092 | 268,428 | 295,907 | ' |
Loans Receivable, Fair Value Disclosure | 192,411 | 192,281 | ' | ' |
Investments in available-for-sale securities, Carrying Amount | 9,774 | 4,329 | 465,344 | ' |
Investments in available-for-sale securities, Estimated Fair Value | 390,954 | 427,824 | 465,344 | ' |
Accounts Receivable, Net, Noncurrent | 101,805 | 111,795 | 198,597 | ' |
Receivables, net - long-term, Estimated Fair Value | 101,805 | 111,795 | ' | ' |
Total Portfolio | 258,728 | 277,423 | 306,103 | ' |
Deposits, Carrying Amount | 437,000 | ' | ' | ' |
Deposits, Estimated Fair Value | 452,351 | 765,376 | ' | ' |
Long-term Debt | 506,360 | 906,474 | ' | ' |
Long-term borrowings, Estimated Fair Value | 550,332 | 955,050 | ' | ' |
Cusiness Combination, Contingent Consideration, at Fair Value | 10,555 | 9,206 | ' | ' |
Business Combination, Contingent Consideration, Liability | 10,555 | 9,206 | ' | ' |
Level 1 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents, Estimated Fair Value | ' | ' | 790,772 | ' |
Cash and cash equivalents - restricted, Estimated Fair Value | ' | ' | 47,521 | ' |
Receivables, net - short-term, Estimated Fair Value | ' | ' | 133,884 | ' |
Level 3 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Loans Receivable, Fair Value Disclosure | ' | ' | 211,690 | ' |
Long-term Debt | ' | ' | 906,581 | ' |
Long-term borrowings, Estimated Fair Value | ' | ' | 947,350 | ' |
Cusiness Combination, Contingent Consideration, at Fair Value | ' | ' | 12,454 | ' |
Business Combination, Contingent Consideration, Liability | ' | ' | 12,454 | ' |
Level 2 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Investments in available-for-sale securities, Estimated Fair Value | ' | ' | 465,344 | ' |
Level 1 And 3 | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Receivables, net - long-term, Estimated Fair Value | ' | ' | 206,481 | ' |
Deposits, Carrying Amount | ' | ' | 656,305 | ' |
Deposits, Estimated Fair Value | ' | ' | 656,300 | ' |
HRB Bank [Member] | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Deposits, Carrying Amount | $455,308 | $770,288 | ' | ' |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 6 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized Tax Benefits | $112.90 | $129.80 | $111.50 |
Significant (Increase) Decrease in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 18 | ' | ' |
Unrecognized Tax Benefits, Period Increase (Decrease) | 1.4 | 16.6 | ' |
Effect of anticipated settlements of audit issues and expiring statutes of limitations | 11.6 | ' | ' |
Effective tax rate, excluding discrete tax items | 37.80% | 38.70% | ' |
Effective Income Tax Rate Reconciliation, Percent | 41.00% | 40.60% | ' |
Net Discreet Tax Expense (Benefit) | ($12.10) | ($6.90) | ' |
Interest_Income_And_Interest_E2
Interest Income And Interest Expense (Schedule Of Interest Income And Expense Of Continuing Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Expense, Debt | $13,843 | $13,801 | $27,638 | $27,604 |
Interest Income | 9,430 | 10,626 | 18,729 | 21,823 |
Interest expense | 13,983 | 14,314 | 27,923 | 28,760 |
Mortgage Loans, Net | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 2,989 | 3,631 | 5,967 | 7,173 |
Loans to franchisees | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 1,890 | 2,384 | 3,961 | 4,673 |
AFS Securities | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 2,133 | 2,513 | 4,403 | 4,854 |
Other | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Income | 2,418 | 2,098 | 4,398 | 5,123 |
Borrowings | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Expense, Debt | 13,843 | 13,801 | 27,638 | 27,604 |
Deposits | ' | ' | ' | ' |
Schedule Of Interest Income And Expense [Line Items] | ' | ' | ' | ' |
Interest Expense, Deposits | $140 | $513 | $285 | $1,156 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Narrative) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Standard guarantee accrual amount | $10,700,000 | $11,400,000 | $16,700,000 |
Contingent business acquisition obligations | 10,555,000 | 9,206,000 | ' |
Lines of credit, total obligation | 81,000,000 | ' | ' |
Remaining franchise equity lines of credit-undrawn commitment | 34,500,000 | ' | ' |
Maximum funding by facility | 1,500,000,000 | ' | ' |
Financing Receivables, Line of Credit Facility, Compensating Balances | 0 | ' | ' |
Level 3 | ' | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' | ' |
Contingent business acquisition obligations | ' | ' | $12,454,000 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Schedule Of Deferred Revenue Related To The Peace Of Mind Program) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Movement in Deferred Revenue [Roll Forward] | ' | ' |
Balance, beginning of the period | $145,237 | $146,286 |
Amounts deferred for new guarantees issued | 2,104 | 1,840 |
Revenue recognized on previous deferrals | -40,816 | -46,977 |
Balance, end of the period | $106,525 | $101,149 |
Litigation_And_Related_Conting1
Litigation And Related Contingencies (Details) (USD $) | 35 Months Ended | |||||||||
Nov. 30, 2007 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 05, 2013 | Oct. 31, 2014 | Oct. 15, 2010 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
transaction | loan | 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] | ||||
Pending Litigation [Member] | Pending Litigation [Member] | lawsuit | SCC [Member] | SCC [Member] | ||||||
Claims with Knowledge of Outstanding Principal Amount [Member] | ||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | ' | $10,300,000 | $23,700,000 | $20,600,000 | ' | ' | ' | ' | ' | ' |
Initial principal on loans securitized | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' |
Principal outstanding on loans securitized | ' | ' | ' | ' | ' | 34,000,000 | ' | ' | ' | ' |
Loans Sold To Trust, With Claims of Breach of Contract and Indemnity | ' | ' | ' | ' | 159 | ' | ' | ' | ' | ' |
Number Of Lawsuits | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' |
Securitization Transactions | 38 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 (Narrative) (Details) (USD $) | 36 Months Ended | 48 Months Ended | 60 Months Ended | |||
Apr. 30, 2007 | Apr. 30, 2012 | Apr. 30, 2013 | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Percentage of fraud on originated loans | 68.00% | ' | ' | ' | ' | ' |
Claims received for loans | ' | $1,800,000,000 | $2,100,000,000 | ' | ' | ' |
Loss Contingency Accrual | ' | ' | ' | 10,300,000 | 23,700,000 | 20,600,000 |
Principal Assets of SCC | ' | ' | ' | 520,000,000 | ' | ' |
SCC [Member] | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual, Product Liability, Gross | ' | ' | $158,765,000 | $193,765,000 | $183,765,000 | $158,765,000 |
Loss_Contingencies_Arising_Fro3
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Details) (USD $) | 6 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Loss Contingency Accrual [Roll Forward] | ' | ' | ' | ' |
Provisions | $10,300,000 | $20,600,000 | $23,700,000 | ' |
SCC [Member] | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Loss Contingency Accrual, Product Liability, Gross | 193,765,000 | 158,765,000 | 183,765,000 | 158,765,000 |
Loss Contingency Accrual [Roll Forward] | ' | ' | ' | ' |
Payments | 0 | 0 | ' | ' |
Balance, end of the period | $10,000,000 | $0 | ' | ' |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Narrative) (Details) | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Oct. 31, 2014 | |||
HRB Bank [Member] | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' | ' | ' | |||
Tier 1 capital ratio (leverage) | 54.30% | [1] | 32.10% | [1] | 40.40% | [1] | 53.80% |
[1] | Tier 1 (core) capital divided by adjusted total assets. |
Regulatory_Capital_Requirement3
Regulatory Capital Requirements (HRB Bank's Regulatory Capital Requirements) (Details) (USD $) | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Sep. 30, 2014 | Apr. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | |||
Banking and Thrift [Abstract] | ' | ' | ' | ' | ' | |||
Total risk-based capital ratio, Amount | ' | $595,148 | [1] | ' | $563,899 | [1] | $506,449 | [1] |
Total risk-based capital ratio | ' | 199.40% | [1] | ' | 168.50% | [1] | 140.00% | [1] |
Total risk-based capital ratio, Minimum Capital Requirement, Amount | ' | 23,877 | [1] | ' | 26,771 | [1] | 28,950 | [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 | ' | 29,846 | [1] | ' | 33,464 | [1] | 36,188 | [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 | ' | 591,293 | [2] | ' | 559,572 | [2] | 501,720 | [2] |
Tier 1 risk-based capital ratio | ' | 198.10% | [2] | ' | 167.20% | [2] | 138.60% | [2] |
Tier 1 risk-based capital ratio, Minimum to be Well Capitalized, Amount | ' | 17,908 | [2] | ' | 20,079 | [2] | 21,713 | [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 | ' | 591,293 | [3] | ' | 559,572 | [3] | 501,720 | [3] |
Tier 1 capital ratio (leverage) | ' | 54.30% | [3] | ' | 32.10% | [3] | 40.40% | [3] |
Tier 1 capital ratio (leverage), Minimum Capital Requirement, Amount | ' | 130,689 | [3] | ' | 209,041 | [3] | 148,869 | [3] |
Tier 1 capital ratio (leverage), Minimum Capital Requirement, Ratio | ' | 12.00% | [3],[4] | 4.00% | 12.00% | [3],[4] | 12.00% | [3] |
Tier 1 capital ratio (leverage), Minimum to be Well Capitalized, Amount | ' | 54,454 | [3] | ' | 87,101 | [3] | 62,029 | [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 | ' | 591,293 | [5] | ' | 559,572 | [5] | 501,720 | [5] |
Tangible equity ratio | ' | 54.30% | [5] | ' | 32.10% | [5] | 40.40% | [5] |
Tangible equity ratio, Minimum Capital Requirement, Amount | ' | $16,336 | [5] | ' | $26,130 | [5] | $18,609 | [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 AprilB 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 | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | $134,628 | $134,340 | $268,214 | $261,535 |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | -200,573 | -179,362 | -376,389 | -363,856 |
Tax Services [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 128,683 | 128,040 | 257,763 | 249,731 |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | -176,642 | -159,314 | -327,202 | -303,708 |
Corporate And Eliminations | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Total revenues | 5,945 | 6,300 | 10,451 | 11,804 |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | ($23,931) | ($20,048) | ($49,187) | ($60,148) |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Income Statement) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | $134,628 | $134,340 | $268,214 | $261,535 |
Cost of revenues | 221,697 | 207,063 | 419,423 | 403,313 |
Selling, general and administrative | 97,379 | 94,092 | 194,579 | 190,789 |
Total operating expenses | 319,076 | 301,155 | 614,002 | 594,102 |
Other income (expense), net (1) | -2,282 | 1,254 | -2,963 | -3,685 |
Interest Expense, Debt | 13,843 | 13,801 | 27,638 | 27,604 |
Loss from continuing operations before income tax benefit | -200,573 | -179,362 | -376,389 | -363,856 |
Income tax benefit | -87,346 | -76,347 | -154,311 | -147,571 |
Net loss from continuing operations | -113,227 | -103,015 | -222,078 | -216,285 |
Net loss from discontinued operations | 1,229 | -1,928 | -6,152 | -3,845 |
NET LOSS | -111,998 | -104,943 | -228,230 | -220,130 |
Other comprehensive loss | 1,094 | 1,720 | 1,400 | -9,087 |
Comprehensive loss | -110,904 | -103,223 | -226,830 | -229,217 |
Block Financial Issuer [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | 20,891 | 21,170 | 44,751 | 48,385 |
Cost of revenues | 10,851 | 13,240 | 22,658 | 38,906 |
Selling, general and administrative | 5,854 | 1,369 | 9,197 | 15,407 |
Total operating expenses | 16,705 | 14,609 | 31,855 | 54,313 |
Other income (expense), net (1) | 2,232 | 1,662 | 1,396 | 1,706 |
Interest Expense, Debt | 13,742 | 13,692 | 27,436 | 27,385 |
Loss from continuing operations before income tax benefit | -7,324 | -5,469 | -13,144 | -31,607 |
Income tax benefit | -7,020 | -2,203 | -9,663 | -11,601 |
Net loss from continuing operations | -304 | -3,266 | -3,481 | -20,006 |
Net loss from discontinued operations | -1,634 | -1,553 | -8,843 | -2,716 |
NET LOSS | -1,938 | -4,819 | -12,324 | -22,722 |
Other comprehensive loss | 4,382 | 1,108 | 4,261 | -6,616 |
Comprehensive loss | 2,444 | -3,711 | -8,063 | -29,338 |
Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | 113,747 | 113,204 | 223,556 | 213,340 |
Cost of revenues | 210,854 | 193,857 | 396,853 | 364,597 |
Selling, general and administrative | 91,527 | 92,723 | 185,387 | 175,382 |
Total operating expenses | 302,381 | 286,580 | 582,240 | 539,979 |
Other income (expense), net (1) | -18,005 | -408 | -19,076 | -5,391 |
Interest Expense, Debt | 101 | 109 | 202 | 219 |
Loss from continuing operations before income tax benefit | -206,740 | -173,893 | -377,962 | -332,249 |
Income tax benefit | -77,671 | -74,144 | -139,232 | -135,970 |
Net loss from continuing operations | -129,069 | -99,749 | -238,730 | -196,279 |
Net loss from discontinued operations | 2,863 | -375 | 2,691 | -1,129 |
NET LOSS | -126,206 | -100,124 | -236,039 | -197,408 |
Other comprehensive loss | 1,094 | 612 | 1,400 | -2,471 |
Comprehensive loss | -125,112 | -99,512 | -234,639 | -199,879 |
Parent Company [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' |
Cost of revenues | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' |
Total operating expenses | ' | ' | ' | ' |
Other income (expense), net (1) | -114,653 | -104,943 | -233,646 | -220,130 |
Interest Expense, Debt | 0 | 0 | 0 | 0 |
Loss from continuing operations before income tax benefit | -114,653 | -104,943 | -233,646 | -220,130 |
Income tax benefit | -2,655 | ' | -5,416 | ' |
Net loss from continuing operations | -111,998 | -104,943 | -228,230 | -220,130 |
Net loss from discontinued operations | 0 | ' | 0 | ' |
NET LOSS | -111,998 | -104,943 | -228,230 | -220,130 |
Other comprehensive loss | 1,094 | 1,720 | 1,400 | -9,087 |
Comprehensive loss | -110,904 | -103,223 | -226,830 | -229,217 |
Intersegment Eliminations [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Total revenues | -10 | -34 | -93 | -190 |
Cost of revenues | -8 | -34 | -88 | -190 |
Selling, general and administrative | -2 | ' | -5 | ' |
Total operating expenses | -10 | -34 | -93 | -190 |
Other income (expense), net (1) | 128,144 | 104,943 | 248,363 | 220,130 |
Interest Expense, Debt | 0 | 0 | 0 | 0 |
Loss from continuing operations before income tax benefit | 128,144 | 104,943 | 248,363 | 220,130 |
Income tax benefit | ' | ' | ' | ' |
Net loss from continuing operations | 128,144 | 104,943 | 248,363 | 220,130 |
Net loss from discontinued operations | ' | ' | ' | ' |
NET LOSS | 128,144 | 104,943 | 248,363 | 220,130 |
Other comprehensive loss | -5,476 | -1,720 | -5,661 | 9,087 |
Comprehensive loss | $122,668 | $103,223 | $242,702 | $229,217 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Balance Sheets) (Details) (USD $) | Oct. 31, 2014 | Apr. 30, 2014 | Oct. 31, 2013 | Apr. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | $627,490 | $2,185,307 | $790,772 | $1,747,584 |
Cash and cash equivalents - restricted | 55,543 | 115,319 | 47,521 | ' |
Receivables, net - short-term, Carrying Amount | 107,705 | 191,618 | 131,701 | ' |
Prepaid expenses and other current assets | 285,463 | 198,267 | 225,660 | ' |
Investments in available-for-sale securities | 381,180 | 423,495 | ' | ' |
Total current assets | 1,457,381 | 3,114,006 | 1,195,654 | ' |
Mortgage loans held for investment, net | 251,092 | 268,428 | 295,907 | ' |
Investments in available-for-sale securities | 9,774 | 4,329 | 465,344 | ' |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | 318,225 | 304,911 | 311,157 | ' |
Intangible assets, net | 414,045 | 355,622 | 296,213 | ' |
Goodwill | 464,182 | 436,117 | 442,812 | 434,782 |
Investments in subsidiaries | ' | ' | ' | ' |
Amounts due from affiliates | 0 | 0 | 0 | ' |
Other assets | 176,591 | 210,116 | 267,426 | ' |
Total assets | 3,091,290 | 4,693,529 | 3,274,513 | ' |
Customer deposits | 454,860 | 769,785 | 655,129 | ' |
Accounts payable, accrued expenses and other current liabilities | 436,830 | 569,007 | 426,994 | ' |
Accrued salaries, wages and payroll taxes | 36,215 | 167,032 | 41,584 | ' |
Accrued income taxes | 147,000 | 406,655 | 22,475 | ' |
Current portion of long-term debt | 772 | 400,637 | 400,503 | ' |
Total current liabilities | 1,075,677 | 2,313,116 | 1,546,685 | ' |
Long-term debt | 505,588 | 505,837 | 506,078 | ' |
Other noncurrent liabilities | 271,349 | 318,027 | 266,775 | ' |
Amounts due to affiliates | ' | ' | ' | ' |
Total liabilities | 1,852,614 | 3,136,980 | 2,319,538 | ' |
Stockholdersb equity | 1,238,676 | 1,556,549 | 954,975 | ' |
Total liabilities and stockholders' equity | 3,091,290 | 4,693,529 | 3,274,513 | ' |
Block Financial Issuer [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | 432,224 | 612,376 | 389,915 | 558,110 |
Cash and cash equivalents - restricted | 5,431 | 67,463 | 6,795 | ' |
Receivables, net - short-term, Carrying Amount | 84,196 | 89,975 | 99,867 | ' |
Prepaid expenses and other current assets | 113,571 | 10,202 | 14,543 | ' |
Investments in available-for-sale securities | 381,080 | 423,495 | ' | ' |
Total current assets | 1,016,502 | 1,203,511 | 511,120 | ' |
Mortgage loans held for investment, net | 251,092 | 268,428 | 295,907 | ' |
Investments in available-for-sale securities | ' | ' | 460,935 | ' |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | 157 | 121 | 145 | ' |
Intangible assets, net | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Investments in subsidiaries | ' | ' | ' | ' |
Amounts due from affiliates | 10 | 386,818 | 397,526 | ' |
Other assets | 157,472 | 173,168 | 140,811 | ' |
Total assets | 1,425,233 | 2,032,046 | 1,806,444 | ' |
Customer deposits | 455,134 | 770,885 | 655,575 | ' |
Accounts payable, accrued expenses and other current liabilities | 229,262 | 223,677 | 183,342 | ' |
Accrued salaries, wages and payroll taxes | 2,197 | 2,190 | 1,881 | ' |
Accrued income taxes | 47,732 | 71,132 | 29,020 | ' |
Current portion of long-term debt | ' | 399,882 | 399,765 | ' |
Total current liabilities | 734,325 | 1,467,766 | 1,269,583 | ' |
Long-term debt | 497,753 | 497,612 | 497,471 | ' |
Other noncurrent liabilities | 47,477 | 5,766 | 12,428 | ' |
Amounts due to affiliates | 91,909 | ' | ' | ' |
Total liabilities | 1,371,464 | 1,971,144 | 1,779,482 | ' |
Stockholdersb equity | 53,769 | 60,902 | 26,962 | ' |
Total liabilities and stockholders' equity | 1,425,233 | 2,032,046 | 1,806,444 | ' |
Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | 195,540 | 1,574,031 | 401,303 | 1,192,197 |
Cash and cash equivalents - restricted | 50,112 | 47,856 | 40,726 | ' |
Receivables, net - short-term, Carrying Amount | 23,430 | 101,643 | 31,834 | ' |
Prepaid expenses and other current assets | 171,892 | 188,065 | 217,662 | ' |
Investments in available-for-sale securities | 100 | ' | ' | ' |
Total current assets | 441,074 | 1,911,595 | 691,525 | ' |
Mortgage loans held for investment, net | ' | ' | ' | ' |
Investments in available-for-sale securities | 9,774 | 4,329 | 4,409 | ' |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | 318,068 | 304,790 | 311,012 | ' |
Intangible assets, net | 414,045 | 355,622 | 296,213 | ' |
Goodwill | 464,182 | 436,117 | 442,812 | ' |
Investments in subsidiaries | 53,769 | 60,902 | 26,962 | ' |
Amounts due from affiliates | 92,974 | 397 | 2,167,944 | ' |
Other assets | 19,119 | 25,677 | 118,103 | ' |
Total assets | 1,813,005 | 3,099,429 | 4,058,980 | ' |
Customer deposits | ' | ' | ' | ' |
Accounts payable, accrued expenses and other current liabilities | 206,625 | 344,573 | 243,071 | ' |
Accrued salaries, wages and payroll taxes | 34,018 | 164,842 | 39,703 | ' |
Accrued income taxes | 99,268 | 335,523 | ' | ' |
Current portion of long-term debt | 772 | 755 | 738 | ' |
Total current liabilities | 340,683 | 845,693 | 283,512 | ' |
Long-term debt | 7,835 | 8,225 | 8,607 | ' |
Other noncurrent liabilities | 223,872 | 312,261 | 254,347 | ' |
Amounts due to affiliates | 565,397 | 1,028,919 | 397,526 | ' |
Total liabilities | 1,137,787 | 2,195,098 | 943,992 | ' |
Stockholdersb equity | 675,218 | 904,331 | 3,114,988 | ' |
Total liabilities and stockholders' equity | 1,813,005 | 3,099,429 | 4,058,980 | ' |
Parent Company [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | ' | ' | ' | ' |
Cash and cash equivalents - restricted | ' | ' | ' | ' |
Receivables, net - short-term, Carrying Amount | 79 | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' |
Investments in available-for-sale securities | ' | ' | ' | ' |
Total current assets | 79 | ' | ' | ' |
Mortgage loans held for investment, net | ' | ' | ' | ' |
Investments in available-for-sale securities | ' | ' | ' | ' |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | ' | ' | ' | ' |
Intangible assets, net | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Investments in subsidiaries | 675,218 | 904,331 | 3,114,988 | ' |
Amounts due from affiliates | 565,387 | 642,101 | 0 | ' |
Other assets | ' | 11,271 | 8,512 | ' |
Total assets | 1,240,684 | 1,557,703 | 3,123,500 | ' |
Customer deposits | ' | ' | ' | ' |
Accounts payable, accrued expenses and other current liabilities | 943 | 757 | 581 | ' |
Accrued salaries, wages and payroll taxes | ' | ' | ' | ' |
Accrued income taxes | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' |
Total current liabilities | 943 | 757 | 581 | ' |
Long-term debt | ' | ' | ' | ' |
Other noncurrent liabilities | ' | ' | ' | ' |
Amounts due to affiliates | 1,065 | 397 | 2,167,944 | ' |
Total liabilities | 2,008 | 1,154 | 2,168,525 | ' |
Stockholdersb equity | 1,238,676 | 1,556,549 | 954,975 | ' |
Total liabilities and stockholders' equity | 1,240,684 | 1,557,703 | 3,123,500 | ' |
Intersegment Eliminations [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Cash & cash equivalents | -274 | -1,100 | -446 | -2,723 |
Cash and cash equivalents - restricted | ' | ' | ' | ' |
Receivables, net - short-term, Carrying Amount | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | -6,545 | ' |
Investments in available-for-sale securities | ' | ' | ' | ' |
Total current assets | -274 | -1,100 | -6,991 | ' |
Mortgage loans held for investment, net | ' | ' | ' | ' |
Investments in available-for-sale securities | ' | ' | ' | ' |
Property and equipment, at cost less accumulated depreciation and amortization of $491,153, $449,738 and $446,049 | ' | ' | ' | ' |
Intangible assets, net | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Investments in subsidiaries | -728,987 | -965,233 | -3,141,950 | ' |
Amounts due from affiliates | -658,371 | -1,029,316 | -2,565,470 | ' |
Other assets | ' | ' | ' | ' |
Total assets | -1,387,632 | -1,995,649 | -5,714,411 | ' |
Customer deposits | -274 | -1,100 | -446 | ' |
Accounts payable, accrued expenses and other current liabilities | ' | ' | ' | ' |
Accrued salaries, wages and payroll taxes | ' | ' | ' | ' |
Accrued income taxes | ' | ' | -6,545 | ' |
Current portion of long-term debt | ' | ' | ' | ' |
Total current liabilities | -274 | -1,100 | -6,991 | ' |
Long-term debt | ' | ' | ' | ' |
Other noncurrent liabilities | ' | ' | ' | ' |
Amounts due to affiliates | -658,371 | -1,029,316 | -2,565,470 | ' |
Total liabilities | -658,645 | -1,030,416 | -2,572,461 | ' |
Stockholdersb equity | -728,987 | -965,233 | -3,141,950 | ' |
Total liabilities and stockholders' equity | ($1,387,632) | ($1,995,649) | ($5,714,411) | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Cash Flows) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Repayments of Long-term Debt | $400,000 | $0 |
Net cash provided by (used in) operating activities: | -627,577 | -492,373 |
Purchases of AFS securities | -100 | -45,158 |
Maturities of and payments received on AFS securities | 49,013 | 55,615 |
Principal payments on mortgage loans held for investment, net | 13,451 | 24,340 |
Capital expenditures | -70,927 | -86,926 |
Payments made for business acquisitions, net of cash acquired | 94,230 | 20,927 |
Loans made to franchisees | -18,251 | -22,114 |
Repayments from franchisees | 29,637 | 15,883 |
Intercompany payments/investments in subsidiaries | ' | ' |
Other, net | 10,685 | 15,255 |
Net cash provided by (used in) investing activities | -80,722 | -64,032 |
Customer banking deposits, net | -316,269 | -275,800 |
Dividends paid | -109,871 | -109,324 |
Proceeds from exercise of stock options | 14,477 | 24,536 |
Intercompany borrowings (repayments) | ' | ' |
Other, net | -33,639 | -31,948 |
Net cash used in financing activities | -845,302 | -392,536 |
Effects of exchange rates on cash | -4,216 | -7,871 |
Net decrease in cash and cash equivalents | -1,557,817 | -956,812 |
Cash & cash equivalents | 627,490 | 790,772 |
Parent Company [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Repayments of Long-term Debt | ' | ' |
Net cash provided by (used in) operating activities: | ' | 799 |
Purchases of AFS securities | ' | ' |
Maturities of and payments received on AFS securities | ' | ' |
Principal payments on mortgage loans held for investment, net | ' | ' |
Capital expenditures | ' | ' |
Payments made for business acquisitions, net of cash acquired | ' | ' |
Loans made to franchisees | ' | ' |
Repayments from franchisees | ' | ' |
Intercompany payments/investments in subsidiaries | ' | ' |
Other, net | ' | ' |
Net cash provided by (used in) investing activities | ' | ' |
Customer banking deposits, net | ' | ' |
Dividends paid | -109,871 | -109,324 |
Proceeds from exercise of stock options | 14,477 | 24,536 |
Intercompany borrowings (repayments) | 105,641 | 89,318 |
Other, net | -10,247 | -5,329 |
Net cash used in financing activities | ' | -799 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | ' | ' |
Cash & cash equivalents | ' | ' |
Block Financial Issuer [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Repayments of Long-term Debt | 400,000 | ' |
Net cash provided by (used in) operating activities: | 55,612 | 46,969 |
Purchases of AFS securities | ' | -45,158 |
Maturities of and payments received on AFS securities | 49,013 | 55,615 |
Principal payments on mortgage loans held for investment, net | 13,451 | 24,340 |
Capital expenditures | -119 | -57 |
Payments made for business acquisitions, net of cash acquired | ' | ' |
Loans made to franchisees | -18,180 | -22,114 |
Repayments from franchisees | 29,404 | 15,883 |
Intercompany payments/investments in subsidiaries | 400,000 | 23,036 |
Other, net | 4,372 | 11,368 |
Net cash provided by (used in) investing activities | 477,941 | 62,913 |
Customer banking deposits, net | -317,095 | -278,077 |
Dividends paid | ' | ' |
Proceeds from exercise of stock options | ' | ' |
Intercompany borrowings (repayments) | 3,390 | ' |
Other, net | ' | ' |
Net cash used in financing activities | -713,705 | -278,077 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | -180,152 | -168,195 |
Cash & cash equivalents | 432,224 | 389,915 |
Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Repayments of Long-term Debt | ' | ' |
Net cash provided by (used in) operating activities: | -683,189 | -540,141 |
Purchases of AFS securities | -100 | ' |
Maturities of and payments received on AFS securities | ' | ' |
Principal payments on mortgage loans held for investment, net | ' | ' |
Capital expenditures | -70,808 | -86,869 |
Payments made for business acquisitions, net of cash acquired | 94,230 | 20,927 |
Loans made to franchisees | -71 | ' |
Repayments from franchisees | 233 | ' |
Intercompany payments/investments in subsidiaries | -109,031 | -89,318 |
Other, net | 6,313 | 3,887 |
Net cash provided by (used in) investing activities | -267,694 | -193,227 |
Customer banking deposits, net | ' | ' |
Dividends paid | ' | ' |
Proceeds from exercise of stock options | ' | ' |
Intercompany borrowings (repayments) | -400,000 | -23,036 |
Other, net | -23,392 | -26,619 |
Net cash used in financing activities | -423,392 | -49,655 |
Effects of exchange rates on cash | -4,216 | -7,871 |
Net decrease in cash and cash equivalents | -1,378,491 | -790,894 |
Cash & cash equivalents | 195,540 | 401,303 |
Intersegment Eliminations [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Repayments of Long-term Debt | ' | ' |
Net cash provided by (used in) operating activities: | ' | ' |
Purchases of AFS securities | ' | ' |
Maturities of and payments received on AFS securities | ' | ' |
Principal payments on mortgage loans held for investment, net | ' | ' |
Capital expenditures | ' | ' |
Payments made for business acquisitions, net of cash acquired | ' | ' |
Loans made to franchisees | ' | ' |
Repayments from franchisees | ' | ' |
Intercompany payments/investments in subsidiaries | -290,969 | 66,282 |
Other, net | ' | ' |
Net cash provided by (used in) investing activities | -290,969 | 66,282 |
Customer banking deposits, net | 826 | 2,277 |
Dividends paid | ' | ' |
Proceeds from exercise of stock options | ' | ' |
Intercompany borrowings (repayments) | 290,969 | -66,282 |
Other, net | ' | ' |
Net cash used in financing activities | 291,795 | -64,005 |
Effects of exchange rates on cash | ' | ' |
Net decrease in cash and cash equivalents | 826 | 2,277 |
Cash & cash equivalents | ($274) | ($446) |