Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jan. 31, 2016 | Feb. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | H&R BLOCK INC | |
Entity Central Index Key | 12,659 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 224,405,675 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
REVENUES: | ||||
Service revenues | $ 389,502 | $ 406,441 | $ 621,356 | $ 637,356 |
Royalty, product and other revenues | 85,041 | 102,633 | 119,320 | 139,932 |
Total revenues | 474,543 | 509,074 | 740,676 | 777,288 |
Cost of revenues: | ||||
Compensation and benefits | 181,915 | 186,656 | 300,398 | 307,892 |
Occupancy and equipment | 96,201 | 92,303 | 281,107 | 263,235 |
Provision for bad debt and loan losses | 35,734 | 39,283 | 38,921 | 44,032 |
Depreciation and amortization | 28,795 | 29,181 | 84,237 | 82,695 |
Other | 49,868 | 47,255 | 127,759 | 116,247 |
Cost of revenues | 392,513 | 394,678 | 832,422 | 814,101 |
Selling, general and administrative: | ||||
Marketing and advertising | 93,708 | 87,569 | 115,204 | 108,227 |
Compensation and benefits | 63,653 | 60,380 | 179,915 | 175,697 |
Depreciation and amortization | 16,508 | 14,110 | 43,509 | 33,211 |
Other selling, general and administrative | 28,003 | 27,488 | 97,283 | 66,991 |
Selling, general and administrative | 201,872 | 189,547 | 435,911 | 384,126 |
Total operating expenses | 594,385 | 584,225 | 1,268,333 | 1,198,227 |
Other income, net | (6,140) | (6,970) | (11,335) | (10,456) |
Other Nonoperating Income | 3,055 | 304 | 13,993 | 827 |
Interest expense on borrowings | (23,573) | (9,048) | (46,329) | (36,686) |
Loss from continuing operations before income tax benefit | (146,500) | (90,865) | (571,328) | (467,254) |
Income tax benefit | (67,851) | (55,554) | (253,656) | (209,865) |
Net loss from continuing operations | (78,649) | (35,311) | (317,672) | (257,389) |
Net loss from discontinued operations, net of tax benefits of $1,776, $1,016, $5,085 and $4,814 | (3,080) | (1,637) | (8,723) | (7,789) |
NET LOSS | $ (81,729) | $ (36,948) | $ (326,395) | $ (265,178) |
BASIC AND DILUTED LOSS PER SHARE: | ||||
Continuing operations (in usd per share) | $ (0.34) | $ (0.13) | $ (1.23) | $ (0.94) |
Discontinued operations (in usd per share) | (0.01) | 0 | (0.04) | (0.03) |
Consolidated (in usd per share) | (0.35) | (0.13) | (1.27) | (0.97) |
DIVIDENDS PAID PER SHARE (in usd per share) | $ 0.2000 | $ 0.2000 | $ 0.60 | $ 0.60 |
COMPREHENSIVE LOSS: | ||||
NET LOSS | $ (81,729) | $ (36,948) | $ (326,395) | $ (265,178) |
Unrealized gains (losses) on securities, net of taxes: | ||||
Unrealized holding gains (losses) arising during the period | (13) | 2,147 | (3,523) | 6,917 |
Reclassification adjustment for gains included in income | 0 | 0 | (4,983) | (15) |
Change in foreign currency translation adjustments | (4,628) | (9,987) | (14,083) | (13,342) |
Other comprehensive loss | (4,641) | (7,840) | (22,589) | (6,440) |
Comprehensive loss | $ (86,370) | $ (44,788) | $ (348,984) | $ (271,618) |
Consolidated Statements Of Ope3
Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | ||||
Tax benefit on discontinued operations | $ (1,776) | $ (1,016) | $ (5,085) | $ (4,814) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
ASSETS | |||
Cash and cash equivalents | $ 189,511 | $ 2,007,190 | $ 1,321,134 |
Cash and cash equivalents - restricted | 69,649 | 91,972 | 51,085 |
Receivables, less allowance for doubtful accounts of $47,234, $49,859 and $54,527 | 829,774 | 167,964 | 777,453 |
Deferred tax assets and income taxes receivable | 29,411 | 174,267 | 167,826 |
Prepaid expenses and other current assets | 101,169 | 70,283 | 92,976 |
Investments in available-for-sale securities | 1,145 | 439,625 | 367,845 |
Total current assets | 1,220,659 | 2,951,301 | 2,778,319 |
Mortgage loans held for investment, less allowance for loan losses of $6,931, $9,375 and $7,886 | 212,106 | 239,338 | 245,663 |
Property and equipment, at cost, less accumulated depreciation and amortization of $585,419, $509,039 and $518,797 | 290,202 | 311,387 | 308,805 |
Intangible assets, net | 473,732 | 432,142 | 443,329 |
Goodwill | 443,418 | 441,831 | 442,961 |
Deferred tax assets and income taxes receivable | 113,887 | 13,461 | 13,441 |
Other noncurrent assets | 120,042 | 125,960 | 146,423 |
Total assets | 2,874,046 | 4,515,420 | 4,378,941 |
LIABILITIES: | |||
Commercial Paper | 0 | 0 | 591,486 |
Customer banking deposits | 744,241 | 1,286,216 | |
Accounts payable and accrued expenses | 205,981 | 231,322 | 172,328 |
Accounts payable and accrued expenses | 250,846 | 322,508 | 300,162 |
Accrued salaries, wages and payroll taxes | 123,289 | 144,744 | 118,512 |
Accrued income taxes and reserves for uncertain tax positions | 8,099 | 434,684 | 1,619 |
Current portion of long-term debt | 817 | 790 | 781 |
Total current liabilities | 589,032 | 1,878,289 | 2,471,104 |
Long-term debt | 2,626,933 | 505,298 | 505,460 |
Deferred tax liabilities and reserves for uncertain tax positions | 88,377 | 142,586 | 144,036 |
Deferred revenue and other noncurrent liabilities | 106,438 | 156,298 | 111,956 |
Total liabilities | $ 3,410,780 | $ 2,682,471 | $ 3,232,556 |
COMMITMENTS AND CONTINGENCIES | |||
STOCKHOLDERS' EQUITY: | |||
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 264,117,966, 316,628,110 and 316,628,110 | $ 2,641 | $ 3,166 | $ 3,166 |
Additional paid-in capital | 758,491 | 783,793 | 778,845 |
Accumulated other comprehensive income (loss) | (20,849) | 1,740 | (1,263) |
Retained earnings (deficit) | (510,000) | 1,836,442 | 1,158,376 |
Less treasury shares, at cost, of 39,712,709, 41,384,132 and 41,353,479 | (767,017) | (792,192) | (792,739) |
Total stockholders' equity (deficiency) | (536,734) | 1,832,949 | 1,146,385 |
Total liabilities and stockholders' equity | $ 2,874,046 | $ 4,515,420 | $ 4,378,941 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
Statement of Financial Position [Abstract] | |||
Treasury Stock, Shares | 39,712,709 | 41,353,479 | 41,384,132 |
Allowance for doubtful accounts | $ 47,234 | $ 54,527 | $ 49,859 |
Allowance for loan losses | 6,931 | 7,886 | 9,375 |
Accumulated depreciation and amortization | $ 585,419 | $ 518,797 | $ 509,039 |
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 | 264,117,966 | 316,628,110 | 316,628,110 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
NET CASH USED IN OPERATING ACTIVITIES | $ (1,426,949) | $ (1,247,200) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Maturities of and payments received on available-for-sale securities | 436,380 | 68,013 |
Principal payments on mortgage loans held for investment, net | 24,664 | 18,098 |
Purchases of property and equipment | (66,418) | (98,876) |
Payments made for business acquisitions, net of cash acquired | (85,329) | (112,163) |
Franchise loans: | ||
Loans funded | (21,377) | (48,013) |
Payments received | 22,234 | 34,164 |
Other, net | 3,887 | 6,079 |
Net cash provided by (used in) investing activities | 314,041 | (132,698) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of Commercial Paper | 0 | 457,576 |
Proceeds from Issuance of Commercial Paper | 0 | 1,049,062 |
Repayments of long-term debt | (225,000) | (400,000) |
Proceeds from issuance of long-term debt | 2,346,831 | 0 |
Customer banking deposits, net | (326,705) | 515,015 |
Transfer of HRB Bank deposits | (419,028) | 0 |
Dividends paid | (157,530) | (164,905) |
Repurchase of common stock, including shares surrendered | (1,888,595) | (10,355) |
Proceeds from exercise of stock options | 25,803 | 16,026 |
Other, net | (43,972) | (15,993) |
Net cash used in financing activities | (688,196) | 531,274 |
Effects of exchange rates on cash | (16,575) | (15,549) |
Net decrease in cash and cash equivalents | (1,817,679) | (864,173) |
Cash and cash equivalents at beginning of the period | 2,007,190 | 2,185,307 |
Cash and cash equivalents at end of the period | 189,511 | 1,321,134 |
SUPPLEMENTARY CASH FLOW DATA: | ||
Income taxes paid, net of refunds received | 157,691 | 201,374 |
Interest paid on borrowings | 32,772 | 43,561 |
Transfers of foreclosed loans to other assets | 2,515 | 3,240 |
Accrued additions to property and equipment | 4,385 | 1,986 |
Conversion of investment security | 0 | 5,000 |
Accrued Purchase Of Common Stock | $ 21,167 | $ 0 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2016 | |
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 January 31, 2016 and 2015 , the consolidated statements of operations and comprehensive loss for the three and nine months ended January 31, 2016 and 2015 , and the condensed consolidated statements of cash flows for the nine months ended January 31, 2016 and 2015 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 January 31, 2016 and 2015 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, 2015 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2015 or for the year then ended are derived from our April 30, 2015 Annual Report to Shareholders on Form 10-K. In connection with the deregistration of H&R Block, Inc., H&R Block Group, Inc. and Block Financial, LLC as savings and loan holding companies (SLHCs), as discussed further in note 2 , we no longer present interest income on mortgage loans held for investment and various other investments as revenues. Effective September 1, 2015, these amounts are prospectively reported in other income on the consolidated statements of operations and comprehensive loss. 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 January 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 12 and 13 for additional information on litigation, claims and other loss contingencies related to our discontinued operations. NEW ACCOUNTING PRONOUNCEMENTS – In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17, "Balance Sheet Classification of Deferred Taxes," (ASU 2015-17) which requires that deferred tax liabilities and assets be classified as noncurrent. The new standard is effective for us on May 1, 2017, with early adoption permitted. This guidance may be applied either prospectively, or retrospectively to all periods presented. We elected to adopt this guidance as of November 1, 2015, and applied it prospectively. As such, prior periods have not been adjusted. This guidance did not have a material effect on our consolidated financial statements. |
Divestiture of H&R Block Bank D
Divestiture of H&R Block Bank Divestiture of H&R Block Bank | 9 Months Ended |
Jan. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture of H&R Block Bank | NOTE 2: DIVESTITURE OF H&R BLOCK BANK On August 4, 2015, H&R Block Bank (HRB Bank) , Block Financial LLC, the sole shareholder of HRB Bank (Block Financial), and BofI Federal Bank, a federal savings bank (BofI), received regulatory approvals for a definitive Amended and Restated Purchase and Assumption Agreement pursuant to which we agreed to sell certain assets and liabilities, including all of the deposit liabilities of HRB Bank, to BofI (P&A Transaction). On August 31, 2015, we completed the P&A Transaction and made a net cash payment to BofI of $419 million , which was approximately equal to the carrying value of the liabilities (including all deposit liabilities) assumed by BofI. In connection with the closing, we sold the available-for-sale (AFS) securities previously held by HRB Bank. We received proceeds of $388.0 million and recognized gains of $8.4 million on these sales. On the closing date of the P&A Transaction, HRB Bank converted from a federal savings bank to a national banking association, merged with and into its parent company, Block Financial, surrendered its bank charter and ceased to exist as a bank. As a result, effective August 31, 2015, neither we nor any of our subsidiaries are subject to minimum regulatory capital requirements or to regulation as a bank by the Office of the Comptroller of the Currency (OCC). In addition, H&R Block, Inc., H&R Block Group, Inc. and Block Financial (collectively, our Holding Companies) were SLHCs because they controlled HRB Bank. As a result of the P&A Transaction and related actions, our Holding Companies have ceased to be SLHCs and have deregistered as SLHCs under Section 10(b) of the Home Owner's Loan Act. Effective August 31, 2015, our Holding Companies are no longer subject to regulatory capital requirements applicable to SLHCs or regulation by the Board of Governors of the Federal Reserve System (Federal Reserve). |
Loss Per Share and Stockholders
Loss Per Share and Stockholders' Equity | 9 Months Ended |
Jan. 31, 2016 | |
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 4.6 million shares for the three and nine months ended January 31, 2016 , and 5.3 million shares for the three and nine months ended January 31, 2015 , 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 January 31, Nine months ended January 31, 2016 2015 2016 2015 Net loss from continuing operations attributable to shareholders $ (78,649 ) $ (35,311 ) $ (317,672 ) $ (257,389 ) Amounts allocated to participating securities (112 ) (105 ) (316 ) (291 ) Net loss from continuing operations attributable to common shareholders $ (78,761 ) $ (35,416 ) $ (317,988 ) $ (257,680 ) Basic weighted average common shares 231,904 275,190 257,979 274,957 Potential dilutive shares — — — — Dilutive weighted average common shares 231,904 275,190 257,979 274,957 Loss per share from continuing operations attributable to common shareholders: Basic $ (0.34 ) $ (0.13 ) $ (1.23 ) $ (0.94 ) Diluted (0.34 ) (0.13 ) (1.23 ) (0.94 ) The weighted average shares outstanding for the three and nine months ended January 31, 2016 decreased to 231.9 million and 258.0 million , respectively, from 275.2 million and 275.0 million for the three and nine months ended January 31, 2015 , respectively, primarily due to share repurchases completed in the current year. In September 2015, we announced that our Board of Directors approved a new $3.5 billion share repurchase program, effective through June 2019. During the nine months ended January 31, 2016 , we purchased and immediately retired 52.5 million shares of our common stock at an aggregate cost of $1.9 billion (average price of $36.02 per share). The cost of shares retired during the current period was allocated to the components of stockholders’ equity as follows: (in 000s) Common stock $ 525 Additional paid-in-capital 31,506 Retained earnings 1,859,807 Total $ 1,891,838 STOCK-BASED COMPENSATION – In addition to the shares repurchased as discussed above, during the nine months ended January 31, 2016 , we acquired 0.6 million shares of our common stock at an aggregate cost of $17.9 million . These shares represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the nine months ended January 31, 2015 , we acquired 0.3 million shares at an aggregate cost of $10.4 million for similar purposes. During the nine months ended January 31, 2016 and 2015 , we issued 2.2 million and 1.3 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards. During the nine months ended January 31, 2016 , we granted equity awards equivalent to 1.1 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, although the Compensation Committee may from time-to-time in limited circumstances approve grants with a modified vesting schedule as a special award. Stock-based compensation expense of our continuing operations totaled $7.2 million and $21.1 million for the three and nine months ended January 31, 2016 , respectively, and $6.1 million and $20.7 million for the three and nine months ended January 31, 2015 , respectively. As of January 31, 2016 , unrecognized compensation cost for stock options totaled $0.5 million , and for nonvested shares and units totaled $38.8 million . OTHER COMPREHENSIVE INCOME (LOSS) – Components of other comprehensive income (loss) 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) on AFS Securities Total Balances as of May 1, 2015 $ (6,789 ) $ 8,529 $ 1,740 Other comprehensive income (loss) before reclassifications: Gross losses arising during the period (14,083 ) (5,790 ) (19,873 ) Income taxes — (2,267 ) (2,267 ) (14,083 ) (3,523 ) (17,606 ) Amounts reclassified to net income: Gross amount reclassified — (8,196 ) (8,196 ) Income taxes — (3,213 ) (3,213 ) — (4,983 ) (4,983 ) Net other comprehensive loss (14,083 ) (8,506 ) (22,589 ) Balances as of January 31, 2016 $ (20,872 ) $ 23 $ (20,849 ) Balances as of May 1, 2014 $ 3,334 $ 1,843 $ 5,177 Other comprehensive income (loss) before reclassifications: Gross gains (losses) arising during the period (13,342 ) 11,389 (1,953 ) Income taxes — 4,472 4,472 (13,342 ) 6,917 (6,425 ) Amounts reclassified to net income: Gross amount reclassified — (24 ) (24 ) Income taxes — (9 ) (9 ) — (15 ) (15 ) Net other comprehensive income (loss) (13,342 ) 6,902 (6,440 ) Balances as of January 31, 2015 $ (10,008 ) $ 8,745 $ (1,263 ) Gross gains and losses reclassified out of accumulated other comprehensive income are included in other income and other expense, respectively, in the consolidated statements of operations and comprehensive loss. |
Receivables
Receivables | 9 Months Ended |
Jan. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | |
Receivables | NOTE 4: RECEIVABLES Receivables consist of the following: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Short-term Long-term Short-term Long-term Short-term Long-term Loans to franchisees $ 63,093 $ 62,431 $ 71,420 $ 84,770 $ 56,603 $ 64,472 Receivables for tax preparation and related fees 278,735 6,103 234,056 — 48,864 6,103 Cash Back® receivables 5,427 — 7,130 — 42,680 — Emerald Advance lines of credit 402,946 268 370,041 2,254 21,908 1,913 Royalties from franchisees 60,182 — 68,486 — 8,206 — Other 66,625 7,669 76,179 15,404 44,230 8,379 877,008 76,471 827,312 102,428 222,491 80,867 Allowance for doubtful accounts (47,234 ) — (49,859 ) — (54,527 ) — $ 829,774 $ 76,471 $ 777,453 $ 102,428 $ 167,964 $ 80,867 Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets. LOANS TO FRANCHISEES – Franchisee loan balances as of January 31, 2016 and 2015 and April 30, 2015 , consisted of $48.6 million , $55.9 million and $40.3 million , respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $76.9 million , $100.3 million and $80.8 million , respectively, in term loans made primarily to finance the purchase of franchises. As of January 31, 2016 and 2015 and April 30, 2015 , loans with a principal balance of $0.1 million , $1.4 million and $0.1 million , respectively, were more than 30 days past due. 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 January 31, 2016 and 2015 and April 30, 2015 , $0.3 million , $0.3 million and $1.3 million of Cash Back balances were more than 60 days old, respectively. H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – Beginning in fiscal year 2016, we no longer originate H&R Block Emerald Advance® lines of credit (EAs). These lines of credit are originated by BofI, and we purchase a participation interest in their loans. We review the credit quality of our 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 January 31, 2016 , by year of origination, are as follows: (in 000s) Credit Quality Indicator – Year of origination: 2016 $ 372,360 2015 6,042 2014 and prior 1,216 Revolving loans 23,596 $ 403,214 As of January 31, 2016 and 2015 and April 30, 2015 , $18.2 million , $19.5 million and $18.7 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 receivables for the nine months ended January 31, 2016 and 2015 is as follows: (in 000s) EAs All Other Total Balances as of May 1, 2015 $ 7,353 $ 47,174 $ 54,527 Provision 22,851 14,135 36,986 Charge-offs — (44,279 ) (44,279 ) Balances as of January 31, 2016 $ 30,204 $ 17,030 $ 47,234 Balances as of May 1, 2014 $ 7,530 $ 45,048 $ 52,578 Provision 28,521 13,143 41,664 Charge-offs — (44,383 ) (44,383 ) Balances as of January 31, 2015 $ 36,051 $ 13,808 $ 49,859 |
Mortgage Loans Held For Investm
Mortgage Loans Held For Investment And Related Assets | 9 Months Ended |
Jan. 31, 2016 | |
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 January 31, 2016 January 31, 2015 April 30, 2015 Amount % of Total Amount % of Total Amount % of Total Adjustable-rate loans $ 113,617 52 % $ 135,481 54 % $ 130,182 53 % Fixed-rate loans 103,632 48 % 117,484 46 % 115,034 47 % 217,249 100 % 252,965 100 % 245,216 100 % Unamortized deferred fees and costs 1,788 2,073 2,008 Less: Allowance for loan losses (6,931 ) (9,375 ) (7,886 ) $ 212,106 $ 245,663 $ 239,338 Our loan loss allowance as a percent of mortgage loans was 3.2% as of January 31, 2016 , compared to 3.7% as of January 31, 2015 and 3.2% as of April 30, 2015 . Activity in the allowance for loan losses for the nine months ended January 31, 2016 and 2015 is as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance at beginning of the period $ 7,886 $ 11,272 Provision (528 ) 1,090 Recoveries 1,721 1,155 Charge-offs (2,148 ) (4,142 ) Balance at end of the period $ 6,931 $ 9,375 Detail of the aging of the mortgage loans in our portfolio as of January 31, 2016 is as follows: (in 000s) Less than 60 Days Past Due 60 – 89 Days Past Due 90+ Days Past Due (1) Total Past Due Current Total Purchased from SCC $ 9,148 $ 440 $ 43,428 $ 53,016 $ 76,493 $ 129,509 All other 2,649 51 6,306 9,006 78,734 87,740 $ 11,797 $ 491 $ 49,734 $ 62,022 $ 155,227 $ 217,249 (1) We do not accrue interest on loans past due 90 days or more. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | NOTE 6: GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill for the nine months ended January 31, 2016 and 2015 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of April 30, 2015 $ 474,128 $ (32,297 ) $ 441,831 Acquisitions 4,025 — 4,025 Disposals and foreign currency changes, net (2,438 ) — (2,438 ) Impairments — — — Balances as of January 31, 2016 $ 475,715 $ (32,297 ) $ 443,418 Balances as of April 30, 2014 $ 468,414 $ (32,297 ) $ 436,117 Acquisitions 9,614 — 9,614 Disposals and foreign currency changes, net (2,770 ) — (2,770 ) Impairments — — — Balances as of January 31, 2015 $ 475,258 $ (32,297 ) $ 442,961 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 are as follows: (in 000s) Gross Carrying Amount Accumulated Amortization Net As of January 31, 2016: Reacquired franchise rights $ 338,242 $ (63,812 ) $ 274,430 Customer relationships 201,197 (96,043 ) 105,154 Internally-developed software 126,980 (91,655 ) 35,325 Noncompete agreements 34,454 (25,240 ) 9,214 Franchise agreements 19,201 (9,174 ) 10,027 Purchased technology 54,700 (24,393 ) 30,307 Acquired assets pending final allocation (1) 9,275 — 9,275 $ 784,049 $ (310,317 ) $ 473,732 As of January 31, 2015: Reacquired franchise rights $ 294,587 $ (39,954 ) $ 254,633 Customer relationships 169,058 (71,799 ) 97,259 Internally-developed software 114,447 (78,063 ) 36,384 Noncompete agreements 30,546 (23,171 ) 7,375 Franchise agreements 19,201 (7,894 ) 11,307 Purchased technology 54,700 (18,329 ) 36,371 $ 682,539 $ (239,210 ) $ 443,329 As of April 30, 2015: Reacquired franchise rights $ 294,647 $ (46,180 ) $ 248,467 Customer relationships 170,851 (78,157 ) 92,694 Internally-developed software 118,865 (80,689 ) 38,176 Noncompete agreements 30,630 (23,666 ) 6,964 Franchise agreements 19,201 (8,214 ) 10,987 Purchased technology 54,700 (19,846 ) 34,854 $ 688,894 $ (256,752 ) $ 432,142 (1) Represents recent business acquisitions, for which final purchase price allocations have not yet been determined. Amortization of intangible assets for the three and nine months ended January 31, 2016 was $20.2 million and $54.6 million , respectively. Amortization of intangible assets for the three and nine months ended January 31, 2015 was $16.7 million and $41.2 million , respectively. Estimated amortization of intangible assets for fiscal years 2016 , 2017 , 2018 , 2019 and 2020 is $74.9 million , $71.3 million , $61.2 million , $48.4 million and $36.4 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 7 Customer relationships 5 Internally-developed software 3 Noncompete agreements 5 Total 6 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Jan. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | NOTE 7: LONG-TERM DEBT The components of long-term debt are as follows: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Senior Notes, 4.125%, due October 2020 $ 648,023 $ — $ — Senior Notes, 5.500%, due November 2022 498,105 497,823 497,894 Senior Notes, 5.250%, due October 2025 348,985 — — Committed line of credit borrowings 1,125,000 — — Capital lease obligation 7,637 8,418 8,194 2,627,750 506,241 506,088 Less: Current portion (817 ) (781 ) (790 ) $ 2,626,933 $ 505,460 $ 505,298 On September 25, 2015, we issued $650.0 million of 4.125% Senior Notes due October 1, 2020 (2020 Senior Notes), and $350.0 million of 5.250% Senior Notes due October 1, 2025 (2025 Senior Notes). The Senior Notes are not redeemable by the bondholders prior to maturity, although we have the right to redeem some or all of these notes at any time, at specified redemption prices. Proceeds of the 2020 Senior Notes and 2025 Senior Notes, along with cash on hand, were used to repurchase shares, as discussed in note 3 . In September 2015, we terminated our previous committed line of credit agreement and entered into a new Credit and Guarantee Agreement (2015 CLOC). The 2015 CLOC provides for an unsecured senior revolving credit facility in the aggregate principal amount of $2.0 billion , which includes a $200.0 million sublimit for swingline loans and a $100.0 million sublimit for standby letters of credit. We may request increases in the aggregate principal amount of the revolving credit facility of up to $500.0 million , subject to obtaining commitments from lenders therefor and meeting certain other conditions. The 2015 CLOC will mature on September 21, 2020, unless extended pursuant to the terms of the 2015 CLOC, at which time all outstanding amounts thereunder will be due and payable. The 2015 CLOC includes an annual facility fee, which will vary depending our then current credit ratings. The 2015 CLOC is subject to various conditions, triggers, events or occurrences that could result in earlier termination and contains customary representations, warranties, covenants and events of default, including, without limitation: (1) a covenant requiring the Company to maintain a debt-to-EBITDA ratio calculated on a consolidated basis of no greater than (a) 3.50 to 1.00 as of the last day of each fiscal quarter ending on April 30, July 31, and October 31 of each year and (b) 4.50 to 1.00 as of the last day of each fiscal quarter ending on January 31 of each year; (2) a covenant requiring us to maintain an interest coverage (EBITDA-to-interest expense) ratio calculated on a consolidated basis of not less than 2.50 to 1.00 as of the last date of any fiscal quarter; and (3) covenants restricting our ability to incur additional debt, incur liens, merge or consolidate with other companies, sell or dispose of assets (including equity interests), liquidate or dissolve, engage in certain transactions with affiliates or enter into certain restrictive agreements. The 2015 CLOC includes provisions for an equity cure which could potentially allow us to independently cure certain defaults. Proceeds under the 2015 CLOC may be used for working capital needs or for other general corporate purposes. We had an outstanding balance of $1.1 billion under the 2015 CLOC as of January 31, 2016 . |
Fair Value
Fair Value | 9 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 8: FAIR VALUE ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS – The carrying amounts and estimated fair values of our financial instruments are as follows: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Carrying Estimated Carrying Estimated Carrying Estimated Assets: Cash and cash equivalents $ 189,511 $ 189,511 $ 1,321,134 $ 1,321,134 $ 2,007,190 $ 2,007,190 Cash and cash equivalents - restricted 69,649 69,649 51,085 51,085 91,972 91,972 Receivables, net - short-term 829,774 829,774 777,453 777,453 167,964 167,964 Mortgage loans held for investment, net 212,106 174,813 245,663 190,422 239,338 190,196 Investments in AFS securities 1,145 1,145 375,728 375,728 441,709 441,709 Receivables, net - long-term 76,471 76,471 102,428 102,428 80,867 80,867 Liabilities: Customer banking deposits — — 1,286,582 1,273,283 744,699 737,261 Long-term debt 2,627,750 2,709,807 506,241 558,693 506,088 556,769 Contingent consideration 13,903 13,903 12,848 12,848 10,667 10,667 Fair value estimates, methods and assumptions are set forth below. 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 estimated using a third-party pricing service. The fair value is determined using the present value of expected future cash flows at the asset level, assuming future prepayments and using discount factors determined by prices obtained for residential loans with similar characteristics in the secondary market, as discounted for illiquid assets. Quarterly, we perform analytics to assess the reasonableness of the fair value received from the third-party pricing service based on changes in the portfolio and changes in market conditions. We evaluate whether adjustments to third-party pricing is necessary and historically, we have not made adjustments to prices obtained from our third-party pricing service (Level 3). ▪ Investments in AFS securities - For mortgage-backed securities, we historically used a third-party pricing service to determine fair value. The service's pricing model was 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 was 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, was equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits was estimated by discounting the future cash flows using the rates 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). For outstanding balances on the 2015 CLOC, fair value approximates the carrying amount (Level 1). ▪ Contingent consideration - Fair value approximates the carrying amount (Level 3). |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9: 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 currently does not have a U.S. federal return under examination; however, our U.S. federal return for calendar 2013 and future returns for all subsequent periods are open to examination. Additionally, the Company is either currently under examination or open to examination in all U.S. states that impose a corporate income tax. We had gross unrecognized tax benefits of $75.2 million , $79.3 million and $86.3 million as of January 31, 2016 and 2015 and April 30, 2015 , respectively. The gross unrecognized tax benefits decreased $11.0 million and $32.2 million during the nine months ended January 31, 2016 and 2015 , respectively. The decrease in unrecognized tax benefits during the nine months ending January 31, 2016 is related to a law change enacted in the state of Missouri which resulted in a clarification of certain prior year state income tax positions, closure of audits with state taxing authorities and the expiration of statutes of limitations in multiple states. These decreases were partially offset by increases in uncertain tax positions attributable to various current and prior year federal and state tax positions taken or expected to be taken in our income tax returns. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $9.7 million within the next twelve months. The anticipated decrease is due to the expiration of statutes of limitations and anticipated closure of various state matters currently under exam. The portion of unrecognized benefits expected to be cash settled within the next twelve months is included in accrued income taxes and reserves for uncertain tax positions on our consolidated balance sheet. The remaining liability for uncertain tax positions is classified as long-term and is included in deferred tax liabilities and reserves for uncertain tax positions on the consolidated balance sheet. Consistent with prior years, our pretax loss for the nine months ended January 31, 2016 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 within 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. A discrete income tax benefit of $36.2 million was recorded in the nine months ended January 31, 2016 , compared to a discrete tax benefit of $30.9 million in the same period of the prior year. The discrete tax benefit recorded in the current fiscal year resulted primarily from a law change enacted in the State of Missouri which allows for the reduction of tax from our two prior fiscal years that was included on tax returns that were or will be timely filed for calendar years 2014 and 2015. The prior fiscal year discrete tax benefit was due largely to tax reserves released resulting from the expiration of statutory limitation periods. Excluding discrete items, management's estimate of the annualized effective tax rate for the nine months ended January 31, 2016 and 2015 was 38.1% and 38.3% , respectively. Our effective tax rate for continuing operations, including the effects of discrete income tax items was 44.4% and 44.9% for the nine months ended January 31, 2016 and 2015 , 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. The impact of discrete tax items combined with the seasonal nature of our business can cause the effective tax rate through our third quarter to be significantly different than the rate for our full fiscal year. |
Interest Income And Interest Ex
Interest Income And Interest Expense | 9 Months Ended |
Jan. 31, 2016 | |
Interest Income And Interest Expense [Abstract] | |
Other Income And Other Expenses | NOTE 10: OTHER INCOME AND OTHER EXPENSES The following table shows the components of other income and other expenses: (in 000s) Three months ended January 31, Nine months ended January 31, 2016 2015 2016 2015 Other income, net: Mortgage loans and real estate owned, net $ 2,186 $ — $ 2,220 $ — Interest and gains on AFS securities 36 — 8,804 — Other 833 304 2,969 827 $ 3,055 $ 304 $ 13,993 $ 827 Other expenses, net: Foreign currency losses $ (3,516 ) $ (6,883 ) $ (8,138 ) $ (8,690 ) Impairment of investments (2,500 ) — (2,500 ) — Other (124 ) (87 ) (697 ) (1,766 ) $ (6,140 ) $ (6,970 ) $ (11,335 ) $ (10,456 ) In connection with our deregistration as an SLHC, as discussed further in note 2 , we no longer present interest income on mortgage loans held for investment and various other investments as revenues. Effective September 1, 2015, these amounts are prospectively reported in other income on the consolidated statements of operations and comprehensive loss. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | NOTE 11: COMMITMENTS AND CONTINGENCIES Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM) issued in company-owned offices, which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 158,169 $ 145,237 Amounts deferred for new extended service plans issued 18,751 17,658 Revenue recognized on previous deferrals (62,764 ) (54,308 ) Balance, end of the period $ 114,156 $ 108,587 We accrued $6.2 million , $9.0 million and $8.4 million as of January 31, 2016 and 2015 and April 30, 2015 , respectively, related to estimated losses under our standard guarantee, which is included with our standard in-office tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets, respectively. For POM in franchise offices, we deferred revenue of $11.8 million , and recognized revenue of $12.2 million during the nine months ended January 31, 2016 . At January 31, 2016 , our deferred revenue related to POM in franchise offices totaled $31.2 million . We have accrued estimated contingent consideration totaling $13.9 million , $12.8 million and $10.7 million as of January 31, 2016 and 2015 and April 30, 2015 , respectively, related to acquisitions, with the short-term amount recorded in deferred revenue and other 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 $70.6 million at January 31, 2016 , and net of amounts drawn and outstanding, our remaining commitment to fund totaled $21.9 million . In connection with the P&A Transaction we entered into an Emerald Advance Receivables Participation Agreement (RPA) dated August 31, 2015 with BofI. Pursuant to the RPA, we are required to purchase a 90% participation interest, at par, in all EAs originated by BofI throughout the term of the RPA. At January 31, 2016 the principal balance of purchased participation interests totaled $374.5 million . NOTE 13: 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 residential mortgage-backed securities (RMBSs). In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." 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 and 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. 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 $2.6 billion since May 1, 2008, of which $1.9 billion were received prior to fiscal year 2013. SETTLEMENT ACTIONS – SCC has entered into tolling agreements with counterparties that have made a significant portion of previously denied 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. SCC has engaged in discussions with these counterparties since fiscal year 2013 regarding the bulk settlement of previously denied and potential future representation and warranty and other claims against SCC. 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 claims that are the subject of these discussions. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. On December 18, 2015, SCC entered into settlement agreements with two additional counterparties to resolve certain additional claims, subject to the terms and conditions set forth in the settlement agreements. The amounts paid under the settlement agreements were 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 January 31, 2016 , 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 deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 149,765 $ 183,765 Provisions 4,000 10,000 Payments (88,500 ) (50,000 ) Balance, end of the period $ 65,265 $ 143,765 On June 11, 2015, the New York Court of Appeals, New York's highest court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. This decision applies to claims and lawsuits brought against SCC where New York law governs. New York law governs many, though not all, of the RMBS transactions into which SCC entered. 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. It is possible that in response to the statute of limitations rulings in the ACE case and similar rulings in other state and federal courts, 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 seek to distinguish certain aspects of the ACE decision, pursue alternate legal theories of recovery, or assert claims against other contractual parties such as securitization trustees. For example, a recent ruling by a New York intermediate appellate court allowed a counterparty to pursue litigation on additional loans in the same trust even though only some of the loans complied with the condition precedent of timely pre-suit notice and opportunity to cure or repurchase. That New York intermediate appellate court decision has been appealed to the New York Court of Appeals. The impact on SCC, if any, from alternative legal theories seeking to avoid or distinguish the ACE decision, or judicial limitations on the ACE decision, is unclear. 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. SCC believes it is reasonably possible that future losses related to representation and warranty claims 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 12 , losses may also be incurred with respect to various indemnification claims or reserved contribution rights by underwriters, depositors, and securitization trustees in securitization transactions in which SCC participated. Losses from these indemnification claims or reserved contribution rights are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, have not accrued a liability for these claims or rights, and are not able to estimate a reasonably possible loss or range of loss for these claims or rights. Accordingly, neither the accrued liability described above totaling $65.3 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 or reserved contribution rights. There can be no assurances as to the outcome or impact of these indemnification claims or reserved contribution rights. In the event of unfavorable outcomes on these claims or rights, 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. Claimants may also attempt to assert claims against or seek payment directly from the Company even if SCC's assets exceed its liabilities . SCC's principal assets, as of January 31, 2016 , total approximately $392 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 Continge
Litigation And Related Contingencies | 9 Months Ended |
Jan. 31, 2016 | |
Litigation And Related Contingencies [Abstract] | |
Litigation And Related Contingencies | NOTE 12: 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 January 31, 2016 . While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of January 31, 2016 and 2015 and April 30, 2015 , we accrued liabilities of $6.2 million , $8.9 million and $8.9 million , respectively, for matters addressed in this note. 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 January 31, 2016 , 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 has been, remains, and may in the future be subject to litigation, claims, including indemnification and contribution 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, underwriters, and securitization trustees, 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 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 United States 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 or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. A portion of the accrual for representation and warranty claims, as discussed in note 13 , is related to loans in this case. We have not concluded that a loss related to this lawsuit is probable, nor have we accrued a liability related to this lawsuit. On April 5, 2013, a third lawsuit was filed by Homeward in the United States 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 or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. A portion of the accrual for representation and warranty claims, as discussed in note 13 , is related to loans in this case. We have not concluded that a loss related to this lawsuit is probable, nor have we accrued a liability related to this lawsuit. 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 22 lawsuits in which notice of a claim has been made involve 39 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 Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. , filed in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) and settled as to SCC in August 2015), 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, which are referred to as "reserved contribution 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 or reserved contribution rights is probable, nor have we accrued a liability related to any of these claims or rights. Securitization trustees also are, or have been, involved in lawsuits related to securitization transactions in which SCC participated. Plaintiffs in these lawsuits allege, among other things, that originators, depositors, servicers or other parties breached their representations and warranties or otherwise failed to fulfill their obligations, including that securitization trustees breached their contractual obligations, breached their fiduciary duties, or violated statutory requirements by failing to properly protect the certificate holders’ interests. In connection with one lawsuit against a securitization trustee, SCC received a notice of potential indemnification obligations for one securitization with alleged losses in the amount of approximately $91 million . SCC may receive additional notices for indemnification with respect to existing or new lawsuits or settlements of such lawsuits in its capacity as originator, depositor, or servicer. We have not concluded that a loss related to any indemnification claims by securitization trustees is probable, nor have we accrued a liability for such claims. LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS – 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. On March 12, 2015, the trial court denied the motion on remand. We filed an additional appeal. On March 8, 2016, the appellate court affirmed the decision of the trial court. 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 originally sought to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserted 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. In June 2014, the court denied class certification of the remaining 2012 claims. The plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which was denied on June 18, 2015. In January 2016, the plaintiff filed an amended complaint asserting claims of violation of Missouri and California state consumer laws, money had and received, and unjust enrichment, along with a motion to certify a class of all persons (excluding citizens of Missouri) who were charged the compliance fee in the state of California. We subsequently filed a motion for summary judgment on all claims. Both motions remain pending before the court. 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 desktop 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. The Judicial Panel on Multidistrict Litigation subsequently 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 the class allegations relating to those clients who agreed to arbitration, which the court granted on January 7, 2015. The parties subsequently reached an agreement to settle the remaining claims, subject to court approval. The court granted preliminary approval of the settlement on January 12, 2016. A final approval hearing is set for May 19, 2016. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable . 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. 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) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 149,765 $ 183,765 Provisions 4,000 10,000 Payments (88,500 ) (50,000 ) Balance, end of the period $ 65,265 $ 143,765 |
Loss Contingencies Arising From
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations | 9 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations | NOTE 11: COMMITMENTS AND CONTINGENCIES Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM) issued in company-owned offices, which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 158,169 $ 145,237 Amounts deferred for new extended service plans issued 18,751 17,658 Revenue recognized on previous deferrals (62,764 ) (54,308 ) Balance, end of the period $ 114,156 $ 108,587 We accrued $6.2 million , $9.0 million and $8.4 million as of January 31, 2016 and 2015 and April 30, 2015 , respectively, related to estimated losses under our standard guarantee, which is included with our standard in-office tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets, respectively. For POM in franchise offices, we deferred revenue of $11.8 million , and recognized revenue of $12.2 million during the nine months ended January 31, 2016 . At January 31, 2016 , our deferred revenue related to POM in franchise offices totaled $31.2 million . We have accrued estimated contingent consideration totaling $13.9 million , $12.8 million and $10.7 million as of January 31, 2016 and 2015 and April 30, 2015 , respectively, related to acquisitions, with the short-term amount recorded in deferred revenue and other 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 $70.6 million at January 31, 2016 , and net of amounts drawn and outstanding, our remaining commitment to fund totaled $21.9 million . In connection with the P&A Transaction we entered into an Emerald Advance Receivables Participation Agreement (RPA) dated August 31, 2015 with BofI. Pursuant to the RPA, we are required to purchase a 90% participation interest, at par, in all EAs originated by BofI throughout the term of the RPA. At January 31, 2016 the principal balance of purchased participation interests totaled $374.5 million . NOTE 13: 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 residential mortgage-backed securities (RMBSs). In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." 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 and 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. 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 $2.6 billion since May 1, 2008, of which $1.9 billion were received prior to fiscal year 2013. SETTLEMENT ACTIONS – SCC has entered into tolling agreements with counterparties that have made a significant portion of previously denied 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. SCC has engaged in discussions with these counterparties since fiscal year 2013 regarding the bulk settlement of previously denied and potential future representation and warranty and other claims against SCC. 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 claims that are the subject of these discussions. On December 5, 2014, SCC entered into a settlement agreement to resolve certain of these claims. On December 18, 2015, SCC entered into settlement agreements with two additional counterparties to resolve certain additional claims, subject to the terms and conditions set forth in the settlement agreements. The amounts paid under the settlement agreements were 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 January 31, 2016 , 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 deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC's accrued liability for these loss contingencies is as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 149,765 $ 183,765 Provisions 4,000 10,000 Payments (88,500 ) (50,000 ) Balance, end of the period $ 65,265 $ 143,765 On June 11, 2015, the New York Court of Appeals, New York's highest court, upheld the New York intermediate appellate court in ACE Securities Corp. v. DB Structured Products, Inc., that the six-year statute of limitations under New York law starts to run at the time the representations and warranties are made, not the date when the repurchase demand was denied. This decision applies to claims and lawsuits brought against SCC where New York law governs. New York law governs many, though not all, of the RMBS transactions into which SCC entered. 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. It is possible that in response to the statute of limitations rulings in the ACE case and similar rulings in other state and federal courts, 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 seek to distinguish certain aspects of the ACE decision, pursue alternate legal theories of recovery, or assert claims against other contractual parties such as securitization trustees. For example, a recent ruling by a New York intermediate appellate court allowed a counterparty to pursue litigation on additional loans in the same trust even though only some of the loans complied with the condition precedent of timely pre-suit notice and opportunity to cure or repurchase. That New York intermediate appellate court decision has been appealed to the New York Court of Appeals. The impact on SCC, if any, from alternative legal theories seeking to avoid or distinguish the ACE decision, or judicial limitations on the ACE decision, is unclear. 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. SCC believes it is reasonably possible that future losses related to representation and warranty claims 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 12 , losses may also be incurred with respect to various indemnification claims or reserved contribution rights by underwriters, depositors, and securitization trustees in securitization transactions in which SCC participated. Losses from these indemnification claims or reserved contribution rights are frequently not subject to a stated term or limit. We have not concluded that a loss related to any of these indemnification claims or reserved contribution rights is probable, have not accrued a liability for these claims or rights, and are not able to estimate a reasonably possible loss or range of loss for these claims or rights. Accordingly, neither the accrued liability described above totaling $65.3 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 or reserved contribution rights. There can be no assurances as to the outcome or impact of these indemnification claims or reserved contribution rights. In the event of unfavorable outcomes on these claims or rights, 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. Claimants may also attempt to assert claims against or seek payment directly from the Company even if SCC's assets exceed its liabilities . SCC's principal assets, as of January 31, 2016 , total approximately $392 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. |
Segment Information
Segment Information | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 14: SEGMENT INFORMATION We operate as a single segment offering tax preparation and related services and products to clients in our offices or through H&R Block tax software, either online or using our desktop software or mobile applications. Revenues of our continuing operations are as follows: (in 000s) Three months ended January 31, Nine months ended January 31, 2016 2015 2016 2015 REVENUES : Tax preparation fees: U.S. assisted $ 268,775 $ 283,692 $ 332,463 $ 341,107 International 8,575 10,021 79,633 94,308 U.S. digital 39,251 36,720 45,899 42,545 316,601 330,433 457,995 477,960 Royalties 40,387 52,284 59,245 68,508 Revenues from Refund Transfers 49,419 50,899 54,782 56,472 Revenues from Emerald Card® 13,356 13,910 38,853 39,479 Revenues from Peace of Mind® Extended Service Plan 15,736 13,492 62,764 54,308 Interest and fee income on Emerald Advance 31,603 30,288 32,334 31,439 Other 7,441 17,768 34,703 49,122 $ 474,543 $ 509,074 $ 740,676 $ 777,288 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Jan. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | NOTE 15: 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, our 2015 CLOC and other indebtedness issued from time to time. These condensed consolidating financial statements have been prepared using the equity method of accounting. Earnings of subsidiaries are, therefore, reflected in the Company's investment in subsidiaries account. The elimination entries eliminate investments in subsidiaries, related stockholders' equity and other intercompany balances and transactions. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in 000s) Nine months ended January 31, 2016 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Total revenues $ — $ 91,239 $ 651,125 $ (1,688 ) $ 740,676 Cost of revenues — 59,122 774,985 (1,685 ) 832,422 Selling, general and administrative 3,535 18,847 413,532 (3 ) 435,911 Total operating expenses 3,535 77,969 1,188,517 (1,688 ) 1,268,333 Other income, net 1,731 17,878 4,734 (10,350 ) 13,993 Interest expense on external borrowings — (45,988 ) (341 ) — (46,329 ) Other expenses, net (326,631 ) (3,956 ) (16,939 ) 336,191 (11,335 ) Loss from continuing operations before tax benefit (328,435 ) (18,796 ) (549,938 ) 325,841 (571,328 ) Income tax benefit (2,040 ) (25,922 ) (225,694 ) — (253,656 ) Net income (loss) from continuing operations (326,395 ) 7,126 (324,244 ) 325,841 (317,672 ) Net loss from discontinued operations — (8,721 ) (2 ) — (8,723 ) Net loss (326,395 ) (1,595 ) (324,246 ) 325,841 (326,395 ) Other comprehensive loss (22,589 ) (8,444 ) (22,589 ) 31,033 (22,589 ) Comprehensive loss $ (348,984 ) $ (10,039 ) $ (346,835 ) $ 356,874 $ (348,984 ) Nine months ended January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Total revenues $ — $ 107,233 $ 672,000 $ (1,945 ) $ 777,288 Cost of revenues — 66,063 749,978 (1,940 ) 814,101 Selling, general and administrative — 12,598 371,533 (5 ) 384,126 Total operating expenses — 78,661 1,121,511 (1,945 ) 1,198,227 Other income, net 3,461 2,366 1,373 (6,373 ) 827 Interest expense on external borrowings — (36,388 ) (298 ) — (36,686 ) Other expenses, net (268,160 ) (2,186 ) (14,251 ) 274,141 (10,456 ) Loss from continuing operations before taxes (benefit) (264,699 ) (7,636 ) (462,687 ) 267,768 (467,254 ) Income taxes (benefit) 479 (19,486 ) (190,858 ) — (209,865 ) Net income (loss) from continuing operations (265,178 ) 11,850 (271,829 ) 267,768 (257,389 ) Net income (loss) from discontinued operations — (11,458 ) 3,669 — (7,789 ) Net income (loss) (265,178 ) 392 (268,160 ) 267,768 (265,178 ) Other comprehensive income (loss) (6,440 ) 7,765 (6,440 ) (1,325 ) (6,440 ) Comprehensive income (loss) $ (271,618 ) $ 8,157 $ (274,600 ) $ 266,443 $ (271,618 ) CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Cash & cash equivalents $ — $ 969,387 $ 352,015 $ (268 ) $ 1,321,134 Cash & cash equivalents - restricted — 3,459 47,626 — 51,085 Receivables, net — 436,907 340,546 — 777,453 Deferred tax assets and income taxes receivable — 79,064 163,300 (74,538 ) 167,826 Prepaid expenses and other current assets — 10,426 82,550 — 92,976 Investments in AFS securities — 367,745 100 — 367,845 Total current assets — 1,866,988 986,137 (74,806 ) 2,778,319 Mortgage loans held for investment, net — 245,663 — — 245,663 Property and equipment, net — 136 308,669 — 308,805 Intangible assets, net — — 443,329 — 443,329 Goodwill — — 442,961 — 442,961 Deferred tax assets and income taxes receivable — 27,505 (14,064 ) — 13,441 Investments in subsidiaries 635,258 — 69,988 (705,246 ) — Amounts due from affiliates 513,204 459,955 1,029 (974,188 ) — Other noncurrent assets — 104,869 41,554 — 146,423 Total assets $ 1,148,462 $ 2,705,116 $ 2,279,603 $ (1,754,240 ) $ 4,378,941 Commercial paper borrowings $ — $ 591,486 $ — $ — $ 591,486 Customer banking deposits — 1,286,484 — (268 ) 1,286,216 Accounts payable and accrued expenses 1,048 7,216 164,064 — 172,328 Accrued salaries, wages and payroll taxes — 1,929 116,583 — 118,512 Accrued income taxes and reserves for uncertain tax positions — 53,655 22,502 (74,538 ) 1,619 Current portion of long-term debt — — 781 — 781 Deferred revenue and other current liabilities — 170,981 129,181 — 300,162 Total current liabilities 1,048 2,111,751 433,111 (74,806 ) 2,471,104 Long-term debt — 497,823 7,637 — 505,460 Deferred tax liabilities and reserves for uncertain tax positions — 23,791 120,245 — 144,036 Deferred revenue and other noncurrent liabilities — 1,763 110,193 — 111,956 Amounts due to affiliates 1,029 — 973,159 (974,188 ) — Total liabilities 2,077 2,635,128 1,644,345 (1,048,994 ) 3,232,556 Stockholders' equity 1,146,385 69,988 635,258 (705,246 ) 1,146,385 Total liabilities and stockholders' equity $ 1,148,462 $ 2,705,116 $ 2,279,603 $ (1,754,240 ) $ 4,378,941 CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of April 30, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Cash & cash equivalents $ — $ 478,077 $ 1,529,553 $ (440 ) $ 2,007,190 Cash & cash equivalents - restricted — 45,098 46,874 — 91,972 Receivables, net — 80,332 87,632 — 167,964 Deferred tax assets and income taxes receivable — 77,418 96,849 — 174,267 Prepaid expenses and other current assets — 7,771 62,512 — 70,283 Investments in AFS securities — 434,924 4,701 — 439,625 Total current assets — 1,123,620 1,828,121 (440 ) 2,951,301 Mortgage loans held for investment, net — 239,338 — — 239,338 Property and equipment, net — 218 311,169 — 311,387 Intangible assets, net — — 432,142 — 432,142 Goodwill — — 441,831 — 441,831 Deferred tax assets and income taxes receivable — 44,788 — (31,327 ) 13,461 Investments in subsidiaries 1,371,677 — 116,870 (1,488,547 ) — Amounts due from affiliates 463,434 134,094 1,058 (598,586 ) — Other noncurrent assets — 81,075 44,885 — 125,960 Total assets $ 1,835,111 $ 1,623,133 $ 3,176,076 $ (2,118,900 ) $ 4,515,420 Customer banking deposits $ — $ 744,681 $ — $ (440 ) $ 744,241 Accounts payable and accrued expenses 1,104 7,672 222,546 — 231,322 Accrued salaries, wages and payroll taxes — 1,946 142,798 — 144,744 Accrued income taxes and reserves for uncertain tax positions — 49,529 385,155 — 434,684 Current portion of long-term debt — — 790 — 790 Deferred revenue and other current liabilities — 177,063 145,445 — 322,508 Total current liabilities 1,104 980,891 896,734 (440 ) 1,878,289 Long-term debt — 497,893 7,405 — 505,298 Deferred tax liabilities and reserves for uncertain tax positions — 25,696 148,217 (31,327 ) 142,586 Deferred revenue and other noncurrent liabilities — 1,783 154,515 — 156,298 Amounts due to affiliates 1,058 — 597,528 (598,586 ) — Total liabilities 2,162 1,506,263 1,804,399 (630,353 ) 2,682,471 Stockholders' equity 1,832,949 116,870 1,371,677 (1,488,547 ) 1,832,949 Total liabilities and stockholders' equity $ 1,835,111 $ 1,623,133 $ 3,176,076 $ (2,118,900 ) $ 4,515,420 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in 000s) Nine months ended January 31, 2016 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Net cash used in operating activities: $ — $ (403,132 ) $ (1,023,817 ) $ — $ (1,426,949 ) Cash flows from investing: Sales, maturities of and payments received on AFS securities — 430,460 5,920 — 436,380 Principal payments on mortgage loans held for investment, net — 24,664 — — 24,664 Capital expenditures — (24 ) (66,394 ) — (66,418 ) Payments made for business acquisitions, net of cash acquired — — (85,329 ) — (85,329 ) Loans made to franchisees — (20,940 ) (437 ) — (21,377 ) Repayments from franchisees — 22,006 228 — 22,234 Intercompany payments/investments in subsidiaries — (1,871,617 ) (2,024,025 ) 3,895,642 — Other, net — (5,455 ) 9,342 — 3,887 Net cash provided by (used in) investing activities — (1,420,906 ) (2,160,695 ) 3,895,642 314,041 Cash flows from financing: Repayments of long-term debt — (225,000 ) — — (225,000 ) Proceeds from long-term debt — 2,346,831 — — 2,346,831 Customer banking deposits, net — (327,145 ) — 440 (326,705 ) Transfer of HRB Bank deposits — (419,028 ) — — (419,028 ) Dividends paid (157,530 ) — — — (157,530 ) Repurchase of common stock, including shares surrendered (1,888,595 ) — — — (1,888,595 ) Proceeds from exercise of stock options 25,803 — — — 25,803 Intercompany borrowings 2,024,025 — 1,871,617 (3,895,642 ) — Other, net (3,703 ) (19,282 ) (20,987 ) — (43,972 ) Net cash provided by (used in) financing activities — 1,356,376 1,850,630 (3,895,202 ) (688,196 ) Effects of exchange rates on cash — — (16,575 ) — (16,575 ) Net decrease in cash and cash equivalents — (467,662 ) (1,350,457 ) 440 (1,817,679 ) Cash and cash equivalents at beginning of the period — 478,077 1,529,553 (440 ) 2,007,190 Cash and cash equivalents at end of the period $ — $ 10,415 $ 179,096 $ — $ 189,511 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in 000s) Nine months ended January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Net cash used in operating activities: $ — $ (290,104 ) $ (957,096 ) $ — $ (1,247,200 ) Cash flows from investing: Sales, maturities of and payments received on AFS securities — 68,013 — — 68,013 Principal payments on mortgage loans held for investment, net — 18,098 — — 18,098 Capital expenditures — (119 ) (98,757 ) — (98,876 ) Payments made for business acquisitions, net of cash acquired — — (112,163 ) — (112,163 ) Loans made to franchisees — (47,835 ) (178 ) — (48,013 ) Repayments from franchisees — 33,927 237 — 34,164 Intercompany payments/investments in subsidiaries — (128,713 ) (159,234 ) 287,947 — Other, net — (1,925 ) 8,004 — 6,079 Net cash used in investing activities — (58,554 ) (362,091 ) 287,947 (132,698 ) Cash flows from financing: Repayments of commercial paper and other short-term borrowings — (457,576 ) — — (457,576 ) Proceeds from commercial paper and other short-term borrowings — 1,049,062 — — 1,049,062 Repayments of long-term debt — (400,000 ) — — (400,000 ) Customer banking deposits, net — 514,183 — 832 515,015 Dividends paid (164,905 ) — — — (164,905 ) Repurchase of common stock, including shares surrendered (10,355 ) — — — (10,355 ) Proceeds from exercise of stock options 16,026 — — — 16,026 Intercompany borrowings 159,234 — 128,713 (287,947 ) — Other, net — — (15,993 ) — (15,993 ) Net cash provided by financing activities — 705,669 112,720 (287,115 ) 531,274 Effects of exchange rates on cash — — (15,549 ) — (15,549 ) Net increase (decrease) in cash and cash equivalents — 357,011 (1,222,016 ) 832 (864,173 ) 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 $ — $ 969,387 $ 352,015 $ (268 ) $ 1,321,134 |
Summary Of Significant Accoun22
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended |
Jan. 31, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | – The consolidated balance sheets as of January 31, 2016 and 2015 , the consolidated statements of operations and comprehensive loss for the three and nine months ended January 31, 2016 and 2015 , and the condensed consolidated statements of cash flows for the nine months ended January 31, 2016 and 2015 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 January 31, 2016 and 2015 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, 2015 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2015 or for the year then ended are derived from our April 30, 2015 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 Stockholde23
Loss Per Share and Stockholders' Equity (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
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 January 31, Nine months ended January 31, 2016 2015 2016 2015 Net loss from continuing operations attributable to shareholders $ (78,649 ) $ (35,311 ) $ (317,672 ) $ (257,389 ) Amounts allocated to participating securities (112 ) (105 ) (316 ) (291 ) Net loss from continuing operations attributable to common shareholders $ (78,761 ) $ (35,416 ) $ (317,988 ) $ (257,680 ) Basic weighted average common shares 231,904 275,190 257,979 274,957 Potential dilutive shares — — — — Dilutive weighted average common shares 231,904 275,190 257,979 274,957 Loss per share from continuing operations attributable to common shareholders: Basic $ (0.34 ) $ (0.13 ) $ (1.23 ) $ (0.94 ) Diluted (0.34 ) (0.13 ) (1.23 ) (0.94 ) |
Schedule of Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) – Components of other comprehensive income (loss) 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) on AFS Securities Total Balances as of May 1, 2015 $ (6,789 ) $ 8,529 $ 1,740 Other comprehensive income (loss) before reclassifications: Gross losses arising during the period (14,083 ) (5,790 ) (19,873 ) Income taxes — (2,267 ) (2,267 ) (14,083 ) (3,523 ) (17,606 ) Amounts reclassified to net income: Gross amount reclassified — (8,196 ) (8,196 ) Income taxes — (3,213 ) (3,213 ) — (4,983 ) (4,983 ) Net other comprehensive loss (14,083 ) (8,506 ) (22,589 ) Balances as of January 31, 2016 $ (20,872 ) $ 23 $ (20,849 ) Balances as of May 1, 2014 $ 3,334 $ 1,843 $ 5,177 Other comprehensive income (loss) before reclassifications: Gross gains (losses) arising during the period (13,342 ) 11,389 (1,953 ) Income taxes — 4,472 4,472 (13,342 ) 6,917 (6,425 ) Amounts reclassified to net income: Gross amount reclassified — (24 ) (24 ) Income taxes — (9 ) (9 ) — (15 ) (15 ) Net other comprehensive income (loss) (13,342 ) 6,902 (6,440 ) Balances as of January 31, 2015 $ (10,008 ) $ 8,745 $ (1,263 ) |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | |
Schedule Of Short-Term Receivables | Receivables consist of the following: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Short-term Long-term Short-term Long-term Short-term Long-term Loans to franchisees $ 63,093 $ 62,431 $ 71,420 $ 84,770 $ 56,603 $ 64,472 Receivables for tax preparation and related fees 278,735 6,103 234,056 — 48,864 6,103 Cash Back® receivables 5,427 — 7,130 — 42,680 — Emerald Advance lines of credit 402,946 268 370,041 2,254 21,908 1,913 Royalties from franchisees 60,182 — 68,486 — 8,206 — Other 66,625 7,669 76,179 15,404 44,230 8,379 877,008 76,471 827,312 102,428 222,491 80,867 Allowance for doubtful accounts (47,234 ) — (49,859 ) — (54,527 ) — $ 829,774 $ 76,471 $ 777,453 $ 102,428 $ 167,964 $ 80,867 |
Schedule Of Receivables Based On Year Of Origination | These amounts as of January 31, 2016 , by year of origination, are as follows: (in 000s) Credit Quality Indicator – Year of origination: 2016 $ 372,360 2015 6,042 2014 and prior 1,216 Revolving loans 23,596 $ 403,214 |
Schedule Of Activity In The Allowance For Doubtful Accounts | Activity in the allowance for doubtful accounts for our receivables for the nine months ended January 31, 2016 and 2015 is as follows: (in 000s) EAs All Other Total Balances as of May 1, 2015 $ 7,353 $ 47,174 $ 54,527 Provision 22,851 14,135 36,986 Charge-offs — (44,279 ) (44,279 ) Balances as of January 31, 2016 $ 30,204 $ 17,030 $ 47,234 Balances as of May 1, 2014 $ 7,530 $ 45,048 $ 52,578 Provision 28,521 13,143 41,664 Charge-offs — (44,383 ) (44,383 ) Balances as of January 31, 2015 $ 36,051 $ 13,808 $ 49,859 |
Mortgage Loans Held For Inves25
Mortgage Loans Held For Investment And Related Assets (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Mortgage Loans Held For Investment And Related Assets [Abstract] | |
Schedule Of Mortgage Loan Portfolio | The composition of our mortgage loan portfolio is as follows: (dollars in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Amount % of Total Amount % of Total Amount % of Total Adjustable-rate loans $ 113,617 52 % $ 135,481 54 % $ 130,182 53 % Fixed-rate loans 103,632 48 % 117,484 46 % 115,034 47 % 217,249 100 % 252,965 100 % 245,216 100 % Unamortized deferred fees and costs 1,788 2,073 2,008 Less: Allowance for loan losses (6,931 ) (9,375 ) (7,886 ) $ 212,106 $ 245,663 $ 239,338 |
Schedule Of Allowance For Loan Losses | Activity in the allowance for loan losses for the nine months ended January 31, 2016 and 2015 is as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance at beginning of the period $ 7,886 $ 11,272 Provision (528 ) 1,090 Recoveries 1,721 1,155 Charge-offs (2,148 ) (4,142 ) Balance at end of the period $ 6,931 $ 9,375 |
Schedule Of Past Due Mortgage Loans | Detail of the aging of the mortgage loans in our portfolio as of January 31, 2016 is as follows: (in 000s) Less than 60 Days Past Due 60 – 89 Days Past Due 90+ Days Past Due (1) Total Past Due Current Total Purchased from SCC $ 9,148 $ 440 $ 43,428 $ 53,016 $ 76,493 $ 129,509 All other 2,649 51 6,306 9,006 78,734 87,740 $ 11,797 $ 491 $ 49,734 $ 62,022 $ 155,227 $ 217,249 (1) We do not accrue interest on loans past due 90 days or more. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill | Changes in the carrying amount of goodwill for the nine months ended January 31, 2016 and 2015 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of April 30, 2015 $ 474,128 $ (32,297 ) $ 441,831 Acquisitions 4,025 — 4,025 Disposals and foreign currency changes, net (2,438 ) — (2,438 ) Impairments — — — Balances as of January 31, 2016 $ 475,715 $ (32,297 ) $ 443,418 Balances as of April 30, 2014 $ 468,414 $ (32,297 ) $ 436,117 Acquisitions 9,614 — 9,614 Disposals and foreign currency changes, net (2,770 ) — (2,770 ) Impairments — — — Balances as of January 31, 2015 $ 475,258 $ (32,297 ) $ 442,961 |
Schedule Of Intangible Assets | Components of the intangible assets are as follows: (in 000s) Gross Carrying Amount Accumulated Amortization Net As of January 31, 2016: Reacquired franchise rights $ 338,242 $ (63,812 ) $ 274,430 Customer relationships 201,197 (96,043 ) 105,154 Internally-developed software 126,980 (91,655 ) 35,325 Noncompete agreements 34,454 (25,240 ) 9,214 Franchise agreements 19,201 (9,174 ) 10,027 Purchased technology 54,700 (24,393 ) 30,307 Acquired assets pending final allocation (1) 9,275 — 9,275 $ 784,049 $ (310,317 ) $ 473,732 As of January 31, 2015: Reacquired franchise rights $ 294,587 $ (39,954 ) $ 254,633 Customer relationships 169,058 (71,799 ) 97,259 Internally-developed software 114,447 (78,063 ) 36,384 Noncompete agreements 30,546 (23,171 ) 7,375 Franchise agreements 19,201 (7,894 ) 11,307 Purchased technology 54,700 (18,329 ) 36,371 $ 682,539 $ (239,210 ) $ 443,329 As of April 30, 2015: Reacquired franchise rights $ 294,647 $ (46,180 ) $ 248,467 Customer relationships 170,851 (78,157 ) 92,694 Internally-developed software 118,865 (80,689 ) 38,176 Noncompete agreements 30,630 (23,666 ) 6,964 Franchise agreements 19,201 (8,214 ) 10,987 Purchased technology 54,700 (19,846 ) 34,854 $ 688,894 $ (256,752 ) $ 432,142 |
Schedule of Weighted Average Life of Acquired Assets | The weighted-average life of the acquired assets is as follows: Assets acquired Weighted-Average Life (in years) Reacquired franchise rights 7 Customer relationships 5 Internally-developed software 3 Noncompete agreements 5 Total 6 |
Long-Term Debt Long-Term Debt (
Long-Term Debt Long-Term Debt (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Components of Long-Term Debt | The components of long-term debt are as follows: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Senior Notes, 4.125%, due October 2020 $ 648,023 $ — $ — Senior Notes, 5.500%, due November 2022 498,105 497,823 497,894 Senior Notes, 5.250%, due October 2025 348,985 — — Committed line of credit borrowings 1,125,000 — — Capital lease obligation 7,637 8,418 8,194 2,627,750 506,241 506,088 Less: Current portion (817 ) (781 ) (790 ) $ 2,626,933 $ 505,460 $ 505,298 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The carrying amounts and estimated fair values of our financial instruments are as follows: (in 000s) As of January 31, 2016 January 31, 2015 April 30, 2015 Carrying Estimated Carrying Estimated Carrying Estimated Assets: Cash and cash equivalents $ 189,511 $ 189,511 $ 1,321,134 $ 1,321,134 $ 2,007,190 $ 2,007,190 Cash and cash equivalents - restricted 69,649 69,649 51,085 51,085 91,972 91,972 Receivables, net - short-term 829,774 829,774 777,453 777,453 167,964 167,964 Mortgage loans held for investment, net 212,106 174,813 245,663 190,422 239,338 190,196 Investments in AFS securities 1,145 1,145 375,728 375,728 441,709 441,709 Receivables, net - long-term 76,471 76,471 102,428 102,428 80,867 80,867 Liabilities: Customer banking deposits — — 1,286,582 1,273,283 744,699 737,261 Long-term debt 2,627,750 2,709,807 506,241 558,693 506,088 556,769 Contingent consideration 13,903 13,903 12,848 12,848 10,667 10,667 |
Interest Income And Interest 29
Interest Income And Interest Expense (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Interest Income And Interest Expense [Abstract] | |
Schedule Of Other Income And Other Expenses | The following table shows the components of other income and other expenses: (in 000s) Three months ended January 31, Nine months ended January 31, 2016 2015 2016 2015 Other income, net: Mortgage loans and real estate owned, net $ 2,186 $ — $ 2,220 $ — Interest and gains on AFS securities 36 — 8,804 — Other 833 304 2,969 827 $ 3,055 $ 304 $ 13,993 $ 827 Other expenses, net: Foreign currency losses $ (3,516 ) $ (6,883 ) $ (8,138 ) $ (8,690 ) Impairment of investments (2,500 ) — (2,500 ) — Other (124 ) (87 ) (697 ) (1,766 ) $ (6,140 ) $ (6,970 ) $ (11,335 ) $ (10,456 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
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® Extended Service Plan (POM) issued in company-owned offices, which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows: (in 000s) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 158,169 $ 145,237 Amounts deferred for new extended service plans issued 18,751 17,658 Revenue recognized on previous deferrals (62,764 ) (54,308 ) Balance, end of the period $ 114,156 $ 108,587 |
Loss Contingencies Arising Fr31
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation And Related Contingencies | NOTE 12: 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 January 31, 2016 . While the potential future liabilities could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known, we do not believe any such liabilities are likely to have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of January 31, 2016 and 2015 and April 30, 2015 , we accrued liabilities of $6.2 million , $8.9 million and $8.9 million , respectively, for matters addressed in this note. 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 January 31, 2016 , 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 has been, remains, and may in the future be subject to litigation, claims, including indemnification and contribution 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, underwriters, and securitization trustees, 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 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 United States 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 or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. A portion of the accrual for representation and warranty claims, as discussed in note 13 , is related to loans in this case. We have not concluded that a loss related to this lawsuit is probable, nor have we accrued a liability related to this lawsuit. On April 5, 2013, a third lawsuit was filed by Homeward in the United States 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 or repurchase and for indemnification of its costs associated with the litigation. The case is proceeding on the remaining claims. A portion of the accrual for representation and warranty claims, as discussed in note 13 , is related to loans in this case. We have not concluded that a loss related to this lawsuit is probable, nor have we accrued a liability related to this lawsuit. 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 22 lawsuits in which notice of a claim has been made involve 39 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 Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation, et al. , filed in the Circuit Court of Cook County, Illinois (Case No. 10CH45033) and settled as to SCC in August 2015), 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, which are referred to as "reserved contribution 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 or reserved contribution rights is probable, nor have we accrued a liability related to any of these claims or rights. Securitization trustees also are, or have been, involved in lawsuits related to securitization transactions in which SCC participated. Plaintiffs in these lawsuits allege, among other things, that originators, depositors, servicers or other parties breached their representations and warranties or otherwise failed to fulfill their obligations, including that securitization trustees breached their contractual obligations, breached their fiduciary duties, or violated statutory requirements by failing to properly protect the certificate holders’ interests. In connection with one lawsuit against a securitization trustee, SCC received a notice of potential indemnification obligations for one securitization with alleged losses in the amount of approximately $91 million . SCC may receive additional notices for indemnification with respect to existing or new lawsuits or settlements of such lawsuits in its capacity as originator, depositor, or servicer. We have not concluded that a loss related to any indemnification claims by securitization trustees is probable, nor have we accrued a liability for such claims. LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS – 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. On March 12, 2015, the trial court denied the motion on remand. We filed an additional appeal. On March 8, 2016, the appellate court affirmed the decision of the trial court. 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 originally sought to represent all persons nationwide (excluding citizens of Missouri) who were charged the compliance fee, and asserted 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. In June 2014, the court denied class certification of the remaining 2012 claims. The plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which was denied on June 18, 2015. In January 2016, the plaintiff filed an amended complaint asserting claims of violation of Missouri and California state consumer laws, money had and received, and unjust enrichment, along with a motion to certify a class of all persons (excluding citizens of Missouri) who were charged the compliance fee in the state of California. We subsequently filed a motion for summary judgment on all claims. Both motions remain pending before the court. 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 desktop 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. The Judicial Panel on Multidistrict Litigation subsequently 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 the class allegations relating to those clients who agreed to arbitration, which the court granted on January 7, 2015. The parties subsequently reached an agreement to settle the remaining claims, subject to court approval. The court granted preliminary approval of the settlement on January 12, 2016. A final approval hearing is set for May 19, 2016. A portion of our loss contingency accrual is related to this matter for the amount of loss that we consider probable and reasonably estimable . 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. 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) Nine months ended January 31, 2016 2015 Balance, beginning of the period $ 149,765 $ 183,765 Provisions 4,000 10,000 Payments (88,500 ) (50,000 ) Balance, end of the period $ 65,265 $ 143,765 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Operations By Reportable Operating Segment | Revenues of our continuing operations are as follows: (in 000s) Three months ended January 31, Nine months ended January 31, 2016 2015 2016 2015 REVENUES : Tax preparation fees: U.S. assisted $ 268,775 $ 283,692 $ 332,463 $ 341,107 International 8,575 10,021 79,633 94,308 U.S. digital 39,251 36,720 45,899 42,545 316,601 330,433 457,995 477,960 Royalties 40,387 52,284 59,245 68,508 Revenues from Refund Transfers 49,419 50,899 54,782 56,472 Revenues from Emerald Card® 13,356 13,910 38,853 39,479 Revenues from Peace of Mind® Extended Service Plan 15,736 13,492 62,764 54,308 Interest and fee income on Emerald Advance 31,603 30,288 32,334 31,439 Other 7,441 17,768 34,703 49,122 $ 474,543 $ 509,074 $ 740,676 $ 777,288 |
Condensed Consolidating Finan33
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule Of Condensed Consolidating Statement Of Operations [Table Text Block] | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (in 000s) Nine months ended January 31, 2016 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Total revenues $ — $ 91,239 $ 651,125 $ (1,688 ) $ 740,676 Cost of revenues — 59,122 774,985 (1,685 ) 832,422 Selling, general and administrative 3,535 18,847 413,532 (3 ) 435,911 Total operating expenses 3,535 77,969 1,188,517 (1,688 ) 1,268,333 Other income, net 1,731 17,878 4,734 (10,350 ) 13,993 Interest expense on external borrowings — (45,988 ) (341 ) — (46,329 ) Other expenses, net (326,631 ) (3,956 ) (16,939 ) 336,191 (11,335 ) Loss from continuing operations before tax benefit (328,435 ) (18,796 ) (549,938 ) 325,841 (571,328 ) Income tax benefit (2,040 ) (25,922 ) (225,694 ) — (253,656 ) Net income (loss) from continuing operations (326,395 ) 7,126 (324,244 ) 325,841 (317,672 ) Net loss from discontinued operations — (8,721 ) (2 ) — (8,723 ) Net loss (326,395 ) (1,595 ) (324,246 ) 325,841 (326,395 ) Other comprehensive loss (22,589 ) (8,444 ) (22,589 ) 31,033 (22,589 ) Comprehensive loss $ (348,984 ) $ (10,039 ) $ (346,835 ) $ 356,874 $ (348,984 ) Nine months ended January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Total revenues $ — $ 107,233 $ 672,000 $ (1,945 ) $ 777,288 Cost of revenues — 66,063 749,978 (1,940 ) 814,101 Selling, general and administrative — 12,598 371,533 (5 ) 384,126 Total operating expenses — 78,661 1,121,511 (1,945 ) 1,198,227 Other income, net 3,461 2,366 1,373 (6,373 ) 827 Interest expense on external borrowings — (36,388 ) (298 ) — (36,686 ) Other expenses, net (268,160 ) (2,186 ) (14,251 ) 274,141 (10,456 ) Loss from continuing operations before taxes (benefit) (264,699 ) (7,636 ) (462,687 ) 267,768 (467,254 ) Income taxes (benefit) 479 (19,486 ) (190,858 ) — (209,865 ) Net income (loss) from continuing operations (265,178 ) 11,850 (271,829 ) 267,768 (257,389 ) Net income (loss) from discontinued operations — (11,458 ) 3,669 — (7,789 ) Net income (loss) (265,178 ) 392 (268,160 ) 267,768 (265,178 ) Other comprehensive income (loss) (6,440 ) 7,765 (6,440 ) (1,325 ) (6,440 ) Comprehensive income (loss) $ (271,618 ) $ 8,157 $ (274,600 ) $ 266,443 $ (271,618 ) |
Schedule Of Condensed Consolidating Balance Sheet [Table Text Block] | CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Cash & cash equivalents $ — $ 969,387 $ 352,015 $ (268 ) $ 1,321,134 Cash & cash equivalents - restricted — 3,459 47,626 — 51,085 Receivables, net — 436,907 340,546 — 777,453 Deferred tax assets and income taxes receivable — 79,064 163,300 (74,538 ) 167,826 Prepaid expenses and other current assets — 10,426 82,550 — 92,976 Investments in AFS securities — 367,745 100 — 367,845 Total current assets — 1,866,988 986,137 (74,806 ) 2,778,319 Mortgage loans held for investment, net — 245,663 — — 245,663 Property and equipment, net — 136 308,669 — 308,805 Intangible assets, net — — 443,329 — 443,329 Goodwill — — 442,961 — 442,961 Deferred tax assets and income taxes receivable — 27,505 (14,064 ) — 13,441 Investments in subsidiaries 635,258 — 69,988 (705,246 ) — Amounts due from affiliates 513,204 459,955 1,029 (974,188 ) — Other noncurrent assets — 104,869 41,554 — 146,423 Total assets $ 1,148,462 $ 2,705,116 $ 2,279,603 $ (1,754,240 ) $ 4,378,941 Commercial paper borrowings $ — $ 591,486 $ — $ — $ 591,486 Customer banking deposits — 1,286,484 — (268 ) 1,286,216 Accounts payable and accrued expenses 1,048 7,216 164,064 — 172,328 Accrued salaries, wages and payroll taxes — 1,929 116,583 — 118,512 Accrued income taxes and reserves for uncertain tax positions — 53,655 22,502 (74,538 ) 1,619 Current portion of long-term debt — — 781 — 781 Deferred revenue and other current liabilities — 170,981 129,181 — 300,162 Total current liabilities 1,048 2,111,751 433,111 (74,806 ) 2,471,104 Long-term debt — 497,823 7,637 — 505,460 Deferred tax liabilities and reserves for uncertain tax positions — 23,791 120,245 — 144,036 Deferred revenue and other noncurrent liabilities — 1,763 110,193 — 111,956 Amounts due to affiliates 1,029 — 973,159 (974,188 ) — Total liabilities 2,077 2,635,128 1,644,345 (1,048,994 ) 3,232,556 Stockholders' equity 1,146,385 69,988 635,258 (705,246 ) 1,146,385 Total liabilities and stockholders' equity $ 1,148,462 $ 2,705,116 $ 2,279,603 $ (1,754,240 ) $ 4,378,941 CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of April 30, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Cash & cash equivalents $ — $ 478,077 $ 1,529,553 $ (440 ) $ 2,007,190 Cash & cash equivalents - restricted — 45,098 46,874 — 91,972 Receivables, net — 80,332 87,632 — 167,964 Deferred tax assets and income taxes receivable — 77,418 96,849 — 174,267 Prepaid expenses and other current assets — 7,771 62,512 — 70,283 Investments in AFS securities — 434,924 4,701 — 439,625 Total current assets — 1,123,620 1,828,121 (440 ) 2,951,301 Mortgage loans held for investment, net — 239,338 — — 239,338 Property and equipment, net — 218 311,169 — 311,387 Intangible assets, net — — 432,142 — 432,142 Goodwill — — 441,831 — 441,831 Deferred tax assets and income taxes receivable — 44,788 — (31,327 ) 13,461 Investments in subsidiaries 1,371,677 — 116,870 (1,488,547 ) — Amounts due from affiliates 463,434 134,094 1,058 (598,586 ) — Other noncurrent assets — 81,075 44,885 — 125,960 Total assets $ 1,835,111 $ 1,623,133 $ 3,176,076 $ (2,118,900 ) $ 4,515,420 Customer banking deposits $ — $ 744,681 $ — $ (440 ) $ 744,241 Accounts payable and accrued expenses 1,104 7,672 222,546 — 231,322 Accrued salaries, wages and payroll taxes — 1,946 142,798 — 144,744 Accrued income taxes and reserves for uncertain tax positions — 49,529 385,155 — 434,684 Current portion of long-term debt — — 790 — 790 Deferred revenue and other current liabilities — 177,063 145,445 — 322,508 Total current liabilities 1,104 980,891 896,734 (440 ) 1,878,289 Long-term debt — 497,893 7,405 — 505,298 Deferred tax liabilities and reserves for uncertain tax positions — 25,696 148,217 (31,327 ) 142,586 Deferred revenue and other noncurrent liabilities — 1,783 154,515 — 156,298 Amounts due to affiliates 1,058 — 597,528 (598,586 ) — Total liabilities 2,162 1,506,263 1,804,399 (630,353 ) 2,682,471 Stockholders' equity 1,832,949 116,870 1,371,677 (1,488,547 ) 1,832,949 Total liabilities and stockholders' equity $ 1,835,111 $ 1,623,133 $ 3,176,076 $ (2,118,900 ) $ 4,515,420 |
Schedule of Condensed Consolidating Statement of Cash Flows [Text Block] | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in 000s) Nine months ended January 31, 2016 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Net cash used in operating activities: $ — $ (403,132 ) $ (1,023,817 ) $ — $ (1,426,949 ) Cash flows from investing: Sales, maturities of and payments received on AFS securities — 430,460 5,920 — 436,380 Principal payments on mortgage loans held for investment, net — 24,664 — — 24,664 Capital expenditures — (24 ) (66,394 ) — (66,418 ) Payments made for business acquisitions, net of cash acquired — — (85,329 ) — (85,329 ) Loans made to franchisees — (20,940 ) (437 ) — (21,377 ) Repayments from franchisees — 22,006 228 — 22,234 Intercompany payments/investments in subsidiaries — (1,871,617 ) (2,024,025 ) 3,895,642 — Other, net — (5,455 ) 9,342 — 3,887 Net cash provided by (used in) investing activities — (1,420,906 ) (2,160,695 ) 3,895,642 314,041 Cash flows from financing: Repayments of long-term debt — (225,000 ) — — (225,000 ) Proceeds from long-term debt — 2,346,831 — — 2,346,831 Customer banking deposits, net — (327,145 ) — 440 (326,705 ) Transfer of HRB Bank deposits — (419,028 ) — — (419,028 ) Dividends paid (157,530 ) — — — (157,530 ) Repurchase of common stock, including shares surrendered (1,888,595 ) — — — (1,888,595 ) Proceeds from exercise of stock options 25,803 — — — 25,803 Intercompany borrowings 2,024,025 — 1,871,617 (3,895,642 ) — Other, net (3,703 ) (19,282 ) (20,987 ) — (43,972 ) Net cash provided by (used in) financing activities — 1,356,376 1,850,630 (3,895,202 ) (688,196 ) Effects of exchange rates on cash — — (16,575 ) — (16,575 ) Net decrease in cash and cash equivalents — (467,662 ) (1,350,457 ) 440 (1,817,679 ) Cash and cash equivalents at beginning of the period — 478,077 1,529,553 (440 ) 2,007,190 Cash and cash equivalents at end of the period $ — $ 10,415 $ 179,096 $ — $ 189,511 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (in 000s) Nine months ended January 31, 2015 H&R Block, Inc. (Guarantor) Block Financial (Issuer) Other Subsidiaries Eliminations Consolidated H&R Block Net cash used in operating activities: $ — $ (290,104 ) $ (957,096 ) $ — $ (1,247,200 ) Cash flows from investing: Sales, maturities of and payments received on AFS securities — 68,013 — — 68,013 Principal payments on mortgage loans held for investment, net — 18,098 — — 18,098 Capital expenditures — (119 ) (98,757 ) — (98,876 ) Payments made for business acquisitions, net of cash acquired — — (112,163 ) — (112,163 ) Loans made to franchisees — (47,835 ) (178 ) — (48,013 ) Repayments from franchisees — 33,927 237 — 34,164 Intercompany payments/investments in subsidiaries — (128,713 ) (159,234 ) 287,947 — Other, net — (1,925 ) 8,004 — 6,079 Net cash used in investing activities — (58,554 ) (362,091 ) 287,947 (132,698 ) Cash flows from financing: Repayments of commercial paper and other short-term borrowings — (457,576 ) — — (457,576 ) Proceeds from commercial paper and other short-term borrowings — 1,049,062 — — 1,049,062 Repayments of long-term debt — (400,000 ) — — (400,000 ) Customer banking deposits, net — 514,183 — 832 515,015 Dividends paid (164,905 ) — — — (164,905 ) Repurchase of common stock, including shares surrendered (10,355 ) — — — (10,355 ) Proceeds from exercise of stock options 16,026 — — — 16,026 Intercompany borrowings 159,234 — 128,713 (287,947 ) — Other, net — — (15,993 ) — (15,993 ) Net cash provided by financing activities — 705,669 112,720 (287,115 ) 531,274 Effects of exchange rates on cash — — (15,549 ) — (15,549 ) Net increase (decrease) in cash and cash equivalents — 357,011 (1,222,016 ) 832 (864,173 ) 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 $ — $ 969,387 $ 352,015 $ (268 ) $ 1,321,134 |
Divestiture of H&R Block Bank (
Divestiture of H&R Block Bank (Details) - USD ($) $ in Thousands | Aug. 31, 2015 | Jan. 31, 2016 | Sep. 01, 2015 | Apr. 30, 2015 | Jan. 31, 2015 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Customer Deposits | $ 419,000 | ||||
Proceeds from sale of AFS | $ 388,000 | ||||
Recognized gains on sale of AFS | $ 8,400 | ||||
HRB Bank [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Customer Deposits | $ 0 | $ 744,699 | $ 1,286,582 |
Loss Per Share and Stockholde35
Loss Per Share and Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Sep. 01, 2015 | |
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 4,600 | 5,300 | |||
Net loss from continuing operations attributable to shareholders | $ (78,649) | $ (35,311) | $ (317,672) | $ (257,389) | |
Amounts allocated to participating securities | (112) | (105) | (316) | (291) | |
Net loss from continuing operations attributable to common shareholders | $ (78,761) | $ (35,416) | $ (317,988) | $ (257,680) | |
Basic weighted average common shares (in shares) | 231,904 | 275,190 | 257,979 | 274,957 | |
Potential dilutive shares (in shares) | 0 | 0 | 0 | 0 | |
Weighted Average Number of Shares Outstanding, Diluted | 231,904 | 275,190 | 257,979 | 274,957 | |
Basic (in usd per share) | $ (0.34) | $ (0.13) | $ (1.23) | $ (0.94) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of shares retired during current period | $ 1,891,838 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) | 1,740 | $ 5,177 | |||
Gross losses arising during the period | (19,873) | (1,953) | |||
Income taxes | (2,267) | 4,472 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (17,606) | (6,425) | |||
Gross amount reclassified | (8,196) | (24) | |||
Tax effect of reclassification adjustment for gains included in income | (3,213) | (9) | |||
Reclassification adjustment for gains included in income | (4,983) | (15) | |||
Net other comprehensive income (loss) | (22,589) | (6,440) | |||
Accumulated other comprehensive income (loss) | $ (20,849) | $ (1,263) | $ (20,849) | $ (1,263) | |
Narrative Details [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 3,500,000 | ||||
Stock Repurchased and Retired During Period, Shares | 52,500 | ||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 36.02 | ||||
Shares repurchased during the period, (in shares) | 600 | 300 | |||
Shares repurchased during the period, Value | $ 17,900 | $ 10,400 | |||
Shares issued during period (in shares) | 2,200 | 1,300 | |||
Nonvested units granted | 1,100 | ||||
Stock-based compensation | 7,200 | 6,100 | $ 21,100 | $ 20,700 | |
Unrecognized compensation costs, options | 500 | 500 | |||
Unrecognized compensation costs, nonvested shares and units | 38,800 | 38,800 | |||
Common Stock [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of shares retired during current period | 525 | ||||
Additional Paid-in Capital [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of shares retired during current period | 31,506 | ||||
Retained Earnings [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Cost of shares retired during current period | 1,859,807 | ||||
Foreign Currency Translation Adjustments [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) | (6,789) | 3,334 | |||
Gross losses arising during the period | (14,083) | (13,342) | |||
Income taxes | 0 | 0 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (14,083) | (13,342) | |||
Gross amount reclassified | 0 | 0 | |||
Tax effect of reclassification adjustment for gains included in income | 0 | 0 | |||
Reclassification adjustment for gains included in income | 0 | 0 | |||
Net other comprehensive income (loss) | (14,083) | (13,342) | |||
Accumulated other comprehensive income (loss) | (20,872) | (10,008) | (20,872) | (10,008) | |
Unrealized Gain (Loss) on AFS Securities [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss) | 8,529 | 1,843 | |||
Gross losses arising during the period | (5,790) | 11,389 | |||
Income taxes | (2,267) | 4,472 | |||
Other comprehensive income (loss) before reclassifications, net of tax | (3,523) | 6,917 | |||
Gross amount reclassified | (8,196) | (24) | |||
Tax effect of reclassification adjustment for gains included in income | (3,213) | (9) | |||
Reclassification adjustment for gains included in income | (4,983) | (15) | |||
Net other comprehensive income (loss) | (8,506) | 6,902 | |||
Accumulated other comprehensive income (loss) | $ 23 | $ 8,745 | $ 23 | $ 8,745 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Document Fiscal Year Focus | 2,016 | ||
Impaired non-accrual status term, days | 60 days | ||
Total Portfolio | $ 217,249 | $ 245,216 | $ 252,965 |
Loans to franchisees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due | 100 | 100 | 1,400 |
Emerald Advance lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual status loans | 18,200 | 18,700 | 19,500 |
Term Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | 48,600 | 40,300 | 55,900 |
Revolving Lines Of Credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables, net | 76,900 | 80,800 | 100,300 |
Cash Back® receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Short-term | $ 0 | $ 1,300 | $ 0 |
Receivables (Schedule Of Short-
Receivables (Schedule Of Short-Term Receivables) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | $ 877,008 | $ 222,491 | $ 827,312 |
Accounts Receivable, Gross, Noncurrent | 76,471 | 80,867 | 102,428 |
Allowance for doubtful accounts | (47,234) | (54,527) | (49,859) |
Allowance for Doubtful Accounts Receivable, Noncurrent | 0 | 0 | 0 |
Receivables, net | 829,774 | 167,964 | 777,453 |
Accounts Receivable, Net, Noncurrent | 76,471 | 80,867 | 102,428 |
Loans to franchisees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 63,093 | 56,603 | 71,420 |
Accounts Receivable, Gross, Noncurrent | 62,431 | 64,472 | 84,770 |
Receivables for tax preparation and related fees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 278,735 | 48,864 | 234,056 |
Accounts Receivable, Gross, Noncurrent | 6,103 | 6,103 | 0 |
Cash Back® receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 5,427 | 42,680 | 7,130 |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | 0 |
Emerald Advance lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 402,946 | 21,908 | 370,041 |
Accounts Receivable, Gross, Noncurrent | 268 | 1,913 | 2,254 |
Allowance for doubtful accounts | (30,204) | (7,353) | |
Royalties from franchisees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 60,182 | 8,206 | 68,486 |
Accounts Receivable, Gross, Noncurrent | 0 | 0 | 0 |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 66,625 | 44,230 | 76,179 |
Accounts Receivable, Gross, Noncurrent | $ 7,669 | $ 8,379 | $ 15,404 |
Receivables (Schedule Of Loans
Receivables (Schedule Of Loans Receivable) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | $ 877,008 | $ 222,491 | $ 827,312 |
Accounts Receivable, Gross, Noncurrent | 76,471 | 80,867 | 102,428 |
Emerald Advance lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 402,946 | 21,908 | 370,041 |
Accounts Receivable, Gross, Noncurrent | 268 | 1,913 | 2,254 |
Financing Receivable, Gross | 403,214 | ||
Loans to franchisees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 63,093 | 56,603 | 71,420 |
Accounts Receivable, Gross, Noncurrent | 62,431 | 64,472 | 84,770 |
Cash Back® receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable, Gross, Current | 5,427 | 42,680 | 7,130 |
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 $ in Thousands | Jan. 31, 2016USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Gross | $ 403,214 |
Year Of Origination2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Gross | 372,360 |
Year Of Origination2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Gross | 6,042 |
Year Of Origination2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Gross | 1,216 |
Revolving Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing Receivable, Gross | $ 23,596 |
Receivables (Schedule Of Activi
Receivables (Schedule Of Activity In The Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts | $ 47,234 | $ 49,859 | $ 54,527 |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 52,578 | ||
Provision | 36,986 | 41,664 | |
Charge-offs | (44,279) | (44,383) | |
Ending balance | 49,859 | ||
Emerald Advance lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts | 30,204 | 7,353 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 7,530 | ||
Provision | 22,851 | 28,521 | |
Charge-offs | 0 | 0 | |
Ending balance | 36,051 | ||
All Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts | 17,030 | $ 47,174 | |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 45,048 | ||
Provision | 14,135 | 13,143 | |
Charge-offs | $ (44,279) | (44,383) | |
Ending balance | $ 13,808 |
Mortgage Loans Held For Inves41
Mortgage Loans Held For Investment And Related Assets (Narrative) (Details) | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 |
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Allowance as Percent of Principal | 3.20% | 3.20% | 3.70% |
Mortgage Loans Held For Inves42
Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
Mortgage Loans Held For Investment And Related Assets [Abstract] | ||||
Adjustable-rate loans | $ 113,617 | $ 130,182 | $ 135,481 | |
Adjustable-rate loans, percent of total loans | 52.00% | 53.00% | 54.00% | |
Fixed-rate loans | $ 103,632 | $ 115,034 | $ 117,484 | |
Fixed-rate loans, percent of Total loans | 48.00% | 47.00% | 46.00% | |
Total loans | $ 217,249 | $ 245,216 | $ 252,965 | |
Total loans, percent of Total loans | 100.00% | 100.00% | 100.00% | |
Unamortized deferred fees and costs | $ 1,788 | $ 2,008 | $ 2,073 | |
Less: Allowance for loan losses | (6,931) | (7,886) | (9,375) | $ (11,272) |
Total | $ 212,106 | $ 239,338 | $ 245,663 |
Mortgage Loans Held For Inves43
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Loans and Leases Rollforward [Roll Forward] | ||
Balance at beginning of the period | $ 7,886 | $ 11,272 |
Provision | (528) | 1,090 |
Recoveries | 1,721 | 1,155 |
Charge-offs | (2,148) | (4,142) |
Balance at end of the period | $ 6,931 | $ 9,375 |
Mortgage Loans Held For Inves44
Mortgage Loans Held For Investment And Related Assets (Schedule Of Past Due Mortgage Loans) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | $ 217,249 | $ 245,216 | $ 252,965 | |
Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 129,509 | |||
All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 87,740 | |||
Less than 60 Days Past Due | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 11,797 | |||
Less than 60 Days Past Due | Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 9,148 | |||
Less than 60 Days Past Due | All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 2,649 | |||
60 – 89 Days Past Due | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 491 | |||
60 – 89 Days Past Due | Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 440 | |||
60 – 89 Days Past Due | All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 51 | |||
90 Days Past Due | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | [1] | 49,734 | ||
90 Days Past Due | Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | [1] | 43,428 | ||
90 Days Past Due | All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | [1] | 6,306 | ||
Total Past Due | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 62,022 | |||
Total Past Due | Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 53,016 | |||
Total Past Due | All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 9,006 | |||
Current | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 155,227 | |||
Current | Purchased From SCC | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | 76,493 | |||
Current | All Other | ||||
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||||
Total Portfolio | $ 78,734 | |||
[1] | We do not accrue interest on loans past due 90 days or more. |
Goodwill And Intangible Asset45
Goodwill And Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 20.2 | $ 16.7 | $ 54.6 | $ 41.2 |
Estimated amortization, 2015 | 36.4 | 36.4 | ||
Estimated amortization, 2016 | 74.9 | 74.9 | ||
Estimated amortization, 2017 | 71.3 | 71.3 | ||
Estimated amortization, 2018 | 61.2 | 61.2 | ||
Estimated amortization, 2019 | $ 48.4 | $ 48.4 |
Goodwill And Intangible Asset46
Goodwill And Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill before impairment losses, beginning balance | $ 474,128 | $ 468,414 |
Accumulated impairment losses, beginning balance | (32,297) | (32,297) |
Goodwill, beginning balance | 441,831 | 436,117 |
Acquisitions | 4,025 | 9,614 |
Disposals and foreign currency changes, net | 2,438 | 2,770 |
Impairments | 0 | 0 |
Goodwill before impairment losses, ending balance | 475,715 | 475,258 |
Accumulated impairment losses, ending balance | (32,297) | (32,297) |
Goodwill, ending balance | $ 443,418 | $ 442,961 |
Goodwill And Intangible Asset47
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | |
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 784,049 | $ 688,894 | $ 682,539 |
Accumulated Amortization | (310,317) | (256,752) | (239,210) |
Net | $ 473,732 | 432,142 | 443,329 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||
Reacquired Franchise Rights [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||
Customer Relationships [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||
Software and Software Development Costs [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||
Noncompete Agreements [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||
Tax Services [Member] | Reacquired Franchise Rights [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 338,242 | 294,647 | 294,587 |
Accumulated Amortization | (63,812) | (46,180) | (39,954) |
Net | 274,430 | 248,467 | 254,633 |
Tax Services [Member] | Customer Relationships [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 201,197 | 170,851 | 169,058 |
Accumulated Amortization | (96,043) | (78,157) | (71,799) |
Net | 105,154 | 92,694 | 97,259 |
Tax Services [Member] | Software and Software Development Costs [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 126,980 | 118,865 | 114,447 |
Accumulated Amortization | (91,655) | (80,689) | (78,063) |
Net | 35,325 | 38,176 | 36,384 |
Tax Services [Member] | Noncompete Agreements [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 34,454 | 30,630 | 30,546 |
Accumulated Amortization | (25,240) | (23,666) | (23,171) |
Net | 9,214 | 6,964 | 7,375 |
Tax Services [Member] | Franchise Rights [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 19,201 | 19,201 | 19,201 |
Accumulated Amortization | (9,174) | (8,214) | (7,894) |
Net | 10,027 | 10,987 | 11,307 |
Tax Services [Member] | Purchased Technology | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 54,700 | 54,700 | 54,700 |
Accumulated Amortization | (24,393) | (19,846) | (18,329) |
Net | 30,307 | $ 34,854 | $ 36,371 |
Tax Services [Member] | Other Intangible Assets [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,275 | ||
Accumulated Amortization | 0 | ||
Net | $ 9,275 |
Long-Term Debt (Details)
Long-Term Debt (Details) | Jan. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 25, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,627,750,000 | $ 506,088,000 | $ 506,241,000 | ||
Long-term Line of Credit | 1,125,000,000 | 0 | 0 | ||
Less: Current portion | (817,000) | (790,000) | (781,000) | ||
Long-term debt excluding current portion | 2,626,933,000 | 505,298,000 | 505,460,000 | ||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2,000,000,000 | ||||
Available increase in borrowing capacity | $ 500,000,000 | ||||
Maximum quarterly debt-to-EBITDA ratio | 3.50 | ||||
Maximum annual debt-to-EBITDA ratio | 4.50 | ||||
Minimum interest coverage ratio | 2.50 | ||||
Swingline Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 100,000,000 | ||||
Capital Lease Obligations [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 7,637,000 | 8,194,000 | 8,418,000 | ||
Senior Notes due 2020 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 648,023,000 | ||||
Debt issued | $ 650,000,000 | ||||
Interest rate (as a percent) | 4.125% | ||||
Senior Notes due 2022 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 498,105,000 | $ 497,894,000 | $ 497,823,000 | ||
Senior Notes due 2025 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 348,985,000 | ||||
Debt issued | $ 350,000,000 | ||||
Interest rate (as a percent) | 5.25% |
Fair Value Fair Value (Summary
Fair Value Fair Value (Summary Of Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Sep. 01, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Cash & cash equivalents | $ 189,511 | $ 2,007,190 | $ 1,321,134 | $ 2,185,307 | |
Cash and cash equivalents, Estimated Fair Value | 189,511 | 2,007,190 | |||
Cash and cash equivalents - restricted, Carrying Amount | 69,649 | 91,972 | 51,085 | ||
Cash and cash equivalents - restricted, Estimated Fair Value | 69,649 | 91,972 | |||
Receivables, net | 829,774 | 167,964 | 777,453 | ||
Receivables, net - short-term, Estimated Fair Value | 829,774 | 167,964 | |||
Mortgage loans held for investment, less allowance for loan losses of $6,931, $9,375 and $7,886 | 212,106 | 239,338 | 245,663 | ||
Loans Receivable, Fair Value Disclosure | 174,813 | 190,196 | |||
Investments in available-for-sale securities, Estimated Fair Value | 1,145 | 441,709 | 375,728 | ||
Accounts Receivable, Net, Noncurrent | 76,471 | 80,867 | 102,428 | ||
Receivables, net - long-term, Estimated Fair Value | 76,471 | 80,867 | 102,428 | ||
Total Portfolio | 217,249 | 245,216 | 252,965 | ||
Deposits, Carrying Amount | $ 419,000 | ||||
Deposits, Estimated Fair Value | 0 | 737,261 | 1,273,283 | ||
Long-term Debt | 2,627,750 | 506,088 | |||
Long-term borrowings, Estimated Fair Value | 2,709,807 | 556,769 | |||
Contingent consideration payments, carrying amount | 13,903 | 10,667 | |||
Contingent consideration payments, estimated fair value | 13,903 | 10,667 | |||
Level 1 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Cash and cash equivalents, Estimated Fair Value | 1,321,134 | ||||
Cash and cash equivalents - restricted, Estimated Fair Value | 51,085 | ||||
Receivables, net - short-term, Estimated Fair Value | 777,453 | ||||
Level 3 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Loans Receivable, Fair Value Disclosure | 190,422 | ||||
Long-term Debt | 506,241 | ||||
Long-term borrowings, Estimated Fair Value | 558,693 | ||||
Contingent consideration payments, carrying amount | 12,848 | ||||
Contingent consideration payments, estimated fair value | 12,848 | ||||
Level 2 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Investments in available-for-sale securities, Estimated Fair Value | 375,728 | ||||
HRB Bank [Member] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Deposits, Carrying Amount | $ 0 | $ 744,699 | $ 1,286,582 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 75,200 | $ 79,300 | $ 86,300 |
Unrecognized Tax Benefits, Period Increase (Decrease) | (11,000) | (32,200) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 9,700 | ||
Accrued income taxes and reserves for uncertain tax positions | $ 8,099 | $ 1,619 | $ 434,684 |
Effective tax rate, excluding discrete tax items | 38.10% | 38.30% | |
Effective Income Tax Rate Reconciliation, Percent | 44.40% | 44.90% | |
Net Discreet Tax Expense (Benefit) | $ (36,200) | $ (30,900) |
Interest Income And Interest 51
Interest Income And Interest Expense (Schedule Of Interest Income And Expense Of Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Schedule Of Interest Income And Expense [Line Items] | ||||
Other Nonoperating Income | $ 3,055 | $ 304 | $ 13,993 | $ 827 |
Interest expense on borrowings | (23,573) | (9,048) | (46,329) | (36,686) |
Other income, net | (6,140) | (6,970) | (11,335) | (10,456) |
Mortgage Loans, Net | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Other Nonoperating Income | 2,186 | 0 | 2,220 | 0 |
AFS Securities | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Other Nonoperating Income | 36 | 0 | 8,804 | 0 |
Other | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Other Nonoperating Income | 833 | 304 | 2,969 | 827 |
Borrowings | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Interest expense on borrowings | (6,883) | (8,138) | (8,690) | |
Other income, net | (3,516) | |||
Gain (Loss) on Investments [Member] | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Interest expense on borrowings | 0 | (2,500) | 0 | |
Other income, net | (2,500) | |||
Deposits | ||||
Schedule Of Interest Income And Expense [Line Items] | ||||
Interest Expense, Deposits | $ (87) | $ (697) | $ (1,766) | |
Other income, net | $ (124) |
Commitments And Contingencies52
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2014 |
Commitments And Contingencies [Line Items] | |||||
Standard guarantee accrual amount | $ 6,200 | $ 9,000 | $ 8,400 | ||
Contingent business acquisition obligations | 13,903 | 10,667 | |||
Lines of credit, total obligation | 70,600 | ||||
Remaining franchise equity lines of credit-undrawn commitment | 21,900 | ||||
Amounts deferred for new extended service plans issued | 18,751 | 17,658 | |||
Deferred Revenue, Revenue Recognized | (62,764) | (54,308) | |||
Deferred Revenue | 114,156 | 108,587 | $ 158,169 | $ 145,237 | |
Percentage of participation interest required to be purchased at par | 90.00% | ||||
Level 3 | |||||
Commitments And Contingencies [Line Items] | |||||
Contingent business acquisition obligations | $ 12,848 | ||||
Peace of Mind Franchise [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Amounts deferred for new extended service plans issued | 11,800 | ||||
Deferred Revenue, Revenue Recognized | (12,200) | ||||
Deferred Revenue | 31,200 | ||||
Emerald Advance lines of credit | |||||
Commitments And Contingencies [Line Items] | |||||
Principal balance of purchased participation interests | $ 374,500 |
Commitments And Contingencies53
Commitments And Contingencies (Schedule Of Deferred Revenue Related To The Peace Of Mind Program) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of the period | $ 158,169 | $ 145,237 |
Amounts deferred for new extended service plans issued | 18,751 | 17,658 |
Revenue recognized on previous deferrals | (62,764) | (54,308) |
Balance, end of the period | $ 114,156 | $ 108,587 |
Litigation And Related Contin54
Litigation And Related Contingencies (Details) $ in Millions | 35 Months Ended | |||
Nov. 30, 2007securities | Jan. 31, 2016USD ($) | Apr. 30, 2015USD ($)loanlawsuit | Jan. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $ 6.2 | $ 8.9 | $ 8.9 | |
Securitization Transactions | securities | 39 | |||
SCC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Original Principal Amount of Loans Securitized | 14,000 | |||
SCC [Member] | Claims with Knowledge of Outstanding Principal Amount [Member] | ||||
Loss Contingencies [Line Items] | ||||
Initial principal on loans securitized | $ 4,000 | |||
MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number Of Lawsuits | lawsuit | 22 | |||
MGRID LLC v. Merrill Lynch Mortgage Lending Inc [Member] | SCC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loans Sold To Trust, With Claims of Breach of Contract and Indemnity | loan | 159 | |||
Estimated Litigation Liability | $ 91 |
Loss Contingencies Arising Fr55
Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations (Narrative) (Details) - USD ($) $ in Thousands | 36 Months Ended | 60 Months Ended | 93 Months Ended | |||
Apr. 30, 2007 | Apr. 30, 2013 | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | |
Loss Contingencies [Line Items] | ||||||
Percentage of fraud on originated loans | 68.00% | |||||
Claims received for loans | $ 1,900,000 | $ 2,600,000 | ||||
Loss Contingency Accrual | 6,200 | $ 8,900 | $ 8,900 | |||
Principal Assets of SCC | 392,000 | |||||
SCC [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency Accrual, Product Liability, Gross | $ 65,265 | $ 149,765 | $ 143,765 | $ 183,765 |
Loss Contingencies Arising Fr56
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Details) - SCC [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Loss Contingency Accrual [Roll Forward] | ||
Balance, beginning of the period | $ 149,765 | $ 183,765 |
Provisions | 4,000 | 10,000 |
Payments | (88,500) | (50,000) |
Balance, end of the period | $ 65,265 | $ 143,765 |
Segment Information (Continuing
Segment Information (Continuing Operations By Reportable Operating Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 474,543 | $ 509,074 | $ 740,676 | $ 777,288 |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES : | (146,500) | (90,865) | (571,328) | (467,254) |
Tax Services [Member] | U.S. Assisted [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 268,775 | 283,692 | 332,463 | 341,107 |
Tax Services [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 8,575 | 10,021 | 79,633 | 94,308 |
Tax Services [Member] | U.S. Digital [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 39,251 | 36,720 | 45,899 | 42,545 |
Tax Services [Member] | Tax preparation fees [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 316,601 | 330,433 | 457,995 | 477,960 |
Tax Services [Member] | Note receivable | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 40,387 | 52,284 | 59,245 | 68,508 |
Tax Services [Member] | Refund Transfer fees [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 49,419 | 50,899 | 54,782 | 56,472 |
Tax Services [Member] | Emerald Card fees [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,356 | 13,910 | 38,853 | 39,479 |
Tax Services [Member] | Peace of Mind fees [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 15,736 | 13,492 | 62,764 | 54,308 |
Tax Services [Member] | Emerald Advance lines of credit | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 31,603 | 30,288 | 32,334 | 31,439 |
Tax Services [Member] | Other revenue [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 7,441 | $ 17,768 | $ 34,703 | $ 49,122 |
Condensed Consolidating Finan58
Condensed Consolidating Financial Statements (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Other Nonoperating Income | $ 3,055 | $ 304 | $ 13,993 | $ 827 |
Total revenues | 474,543 | 509,074 | 740,676 | 777,288 |
Cost of revenues | 392,513 | 394,678 | 832,422 | 814,101 |
Selling, general and administrative | 201,872 | 189,547 | 435,911 | 384,126 |
Total operating expenses | 594,385 | 584,225 | 1,268,333 | 1,198,227 |
Interest expense on borrowings | (23,573) | (9,048) | (46,329) | (36,686) |
Other income, net | (6,140) | (6,970) | (11,335) | (10,456) |
Loss from continuing operations before income tax benefit | (146,500) | (90,865) | (571,328) | (467,254) |
Income tax benefit | (67,851) | (55,554) | (253,656) | (209,865) |
Net loss from continuing operations | (78,649) | (35,311) | (317,672) | (257,389) |
Net income (loss) from discontinued operations | (3,080) | (1,637) | (8,723) | (7,789) |
Net loss | (81,729) | (36,948) | (326,395) | (265,178) |
Other comprehensive income (loss) | (4,641) | (7,840) | (22,589) | (6,440) |
Comprehensive loss | (86,370) | (44,788) | (348,984) | (271,618) |
Block Financial Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Other Nonoperating Income | 6,343 | (1,306) | 17,878 | 2,366 |
Total revenues | 52,500 | 62,482 | 91,239 | 107,233 |
Cost of revenues | 37,557 | 43,405 | 59,122 | 66,063 |
Selling, general and administrative | 1,097 | 3,401 | 18,847 | 12,598 |
Total operating expenses | 38,654 | 46,806 | 77,969 | 78,661 |
Interest expense on borrowings | (23,467) | (8,952) | (45,988) | (36,388) |
Other income, net | (3,212) | 90 | (3,956) | (2,186) |
Loss from continuing operations before income tax benefit | (6,490) | 5,508 | (18,796) | (7,636) |
Income tax benefit | (25,161) | (9,823) | (25,922) | (19,486) |
Net loss from continuing operations | 18,671 | 15,331 | 7,126 | 11,850 |
Net income (loss) from discontinued operations | (3,078) | (2,615) | (8,721) | (11,458) |
Net loss | 15,593 | 12,716 | (1,595) | 392 |
Other comprehensive income (loss) | 3,504 | (8,444) | 7,765 | |
Comprehensive loss | 15,593 | 16,220 | (10,039) | 8,157 |
Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Other Nonoperating Income | 3,278 | 953 | 4,734 | 1,373 |
Total revenues | 423,610 | 448,444 | 651,125 | 672,000 |
Cost of revenues | 356,521 | 353,125 | 774,985 | 749,978 |
Selling, general and administrative | 200,657 | 186,146 | 413,532 | 371,533 |
Total operating expenses | 557,178 | 539,271 | 1,188,517 | 1,121,511 |
Interest expense on borrowings | (106) | (96) | (341) | (298) |
Other income, net | 8,482 | 5,245 | (16,939) | (14,251) |
Loss from continuing operations before income tax benefit | (121,914) | (84,725) | (549,938) | (462,687) |
Income tax benefit | (45,691) | (51,626) | (225,694) | (190,858) |
Net loss from continuing operations | (76,223) | (33,099) | (324,244) | (271,829) |
Net income (loss) from discontinued operations | (2) | 978 | (2) | 3,669 |
Net loss | (76,225) | (32,121) | (324,246) | (268,160) |
Other comprehensive income (loss) | (4,641) | (7,840) | (22,589) | (6,440) |
Comprehensive loss | (80,866) | (39,961) | (346,835) | (274,600) |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Other Nonoperating Income | 1 | 1,068 | 1,731 | 3,461 |
Selling, general and administrative | 120 | 3,535 | ||
Total operating expenses | 120 | 3,535 | ||
Interest expense on borrowings | 0 | 0 | 0 | 0 |
Other income, net | (78,609) | (32,121) | (326,631) | (268,160) |
Loss from continuing operations before income tax benefit | (78,728) | (31,053) | (328,435) | (264,699) |
Income tax benefit | 3,001 | 5,895 | (2,040) | 479 |
Net loss from continuing operations | (81,729) | (36,948) | (326,395) | (265,178) |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net loss | (81,729) | (36,948) | (326,395) | (265,178) |
Other comprehensive income (loss) | (4,641) | (7,840) | (22,589) | (6,440) |
Comprehensive loss | (86,370) | (44,788) | (348,984) | (271,618) |
Intersegment Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Other Nonoperating Income | (6,567) | (411) | (10,350) | (6,373) |
Total revenues | (1,567) | (1,852) | (1,688) | (1,945) |
Cost of revenues | (1,565) | (1,852) | (1,685) | (1,940) |
Selling, general and administrative | (2) | (3) | (5) | |
Total operating expenses | (1,567) | (1,852) | (1,688) | (1,945) |
Interest expense on borrowings | 0 | 0 | 0 | 0 |
Other income, net | 67,199 | 19,816 | 336,191 | 274,141 |
Loss from continuing operations before income tax benefit | 60,632 | 19,405 | 325,841 | 267,768 |
Net loss from continuing operations | 60,632 | 19,405 | 325,841 | 267,768 |
Net loss | 60,632 | 19,405 | 325,841 | 267,768 |
Other comprehensive income (loss) | 4,641 | 4,336 | 31,033 | (1,325) |
Comprehensive loss | $ 65,273 | $ 23,741 | $ 356,874 | $ 266,443 |
Condensed Consolidating Finan59
Condensed Consolidating Financial Statements (Balance Sheets) (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash & cash equivalents | $ 189,511 | $ 2,007,190 | $ 1,321,134 | $ 2,185,307 |
Cash and cash equivalents - restricted | 69,649 | 91,972 | 51,085 | |
Receivables, net | 829,774 | 167,964 | 777,453 | |
Deferred Tax Assets, Net, Current | 29,411 | 174,267 | 167,826 | |
Prepaid expenses and other current assets | 101,169 | 70,283 | 92,976 | |
Investments in available-for-sale securities | 1,145 | 439,625 | 367,845 | |
Total current assets | 1,220,659 | 2,951,301 | 2,778,319 | |
Mortgage loans held for investment, net | 212,106 | 239,338 | 245,663 | |
Property and equipment, at cost, less accumulated depreciation and amortization of $585,419, $509,039 and $518,797 | 290,202 | 311,387 | 308,805 | |
Intangible assets, net | 473,732 | 432,142 | 443,329 | |
Goodwill | 443,418 | 441,831 | 442,961 | 436,117 |
Deferred tax assets and income taxes receivable | 113,887 | 13,461 | 13,441 | |
Amounts due from affiliates | 0 | 0 | 0 | |
Other assets | 120,042 | 125,960 | 146,423 | |
Total assets | 2,874,046 | 4,515,420 | 4,378,941 | |
Commercial Paper | 0 | 0 | 591,486 | |
Customer banking deposits | 744,241 | 1,286,216 | ||
Accounts payable and accrued expenses | 205,981 | 231,322 | 172,328 | |
Accrued salaries, wages and payroll taxes | 123,289 | 144,744 | 118,512 | |
Accrued income taxes and reserves for uncertain tax positions | 8,099 | 434,684 | 1,619 | |
Current portion of long-term debt | 817 | 790 | 781 | |
Accounts payable and accrued expenses | 250,846 | 322,508 | 300,162 | |
Total current liabilities | 589,032 | 1,878,289 | 2,471,104 | |
Long-term debt | 2,626,933 | 505,298 | 505,460 | |
Deferred tax liabilities and reserves for uncertain tax positions | 88,377 | 142,586 | 144,036 | |
Deferred revenue and other noncurrent liabilities | 106,438 | 156,298 | 111,956 | |
Total liabilities | 3,410,780 | 2,682,471 | 3,232,556 | |
Stockholders’ equity | (536,734) | 1,832,949 | 1,146,385 | |
Total liabilities and stockholders' equity | 2,874,046 | 4,515,420 | 4,378,941 | |
Block Financial Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash & cash equivalents | 10,415 | 478,077 | 969,387 | 612,376 |
Cash and cash equivalents - restricted | 29,000 | 45,098 | 3,459 | |
Receivables, net | 446,367 | 80,332 | 436,907 | |
Deferred Tax Assets, Net, Current | 77,418 | 79,064 | ||
Prepaid expenses and other current assets | 10,610 | 7,771 | 10,426 | |
Investments in available-for-sale securities | 434,924 | 367,745 | ||
Total current assets | 496,392 | 1,123,620 | 1,866,988 | |
Mortgage loans held for investment, net | 212,106 | 239,338 | 245,663 | |
Property and equipment, at cost, less accumulated depreciation and amortization of $585,419, $509,039 and $518,797 | 160 | 218 | 136 | |
Deferred tax assets and income taxes receivable | 60,588 | 44,788 | 27,505 | |
Amounts due from affiliates | 2,045,204 | 134,094 | 459,955 | |
Other assets | 86,279 | 81,075 | 104,869 | |
Total assets | 2,900,729 | 1,623,133 | 2,705,116 | |
Commercial Paper | 591,486 | |||
Customer banking deposits | 744,681 | 1,286,484 | ||
Accounts payable and accrued expenses | 12,466 | 7,672 | 7,216 | |
Accrued salaries, wages and payroll taxes | 1,515 | 1,946 | 1,929 | |
Accrued income taxes and reserves for uncertain tax positions | 54,227 | 49,529 | 53,655 | |
Accounts payable and accrued expenses | 98,490 | 177,063 | 170,981 | |
Total current liabilities | 166,698 | 980,891 | 2,111,751 | |
Long-term debt | 2,620,113 | 497,893 | 497,823 | |
Deferred tax liabilities and reserves for uncertain tax positions | 6,814 | 25,696 | 23,791 | |
Deferred revenue and other noncurrent liabilities | 1,161 | 1,783 | 1,763 | |
Total liabilities | 2,794,786 | 1,506,263 | 2,635,128 | |
Stockholders’ equity | 105,943 | 116,870 | 69,988 | |
Total liabilities and stockholders' equity | 2,900,729 | 1,623,133 | 2,705,116 | |
Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash & cash equivalents | 179,096 | 1,529,553 | 352,015 | 1,574,031 |
Cash and cash equivalents - restricted | 40,649 | 46,874 | 47,626 | |
Receivables, net | 383,406 | 87,632 | 340,546 | |
Deferred Tax Assets, Net, Current | 79,631 | 96,849 | 163,300 | |
Prepaid expenses and other current assets | 90,559 | 62,512 | 82,550 | |
Investments in available-for-sale securities | 1,145 | 4,701 | 100 | |
Total current assets | 774,486 | 1,828,121 | 986,137 | |
Property and equipment, at cost, less accumulated depreciation and amortization of $585,419, $509,039 and $518,797 | 290,042 | 311,169 | 308,669 | |
Intangible assets, net | 473,732 | 432,142 | 443,329 | |
Goodwill | 443,418 | 441,831 | 442,961 | |
Deferred tax assets and income taxes receivable | 49,563 | (14,064) | ||
Investments in subsidiaries | 105,943 | 116,870 | 69,988 | |
Amounts due from affiliates | 1,535,377 | 1,058 | 1,029 | |
Other assets | 33,763 | 44,885 | 41,554 | |
Total assets | 3,706,324 | 3,176,076 | 2,279,603 | |
Accounts payable and accrued expenses | 169,932 | 222,546 | 164,064 | |
Accrued salaries, wages and payroll taxes | 121,774 | 142,798 | 116,583 | |
Accrued income taxes and reserves for uncertain tax positions | 385,155 | 22,502 | ||
Current portion of long-term debt | 817 | 790 | 781 | |
Accounts payable and accrued expenses | 152,356 | 145,445 | 129,181 | |
Total current liabilities | 444,879 | 896,734 | 433,111 | |
Long-term debt | 6,820 | 7,405 | 7,637 | |
Deferred tax liabilities and reserves for uncertain tax positions | 79,302 | 148,217 | 120,245 | |
Deferred revenue and other noncurrent liabilities | 105,277 | 154,515 | 110,193 | |
Amounts due to affiliates | 2,045,204 | 597,528 | 973,159 | |
Total liabilities | 2,681,482 | 1,804,399 | 1,644,345 | |
Stockholders’ equity | 1,024,842 | 1,371,677 | 635,258 | |
Total liabilities and stockholders' equity | 3,706,324 | 3,176,076 | 2,279,603 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Receivables, net | 1 | |||
Total current assets | 1 | |||
Deferred tax assets and income taxes receivable | 3,736 | |||
Investments in subsidiaries | 1,024,842 | 1,371,677 | 635,258 | |
Amounts due from affiliates | 463,434 | 513,204 | ||
Total assets | 1,028,579 | 1,835,111 | 1,148,462 | |
Accounts payable and accrued expenses | 23,583 | 1,104 | 1,048 | |
Accrued income taxes and reserves for uncertain tax positions | 4,092 | |||
Total current liabilities | 27,675 | 1,104 | 1,048 | |
Deferred tax liabilities and reserves for uncertain tax positions | 2,261 | |||
Amounts due to affiliates | 1,535,377 | 1,058 | 1,029 | |
Total liabilities | 1,565,313 | 2,162 | 2,077 | |
Stockholders’ equity | (536,734) | 1,832,949 | 1,146,385 | |
Total liabilities and stockholders' equity | 1,028,579 | 1,835,111 | 1,148,462 | |
Intersegment Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash & cash equivalents | (440) | (268) | $ (1,100) | |
Deferred Tax Assets, Net, Current | (50,220) | (74,538) | ||
Total current assets | (50,220) | (440) | (74,806) | |
Deferred tax assets and income taxes receivable | (31,327) | |||
Investments in subsidiaries | (1,130,785) | (1,488,547) | (705,246) | |
Amounts due from affiliates | (3,580,581) | (598,586) | (974,188) | |
Other assets | 0 | |||
Total assets | (4,761,586) | (2,118,900) | (1,754,240) | |
Customer banking deposits | (440) | (268) | ||
Accrued income taxes and reserves for uncertain tax positions | (50,220) | (74,538) | ||
Total current liabilities | (50,220) | (440) | (74,806) | |
Deferred tax liabilities and reserves for uncertain tax positions | (31,327) | |||
Amounts due to affiliates | (3,580,581) | (598,586) | (974,188) | |
Total liabilities | (3,630,801) | (630,353) | (1,048,994) | |
Stockholders’ equity | (1,130,785) | (1,488,547) | (705,246) | |
Total liabilities and stockholders' equity | $ (4,761,586) | $ (2,118,900) | $ (1,754,240) |
Condensed Consolidating Finan60
Condensed Consolidating Financial Statements (Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Apr. 30, 2015 | Apr. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities: | $ (1,426,949) | $ (1,247,200) | ||
Sales, maturities of and payments received on AFS securities | 436,380 | 68,013 | ||
Principal payments on mortgage loans held for investment, net | 24,664 | 18,098 | ||
Capital expenditures | (66,418) | (98,876) | ||
Payments made for business acquisitions, net of cash acquired | (85,329) | (112,163) | ||
Loans made to franchisees | (21,377) | (48,013) | ||
Repayments from franchisees | 22,234 | 34,164 | ||
Other, net | 3,887 | 6,079 | ||
Net cash provided by (used in) investing activities | 314,041 | (132,698) | ||
Repayments of Commercial Paper | 0 | 457,576 | ||
Proceeds from Issuance of Commercial Paper | 0 | 1,049,062 | ||
Repayments of long-term debt | (225,000) | (400,000) | ||
Proceeds from issuance of long-term debt | 2,346,831 | 0 | ||
Customer banking deposits, net | (326,705) | 515,015 | ||
Transfer of bank deposits | (419,028) | 0 | ||
Dividends paid | (157,530) | (164,905) | ||
Repurchase of common stock, including shares surrendered | (1,888,595) | (10,355) | ||
Proceeds from exercise of stock options | 25,803 | 16,026 | ||
Other, net | (43,972) | (15,993) | ||
Net cash used in financing activities | (688,196) | 531,274 | ||
Effects of exchange rates on cash | (16,575) | (15,549) | ||
Net decrease in cash and cash equivalents | (1,817,679) | (864,173) | ||
Cash & cash equivalents | 189,511 | 1,321,134 | $ 2,007,190 | $ 2,185,307 |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Dividends paid | (157,530) | (164,905) | ||
Repurchase of common stock, including shares surrendered | (1,888,595) | (10,355) | ||
Proceeds from exercise of stock options | 25,803 | 16,026 | ||
Intercompany borrowings | 2,024,025 | 159,234 | ||
Other, net | (3,703) | |||
Block Financial Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities: | (403,132) | (290,104) | ||
Sales, maturities of and payments received on AFS securities | 430,460 | 68,013 | ||
Principal payments on mortgage loans held for investment, net | 24,664 | 18,098 | ||
Capital expenditures | (24) | (119) | ||
Loans made to franchisees | (20,940) | (47,835) | ||
Repayments from franchisees | 22,006 | 33,927 | ||
Intercompany payments/investments in subsidiaries | (1,871,617) | (128,713) | ||
Other, net | (5,455) | (1,925) | ||
Net cash provided by (used in) investing activities | (1,420,906) | (58,554) | ||
Repayments of Commercial Paper | 457,576 | |||
Proceeds from Issuance of Commercial Paper | 1,049,062 | |||
Repayments of long-term debt | (225,000) | (400,000) | ||
Proceeds from issuance of long-term debt | 2,346,831 | |||
Customer banking deposits, net | (327,145) | 514,183 | ||
Transfer of bank deposits | (419,028) | |||
Other, net | (19,282) | |||
Net cash used in financing activities | 1,356,376 | 705,669 | ||
Net decrease in cash and cash equivalents | (467,662) | 357,011 | ||
Cash & cash equivalents | 10,415 | 969,387 | 478,077 | 612,376 |
Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities: | (1,023,817) | (957,096) | ||
Sales, maturities of and payments received on AFS securities | 5,920 | |||
Capital expenditures | (66,394) | (98,757) | ||
Payments made for business acquisitions, net of cash acquired | (85,329) | (112,163) | ||
Loans made to franchisees | (437) | (178) | ||
Repayments from franchisees | 228 | 237 | ||
Intercompany payments/investments in subsidiaries | (2,024,025) | (159,234) | ||
Other, net | 9,342 | 8,004 | ||
Net cash provided by (used in) investing activities | (2,160,695) | (362,091) | ||
Intercompany borrowings | 1,871,617 | 128,713 | ||
Other, net | (20,987) | (15,993) | ||
Net cash used in financing activities | 1,850,630 | 112,720 | ||
Effects of exchange rates on cash | (16,575) | (15,549) | ||
Net decrease in cash and cash equivalents | (1,350,457) | (1,222,016) | ||
Cash & cash equivalents | 179,096 | 352,015 | 1,529,553 | 1,574,031 |
Intersegment Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Intercompany payments/investments in subsidiaries | 3,895,642 | 287,947 | ||
Net cash provided by (used in) investing activities | 3,895,642 | 287,947 | ||
Customer banking deposits, net | 440 | 832 | ||
Intercompany borrowings | (3,895,642) | (287,947) | ||
Net cash used in financing activities | (3,895,202) | (287,115) | ||
Net decrease in cash and cash equivalents | $ 440 | 832 | ||
Cash & cash equivalents | $ (268) | $ (440) | $ (1,100) |