Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2016 | May 31, 2016 | Oct. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Apr. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
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 | 220,517,257 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 8,763,578,047 |
Consolidated Statements Of Inco
Consolidated Statements Of Income And Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
REVENUES: | |||
Service revenues | $ 2,653,936 | $ 2,651,057 | $ 2,570,273 |
Royalty, product and other revenues | 384,217 | 427,601 | 454,022 |
Total revenues | 3,038,153 | 3,078,658 | 3,024,295 |
OPERATING EXPENSES: | |||
Compensation and benefits | 845,197 | 852,480 | 816,623 |
Occupancy and equipment | 405,123 | 378,624 | 362,782 |
Provision for bad debt and loan losses | 75,395 | 74,993 | 80,007 |
Depreciation and amortization | 115,907 | 111,861 | 93,259 |
Other | 243,930 | 212,532 | 219,706 |
Cost of revenues | 1,685,552 | 1,630,490 | 1,572,377 |
Impairment of goodwill | 0 | 0 | |
Marketing and advertising | 297,762 | 273,682 | 238,763 |
Compensation and benefits | 228,778 | 238,527 | 249,779 |
Depreciation and amortization | 57,691 | 47,943 | 22,345 |
Selling, general and administrative | 719,409 | 653,502 | 633,428 |
Other selling, general and administrative | 135,178 | 93,350 | 122,541 |
Total operating expenses | 2,404,961 | 2,283,992 | 2,205,805 |
Other income | 17,701 | 1,314 | 36,315 |
Interest expense on borrowings | (68,962) | (45,246) | (55,279) |
Other expenses | (12,452) | (7,929) | (32,410) |
Income from continuing operations before income taxes | 569,479 | 742,805 | 767,116 |
Income taxes | 185,926 | 256,061 | 267,019 |
Net income (loss) from continuing operations | 383,553 | 486,744 | 500,097 |
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | (9,286) | (13,081) | (24,940) |
NET INCOME | $ 374,267 | $ 473,663 | $ 475,157 |
BASIC EARNINGS (LOSS) PER SHARE: | |||
Continuing operations (in usd per share) | $ 1.54 | $ 1.77 | $ 1.82 |
Discontinued operations (in usd per share) | (0.04) | (0.05) | (0.09) |
Consolidated (in usd per share) | 1.50 | 1.72 | 1.73 |
DILUTED EARNINGS (LOSS) PER SHARE: | |||
Continuing operations (in usd per share) | 1.53 | 1.75 | 1.81 |
Discontinued operations (in usd per share) | (0.04) | (0.04) | (0.09) |
Consolidated (in usd per share) | $ 1.49 | $ 1.71 | $ 1.72 |
COMPREHENSIVE INCOME: | |||
Net income | $ 374,267 | $ 473,663 | $ 475,157 |
Unrealized gains on securities, net of taxes: | |||
Unrealized holding gains (losses) arising during the year, net | (3,530) | 6,645 | 1,807 |
Reclassification adjustment for losses (gains) included in income | (4,982) | 41 | (3,705) |
Unrealized translation gain | (4,461) | (10,123) | (3,475) |
Other comprehensive loss | (12,973) | (3,437) | (5,373) |
Comprehensive income | $ 361,294 | $ 470,226 | $ 469,784 |
Consolidated Statements Of Inc3
Consolidated Statements Of Income And Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Statement [Abstract] | |||
Tax benefits from discontinued operations | $ (5.4) | $ (8.1) | $ (15.4) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 896,801 | $ 2,007,190 |
Cash and cash equivalents - restricted | 104,110 | 91,972 |
Receivables, less allowance for doubtful accounts of $57,011, and $54,527 | 153,116 | 167,964 |
Deferred tax assets and income taxes receivable | 174,267 | |
Prepaid expenses and other current assets | 67,138 | 70,283 |
Investments in available-for-sale securities | 1,133 | 439,625 |
Total current assets | 1,222,298 | 2,951,301 |
Mortgage loans held for investment, less allowance for loan losses of $5,518 and $7,886 | 202,385 | 239,338 |
Property and equipment, at cost, less accumulated depreciation and amortization of $601,120 and $518,797 | 293,565 | 311,387 |
Intangible assets, net | 433,885 | 432,142 |
Goodwill | 470,757 | 441,831 |
Deferred tax assets and income taxes receivable | 120,123 | 13,461 |
Other noncurrent assets | 114,762 | 125,960 |
Total assets | 2,857,775 | 4,515,420 |
LIABILITIES: | ||
Customer banking deposits | 744,241 | |
Accounts payable and accrued expenses | 259,586 | 231,322 |
Accrued salaries, wages and payroll taxes | 161,786 | 144,744 |
Accrued income taxes | 373,754 | 434,684 |
Current portion of long-term debt | 826 | 790 |
Deferred revenue and other current liabilities | 243,653 | 322,508 |
Total current liabilities | 1,039,605 | 1,878,289 |
Long-term debt | 1,501,925 | 505,298 |
Deferred tax liabilities and reserves for uncertain tax positions | 132,960 | 142,586 |
Deferred revenue and other noncurrent liabilities | 160,182 | 156,298 |
Total liabilities | 2,834,672 | 2,682,471 |
STOCKHOLDERS' EQUITY: | ||
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 260,218,666 and 316,628,110 | 2,602 | 3,166 |
Additional paid-in capital | 758,230 | 783,793 |
Accumulated other comprehensive income (loss) | (11,233) | 1,740 |
Retained earnings | 40,347 | 1,836,442 |
Less treasury shares, at cost, of 39,701,409 and 41,353,479 | (766,843) | (792,192) |
Total stockholders' equity | 23,103 | 1,832,949 |
Total liabilities and stockholders' equity | $ 2,857,775 | $ 4,515,420 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 57,011 | $ 54,527 |
Allowance for loan losses | 5,518 | 7,886 |
Accumulated depreciation and amortization | $ 601,120 | $ 518,797 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, stated value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 260,218,666 | 316,628,110 |
Treasury Stock, Shares | 39,701,409 | 41,343,739 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 374,267 | $ 473,663 | $ 475,157 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 173,598 | 159,804 | 115,604 |
Provision for bad debt and loan losses | 75,395 | 74,993 | 80,007 |
Provision (benefit) for deferred taxes | 36,276 | (15,502) | 20,958 |
Stock-based compensation | 23,540 | 26,068 | 20,058 |
Changes in assets and liabilities, net of acquisitions: | |||
Cash and cash equivalents - restricted | (12,159) | 23,252 | 2,522 |
Receivables | (70,721) | (68,109) | (30,376) |
Prepaid expenses and other current assets | 4,321 | (8,542) | 2,293 |
Other noncurrent assets | 4,197 | 2,260 | (6,024) |
Accounts payable and accrued expenses | 16,723 | 681 | 8,430 |
Accrued salaries, wages and payroll taxes | 17,388 | (21,132) | 33,362 |
Deferred revenue and other current liabilities | (77,510) | (34,491) | 26,080 |
Deferred revenue and other noncurrent liabilities | 3,055 | 3,289 | (4,905) |
Income tax receivables, accrued income taxes and income tax reserves | (12,499) | 33,410 | 83,328 |
Other, net | (23,477) | (23,036) | (16,913) |
Net cash provided by operating activities | 532,394 | 626,608 | 809,581 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of available-for-sale securities | 0 | (90,581) | (45,158) |
Sales, maturities and payments received on available-for-sale securities | 436,471 | 91,878 | 107,101 |
Principal payments on mortgage loans held for investment, net | 33,721 | 23,886 | 46,664 |
Capital expenditures | (99,923) | (123,158) | (147,011) |
Payments made for business acquisitions, net of cash acquired | (88,776) | (113,252) | (68,428) |
Proceeds from notes receivable | 0 | 0 | 64,865 |
Franchise loans: | |||
Franchise loans funded | (22,820) | (49,695) | (63,960) |
Payments received on franchise loans | 55,007 | 90,636 | 87,220 |
Surrender of company-owned life insurance policies | 87,220 | ||
Other, net | 15,835 | 21,354 | 29,397 |
Net cash provided by (used in) investing activities | 329,515 | (148,932) | 10,690 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayments of commercial paper and line of credit borrowings | (1,465,000) | (1,049,136) | (316,000) |
Proceeds from issuance of commercial paper and line of credit borrowings | 1,465,000 | 1,049,136 | 316,000 |
Repayments of long-term debt | 0 | (400,000) | 0 |
Proceeds from issuance of long-term debt | 996,831 | 0 | 0 |
Customer banking deposits, net | (326,705) | (28,544) | (163,952) |
Dividends paid | (201,688) | (219,960) | (218,980) |
Repurchase of common stock, including shares surrendered | (2,018,338) | (10,449) | (6,106) |
Proceeds from exercise of stock options | 25,775 | 16,522 | 28,246 |
Other, net | (18,576) | (3,376) | (4,138) |
Net cash used in financing activities | (1,961,729) | (645,807) | (364,930) |
Effects of exchange rate changes on cash | (10,569) | (9,986) | (17,618) |
Net increase (decrease) in cash and cash equivalents | (1,110,389) | (178,117) | 437,723 |
Cash and cash equivalents at beginning of the year | 2,007,190 | 2,185,307 | 1,747,584 |
Cash and cash equivalents at end of the year | 896,801 | 2,007,190 | 2,185,307 |
SUPPLEMENTARY CASH FLOW DATA: | |||
Income taxes paid, net of refunds received | 165,154 | 236,624 | 155,735 |
Interest paid on borrowings | 59,058 | 44,847 | 55,221 |
Transfers of foreclosed loans to other assets | 3,863 | 4,805 | 7,644 |
Accrued additions to property and equipment | 2,822 | 14,282 | 5,257 |
Conversion of investment in preferred stock to available-for-sale common stock | 0 | 5,000 | 0 |
Transfer of mortgage loans held for investment to held for sale | 0 | 0 | 7,608 |
Transfer of bank deposits | $ (419,028) | $ 0 | $ 0 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning Balances, Shares at Apr. 30, 2013 | (316,628) | (43,993) | ||||
Beginning Balances, Value at Apr. 30, 2013 | $ 1,263,547 | $ 3,166 | $ 752,483 | $ 10,550 | $ 1,333,445 | $ (836,097) |
Net income | 475,157 | 475,157 | ||||
Other comprehensive income (loss) | (5,373) | (5,373) | ||||
Stock-based compensation | 20,058 | 20,058 | ||||
Stock-based awards exercised or vested, value | (28,246) | (5,887) | (325) | $ (34,458) | ||
Stock-based awards exercised or vested, shares | 1,811 | |||||
Shares issued for: | ||||||
Acquisition of treasury shares, shares | (218) | |||||
Acquisition of treasury shares, value | (6,106) | $ (6,106) | ||||
Cash dividends declared | (218,980) | (218,980) | ||||
Ending Balances, Shares at Apr. 30, 2014 | (316,628) | (42,400) | ||||
Ending Balances, Value at Apr. 30, 2014 | 1,556,549 | $ 3,166 | 766,654 | 5,177 | 1,589,297 | $ (807,745) |
Net income | 473,663 | 473,663 | ||||
Other comprehensive income (loss) | (3,437) | (3,437) | ||||
Stock-based compensation | 26,068 | 26,068 | ||||
Stock-based awards exercised or vested, value | (16,131) | (8,881) | (942) | $ (25,954) | ||
Stock-based awards exercised or vested, shares | 1,359 | |||||
Acquisition of treasury shares | (10,449) | 0 | $ (10,449) | |||
Shares issued for: | ||||||
Option exercises, shares | (315) | |||||
Acquisition of treasury shares, shares | 0 | |||||
Acquisition of treasury shares, value | (219,960) | $ 0 | ||||
Other, value | (5,616) | (48) | (5,616) | $ 48 | ||
Other, shares | 3 | |||||
Cash dividends declared | (219,960) | |||||
Ending Balances, Shares at Apr. 30, 2015 | (316,628) | (41,353) | ||||
Ending Balances, Value at Apr. 30, 2015 | 1,832,949 | $ 3,166 | 783,793 | 1,740 | 1,836,442 | $ (792,192) |
Net income | 374,267 | 374,267 | ||||
Other comprehensive income (loss) | (12,973) | (12,973) | ||||
Stock-based compensation | 23,540 | 23,540 | ||||
Stock-based awards exercised or vested, value | (25,346) | (15,257) | (2,848) | $ (43,451) | ||
Stock-based awards exercised or vested, shares | 2,262 | |||||
Acquisition of treasury shares | (18,102) | 0 | $ (18,102) | |||
Stock Repurchased During Period, Shares | (56,409) | |||||
Stock Repurchased During Period, Value | $ (2,000,236) | $ (564) | (33,846) | (1,965,826) | ||
Shares issued for: | ||||||
Option exercises, shares | (707) | (610) | ||||
Acquisition of treasury shares, shares | 0 | |||||
Acquisition of treasury shares, value | $ (201,688) | $ 0 | ||||
Cash dividends declared | (201,688) | |||||
Ending Balances, Shares at Apr. 30, 2016 | (260,219) | (39,701) | ||||
Ending Balances, Value at Apr. 30, 2016 | $ 23,103 | $ 2,602 | $ 758,230 | $ (11,233) | $ 40,347 | $ (766,843) |
Consolidated Statements Of Sto8
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per share | $ 0.80 | $ 0.80 | $ 0.80 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NATURE OF OPERATIONS – Our operating subsidiaries provide assisted and do-it-yourself (DIY) tax return preparation through multiple channels (including in-person, online and mobile applications, and desktop software) and related services and products to the general public primarily in the United States, Canada, Australia, and their respective territories. PRINCIPLES OF CONSOLIDATION – The consolidated financial statements include the accounts of the Company and our 100% owned subsidiaries. Intercompany transactions and balances have been eliminated. 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 15 and 16 for additional information on litigation, claims and other loss contingencies related to our discontinued operations. MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with accounting principles generally accepted in the U. S. (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. CASH AND CASH EQUIVALENTS – All non-restricted highly liquid instruments purchased with an original maturity of three months or less are considered to be cash equivalents. Outstanding checks in excess of funds on deposit (book overdrafts) included in accounts payable totaled $43.1 million and $34.0 million as of April 30, 2016 and 2015 , respectively. CASH AND CASH EQUIVALENTS – RESTRICTED – Cash and cash equivalents – restricted consists primarily of cash held by our captive insurance subsidiary and for the benefit of our discontinued mortgage operations. RECEIVABLES AND RELATED ALLOWANCES – Our trade receivables consist primarily of accounts receivable from tax clients for tax return preparation. The allowance for doubtful accounts for these receivables requires management's judgment regarding collectibility and current economic conditions to establish an amount considered by management to be adequate to cover estimated losses as of the balance sheet date. Credit losses from tax clients for tax return preparation are not specifically identified and charged off; instead they are evaluated on a pooled basis. At the end of each tax season the outstanding balances on these receivables are evaluated based on collections received and expected collections over subsequent tax seasons. Our financing receivables consist primarily of mortgage loans held for investment, participations in H&R Block Emerald Advance ® lines of Credit (EAs), loans made to franchisees, and amounts due under our refund discount program in Canada (Cash Back®). H&R Block Emerald Advance® lines of credit . EAs are typically offered to clients in our offices from late November through mid-January, currently in an amount not to exceed $1,000 . If the borrower meets certain criteria as agreed in the loan terms, the line of credit can be increased and utilized year-round. EA balances require an annual paydown on February 15 th , and any amounts unpaid are placed on non-accrual status as of March 1 st . Payments on past due amounts are applied to principal. Beginning in fiscal year 2016, we no longer originate EAs. These lines of credit are offered by BofI Federal Bank, a federal savings bank (BofI). We purchase participation interests in their loans, as discussed further in note 14 . Credit losses from EAs are not specifically identified; instead we review the credit quality of these receivables on a pooled basis, segregated by the year of origination and whether the credit was extended to a new or returning tax client. Credit losses are based on an analysis of collections received and expected collections over subsequent tax seasons. We charge-off receivables to an amount we believe represents the net realizable value. Loans made to franchisees. The credit quality of these receivables is assessed at origination at an individual franchisee level. Payment history is monitored on a regular basis. Based upon our internal analysis and underwriting activities, we believe all loans to franchisees are of similar credit quality. Loans are evaluated for collectibility when they become delinquent. Amounts deemed to be uncollectible are written off to bad debt expense and bad debt related to these loans has typically been immaterial. Additionally, the franchise territory serves as additional security in the event a franchisee defaults on the loan. In the event the franchisee is unable to repay the loan, we may revoke franchise rights, write off the remaining balance of the loan and refranchise the territory or begin operating it as company-owned. Cash Back® receivables. During the tax season, our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA), in exchange for a fee. The total fee we charge for this service is mandated by legislation which is administered by the CRA. Interest is not charged on these balances, in accordance with CRA regulations. The client assigns to us the full amount of the tax refund to be issued by the CRA and the refund is then sent by the CRA directly to us. The amount we advance to clients under this program is the amount of their estimated refund, less our fees, any amounts expected to be withheld by the CRA for amounts the client may owe to government authorities and any amounts owed to us from prior years. The CRA's system for tracking amounts due to various government agencies also indicates if the client has already filed a return, does not exist in the CRA's records, or is bankrupt. This serves to greatly reduce the amounts of uncollectible receivables and the risk of fraudulent returns. We do not specifically identify credit losses for these receivables; instead we determine our allowance for these receivables based on a review of receipts taking into consideration historical experience. In September of each fiscal year, any balances remaining from the previous tax season are charged-off against the related allowance. MORTGAGE LOANS HELD FOR INVESTMENT – Mortgage loans held for investment represent loans originated or acquired with the ability and current intent to hold to maturity. Loans held for investment are carried at amortized cost adjusted for charge-offs, net of allowance for loan losses, deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. We record an allowance representing our estimate of credit losses inherent in the loan portfolio at the balance sheet date. A current assessment of the value of the loan's underlying collateral is made when the loan is no later than 60 days past due and any loan balance in excess of the collateral value less costs to sell the property, is included in the provision for credit losses. We evaluate mortgage loans less than 60 days past due on a pooled basis and record a loan loss allowance for those loans in the aggregate. Loans are considered impaired when we believe it is probable we will be unable to collect all principal and interest due according to the contractual terms of the loan, or when the loan is 60 days past due. For loans over 60 days but less than 180 days past due we record a loan loss allowance. For loans 180 days or more past due we charge-off the loan to the value of the collateral less costs to sell. We classify loans as non-accrual when full and timely collection of interest or principal becomes uncertain, or when they are 90 days past due. Interest previously accrued, but not collected, is reversed against current interest income when a loan is placed on non-accrual status. Loans are not placed back on accrual status until collection of principal and interest is reasonably assured as a result of the borrower bringing the loan into compliance with the contractual terms of the loan. Prior to restoring a loan to accrual status, management considers a borrower's prospects for continuing future contractual payments. PROPERTY AND EQUIPMENT – Buildings and equipment are initially recorded at cost and are depreciated over the estimated useful life of the assets using the straight-line method. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Estimated useful lives are 15 to 40 years for buildings, three to five years for computers and other equipment, three years for purchased software and up to eight years for leasehold improvements. Substantially all of the operations of our subsidiaries are conducted in leased premises. For all lease agreements, including those with escalating rent payments or rent holidays, we recognize rent expense on a straight-line basis. GOODWILL AND INTANGIBLE ASSETS – Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is tested for impairment annually, or more frequently if indications of potential impairment exist. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The weighted-average life of intangible assets with finite lives is 19 years. Intangible assets, except customer relationships, are typically amortized over the estimated useful life of the assets using the straight-line method. Customer relationships are typically amortized over a five-year period using an accelerated method which takes into consideration expected customer attrition rates. We capitalize certain allowable costs associated with software developed for internal use. These costs are typically amortized over three to five years using the straight-line method. TREASURY SHARES – We record shares of common stock repurchased by us as treasury shares, at cost, resulting in a reduction of stockholders' equity. Periodically, we may retire shares held in treasury as determined by our Board of Directors. We typically reissue treasury shares as part of our stock-based compensation programs. When shares are reissued, we determine the cost using the average cost method. REVENUE RECOGNITION – We recognize revenue for our services when each of the following four criteria is met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the selling price is fixed or determinable; and collectibility is reasonably assured. Service revenues consist primarily of fees for preparation and filing of tax returns, both in offices and through our online programs, fees earned on refund transfers (RTs), interchange income associated with our H&R Block Emerald Prepaid MasterCard ® program and fees associated with our Peace of Mind ® Extended Service Plan (POM). Service revenues are recognized in the period in which the service is performed as follows: ▪ Assisted and online tax preparation revenues are recorded when a completed return is electronically filed or accepted by the customer. ▪ Fees related to RTs are recognized when Internal Revenue Service (IRS) acknowledgment is received and the bank account is established at BofI. ▪ Revenues associated with our H&R Block Emerald Prepaid MasterCard ® program consist of interchange income from the use of debit cards and fees from the use of ATM networks, net of volume-based amounts retained by BofI in connection with the PMA. Interchange income is a fee paid by a merchant bank to BofI th r ough the interchange network. Net revenue associated with our H&R Block Prepaid Mastercard® is recognized based on cardholder transactions. ▪ POM revenues are deferred and recognized over the term of the plan, based on actual claims paid in relation to projected claims. Royalty, product and other revenues include royalties from franchisees and sales of desktop software products, and are recognized as follows: ▪ Franchise royalties, which are based on contractual percentages of franchise revenues, are recorded in the period in which the services are provided to the customer. ▪ Revenue from the sale of desktop software is recognized when the product is sold to the end user. Rebates, slotting fees and other incentives paid in connection with these sales are recorded as a reduction of revenue. ▪ Participation revenue on EAs is recorded over the life of the underlying loan. ▪ Interest on loans to franchisees is calculated using the average daily balance method and is recognized based on the principal amount outstanding until the outstanding balance is paid or becomes delinquent. Sales tax we collect and remit to taxing authorities is recorded net in the consolidated statements of income. 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 income and comprehensive income. ADVERTISING EXPENSE – Advertising costs for radio and television ads are expensed over the course of the tax season, with print and mailing advertising expensed as incurred. EMPLOYEE BENEFIT PLANS – We have a 401(k) defined contribution plan covering eligible full-time and seasonal employees following the completion of an eligibility period. Contributions to this plan are discretionary and totaled $14.3 million , $14.8 million and $11.8 million for continuing operations in fiscal years 2016 , 2015 and 2014 , respectively. We have severance plans covering executives and eligible regular full-time or part-time active employees of a participating employer who incur a qualifying termination. Expenses related to severance benefits of continuing operations totaled $12.0 million , $6.7 million and $5.2 million in fiscal years 2016 , 2015 and 2014 , respectively. FOREIGN CURRENCY TRANSLATION – Translation adjustments principally related to amounts outstanding under intercompany borrowings, resulted in foreign currency losses of $7.8 million , $5.9 million and $18.2 million in fiscal years 2016 , 2015 and 2014 respectively. NEW ACCOUNTING PRONOUNCEMENTS – In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-9, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-9), to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance will be effective for us on May 1, 2017, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-9 on our consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-2, "Leases" (ASU 2016-2), which will require the recognition of lease assets and lease liabilities by lessees for leases previously classified as operating leases. ASU 2016-2 also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. This guidance will be effective for us on May 1, 2019, with early adoption permitted, and requires the use of a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact of ASU 2016-2 on our consolidated financial statements, although we expect the impact of this guidance on our consolidated financial statements could be significant. In November 2015, the 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. We elected to adopt this guidance as of November 1, 2015, and applied it prospectively. As such, prior periods have not been adjusted. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers," (ASU 2014-09) which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on May 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Divestiture of H&R Block Bank
Divestiture of H&R Block Bank | 12 Months Ended |
Apr. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
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, 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. 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). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings 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 computations of basic and diluted earnings per share from continuing operations are as follows: (in 000s, except per share amounts) Year ended April 30, 2016 2015 2014 Net income from continuing operations attributable to shareholders $ 383,553 $ 486,744 $ 500,097 Amounts allocated to participating securities (718 ) (774 ) (692 ) Net income from continuing operations attributable to common shareholders $ 382,835 $ 485,970 $ 499,405 Basic weighted average common shares 249,009 275,033 273,830 Potential dilutive shares 1,809 2,103 2,197 Dilutive weighted average common shares 250,818 277,136 276,027 Earnings per share from continuing operations attributable to common shareholders: Basic $ 1.54 $ 1.77 $ 1.82 Diluted 1.53 1.75 1.81 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 0.1 million shares of stock for each of our fiscal years 2016 , 2015 and 2014 , as the effect would be antidilutive. |
Receivables
Receivables | 12 Months Ended |
Apr. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | |
Receivables | Receivables consist of the following: (in 000s) As of April 30, 2016 2015 Short-term Long-term Short-term Long-term Loans to franchisees $ 50,000 $ 46,284 $ 56,603 $ 64,472 Receivables for tax preparation and related fees 52,327 5,528 48,864 6,103 Cash Back ® receivables 37,663 — 42,680 — Emerald Advance lines of credit 25,092 869 21,908 1,913 Royalties from franchisees 9,997 — 8,206 — Other 35,048 7,726 44,230 8,379 210,127 60,407 222,491 80,867 Allowance for doubtful accounts (57,011 ) — (54,527 ) — $ 153,116 $ 60,407 $ 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. Loans made to franchisees as of April 30, 2016 consisted of $61.2 million in term loans made primarily to finance the purchase of franchises and $35.1 million in revolving lines of credit primarily for the purpose of funding off-season working capital needs. Loans made to franchisees as of April 30, 2015 consisted of $80.8 million in term loans and $40.3 million in revolving lines of credit. As of April 30, 2016 and 2015 , we had $0.3 million and $0.1 million of loans, respectively, more than 30 days past due. We had no loans to franchisees on non-accrual status as of April 30, 2016 or 2015 . 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 April 30, 2016 and 2015 , $1.5 million and $1.3 million , respectively, of Cash Back balances were more than 60 days old. H&R Block Emerald Advance® lines of credit. Beginning in fiscal year 2016, we no longer originate EAs. These lines of credit are originated by BofI, and we purchase a participation interest in them. 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 April 30, 2016 , by year of origination, are as follows: (in 000s) Credit Quality Indicator – Year of origination: 2016 $ 10,867 2015 2,789 2014 and prior (2,127 ) Revolving loans 14,432 $ 25,961 As of April 30, 2016 and 2015 , $21.1 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 is as follows: (in 000s) EAs All Other Total Balances as of May 1, 2013 $ 7,390 $ 50,313 $ 57,703 Provision 24,619 46,439 71,058 Charge-offs (24,479 ) (51,704 ) (76,183 ) Balances as of April 30, 2014 7,530 45,048 52,578 Provision 27,065 44,002 71,067 Charge-offs (27,242 ) (41,876 ) (69,118 ) Balances as of April 30, 2015 7,353 47,174 54,527 Provision 24,939 48,743 73,682 Charge-offs (23,285 ) (47,913 ) (71,198 ) Balances as of April 30, 2016 $ 9,007 $ 48,004 $ 57,011 |
Mortgage Loans Held For Investm
Mortgage Loans Held For Investment And Related Assets | 12 Months Ended |
Apr. 30, 2016 | |
Mortgage Loans Held For Investment And Related Assets [Abstract] | |
Mortgage Loans Held For Investment And Related Assets | The composition of our mortgage loan portfolio is as follows: (dollars in 000s) As of April 30, 2016 2015 Amount % of Total Amount % of Total Adjustable-rate loans $ 108,251 52 % $ 130,182 53 % Fixed-rate loans 97,957 48 % 115,034 47 % 206,208 100 % 245,216 100 % Unamortized deferred fees and costs 1,695 2,008 Less: Allowance for loan losses (5,518 ) (7,886 ) $ 202,385 $ 239,338 Our loan loss allowance as a percent of mortgage loans was 2.7% and 3.2% as of April 30, 2016 and 2015 , respectively. Activity in the allowance for loan losses for the years ended April 30, 2016 , 2015 and 2014 is as follows: (in 000s) Year ended April 30, 2016 2015 2014 Balance as of the beginning of the year $ 7,886 $ 11,272 $ 14,314 Provision (1,173 ) (10 ) 8,271 Recoveries 1,797 1,393 4,040 Charge-offs (2,992 ) (4,769 ) (15,353 ) Balance as of the end of the year $ 5,518 $ 7,886 $ 11,272 Detail of the aging of the mortgage loans in our portfolio as of April 30, 2016 is as follows: (in 000s) Less than 60 60 – 89 Days 90+ Days (1) Total Current Total Purchased from SCC $ 9,775 $ 376 $ 40,987 $ 51,138 $ 70,906 $ 122,044 All other 2,315 131 5,878 8,324 75,840 84,164 $ 12,090 $ 507 $ 46,865 $ 59,462 $ 146,746 $ 206,208 (1) We do not accrue interest on loans past due 90 days or more. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property And Equipment | The components of property and equipment, net of accumulated depreciation and amortization, are as follows: (in 000s) As of April 30, 2016 2015 Buildings $ 76,289 $ 88,273 Computers and other equipment 128,815 140,636 Leasehold improvements 77,712 68,114 Purchased software 9,126 12,741 Land and other non-depreciable assets 1,623 1,623 $ 293,565 $ 311,387 Depreciation and amortization expense of property and equipment for continuing operations for fiscal years 2016 , 2015 and 2014 was $100.8 million , $101.3 million and $84.7 million , respectively. |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 12 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Changes in the carrying amount of goodwill for the years ended April 30, 2016 and 2015 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of May 1, 2014 $ 468,414 $ (32,297 ) $ 436,117 Acquisitions 7,628 — 7,628 Disposals and foreign currency changes, net (1,914 ) — (1,914 ) Impairments — — — Balances as of April 30, 2015 474,128 (32,297 ) 441,831 Acquisitions 27,765 — 27,765 Disposals and foreign currency changes, net 1,161 — 1,161 Impairments — — — Balances as of April 30, 2016 $ 503,054 $ (32,297 ) $ 470,757 We tested goodwill for impairment in the fourth quarter of fiscal year 2016 , and did not identify any impairment. Components of intangible assets are as follows: (in 000s) As of April 30, 2016 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Reacquired franchise rights $ 319,354 $ (68,284 ) $ 251,070 $ 294,647 $ (46,180 ) $ 248,467 Customer relationships 206,607 (104,072 ) 102,535 170,851 (78,157 ) 92,694 Internally-developed software 131,161 (95,768 ) 35,393 118,865 (80,689 ) 38,176 Noncompete agreements 31,499 (25,572 ) 5,927 30,630 (23,666 ) 6,964 Franchise agreements 19,201 (9,494 ) 9,707 19,201 (8,214 ) 10,987 Purchased technology 54,700 (25,909 ) 28,791 54,700 (19,846 ) 34,854 Acquired assets pending final allocation (1) 462 — 462 — — — $ 762,984 $ (329,099 ) $ 433,885 $ 688,894 $ (256,752 ) $ 432,142 (1) Represents recent business acquisitions for which final purchase price allocations have not yet been determined. The increase in intangible assets resulted primarily from acquired franchisee and competitor businesses during fiscal year 2016, which added approximately 260 offices to our company-owned network. The amounts and weighted-average lives of assets acquired or added during fiscal year 2016 are as follows: (dollars in 000s) Amount Weighted-Average Life (in years) Reacquired franchise rights $ 23,412 6 Customer relationships 36,162 6 Internally-developed software 14,469 3 Noncompete agreements 812 5 Total $ 74,855 5 Amortization of intangible assets of continuing operations for the years ended April 30, 2016 , 2015 and 2014 was $72.8 million , $58.5 million and $30.9 million , respectively. Estimated amortization of intangible assets for fiscal years 2017 , 2018 , 2019 , 2020 and 2021 is $75.6 million , $65.2 million , $50.8 million , $37.2 million and $26.1 million , respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Apr. 30, 2016 | |
Debt Instruments [Abstract] | |
Long-Term Debt | The components of long-term debt are as follows: (in 000s) As of April 30, 2016 2015 Senior Notes, 4.125%, due October 2020 $ 648,129 $ — Senior Notes, 5.500%, due November 2022 498,175 497,894 Senior Notes, 5.250%, due October 2025 349,012 — Capital lease obligation, due over the next 7 years 7,435 8,194 1,502,751 506,088 Less: Current portion (826 ) (790 ) $ 1,501,925 $ 505,298 UNSECURED COMMITTED LINE OF CREDIT – 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 certain 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 were in compliance with these requirements as of April 30, 2016 . As of April 30, 2016, amounts available to borrow under the 2015 CLOC were limited by the debt-to-EBITDA covenant in the 2015 CLOC Agreement to approximately $1.2 billion , however, our cash needs at April 30 generally do not require us to borrow on our CLOC at that time. We had no balance outstanding under the 2015 CLOC as of April 30, 2016 . SENIOR NOTES – 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 10 . On October 25, 2012, we issued $500.0 million of 5.50% Senior Notes due November 1, 2022. The Senior Notes are not redeemable by the bondholders prior to maturity. The interest rates on our Senior Notes are subject to adjustment based upon our credit ratings. OTHER INFORMATION – The aggregate payments required to retire long-term debt are $0.8 million , $1.0 million , $1.0 million , $1.1 million , $649.3 million and $849.6 million in fiscal years 2017 , 2018 , 2019 , 2020 , 2021 and beyond, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Apr. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | FAIR VALUE MEASUREMENT – We use the following classification of financial instruments pursuant to the fair value hierarchy methodologies for assets measured at fair value: ▪ Level 1 – inputs to the valuation are quoted prices in an active market for identical assets. ▪ Level 2 – inputs to the valuation include quoted prices for similar assets in active markets utilizing a third-party pricing service to determine fair value. ▪ Level 3 – valuation is based on significant inputs that are unobservable in the market and our own estimates of assumptions that we believe market participants would use in pricing the asset. Assets measured on a recurring basis are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. There were no transfers between hierarchy levels during the fiscal years ended April 30, 2016 and 2015 . ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS – The carrying amounts and estimated fair values of our financial instruments are as follows: (in 000s) As of April 30, 2016 2015 Fair Value Hierarchy Carrying Estimated Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 896,801 $ 896,801 $ 2,007,190 $ 2,007,190 Level 1 Cash and cash equivalents - restricted 104,110 104,110 91,972 91,972 Level 1 Receivables, net - short-term 153,116 153,116 167,964 167,964 Level 1 Mortgage loans held for investment, net 202,385 190,503 239,338 190,196 Level 3 Investments in AFS securities 1,133 1,133 441,709 441,709 Level 1 and 2 Receivables, net - long-term 60,407 60,407 80,867 80,867 Level 1 and 3 Liabilities: Customer banking deposits — — 744,699 737,261 Level 1 and 3 Long-term debt 1,502,751 1,566,098 506,088 556,769 Level 2 Contingent consideration 8,657 8,657 10,667 10,667 Level 3 Fair value estimates, methods and assumptions are set forth below. The fair value was not estimated for assets and liabilities that are not considered financial instruments. ▪ Cash and cash equivalents, including restricted - Fair value approximates the carrying amount. ▪ 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. ▪ 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. ▪ 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 is based on market data and utilizes available trade, bid and other market information for similar securities (Level 2). The fair value of our investment in common stock 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. ▪ Contingent consideration - Fair value approximates the carrying amount. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Apr. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | COMMON STOCK – During fiscal year 2016, we repurchased and immediately retired 56.4 million shares of stock at an aggregate cost of $2.0 billion , or an average price of $35.46 per share. We had no similar repurchases or retirements of common stock in fiscal years 2015 or 2014. OTHER COMPREHENSIVE INCOME – Components of other comprehensive income include foreign currency translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as follows: (in 000s) Foreign Currency Translation Adjustments Unrealized Gains (Losses) on AFS Securities Total Balances as of May 1, 2013 $ 6,809 $ 3,741 $ 10,550 Other comprehensive income before reclassifications: Gross gains (losses) arising during the year (3,416 ) 2,594 (822 ) Tax expense (benefit) 59 787 846 (3,475 ) 1,807 (1,668 ) Amounts reclassified to net income: Amount reclassified (1) — (5,835 ) (5,835 ) Tax expense (benefit) — (2,130 ) (2,130 ) — (3,705 ) (3,705 ) Net other comprehensive income (loss) (3,475 ) (1,898 ) (5,373 ) Balances as of April 30, 2014 3,334 1,843 5,177 Other comprehensive income before reclassifications: Gross gains (losses) arising during the year (9,004 ) 10,946 1,942 Tax expense (benefit) 1,119 4,301 5,420 (10,123 ) 6,645 (3,478 ) Amounts reclassified to net income: Amount reclassified — 68 68 Tax expense (benefit) — 27 27 — 41 41 Net other comprehensive loss (10,123 ) 6,686 (3,437 ) Balances as of April 30, 2015 (6,789 ) 8,529 1,740 Other comprehensive income before reclassifications: Gross gains (losses) arising during the year (4,398 ) (5,800 ) (10,198 ) Tax expense (benefit) 63 (2,270 ) (2,207 ) (4,461 ) (3,530 ) (7,991 ) Amounts reclassified to net income: Amount reclassified — (8,196 ) (8,196 ) Tax expense (benefit) — (3,214 ) (3,214 ) — (4,982 ) (4,982 ) Net other comprehensive income (loss) (4,461 ) (8,512 ) (12,973 ) Balances as of April 30, 2016 $ (11,250 ) $ 17 $ (11,233 ) (1) Amount represents a gross realized gain of $18.3 million on the sale of residual interests in mortgage securitizations, net of other-than-temporary impairments on AFS securities of $12.4 million . 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 income and comprehensive income. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | We have a stock-based Long Term Incentive Plan (Plan), under which we can grant stock options, restricted shares, performance-based share units, restricted share units, deferred stock units and other forms of equity to employees, non-employee directors and consultants. Stock-based compensation expense of our continuing operations totaled $23.5 million , $26.1 million and $20.1 million in fiscal years 2016 , 2015 and 2014 , respectively, net of related tax benefits of $9.5 million , $9.9 million and $7.6 million , respectively. We realized tax benefits of $20.9 million , $12.5 million and $10.6 million in fiscal years 2016 , 2015 and 2014 , respectively. As of April 30, 2016 , we had 8.7 million shares reserved for future awards under our Plan. We issue shares from our treasury stock to satisfy the exercise or vesting of stock-based awards and believe we have adequate treasury stock balances available for future issuances. We measure the fair value of options on the grant date or modification date using the Black-Scholes-Merton (Black-Scholes) option valuation model based upon the expected term of the options. We measure the fair value of nonvested shares and share units based on the closing price of our common stock on the grant date. We measure the fair value of performance-based share units based on the Monte Carlo valuation model, taking into account as necessary those provisions of the performance-based nonvested share units that are characterized as market conditions. We generally expense the grant-date fair value, net of estimated forfeitures, over the vesting period on a straight-line basis. Options, nonvested shares and nonvested share units (other than performance-based nonvested share units) granted to employees typically vest pro-rata based upon service over a three -year period with a portion vesting each year. Performance-based nonvested share units granted to employees typically cliff vest at the end of a three -year period based upon satisfaction of both service-based and performance-based requirements. The number of performance-based share units that ultimately vest ranges from zero to 250 percent of the number granted, based on the form of award, performance metrics such as earnings before interest, taxes, depreciation and amortization (EBITDA), return on equity, return on invested capital, total shareholder return or our stock price. Deferred stock units granted to non-employee directors vest when they are granted and are settled six months after the director separates from service as a director of the Company, except in the case of death. All share units granted after March 2013 to employees and non-employee directors receive cumulative dividend equivalents at the time of distribution. Options granted under our Plan have a maximum contractual term of ten years. STOCK OPTIONS – A summary of options for the fiscal year ended April 30, 2016 , is as follows: (in 000s, except per share amounts) Shares Weighted-Average Weighted-Average Aggregate Outstanding, beginning of the year 2,613 $ 17.71 Granted 112 34.73 Exercised (707 ) 16.85 Forfeited or expired (42 ) 27.15 Outstanding, end of the year 1,976 $ 18.76 5 years $ 4,812 Exercisable, end of the year 1,871 $ 17.85 5 years $ 4,812 Exercisable and expected to vest 1,961 $ 18.64 5 years $ 4,812 The total intrinsic value of options exercised during fiscal years 2016 , 2015 and 2014 was $11.7 million , $8.4 million and $13.6 million , respectively. As of April 30, 2016 , we had $0.4 million of total unrecognized compensation cost related to outstanding options. The cost is expected to be recognized over a weighted-average period of two years. When valuing our options on the grant date, we typically estimate the expected volatility using our historical stock price data. We also use historical exercise and forfeiture behaviors to estimate the options expected term and our forfeiture rate. The dividend yield is calculated based on the current dividend and the market price of our common stock on the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve in effect on the grant date. Both expected volatility and the risk-free interest rate are based on a period that approximates the expected term. The following assumptions were used to value options during the periods: Year ended April 30, 2016 2015 2014 Options - management and director: Expected volatility 22.95%-24.87% 26.25% 30.89% - 31.57% Expected term 4 years 4 years 4 years Dividend yield 2.26%-2.69% 2.62% 2.77% - 2.87% Risk-free interest rate 1.29%-1.43% 1.43% 1.06% - 1.31% Weighted-average fair value $ 5.28 $ 5.18 $ 5.57 OTHER AWARDS – A summary of nonvested shares, nonvested share units and deferred stock units, including those that are performance-based, for the year ended April 30, 2016 , is as follows: (shares in 000s) Nonvested Shares and Nonvested Share Units Performance-Based Nonvested Share Units Shares Weighted-Average Shares Weighted-Average Outstanding, beginning of the year 1,487 $ 24.05 1,192 $ 26.26 Granted 593 30.58 912 30.00 Released (511 ) 24.26 (980 ) 16.74 Forfeited (56 ) 30.11 (25 ) 33.45 Outstanding, end of the year 1,513 $ 26.21 1,099 $ 31.86 The total fair value of shares and units vesting during fiscal years 2016 , 2015 and 2014 was $28.8 million , $14.3 million and $8.6 million , respectively. As of April 30, 2016 , we had $32.1 million of total unrecognized compensation cost related to these shares. This cost is expected to be recognized over a weighted-average period of two years. When valuing our performance-based nonvested share units on the grant date, we typically estimate the expected volatility using historical volatility for H&R Block, Inc. and selected comparable companies. The dividend yield is calculated based on the current dividend and the market price of our common stock on the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve in effect on the grant date. Both expected volatility and the risk-free interest rate are based on a period that approximates the expected term. The following assumptions were used to value performance-based nonvested share units using the Monte Carlo valuation model during the periods: Year ended April 30, 2016 2015 2014 Expected volatility 12.85% - 55.27% 12.28% - 78.42% 11.75% – 70.17% Expected term 3 years 3 years 3 years Dividend yield (1) 0% - 2.70% 0% - 2.39% 0% – 2.88% Risk-free interest rate 0.95 % 0.81 % 0.61 % Weighted-average fair value $ 30.00 $ 37.17 $ 28.59 (1) The valuation model assumes that dividends are reinvested by the Company on a continuous basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of income from continuing operations upon which domestic and foreign income taxes have been provided are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Domestic $ 513,746 $ 682,744 $ 754,036 Foreign 55,733 60,061 13,080 $ 569,479 $ 742,805 $ 767,116 The components of income tax expense (benefit) for continuing operations are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Current: Federal $ 167,233 $ 245,473 $ 195,277 State (26,980 ) 31,501 33,274 Foreign 8,735 9,788 6,749 148,988 286,762 235,300 Deferred: Federal 19,937 (30,181 ) 28,624 State 13,801 (4,040 ) 5,475 Foreign 3,200 3,520 (2,380 ) 36,938 (30,701 ) 31,719 Total income taxes for continuing operations $ 185,926 $ 256,061 $ 267,019 The reconciliation between the income tax provision and the amount computed by applying the statutory federal tax rate of 35% to income taxes of continuing operations is as follows: Year ended April 30, 2016 2015 2014 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Change in tax rate resulting from: State income taxes, net of federal income tax benefit 2.2 % 3.5 % 3.8 % Earnings taxed in foreign jurisdictions (2.0 )% (1.8 )% (0.2 )% Permanent differences (0.2 )% (0.3 )% 0.1 % Uncertain tax positions 2.8 % (1.0 )% (5.6 )% Change in valuation allowance (0.5 )% 0.2 % 1.5 % Significant state apportionment changes (4.3 )% — % — % Other (0.3 )% (1.1 )% 0.2 % Effective tax rate 32.7 % 34.5 % 34.8 % The effective tax rate for fiscal year 2016 decreased 1.8% compared to the prior year. This decrease was due largely to the tax effects of changes in state apportionment. The 4.3% decrease related to the changes in state apportionment were related to income from prior fiscal years for which tax returns were not yet filed when the apportionment change was made. The favorable impact of the change in state apportionment was offset by an increase in uncertain tax positions. The tax expense from uncertain tax positions resulted mainly from federal and state tax positions taken on current year income tax returns. The net loss from discontinued operations for fiscal years 2016 , 2015 and 2014 totaled $9.3 million , $13.1 million and $24.9 million , respectively, and was net of tax benefits of $5.4 million , $8.1 million and $15.4 million , respectively. The significant components of deferred tax assets and liabilities are reflected in the following table: (in 000s) As of April 30, 2016 2015 Deferred tax assets: Accrued expenses $ 7,919 $ 9,301 Deferred revenue 35,066 39,604 Allowance for credit losses and related reserves 69,347 107,554 Internally-developed software 51,998 46,376 Deferred and stock-based compensation 19,075 21,776 Net operating loss carry-forward 26,992 27,285 Federal tax benefits related to state unrecognized tax benefits 31,123 26,862 Other 10,187 7,278 Valuation allowance (21,515 ) (24,937 ) Total deferred tax assets 230,192 261,099 Deferred tax liabilities: Prepaid expenses and other (3,225 ) (7,295 ) Property and equipment (19,913 ) (25,589 ) Intangibles (93,406 ) (93,700 ) Total deferred tax liabilities (116,544 ) (126,584 ) Net deferred tax assets $ 113,648 $ 134,515 Effective November 1, 2015, we adopted the provisions of ASU 2015-17 on a prospective basis. Accordingly, all net deferred tax assets and liabilities as of April 30, 2016 are classified as noncurrent in the consolidated balance sheet. Amounts for prior periods have not been restated in the consolidated financial statements. Our valuation allowance on deferred tax assets decreased $3.4 million during the current period. The decrease in the valuation allowance related to management's assessment that it was now more likely than not that we could utilize our deferred tax assets related to foreign tax credit carry-forwards, which were included in other deferred tax assets as of April 30, 2015. Certain of our subsidiaries file stand-alone returns in various states and foreign jurisdictions, and others join in filing consolidated or combined returns in such jurisdictions. As of April 30, 2016 , we had net operating losses (NOLs) in various states and foreign jurisdictions. The amount of state NOLs vary by taxing jurisdiction. We maintain a valuation allowance of $20.7 million for the portion of such losses that, more likely than not, will not be realized. If not used, the NOLs will expire in varying amounts during fiscal years 2017 through 2034. We intend to indefinitely reinvest the earnings of our foreign subsidiaries; therefore, no provision has been made for income taxes that might be payable upon remittance of such earnings. The amount of unrecognized tax liability on these foreign earnings, net of expected foreign tax credits, is not material as of April 30, 2016 . Changes in unrecognized tax benefits for fiscal years 2016 , 2015 and 2014 are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 86,268 $ 111,491 $ 146,391 Additions based on tax positions related to prior years 29,294 15,510 9,743 Reductions based on tax positions related to prior years (25,413 ) (38,783 ) (25,403 ) Additions based on tax positions related to the current year 27,220 22,319 7,399 Reductions related to settlements with tax authorities (450 ) (10,450 ) (23,993 ) Expiration of statute of limitations (8,922 ) (11,423 ) (11,853 ) Other 3,517 (2,396 ) 9,207 Balance, end of the year $ 111,514 $ 86,268 $ 111,491 The total gross unrecognized tax benefit ending balance as of April 30, 2016 , 2015 and 2014 , includes $82.3 million , $55.3 million and $73.7 million , respectively, which if recognized, would impact our effective tax rate. The difference results from adjusting the gross balances for such items as federal, state and foreign deferred items, interest and deductible taxes. We do not expect a significant change in the amount of unrecognized benefits as of the end of fiscal 2016 within the next twelve months. Interest and penalties, if any, accrued on the unrecognized tax benefits are reflected in income tax expense. The total gross interest and penalties accrued as of April 30, 2016 , 2015 and 2014 totaled $22.3 million , $24.7 million and $24.6 million , respectively. We file a consolidated federal income tax return in the United States with the 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 examination level or through the appeals process. The Company currently does not have a U.S. federal income tax return under examination. Our U.S. federal returns for 2011 and all prior periods have been audited by the IRS and are closed. Our return for 2012 has been audited by the IRS but remains open until the three year statute runs in fall of 2016. Our U.S. federal returns for 2013 and after have not been audited and remain open to examination. With respect to state and local jurisdictions and countries outside of the United States, we and our subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. Although the outcome of tax audits is always uncertain, we believe that adequate amounts of tax, interest and penalties have been provided for in the consolidated financial statements for any adjustments that might be incurred due to state, local or foreign audits. |
Other Income And Expenses
Other Income And Expenses | 12 Months Ended |
Apr. 30, 2016 | |
Interest Income And Interest Expense [Abstract] | |
Interest Income And Interest Expense | The following table shows the components of other income and other expenses: (in 000s) Year ended April 30, 2016 2015 2014 Other income, net: Mortgage loans and real estate owned, net $ 4,914 $ — $ — Interest and gains on available-for-sale securities 8,548 — 19,918 Other 4,239 1,314 16,397 $ 17,701 $ 1,314 $ 36,315 Other expenses, net: Foreign currency losses $ (7,807 ) $ (5,878 ) $ (18,191 ) Impairment of investments (2,500 ) (1,368 ) (12,856 ) Other (2,145 ) (683 ) (1,363 ) $ (12,452 ) $ (7,929 ) $ (32,410 ) In connection with our deregistration as an SLHC, as discussed further in note 1 , 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 income and comprehensive income. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | We offer POM to tax clients whereby we (1) represent our clients if they are audited by the IRS, and (2) assume the cost, up to a cumulative per client limit of $6,000 , of additional taxes owed by a client resulting from errors attributable to H&R Block. We defer all revenues and direct costs associated with these service plans, recognizing these amounts over the term of the service plan based on actual claims paid in relation to projected claims. The related short-term asset is included in prepaid expenses and other current assets. The related liability is included in deferred revenue and other current liabilities in the consolidated balance sheets. The related long-term asset and liability are included in other noncurrent assets and deferred revenue and other noncurrent liabilities, respectively, in the consolidated balance sheets. A loss on POM would be recognized if the sum of expected costs for services exceeded unearned revenue. Changes in the related balance of deferred revenue for both company-owned and franchise POM are as follows: (in 000s) Year ended April 30, 2016 2015 Balance, beginning of the year $ 189,779 $ 166,259 Amounts deferred for new extended service plans issued 119,915 113,849 Revenue recognized on previous deferrals (105,352 ) (90,329 ) Balance, end of the year $ 204,342 $ 189,779 We accrued $7.0 million and $8.4 million as of April 30, 2016 and 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. We have accrued estimated contingent consideration totaling $8.7 million and $10.7 million as of April 30, 2016 and 2015 , respectively, related to acquisitions, with amounts 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 $69.4 million as of April 30, 2016 , and net of amounts drawn and outstanding, our remaining commitment to fund totaled $34.3 million . We are self-insured for certain risks, including, employer provided medical benefits, workers' compensation, property and casualty, professional liability and claims related to POM. These programs maintain various self-insured retentions. In all but POM in company-owned offices, commercial insurance is purchased in excess of the self-insured retentions. We accrue estimated losses for self-insured retentions using actuarial models and assumptions based on historical loss experience. We have a deferred compensation plan that permits certain employees to defer portions of their compensation and accrue income on the deferred amounts. Included in deferred revenue and other liabilities is $29.0 million and $33.8 million as of April 30, 2016 and 2015 , respectively, reflecting our obligation under these plans. 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 April 30, 2016 the principal balance of purchased participation interests totaled $13.4 million . Substantially all of the operations of our subsidiaries are conducted in leased premises. Most of the operating leases are for periods ranging from three years to five years , with renewal options, and provide for fixed monthly rentals. Future minimum operating lease commitments as of April 30, 2016 , are as follows: (in 000s) 2017 $ 213,523 2018 165,281 2019 124,750 2020 81,190 2021 32,191 2022 and beyond 63,881 $ 680,816 Rent expense of continuing operations for fiscal years 2016 , 2015 and 2014 totaled $228.5 million , $213.1 million and $203.3 million , respectively. See notes 15 and 16 to the consolidated financial statements for additional discussion regarding guarantees and indemnifications. SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. 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. While these tolling agreements remain in effect, they 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 April 30, 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) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 149,765 $ 183,765 $ 158,765 Loss provisions 4,000 16,000 25,000 Payments (88,500 ) (50,000 ) — Balance, end of the year $ 65,265 $ 149,765 $ 183,765 On June 11, 2015, the New York Court of Appeals, New York's highest court, held 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. 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 estimable 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 15 , 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. 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 April 30, 2016 , total approximately $386 million and consist primarily of an intercompany note receivable. 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 | 12 Months Ended |
Apr. 30, 2016 | |
Litigation And Related Contingencies [Abstract] | |
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 April 30, 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 April 30, 2016 and 2015 , we accrued liabilities of $2.3 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 April 30, 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 16 , 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 16 , 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. SCC has received notices of claims for indemnification relating to lawsuits to which underwriters or depositors are party. 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. SCC may receive 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 filed an application for transfer of the appeal in the Supreme Court of Missouri, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. 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. On April 29, 2016, the court granted our motion for summary judgment on all claims and denied the plaintiff's motion for class certification as moot. The plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. Form 8863 Litigation. A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013. Taken together, the plaintiffs in these lawsuits purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home ® online tax services or 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 and final approval on May 23, 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. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. 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 through an indemnification agreement. 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) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 149,765 $ 183,765 $ 158,765 Loss provisions 4,000 16,000 25,000 Payments (88,500 ) (50,000 ) — Balance, end of the year $ 65,265 $ 149,765 $ 183,765 |
Loss Contingencies Arising From
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations | We offer POM to tax clients whereby we (1) represent our clients if they are audited by the IRS, and (2) assume the cost, up to a cumulative per client limit of $6,000 , of additional taxes owed by a client resulting from errors attributable to H&R Block. We defer all revenues and direct costs associated with these service plans, recognizing these amounts over the term of the service plan based on actual claims paid in relation to projected claims. The related short-term asset is included in prepaid expenses and other current assets. The related liability is included in deferred revenue and other current liabilities in the consolidated balance sheets. The related long-term asset and liability are included in other noncurrent assets and deferred revenue and other noncurrent liabilities, respectively, in the consolidated balance sheets. A loss on POM would be recognized if the sum of expected costs for services exceeded unearned revenue. Changes in the related balance of deferred revenue for both company-owned and franchise POM are as follows: (in 000s) Year ended April 30, 2016 2015 Balance, beginning of the year $ 189,779 $ 166,259 Amounts deferred for new extended service plans issued 119,915 113,849 Revenue recognized on previous deferrals (105,352 ) (90,329 ) Balance, end of the year $ 204,342 $ 189,779 We accrued $7.0 million and $8.4 million as of April 30, 2016 and 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. We have accrued estimated contingent consideration totaling $8.7 million and $10.7 million as of April 30, 2016 and 2015 , respectively, related to acquisitions, with amounts 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 $69.4 million as of April 30, 2016 , and net of amounts drawn and outstanding, our remaining commitment to fund totaled $34.3 million . We are self-insured for certain risks, including, employer provided medical benefits, workers' compensation, property and casualty, professional liability and claims related to POM. These programs maintain various self-insured retentions. In all but POM in company-owned offices, commercial insurance is purchased in excess of the self-insured retentions. We accrue estimated losses for self-insured retentions using actuarial models and assumptions based on historical loss experience. We have a deferred compensation plan that permits certain employees to defer portions of their compensation and accrue income on the deferred amounts. Included in deferred revenue and other liabilities is $29.0 million and $33.8 million as of April 30, 2016 and 2015 , respectively, reflecting our obligation under these plans. 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 April 30, 2016 the principal balance of purchased participation interests totaled $13.4 million . Substantially all of the operations of our subsidiaries are conducted in leased premises. Most of the operating leases are for periods ranging from three years to five years , with renewal options, and provide for fixed monthly rentals. Future minimum operating lease commitments as of April 30, 2016 , are as follows: (in 000s) 2017 $ 213,523 2018 165,281 2019 124,750 2020 81,190 2021 32,191 2022 and beyond 63,881 $ 680,816 Rent expense of continuing operations for fiscal years 2016 , 2015 and 2014 totaled $228.5 million , $213.1 million and $203.3 million , respectively. See notes 15 and 16 to the consolidated financial statements for additional discussion regarding guarantees and indemnifications. SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of RMBSs. In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. 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. While these tolling agreements remain in effect, they 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 April 30, 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) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 149,765 $ 183,765 $ 158,765 Loss provisions 4,000 16,000 25,000 Payments (88,500 ) (50,000 ) — Balance, end of the year $ 65,265 $ 149,765 $ 183,765 On June 11, 2015, the New York Court of Appeals, New York's highest court, held 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. 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 estimable 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 15 , 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. 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 April 30, 2016 , total approximately $386 million and consist primarily of an intercompany note receivable. 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 | 12 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Our subsidiaries provide assisted and DIY tax return preparation through multiple channels (including in-person, online and mobile applications, and desktop software) and distribute the H&R Block-branded financial products and services of BofI. Tax returns are either prepared by H&R Block tax professionals (in company-owned or franchise offices or virtually via the internet) or prepared and filed by our clients through our DIY tax solutions. We operate as a single segment that includes all of our continuing operations, which are designed to enable clients to obtain tax preparation services seamlessly in our offices or through our tax software. Revenues of our continuing operations are as follows: (in 000s) Year ended April 30, 2016 2015 2014 REVENUES : Tax preparation fees: U.S. assisted $ 1,890,175 $ 1,865,438 $ 1,794,043 International 190,527 207,772 200,152 U.S. DIY 234,341 231,854 206,516 2,315,043 2,305,064 2,200,711 Royalties 266,418 292,743 316,153 Revenues from Refund Transfers 165,152 171,094 181,394 Revenues from Emerald Card® 92,608 103,300 103,730 Revenues from Peace of Mind® Extended Service Plan 86,830 81,551 89,685 Interest and fee income on Emerald Advance 57,268 57,202 56,877 Other 54,834 67,704 75,745 $ 3,038,153 $ 3,078,658 $ 3,024,295 Our international operations contributed $209.8 million , $231.7 million and $232.2 million in revenues for fiscal years 2016 , 2015 and 2014 , respectively. The carrying value of assets held outside the U.S. totaled $527.1 million , $284.5 million and $303.9 million as of April 30, 2016 , 2015 and 2014 , respectively. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Apr. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | (in 000s, except per share amounts) Fiscal Year 2016 Apr 30, 2016 Jan 31, 2016 Oct 31, 2015 Jul 31, 2015 Revenues $ 3,038,153 $ 2,297,477 $ 474,543 $ 128,415 $ 137,718 Income (loss) from continuing operations before taxes (benefit) $ 569,479 $ 1,140,807 $ (146,500 ) $ (237,719 ) $ (187,109 ) Income taxes (benefit) 185,926 439,582 (67,851 ) (95,201 ) (90,604 ) Net income (loss) from continuing operations 383,553 701,225 (78,649 ) (142,518 ) (96,505 ) Net loss from discontinued operations (9,286 ) (563 ) (3,080 ) (2,489 ) (3,154 ) Net income (loss) $ 374,267 $ 700,662 $ (81,729 ) $ (145,007 ) $ (99,659 ) Basic earnings (loss) per share: Continuing operations $ 1.54 $ 3.15 $ (0.34 ) $ (0.54 ) $ (0.35 ) Discontinued operations (0.04 ) — (0.01 ) (0.01 ) (0.01 ) Consolidated $ 1.50 $ 3.15 $ (0.35 ) $ (0.55 ) $ (0.36 ) Diluted earnings (loss) per share: Continuing operations $ 1.53 $ 3.13 $ (0.34 ) $ (0.54 ) $ (0.35 ) Discontinued operations (0.04 ) — (0.01 ) (0.01 ) (0.01 ) Consolidated $ 1.49 $ 3.13 $ (0.35 ) $ (0.55 ) $ (0.36 ) (in 000s, except per share amounts) Fiscal Year 2015 Apr 30, 2015 Jan 31, 2015 Oct 31, 2014 Jul 31, 2014 Revenues $ 3,078,658 $ 2,301,370 $ 509,074 $ 134,628 $ 133,586 Income (loss) from continuing operations before taxes (benefit) $ 742,805 $ 1,210,059 $ (90,865 ) $ (200,573 ) $ (175,816 ) Income taxes (benefit) 256,061 465,926 (55,554 ) (87,346 ) (66,965 ) Net income (loss) from continuing operations 486,744 744,133 (35,311 ) (113,227 ) (108,851 ) Net income (loss) from discontinued operations (13,081 ) (5,292 ) (1,637 ) 1,229 (7,381 ) Net income (loss) $ 473,663 $ 738,841 $ (36,948 ) $ (111,998 ) $ (116,232 ) Basic earnings (loss) per share: Continuing operations $ 1.77 $ 2.70 $ (0.13 ) $ (0.41 ) $ (0.40 ) Discontinued operations (0.05 ) (0.02 ) — — (0.02 ) Consolidated $ 1.72 $ 2.68 $ (0.13 ) $ (0.41 ) $ (0.42 ) Diluted earnings (loss) per share: Continuing operations $ 1.75 $ 2.68 $ (0.13 ) $ (0.41 ) $ (0.40 ) Discontinued operations (0.04 ) (0.02 ) — — (0.02 ) Consolidated $ 1.71 $ 2.66 $ (0.13 ) $ (0.41 ) $ (0.42 ) Because most of our clients file their tax returns during the period from January through April of each year, substantially all of our revenues from income tax return preparation and related services and products are earned during this period. As a result, we generally operate at a loss through a majority of the fiscal year. The accumulation of four quarters in fiscal years 2016 and 2015 for earnings per share may not equal the related per share amounts for the years ended April 30, 2016 and 2015 due to the timing of the exercise of stock options and lapse of certain restrictions on nonvested shares and share units and deferred stock units and the antidilutive effect of stock options and nonvested shares and share units in the first three quarters for those years. Information regarding H&R Block's common stock prices and dividends for fiscal years 2016 and 2015 is as follows: Fiscal Year Fourth Quarter Third Quarter Second Quarter First Quarter Fiscal Year 2016: Dividends paid per share $ 0.80 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Stock price range: High $ 37.53 $ 35.14 $ 37.53 $ 37.50 $ 34.62 Low 19.75 19.75 31.00 31.03 29.15 Fiscal Year 2015: Dividends paid per share $ 0.80 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Stock price range: High $ 35.80 $ 35.80 $ 35.09 $ 33.92 $ 33.65 Low 27.23 30.10 31.41 27.42 27.23 |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Apr. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 INCOME STATEMENTS (in 000s) Year ended April 30, 2016 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 192,698 $ 2,868,343 $ (22,888 ) $ 3,038,153 Cost of revenues — 102,707 1,588,450 (5,605 ) 1,685,552 Selling, general and administrative 2,537 30,780 703,375 (17,283 ) 719,409 Total operating expenses 2,537 133,487 2,291,825 (22,888 ) 2,404,961 Other income 381,670 25,420 11,569 (400,958 ) 17,701 Interest expense on external borrowings — (68,531 ) (431 ) — (68,962 ) Other expenses (6,534 ) (3,947 ) (21,534 ) 19,563 (12,452 ) Income from continuing operations before taxes 372,599 12,153 566,122 (381,395 ) 569,479 Income taxes (benefit) (1,668 ) 1,411 186,183 — 185,926 Net income from continuing operations 374,267 10,742 379,939 (381,395 ) 383,553 Net loss from discontinued operations — (9,286 ) — — (9,286 ) Net income 374,267 1,456 379,939 (381,395 ) 374,267 Other comprehensive loss (12,973 ) (8,444 ) (12,973 ) 21,417 (12,973 ) Comprehensive income (loss) $ 361,294 $ (6,988 ) $ 366,966 $ (359,978 ) $ 361,294 Year ended April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 226,285 $ 2,858,474 $ (6,101 ) $ 3,078,658 Cost of revenues — 96,493 1,540,091 (6,094 ) 1,630,490 Selling, general and administrative — 19,053 634,456 (7 ) 653,502 Total operating expenses — 115,546 2,174,547 (6,101 ) 2,283,992 Other income 475,336 2,726 50,434 (527,182 ) 1,314 Interest expense on external borrowings — (44,884 ) (362 ) — (45,246 ) Other expenses — (953 ) (14,976 ) 8,000 (7,929 ) Income from continuing operations before taxes 475,336 67,628 719,023 (519,182 ) 742,805 Income taxes 1,673 2,602 251,786 — 256,061 Net income from continuing operations 473,663 65,026 467,237 (519,182 ) 486,744 Net income (loss) from discontinued operations — (16,725 ) 3,644 — (13,081 ) Net income 473,663 48,301 470,881 (519,182 ) 473,663 Other comprehensive income (loss) (3,437 ) 6,738 (3,437 ) (3,301 ) (3,437 ) Comprehensive income $ 470,226 $ 55,039 $ 467,444 $ (522,483 ) $ 470,226 Year ended April 30, 2014 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 235,075 $ 2,795,562 $ (6,342 ) $ 3,024,295 Cost of revenues — 124,887 1,453,832 (6,342 ) 1,572,377 Selling, general and administrative — 22,505 610,923 — 633,428 Total operating expenses — 147,392 2,064,755 (6,342 ) 2,205,805 Other income 478,866 20,925 5,580 (469,056 ) 36,315 Interest expense on external borrowings — (54,892 ) (387 ) — (55,279 ) Other expenses — (12,888 ) (19,522 ) — (32,410 ) Income from continuing operations before taxes 478,866 40,828 716,478 (469,056 ) 767,116 Income taxes 3,709 10,551 252,759 — 267,019 Net income from continuing operations 475,157 30,277 463,719 (469,056 ) 500,097 Net loss from discontinued operations — (23,771 ) (1,169 ) — (24,940 ) Net income 475,157 6,506 462,550 (469,056 ) 475,157 Other comprehensive loss (5,373 ) (2,012 ) (5,373 ) 7,385 (5,373 ) Comprehensive income $ 469,784 $ 4,494 $ 457,177 $ (461,671 ) $ 469,784 CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of April 30, 2016 H&R Block, Inc. Block Financial Other Eliminations Consolidated Cash & cash equivalents $ — $ 9,025 $ 887,776 $ — $ 896,801 Cash & cash equivalents - restricted — 29,004 75,106 — 104,110 Receivables, net — 71,882 81,234 — 153,116 Prepaid expenses and other current assets — 8,622 58,516 — 67,138 Investments in available-for-sale securities — — 1,133 — 1,133 Total current assets — 118,533 1,103,765 — 1,222,298 Mortgage loans held for investment, net — 202,385 — — 202,385 Property and equipment, net — 136 293,429 — 293,565 Intangible assets, net — — 433,885 — 433,885 Goodwill — — 470,757 — 470,757 Deferred tax assets and income taxes receivable 5,917 77,270 36,936 — 120,123 Investments in subsidiaries 1,738,643 — 108,995 (1,847,638 ) — Amounts due from affiliates — 1,307,612 1,714,009 (3,021,621 ) — Other noncurrent assets — 71,659 43,103 — 114,762 Total assets $ 1,744,560 $ 1,777,595 $ 4,204,879 $ (4,869,259 ) $ 2,857,775 Accounts payable and accrued expenses $ 1,531 $ 18,596 $ 239,459 $ — $ 259,586 Accrued salaries, wages and payroll taxes — 1,766 160,020 — 161,786 Accrued income taxes — 52,976 320,778 — 373,754 Current portion of long-term debt — — 826 — 826 Deferred revenue and other current liabilities — 87,982 155,671 — 243,653 Total current liabilities 1,531 161,320 876,754 — 1,039,605 Long-term debt — 1,495,316 6,609 — 1,501,925 Deferred tax liabilities and reserves for uncertain tax positions 5,917 10,786 116,257 — 132,960 Deferred revenue and other noncurrent liabilities — 1,178 159,004 — 160,182 Amounts due to affiliates 1,714,009 — 1,307,612 (3,021,621 ) — Total liabilities 1,721,457 1,668,600 2,466,236 (3,021,621 ) 2,834,672 Stockholders' equity 23,103 108,995 1,738,643 (1,847,638 ) 23,103 Total liabilities and stockholders' equity $ 1,744,560 $ 1,777,595 $ 4,204,879 $ (4,869,259 ) $ 2,857,775 As of April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated 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 available-for-sale 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 — 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 Year ended April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated Net cash provided by operating activities: $ — $ 15,456 $ 611,152 $ — $ 626,608 Cash flows from investing: Purchases of AFS securities — (90,381 ) (200 ) — (90,581 ) Sales, maturities and payments received on AFS securities — 87,922 3,956 — 91,878 Mortgage loans held for investment, net — 23,886 — — 23,886 Capital expenditures — (224 ) (122,934 ) — (123,158 ) Payments for business acquisitions, net — — (113,252 ) — (113,252 ) Franchise loans funded — (49,220 ) (475 ) — (49,695 ) Payments received on franchise loans — 90,199 437 — 90,636 Intercompany borrowings (payments) — 134,094 (285,049 ) 150,955 — Other, net — 12,011 9,343 — 21,354 Net cash provided by (used in) investing activities — 208,287 (508,174 ) 150,955 (148,932 ) Cash flows from financing: Repayments of short-term borrowings — (1,049,136 ) — — (1,049,136 ) Proceeds from short-term borrowings — 1,049,136 — — 1,049,136 Repayments of long-term debt — (400,000 ) — — (400,000 ) Customer banking deposits, net — (29,204 ) — 660 (28,544 ) Dividends paid (219,960 ) — — — (219,960 ) Repurchase of common stock (10,449 ) — — — (10,449 ) Proceeds from exercise of stock options 16,522 — — — 16,522 Intercompany borrowings (payments) 213,887 71,162 (134,094 ) (150,955 ) — Other, net — — (3,376 ) — (3,376 ) Net cash used in financing activities — (358,042 ) (137,470 ) (150,295 ) (645,807 ) Effects of exchange rate changes on cash — — (9,986 ) — (9,986 ) Net decrease in cash — (134,299 ) (44,478 ) 660 (178,117 ) Cash - beginning of the year — 612,376 1,574,031 (1,100 ) 2,185,307 Cash - end of the year $ — $ 478,077 $ 1,529,553 $ (440 ) $ 2,007,190 Year ended April 30, 2014 H&R Block, Inc. Block Financial Other Eliminations Consolidated Net cash provided by operating activities: $ — $ 35,034 $ 774,547 $ — $ 809,581 Cash flows from investing: Purchases of AFS securities — (45,158 ) — — (45,158 ) Sales, maturities and payments received on AFS securities — 106,873 228 — 107,101 Mortgage loans held for investment, net — 46,664 — — 46,664 Capital expenditures — (75 ) (146,936 ) — (147,011 ) Payments for business acquisitions, net — — (68,428 ) — (68,428 ) Proceeds from notes receivable — — 64,865 — 64,865 Franchise loans funded — (63,960 ) — — (63,960 ) Payments received on franchise loans — 87,220 — — 87,220 Intercompany borrowings (payments) — 33,497 (196,840 ) 163,343 — Other, net — 19,746 9,651 — 29,397 Net cash provided by (used in) investing activities — 184,807 (337,460 ) 163,343 10,690 Cash flows from financing: Repayments of short-term borrowings — (316,000 ) — — (316,000 ) Proceeds from short-term borrowings — 316,000 — — 316,000 Customer banking deposits, net — (165,575 ) — 1,623 (163,952 ) Dividends paid (218,980 ) — — — (218,980 ) Repurchase of common stock (6,106 ) — — — (6,106 ) Proceeds from exercise of stock options 28,246 — — — 28,246 Intercompany borrowings (payments) 196,840 — (33,497 ) (163,343 ) — Other, net — — (4,138 ) — (4,138 ) Net cash used in financing activities — (165,575 ) (37,635 ) (161,720 ) (364,930 ) Effects of exchange rate changes on cash — — (17,618 ) — (17,618 ) Net increase in cash — 54,266 381,834 1,623 437,723 Cash - beginning of the year — 558,110 1,192,197 (2,723 ) 1,747,584 Cash - end of the year $ — $ 612,376 $ 1,574,031 $ (1,100 ) $ 2,185,307 |
Summary Of Significant Accoun28
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Apr. 30, 2016 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Operations | NATURE OF OPERATIONS – Our operating subsidiaries provide assisted and do-it-yourself (DIY) tax return preparation through multiple channels (including in-person, online and mobile applications, and desktop software) and related services and products to the general public primarily in the United States, Canada, Australia, and their respective territories. |
Principles Of Consolidation | PRINCIPLES OF CONSOLIDATION – The consolidated financial statements include the accounts of the Company and our 100% owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Discontinued Operations | 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 15 and 16 for additional information on litigation, claims and other loss contingencies related to our discontinued operations. |
Management Estimates | MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with accounting principles generally accepted in the U. S. (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. |
Cash And Cash Equivalents | CASH AND CASH EQUIVALENTS – All non-restricted highly liquid instruments purchased with an original maturity of three months or less are considered to be cash equivalents. |
Cash And Cash Equivalents - Restricted | CASH AND CASH EQUIVALENTS – RESTRICTED – Cash and cash equivalents – restricted consists primarily of cash held by our captive insurance subsidiary and for the benefit of our discontinued mortgage operations. |
Receivables And Related Allowances | RECEIVABLES AND RELATED ALLOWANCES – Our trade receivables consist primarily of accounts receivable from tax clients for tax return preparation. The allowance for doubtful accounts for these receivables requires management's judgment regarding collectibility and current economic conditions to establish an amount considered by management to be adequate to cover estimated losses as of the balance sheet date. Credit losses from tax clients for tax return preparation are not specifically identified and charged off; instead they are evaluated on a pooled basis. At the end of each tax season the outstanding balances on these receivables are evaluated based on collections received and expected collections over subsequent tax seasons. Our financing receivables consist primarily of mortgage loans held for investment, participations in H&R Block Emerald Advance ® lines of Credit (EAs), loans made to franchisees, and amounts due under our refund discount program in Canada (Cash Back®). H&R Block Emerald Advance® lines of credit . EAs are typically offered to clients in our offices from late November through mid-January, currently in an amount not to exceed $1,000 . If the borrower meets certain criteria as agreed in the loan terms, the line of credit can be increased and utilized year-round. EA balances require an annual paydown on February 15 th , and any amounts unpaid are placed on non-accrual status as of March 1 st . Payments on past due amounts are applied to principal. Beginning in fiscal year 2016, we no longer originate EAs. These lines of credit are offered by BofI Federal Bank, a federal savings bank (BofI). We purchase participation interests in their loans, as discussed further in note 14 . Credit losses from EAs are not specifically identified; instead we review the credit quality of these receivables on a pooled basis, segregated by the year of origination and whether the credit was extended to a new or returning tax client. Credit losses are based on an analysis of collections received and expected collections over subsequent tax seasons. We charge-off receivables to an amount we believe represents the net realizable value. Loans made to franchisees. The credit quality of these receivables is assessed at origination at an individual franchisee level. Payment history is monitored on a regular basis. Based upon our internal analysis and underwriting activities, we believe all loans to franchisees are of similar credit quality. Loans are evaluated for collectibility when they become delinquent. Amounts deemed to be uncollectible are written off to bad debt expense and bad debt related to these loans has typically been immaterial. Additionally, the franchise territory serves as additional security in the event a franchisee defaults on the loan. In the event the franchisee is unable to repay the loan, we may revoke franchise rights, write off the remaining balance of the loan and refranchise the territory or begin operating it as company-owned. Cash Back® receivables. During the tax season, our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA), in exchange for a fee. The total fee we charge for this service is mandated by legislation which is administered by the CRA. Interest is not charged on these balances, in accordance with CRA regulations. The client assigns to us the full amount of the tax refund to be issued by the CRA and the refund is then sent by the CRA directly to us. The amount we advance to clients under this program is the amount of their estimated refund, less our fees, any amounts expected to be withheld by the CRA for amounts the client may owe to government authorities and any amounts owed to us from prior years. The CRA's system for tracking amounts due to various government agencies also indicates if the client has already filed a return, does not exist in the CRA's records, or is bankrupt. This serves to greatly reduce the amounts of uncollectible receivables and the risk of fraudulent returns. We do not specifically identify credit losses for these receivables; instead we determine our allowance for these receivables based on a review of receipts taking into consideration historical experience. In September of each fiscal year, any balances remaining from the previous tax season are charged-off against the related allowance. |
Mortgage Loans Held For Investment | MORTGAGE LOANS HELD FOR INVESTMENT – Mortgage loans held for investment represent loans originated or acquired with the ability and current intent to hold to maturity. Loans held for investment are carried at amortized cost adjusted for charge-offs, net of allowance for loan losses, deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. We record an allowance representing our estimate of credit losses inherent in the loan portfolio at the balance sheet date. A current assessment of the value of the loan's underlying collateral is made when the loan is no later than 60 days past due and any loan balance in excess of the collateral value less costs to sell the property, is included in the provision for credit losses. We evaluate mortgage loans less than 60 days past due on a pooled basis and record a loan loss allowance for those loans in the aggregate. Loans are considered impaired when we believe it is probable we will be unable to collect all principal and interest due according to the contractual terms of the loan, or when the loan is 60 days past due. For loans over 60 days but less than 180 days past due we record a loan loss allowance. For loans 180 days or more past due we charge-off the loan to the value of the collateral less costs to sell. We classify loans as non-accrual when full and timely collection of interest or principal becomes uncertain, or when they are 90 days past due. Interest previously accrued, but not collected, is reversed against current interest income when a loan is placed on non-accrual status. Loans are not placed back on accrual status until collection of principal and interest is reasonably assured as a result of the borrower bringing the loan into compliance with the contractual terms of the loan. Prior to restoring a loan to accrual status, management considers a borrower's prospects for continuing future contractual payments. |
Property And Equipment | PROPERTY AND EQUIPMENT – Buildings and equipment are initially recorded at cost and are depreciated over the estimated useful life of the assets using the straight-line method. Leasehold improvements are initially recorded at cost and are amortized over the lesser of the remaining term of the respective lease or the estimated useful life, using the straight-line method. Estimated useful lives are 15 to 40 years for buildings, three to five years for computers and other equipment, three years for purchased software and up to eight years for leasehold improvements. Substantially all of the operations of our subsidiaries are conducted in leased premises. For all lease agreements, including those with escalating rent payments or rent holidays, we recognize rent expense on a straight-line basis. |
Intangible Assets And Goodwill | GOODWILL AND INTANGIBLE ASSETS – Goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses. Goodwill is not amortized, but rather is tested for impairment annually, or more frequently if indications of potential impairment exist. Intangible assets with finite lives are amortized over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The weighted-average life of intangible assets with finite lives is 19 years. Intangible assets, except customer relationships, are typically amortized over the estimated useful life of the assets using the straight-line method. Customer relationships are typically amortized over a five-year period using an accelerated method which takes into consideration expected customer attrition rates. We capitalize certain allowable costs associated with software developed for internal use. These costs are typically amortized over three to five years using the straight-line method. |
Treasury Shares | TREASURY SHARES – We record shares of common stock repurchased by us as treasury shares, at cost, resulting in a reduction of stockholders' equity. Periodically, we may retire shares held in treasury as determined by our Board of Directors. We typically reissue treasury shares as part of our stock-based compensation programs. When shares are reissued, we determine the cost using the average cost method. |
Revenue Recognition | REVENUE RECOGNITION – We recognize revenue for our services when each of the following four criteria is met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the selling price is fixed or determinable; and collectibility is reasonably assured. Service revenues consist primarily of fees for preparation and filing of tax returns, both in offices and through our online programs, fees earned on refund transfers (RTs), interchange income associated with our H&R Block Emerald Prepaid MasterCard ® program and fees associated with our Peace of Mind ® Extended Service Plan (POM). Service revenues are recognized in the period in which the service is performed as follows: ▪ Assisted and online tax preparation revenues are recorded when a completed return is electronically filed or accepted by the customer. ▪ Fees related to RTs are recognized when Internal Revenue Service (IRS) acknowledgment is received and the bank account is established at BofI. ▪ Revenues associated with our H&R Block Emerald Prepaid MasterCard ® program consist of interchange income from the use of debit cards and fees from the use of ATM networks, net of volume-based amounts retained by BofI in connection with the PMA. Interchange income is a fee paid by a merchant bank to BofI th r ough the interchange network. Net revenue associated with our H&R Block Prepaid Mastercard® is recognized based on cardholder transactions. ▪ POM revenues are deferred and recognized over the term of the plan, based on actual claims paid in relation to projected claims. Royalty, product and other revenues include royalties from franchisees and sales of desktop software products, and are recognized as follows: ▪ Franchise royalties, which are based on contractual percentages of franchise revenues, are recorded in the period in which the services are provided to the customer. ▪ Revenue from the sale of desktop software is recognized when the product is sold to the end user. Rebates, slotting fees and other incentives paid in connection with these sales are recorded as a reduction of revenue. ▪ Participation revenue on EAs is recorded over the life of the underlying loan. ▪ Interest on loans to franchisees is calculated using the average daily balance method and is recognized based on the principal amount outstanding until the outstanding balance is paid or becomes delinquent. Sales tax we collect and remit to taxing authorities is recorded net in the consolidated statements of income. |
Advertising Expense | ADVERTISING EXPENSE – Advertising costs for radio and television ads are expensed over the course of the tax season, with print and mailing advertising expensed as incurred. |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS – We have a 401(k) defined contribution plan covering eligible full-time and seasonal employees following the completion of an eligibility period. Contributions to this plan are discretionary and totaled $14.3 million , $14.8 million and $11.8 million for continuing operations in fiscal years 2016 , 2015 and 2014 , respectively. We have severance plans covering executives and eligible regular full-time or part-time active employees of a participating employer who incur a qualifying termination. Expenses related to severance benefits of continuing operations totaled $12.0 million , $6.7 million and $5.2 million in fiscal years 2016 , 2015 and 2014 , respectively. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION – Translation adjustments principally related to amounts outstanding under intercompany borrowings, resulted in foreign currency losses of $7.8 million , $5.9 million and $18.2 million in fiscal years 2016 , 2015 and 2014 respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 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) Year ended April 30, 2016 2015 2014 Net income from continuing operations attributable to shareholders $ 383,553 $ 486,744 $ 500,097 Amounts allocated to participating securities (718 ) (774 ) (692 ) Net income from continuing operations attributable to common shareholders $ 382,835 $ 485,970 $ 499,405 Basic weighted average common shares 249,009 275,033 273,830 Potential dilutive shares 1,809 2,103 2,197 Dilutive weighted average common shares 250,818 277,136 276,027 Earnings per share from continuing operations attributable to common shareholders: Basic $ 1.54 $ 1.77 $ 1.82 Diluted 1.53 1.75 1.81 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] | |
Schedule Of Short-Term Receivables | eceivables consist of the following: (in 000s) As of April 30, 2016 2015 Short-term Long-term Short-term Long-term Loans to franchisees $ 50,000 $ 46,284 $ 56,603 $ 64,472 Receivables for tax preparation and related fees 52,327 5,528 48,864 6,103 Cash Back ® receivables 37,663 — 42,680 — Emerald Advance lines of credit 25,092 869 21,908 1,913 Royalties from franchisees 9,997 — 8,206 — Other 35,048 7,726 44,230 8,379 210,127 60,407 222,491 80,867 Allowance for doubtful accounts (57,011 ) — (54,527 ) — $ 153,116 $ 60,407 $ 167,964 $ 80,867 |
Schedule Of Receivables Based On Year Of Origination | These amounts as of April 30, 2016 , by year of origination, are as follows: (in 000s) Credit Quality Indicator – Year of origination: 2016 $ 10,867 2015 2,789 2014 and prior (2,127 ) Revolving loans 14,432 $ 25,961 |
Schedule Of Activity In The Allowance For Doubtful Accounts | Activity in the allowance for doubtful accounts for our receivables is as follows: (in 000s) EAs All Other Total Balances as of May 1, 2013 $ 7,390 $ 50,313 $ 57,703 Provision 24,619 46,439 71,058 Charge-offs (24,479 ) (51,704 ) (76,183 ) Balances as of April 30, 2014 7,530 45,048 52,578 Provision 27,065 44,002 71,067 Charge-offs (27,242 ) (41,876 ) (69,118 ) Balances as of April 30, 2015 7,353 47,174 54,527 Provision 24,939 48,743 73,682 Charge-offs (23,285 ) (47,913 ) (71,198 ) Balances as of April 30, 2016 $ 9,007 $ 48,004 $ 57,011 |
Mortgage Loans Held For Inves31
Mortgage Loans Held For Investment And Related Assets (Tables) | 12 Months Ended |
Apr. 30, 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 April 30, 2016 2015 Amount % of Total Amount % of Total Adjustable-rate loans $ 108,251 52 % $ 130,182 53 % Fixed-rate loans 97,957 48 % 115,034 47 % 206,208 100 % 245,216 100 % Unamortized deferred fees and costs 1,695 2,008 Less: Allowance for loan losses (5,518 ) (7,886 ) $ 202,385 $ 239,338 |
Schedule Of Allowance For Loan Losses | Activity in the allowance for loan losses for the years ended April 30, 2016 , 2015 and 2014 is as follows: (in 000s) Year ended April 30, 2016 2015 2014 Balance as of the beginning of the year $ 7,886 $ 11,272 $ 14,314 Provision (1,173 ) (10 ) 8,271 Recoveries 1,797 1,393 4,040 Charge-offs (2,992 ) (4,769 ) (15,353 ) Balance as of the end of the year $ 5,518 $ 7,886 $ 11,272 |
Schedule Of Past Due Mortgage Loans | Detail of the aging of the mortgage loans in our portfolio as of April 30, 2016 is as follows: (in 000s) Less than 60 60 – 89 Days 90+ Days (1) Total Current Total Purchased from SCC $ 9,775 $ 376 $ 40,987 $ 51,138 $ 70,906 $ 122,044 All other 2,315 131 5,878 8,324 75,840 84,164 $ 12,090 $ 507 $ 46,865 $ 59,462 $ 146,746 $ 206,208 (1) We do not accrue interest on loans past due 90 days or more. |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Components Of Property And Equipment | The components of property and equipment, net of accumulated depreciation and amortization, are as follows: (in 000s) As of April 30, 2016 2015 Buildings $ 76,289 $ 88,273 Computers and other equipment 128,815 140,636 Leasehold improvements 77,712 68,114 Purchased software 9,126 12,741 Land and other non-depreciable assets 1,623 1,623 $ 293,565 $ 311,387 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Goodwill | Changes in the carrying amount of goodwill for the years ended April 30, 2016 and 2015 are as follows: (in 000s) Goodwill Accumulated Impairment Losses Net Balances as of May 1, 2014 $ 468,414 $ (32,297 ) $ 436,117 Acquisitions 7,628 — 7,628 Disposals and foreign currency changes, net (1,914 ) — (1,914 ) Impairments — — — Balances as of April 30, 2015 474,128 (32,297 ) 441,831 Acquisitions 27,765 — 27,765 Disposals and foreign currency changes, net 1,161 — 1,161 Impairments — — — Balances as of April 30, 2016 $ 503,054 $ (32,297 ) $ 470,757 |
Schedule Of Intangible Assets | Components of intangible assets are as follows: (in 000s) As of April 30, 2016 2015 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Reacquired franchise rights $ 319,354 $ (68,284 ) $ 251,070 $ 294,647 $ (46,180 ) $ 248,467 Customer relationships 206,607 (104,072 ) 102,535 170,851 (78,157 ) 92,694 Internally-developed software 131,161 (95,768 ) 35,393 118,865 (80,689 ) 38,176 Noncompete agreements 31,499 (25,572 ) 5,927 30,630 (23,666 ) 6,964 Franchise agreements 19,201 (9,494 ) 9,707 19,201 (8,214 ) 10,987 Purchased technology 54,700 (25,909 ) 28,791 54,700 (19,846 ) 34,854 Acquired assets pending final allocation (1) 462 — 462 — — — $ 762,984 $ (329,099 ) $ 433,885 $ 688,894 $ (256,752 ) $ 432,142 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Debt Instruments [Abstract] | |
Components Of Long-Term Debt | The components of long-term debt are as follows: (in 000s) As of April 30, 2016 2015 Senior Notes, 4.125%, due October 2020 $ 648,129 $ — Senior Notes, 5.500%, due November 2022 498,175 497,894 Senior Notes, 5.250%, due October 2025 349,012 — Capital lease obligation, due over the next 7 years 7,435 8,194 1,502,751 506,088 Less: Current portion (826 ) (790 ) $ 1,501,925 $ 505,298 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Apr. 30, 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 April 30, 2016 2015 Fair Value Hierarchy Carrying Estimated Carrying Amount Estimated Fair Value Assets: Cash and cash equivalents $ 896,801 $ 896,801 $ 2,007,190 $ 2,007,190 Level 1 Cash and cash equivalents - restricted 104,110 104,110 91,972 91,972 Level 1 Receivables, net - short-term 153,116 153,116 167,964 167,964 Level 1 Mortgage loans held for investment, net 202,385 190,503 239,338 190,196 Level 3 Investments in AFS securities 1,133 1,133 441,709 441,709 Level 1 and 2 Receivables, net - long-term 60,407 60,407 80,867 80,867 Level 1 and 3 Liabilities: Customer banking deposits — — 744,699 737,261 Level 1 and 3 Long-term debt 1,502,751 1,566,098 506,088 556,769 Level 2 Contingent consideration 8,657 8,657 10,667 10,667 Level 3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Stock Options | A summary of options for the fiscal year ended April 30, 2016 , is as follows: (in 000s, except per share amounts) Shares Weighted-Average Weighted-Average Aggregate Outstanding, beginning of the year 2,613 $ 17.71 Granted 112 34.73 Exercised (707 ) 16.85 Forfeited or expired (42 ) 27.15 Outstanding, end of the year 1,976 $ 18.76 5 years $ 4,812 Exercisable, end of the year 1,871 $ 17.85 5 years $ 4,812 Exercisable and expected to vest 1,961 $ 18.64 5 years $ 4,812 |
Summary Of Nonvested Shares | A summary of nonvested shares, nonvested share units and deferred stock units, including those that are performance-based, for the year ended April 30, 2016 , is as follows: (shares in 000s) Nonvested Shares and Nonvested Share Units Performance-Based Nonvested Share Units Shares Weighted-Average Shares Weighted-Average Outstanding, beginning of the year 1,487 $ 24.05 1,192 $ 26.26 Granted 593 30.58 912 30.00 Released (511 ) 24.26 (980 ) 16.74 Forfeited (56 ) 30.11 (25 ) 33.45 Outstanding, end of the year 1,513 $ 26.21 1,099 $ 31.86 |
Assumptions Used To Value Options | The following assumptions were used to value options during the periods: Year ended April 30, 2016 2015 2014 Options - management and director: Expected volatility 22.95%-24.87% 26.25% 30.89% - 31.57% Expected term 4 years 4 years 4 years Dividend yield 2.26%-2.69% 2.62% 2.77% - 2.87% Risk-free interest rate 1.29%-1.43% 1.43% 1.06% - 1.31% Weighted-average fair value $ 5.28 $ 5.18 $ 5.57 |
Performance-Based Nonvested Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Assumptions Used To Value Options | The following assumptions were used to value performance-based nonvested share units using the Monte Carlo valuation model during the periods: Year ended April 30, 2016 2015 2014 Expected volatility 12.85% - 55.27% 12.28% - 78.42% 11.75% – 70.17% Expected term 3 years 3 years 3 years Dividend yield (1) 0% - 2.70% 0% - 2.39% 0% – 2.88% Risk-free interest rate 0.95 % 0.81 % 0.61 % Weighted-average fair value $ 30.00 $ 37.17 $ 28.59 (1) The valuation model assumes that dividends are reinvested by the Company on a continuous basis. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Components Of Income From Continuing Operations | The components of income from continuing operations upon which domestic and foreign income taxes have been provided are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Domestic $ 513,746 $ 682,744 $ 754,036 Foreign 55,733 60,061 13,080 $ 569,479 $ 742,805 $ 767,116 |
Schedule Of Components Of Income Tax Expense (Benefit) For Continuing Operations | The components of income tax expense (benefit) for continuing operations are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Current: Federal $ 167,233 $ 245,473 $ 195,277 State (26,980 ) 31,501 33,274 Foreign 8,735 9,788 6,749 148,988 286,762 235,300 Deferred: Federal 19,937 (30,181 ) 28,624 State 13,801 (4,040 ) 5,475 Foreign 3,200 3,520 (2,380 ) 36,938 (30,701 ) 31,719 Total income taxes for continuing operations $ 185,926 $ 256,061 $ 267,019 |
Schedule Of Effective Income Tax Rate Reconciliation | The reconciliation between the income tax provision and the amount computed by applying the statutory federal tax rate of 35% to income taxes of continuing operations is as follows: Year ended April 30, 2016 2015 2014 U.S. statutory tax rate 35.0 % 35.0 % 35.0 % Change in tax rate resulting from: State income taxes, net of federal income tax benefit 2.2 % 3.5 % 3.8 % Earnings taxed in foreign jurisdictions (2.0 )% (1.8 )% (0.2 )% Permanent differences (0.2 )% (0.3 )% 0.1 % Uncertain tax positions 2.8 % (1.0 )% (5.6 )% Change in valuation allowance (0.5 )% 0.2 % 1.5 % Significant state apportionment changes (4.3 )% — % — % Other (0.3 )% (1.1 )% 0.2 % Effective tax rate 32.7 % 34.5 % 34.8 % |
Schedule Of Deferred Tax Assets And Liabilities | The significant components of deferred tax assets and liabilities are reflected in the following table: (in 000s) As of April 30, 2016 2015 Deferred tax assets: Accrued expenses $ 7,919 $ 9,301 Deferred revenue 35,066 39,604 Allowance for credit losses and related reserves 69,347 107,554 Internally-developed software 51,998 46,376 Deferred and stock-based compensation 19,075 21,776 Net operating loss carry-forward 26,992 27,285 Federal tax benefits related to state unrecognized tax benefits 31,123 26,862 Other 10,187 7,278 Valuation allowance (21,515 ) (24,937 ) Total deferred tax assets 230,192 261,099 Deferred tax liabilities: Prepaid expenses and other (3,225 ) (7,295 ) Property and equipment (19,913 ) (25,589 ) Intangibles (93,406 ) (93,700 ) Total deferred tax liabilities (116,544 ) (126,584 ) Net deferred tax assets $ 113,648 $ 134,515 |
Schedule Of Reconciliation Of Unrecognized Tax Benefits | Changes in unrecognized tax benefits for fiscal years 2016 , 2015 and 2014 are as follows: (in 000s) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 86,268 $ 111,491 $ 146,391 Additions based on tax positions related to prior years 29,294 15,510 9,743 Reductions based on tax positions related to prior years (25,413 ) (38,783 ) (25,403 ) Additions based on tax positions related to the current year 27,220 22,319 7,399 Reductions related to settlements with tax authorities (450 ) (10,450 ) (23,993 ) Expiration of statute of limitations (8,922 ) (11,423 ) (11,853 ) Other 3,517 (2,396 ) 9,207 Balance, end of the year $ 111,514 $ 86,268 $ 111,491 |
Other Income And Expenses (Tabl
Other Income And Expenses (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Interest Income And Interest Expense [Abstract] | |
Schedule Of Interest Income And Expense Of Continuing Operations | The following table shows the components of other income and other expenses: (in 000s) Year ended April 30, 2016 2015 2014 Other income, net: Mortgage loans and real estate owned, net $ 4,914 $ — $ — Interest and gains on available-for-sale securities 8,548 — 19,918 Other 4,239 1,314 16,397 $ 17,701 $ 1,314 $ 36,315 Other expenses, net: Foreign currency losses $ (7,807 ) $ (5,878 ) $ (18,191 ) Impairment of investments (2,500 ) (1,368 ) (12,856 ) Other (2,145 ) (683 ) (1,363 ) $ (12,452 ) $ (7,929 ) $ (32,410 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Deferred Revenue Related To The Peace Of Mind Program | Changes in the related balance of deferred revenue for both company-owned and franchise POM are as follows: (in 000s) Year ended April 30, 2016 2015 Balance, beginning of the year $ 189,779 $ 166,259 Amounts deferred for new extended service plans issued 119,915 113,849 Revenue recognized on previous deferrals (105,352 ) (90,329 ) Balance, end of the year $ 204,342 $ 189,779 |
Future Minimum Operating Lease Commitments | Future minimum operating lease commitments as of April 30, 2016 , are as follows: (in 000s) 2017 $ 213,523 2018 165,281 2019 124,750 2020 81,190 2021 32,191 2022 and beyond 63,881 $ 680,816 |
Loss Contingencies Arising Fr40
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 April 30, 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 April 30, 2016 and 2015 , we accrued liabilities of $2.3 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 April 30, 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 16 , 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 16 , 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. SCC has received notices of claims for indemnification relating to lawsuits to which underwriters or depositors are party. 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. SCC may receive 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 filed an application for transfer of the appeal in the Supreme Court of Missouri, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. 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. On April 29, 2016, the court granted our motion for summary judgment on all claims and denied the plaintiff's motion for class certification as moot. The plaintiff filed an appeal with the Eighth Circuit Court of Appeals, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. Form 8863 Litigation. A series of putative class action lawsuits were filed against us in various federal courts and one state court beginning on March 13, 2013. Taken together, the plaintiffs in these lawsuits purport to represent certain clients nationwide who filed Form 8863 during tax season 2013 through an H&R Block office or using H&R Block At Home ® online tax services or 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 and final approval on May 23, 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. We have not concluded that a loss related to this matter is probable, nor have we accrued a loss contingency related to this matter. 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 through an indemnification agreement. 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) Year ended April 30, 2016 2015 2014 Balance, beginning of the year $ 149,765 $ 183,765 $ 158,765 Loss provisions 4,000 16,000 25,000 Payments (88,500 ) (50,000 ) — Balance, end of the year $ 65,265 $ 149,765 $ 183,765 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Operations By Reportable Operating Segment | (in 000s) Year ended April 30, 2016 2015 2014 REVENUES : Tax preparation fees: U.S. assisted $ 1,890,175 $ 1,865,438 $ 1,794,043 International 190,527 207,772 200,152 U.S. DIY 234,341 231,854 206,516 2,315,043 2,305,064 2,200,711 Royalties 266,418 292,743 316,153 Revenues from Refund Transfers 165,152 171,094 181,394 Revenues from Emerald Card® 92,608 103,300 103,730 Revenues from Peace of Mind® Extended Service Plan 86,830 81,551 89,685 Interest and fee income on Emerald Advance 57,268 57,202 56,877 Other 54,834 67,704 75,745 $ 3,038,153 $ 3,078,658 $ 3,024,295 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary Of Quarterly Financial Information | (in 000s, except per share amounts) Fiscal Year 2015 Apr 30, 2015 Jan 31, 2015 Oct 31, 2014 Jul 31, 2014 Revenues $ 3,078,658 $ 2,301,370 $ 509,074 $ 134,628 $ 133,586 Income (loss) from continuing operations before taxes (benefit) $ 742,805 $ 1,210,059 $ (90,865 ) $ (200,573 ) $ (175,816 ) Income taxes (benefit) 256,061 465,926 (55,554 ) (87,346 ) (66,965 ) Net income (loss) from continuing operations 486,744 744,133 (35,311 ) (113,227 ) (108,851 ) Net income (loss) from discontinued operations (13,081 ) (5,292 ) (1,637 ) 1,229 (7,381 ) Net income (loss) $ 473,663 $ 738,841 $ (36,948 ) $ (111,998 ) $ (116,232 ) Basic earnings (loss) per share: Continuing operations $ 1.77 $ 2.70 $ (0.13 ) $ (0.41 ) $ (0.40 ) Discontinued operations (0.05 ) (0.02 ) — — (0.02 ) Consolidated $ 1.72 $ 2.68 $ (0.13 ) $ (0.41 ) $ (0.42 ) Diluted earnings (loss) per share: Continuing operations $ 1.75 $ 2.68 $ (0.13 ) $ (0.41 ) $ (0.40 ) Discontinued operations (0.04 ) (0.02 ) — — (0.02 ) Consolidated $ 1.71 $ 2.66 $ (0.13 ) $ (0.41 ) $ (0.42 ) |
Schedule Of Share Price And Dividends Paid | Fiscal Year Fourth Quarter Third Quarter Second Quarter First Quarter Fiscal Year 2016: Dividends paid per share $ 0.80 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Stock price range: High $ 37.53 $ 35.14 $ 37.53 $ 37.50 $ 34.62 Low 19.75 19.75 31.00 31.03 29.15 Fiscal Year 2015: Dividends paid per share $ 0.80 $ 0.20 $ 0.20 $ 0.20 $ 0.20 Stock price range: High $ 35.80 $ 35.80 $ 35.09 $ 33.92 $ 33.65 Low 27.23 30.10 31.41 27.42 27.23 |
Condensed Consolidating Finan43
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Apr. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule Of Condensed Consolidating Statements Of Operations | CONDENSED CONSOLIDATING INCOME STATEMENTS (in 000s) Year ended April 30, 2016 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 192,698 $ 2,868,343 $ (22,888 ) $ 3,038,153 Cost of revenues — 102,707 1,588,450 (5,605 ) 1,685,552 Selling, general and administrative 2,537 30,780 703,375 (17,283 ) 719,409 Total operating expenses 2,537 133,487 2,291,825 (22,888 ) 2,404,961 Other income 381,670 25,420 11,569 (400,958 ) 17,701 Interest expense on external borrowings — (68,531 ) (431 ) — (68,962 ) Other expenses (6,534 ) (3,947 ) (21,534 ) 19,563 (12,452 ) Income from continuing operations before taxes 372,599 12,153 566,122 (381,395 ) 569,479 Income taxes (benefit) (1,668 ) 1,411 186,183 — 185,926 Net income from continuing operations 374,267 10,742 379,939 (381,395 ) 383,553 Net loss from discontinued operations — (9,286 ) — — (9,286 ) Net income 374,267 1,456 379,939 (381,395 ) 374,267 Other comprehensive loss (12,973 ) (8,444 ) (12,973 ) 21,417 (12,973 ) Comprehensive income (loss) $ 361,294 $ (6,988 ) $ 366,966 $ (359,978 ) $ 361,294 Year ended April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 226,285 $ 2,858,474 $ (6,101 ) $ 3,078,658 Cost of revenues — 96,493 1,540,091 (6,094 ) 1,630,490 Selling, general and administrative — 19,053 634,456 (7 ) 653,502 Total operating expenses — 115,546 2,174,547 (6,101 ) 2,283,992 Other income 475,336 2,726 50,434 (527,182 ) 1,314 Interest expense on external borrowings — (44,884 ) (362 ) — (45,246 ) Other expenses — (953 ) (14,976 ) 8,000 (7,929 ) Income from continuing operations before taxes 475,336 67,628 719,023 (519,182 ) 742,805 Income taxes 1,673 2,602 251,786 — 256,061 Net income from continuing operations 473,663 65,026 467,237 (519,182 ) 486,744 Net income (loss) from discontinued operations — (16,725 ) 3,644 — (13,081 ) Net income 473,663 48,301 470,881 (519,182 ) 473,663 Other comprehensive income (loss) (3,437 ) 6,738 (3,437 ) (3,301 ) (3,437 ) Comprehensive income $ 470,226 $ 55,039 $ 467,444 $ (522,483 ) $ 470,226 Year ended April 30, 2014 H&R Block, Inc. Block Financial Other Eliminations Consolidated Total revenues $ — $ 235,075 $ 2,795,562 $ (6,342 ) $ 3,024,295 Cost of revenues — 124,887 1,453,832 (6,342 ) 1,572,377 Selling, general and administrative — 22,505 610,923 — 633,428 Total operating expenses — 147,392 2,064,755 (6,342 ) 2,205,805 Other income 478,866 20,925 5,580 (469,056 ) 36,315 Interest expense on external borrowings — (54,892 ) (387 ) — (55,279 ) Other expenses — (12,888 ) (19,522 ) — (32,410 ) Income from continuing operations before taxes 478,866 40,828 716,478 (469,056 ) 767,116 Income taxes 3,709 10,551 252,759 — 267,019 Net income from continuing operations 475,157 30,277 463,719 (469,056 ) 500,097 Net loss from discontinued operations — (23,771 ) (1,169 ) — (24,940 ) Net income 475,157 6,506 462,550 (469,056 ) 475,157 Other comprehensive loss (5,373 ) (2,012 ) (5,373 ) 7,385 (5,373 ) Comprehensive income $ 469,784 $ 4,494 $ 457,177 $ (461,671 ) $ 469,784 |
Schedule Of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS (in 000s) As of April 30, 2016 H&R Block, Inc. Block Financial Other Eliminations Consolidated Cash & cash equivalents $ — $ 9,025 $ 887,776 $ — $ 896,801 Cash & cash equivalents - restricted — 29,004 75,106 — 104,110 Receivables, net — 71,882 81,234 — 153,116 Prepaid expenses and other current assets — 8,622 58,516 — 67,138 Investments in available-for-sale securities — — 1,133 — 1,133 Total current assets — 118,533 1,103,765 — 1,222,298 Mortgage loans held for investment, net — 202,385 — — 202,385 Property and equipment, net — 136 293,429 — 293,565 Intangible assets, net — — 433,885 — 433,885 Goodwill — — 470,757 — 470,757 Deferred tax assets and income taxes receivable 5,917 77,270 36,936 — 120,123 Investments in subsidiaries 1,738,643 — 108,995 (1,847,638 ) — Amounts due from affiliates — 1,307,612 1,714,009 (3,021,621 ) — Other noncurrent assets — 71,659 43,103 — 114,762 Total assets $ 1,744,560 $ 1,777,595 $ 4,204,879 $ (4,869,259 ) $ 2,857,775 Accounts payable and accrued expenses $ 1,531 $ 18,596 $ 239,459 $ — $ 259,586 Accrued salaries, wages and payroll taxes — 1,766 160,020 — 161,786 Accrued income taxes — 52,976 320,778 — 373,754 Current portion of long-term debt — — 826 — 826 Deferred revenue and other current liabilities — 87,982 155,671 — 243,653 Total current liabilities 1,531 161,320 876,754 — 1,039,605 Long-term debt — 1,495,316 6,609 — 1,501,925 Deferred tax liabilities and reserves for uncertain tax positions 5,917 10,786 116,257 — 132,960 Deferred revenue and other noncurrent liabilities — 1,178 159,004 — 160,182 Amounts due to affiliates 1,714,009 — 1,307,612 (3,021,621 ) — Total liabilities 1,721,457 1,668,600 2,466,236 (3,021,621 ) 2,834,672 Stockholders' equity 23,103 108,995 1,738,643 (1,847,638 ) 23,103 Total liabilities and stockholders' equity $ 1,744,560 $ 1,777,595 $ 4,204,879 $ (4,869,259 ) $ 2,857,775 As of April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated 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 available-for-sale 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 — 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 Statements Of Cash Flows | Year ended April 30, 2015 H&R Block, Inc. Block Financial Other Eliminations Consolidated Net cash provided by operating activities: $ — $ 15,456 $ 611,152 $ — $ 626,608 Cash flows from investing: Purchases of AFS securities — (90,381 ) (200 ) — (90,581 ) Sales, maturities and payments received on AFS securities — 87,922 3,956 — 91,878 Mortgage loans held for investment, net — 23,886 — — 23,886 Capital expenditures — (224 ) (122,934 ) — (123,158 ) Payments for business acquisitions, net — — (113,252 ) — (113,252 ) Franchise loans funded — (49,220 ) (475 ) — (49,695 ) Payments received on franchise loans — 90,199 437 — 90,636 Intercompany borrowings (payments) — 134,094 (285,049 ) 150,955 — Other, net — 12,011 9,343 — 21,354 Net cash provided by (used in) investing activities — 208,287 (508,174 ) 150,955 (148,932 ) Cash flows from financing: Repayments of short-term borrowings — (1,049,136 ) — — (1,049,136 ) Proceeds from short-term borrowings — 1,049,136 — — 1,049,136 Repayments of long-term debt — (400,000 ) — — (400,000 ) Customer banking deposits, net — (29,204 ) — 660 (28,544 ) Dividends paid (219,960 ) — — — (219,960 ) Repurchase of common stock (10,449 ) — — — (10,449 ) Proceeds from exercise of stock options 16,522 — — — 16,522 Intercompany borrowings (payments) 213,887 71,162 (134,094 ) (150,955 ) — Other, net — — (3,376 ) — (3,376 ) Net cash used in financing activities — (358,042 ) (137,470 ) (150,295 ) (645,807 ) Effects of exchange rate changes on cash — — (9,986 ) — (9,986 ) Net decrease in cash — (134,299 ) (44,478 ) 660 (178,117 ) Cash - beginning of the year — 612,376 1,574,031 (1,100 ) 2,185,307 Cash - end of the year $ — $ 478,077 $ 1,529,553 $ (440 ) $ 2,007,190 Year ended April 30, 2014 H&R Block, Inc. Block Financial Other Eliminations Consolidated Net cash provided by operating activities: $ — $ 35,034 $ 774,547 $ — $ 809,581 Cash flows from investing: Purchases of AFS securities — (45,158 ) — — (45,158 ) Sales, maturities and payments received on AFS securities — 106,873 228 — 107,101 Mortgage loans held for investment, net — 46,664 — — 46,664 Capital expenditures — (75 ) (146,936 ) — (147,011 ) Payments for business acquisitions, net — — (68,428 ) — (68,428 ) Proceeds from notes receivable — — 64,865 — 64,865 Franchise loans funded — (63,960 ) — — (63,960 ) Payments received on franchise loans — 87,220 — — 87,220 Intercompany borrowings (payments) — 33,497 (196,840 ) 163,343 — Other, net — 19,746 9,651 — 29,397 Net cash provided by (used in) investing activities — 184,807 (337,460 ) 163,343 10,690 Cash flows from financing: Repayments of short-term borrowings — (316,000 ) — — (316,000 ) Proceeds from short-term borrowings — 316,000 — — 316,000 Customer banking deposits, net — (165,575 ) — 1,623 (163,952 ) Dividends paid (218,980 ) — — — (218,980 ) Repurchase of common stock (6,106 ) — — — (6,106 ) Proceeds from exercise of stock options 28,246 — — — 28,246 Intercompany borrowings (payments) 196,840 — (33,497 ) (163,343 ) — Other, net — — (4,138 ) — (4,138 ) Net cash used in financing activities — (165,575 ) (37,635 ) (161,720 ) (364,930 ) Effects of exchange rate changes on cash — — (17,618 ) — (17,618 ) Net increase in cash — 54,266 381,834 1,623 437,723 Cash - beginning of the year — 558,110 1,192,197 (2,723 ) 1,747,584 Cash - end of the year $ — $ 612,376 $ 1,574,031 $ (1,100 ) $ 2,185,307 |
Summary Of Significant Accoun44
Summary Of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Book overdrafts included in accounts payable | $ 43,100,000 | $ 43,100,000 | $ 34,000,000 | |
Maximum funding by facility | $ 2,000,000,000 | $ 2,000,000,000 | ||
Period at which loans are classified as non-accrual (in days) | 90 days | |||
Weighted-average life of intangible assets with finite lives (in years) | 19 years | |||
Contributions of continuing operations to 401(k) defined contribution plans | $ 14,300,000 | 14,800,000 | $ 11,800,000 | |
Expenses related to severance benefits | 12,000,000 | 6,700,000 | 5,200,000 | |
Foreign currency losses | $ 7,800,000 | $ 5,900,000 | $ 18,200,000 | |
Document Fiscal Year Focus | 2,016 | |||
Buildings | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | |||
Computers and other equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Purchased software | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Leasehold improvements | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 8 years | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Mortgage loan's past due, in days | 60 days | |||
Minimum | Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Weighted-average life of intangible assets with finite lives (in years) | 3 years | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Mortgage loan's past due, in days | 180 days | |||
Maximum | Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Weighted-average life of intangible assets with finite lives (in years) | 5 years | |||
Maximum | Buildings | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Maximum | Computers and other equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 5 years | |||
Emerald Advance lines of credit | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Maximum funding by facility | $ 1,000 | $ 1,000 |
Divestiture of H&R Block Bank (
Divestiture of H&R Block Bank (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Aug. 31, 2015 | Apr. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Month end deposit balances | $ 419,000 | ||
Fair Value | $ 1,133 | $ 441,709 | |
Document Fiscal Year Focus | 2,016 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income from continuing operations attributable to shareholders | $ 701,225 | $ (78,649) | $ (142,518) | $ (96,505) | $ 744,133 | $ (35,311) | $ (113,227) | $ (108,851) | $ 383,553 | $ 486,744 | $ 500,097 |
Amounts allocated to participating securities | 718 | 774 | 692 | ||||||||
Net income from continuing operations attributable to common shareholders | $ 382,835 | $ 485,970 | $ 499,405 | ||||||||
Basic weighted average common shares (in shares) | 249,009 | 275,033 | 273,830 | ||||||||
Potential dilutive shares | 1,809 | 2,103 | 2,197 | ||||||||
Dilutive weighted average common shares | 250,818 | 277,136 | 276,027 | ||||||||
Basic (in usd per share) | $ 3.15 | $ (0.34) | $ (0.54) | $ (0.35) | $ 2.70 | $ (0.13) | $ (0.41) | $ (0.40) | $ 1.54 | $ 1.77 | $ 1.82 |
Diluted (in usd per share) | $ 3.13 | $ (0.34) | $ (0.54) | $ (0.35) | $ 2.68 | $ (0.13) | $ (0.41) | $ (0.40) | $ 1.53 | $ 1.75 | $ 1.81 |
Antidilutive securities excluded from computation of earnings per share, amount | 100 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Document Fiscal Year Focus | 2,016 | |
Impaired non-accrual status term, days | 60 days | |
Loans to franchisees | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of loans past due | $ 0.3 | $ 0.1 |
Emerald Advance lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual status loans | 21.1 | 18.7 |
Term Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 61.2 | 80.8 |
Revolving Lines Of Credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 35.1 | 40.3 |
Cash Back® receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Short-term | $ 1.5 | $ 1.3 |
Receivables (Schedule Of Short-
Receivables (Schedule Of Short-Term Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Document Fiscal Year Focus | 2,016 | |
Receivables, Short term | $ 210,127 | $ 222,491 |
Accounts Receivable, Gross, Noncurrent | 60,407 | 80,867 |
Allowance for doubtful accounts, Short Term | (57,011) | (54,527) |
Allowance for Doubtful Accounts Receivable, Noncurrent | 0 | 0 |
Receivables, net, Short Term | 153,116 | 167,964 |
Receivables, net Long Term | 60,407 | 80,867 |
Accounts Receivable Net, Noncurrent, Estimated Fair Value | 60,407 | 80,867 |
Loans to franchisees | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 50,000 | 56,603 |
Accounts Receivable, Gross, Noncurrent | 46,284 | 64,472 |
Receivables for tax preparation and related fees | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 52,327 | 48,864 |
Accounts Receivable, Gross, Noncurrent | 5,528 | 6,103 |
Cash Back® receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 37,663 | 42,680 |
Accounts Receivable, Gross, Noncurrent | 0 | 0 |
Emerald Advance lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 25,092 | 21,908 |
Accounts Receivable, Gross, Noncurrent | 869 | 1,913 |
Royalties from franchisees | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 9,997 | 8,206 |
Accounts Receivable, Gross, Noncurrent | 0 | 0 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, Short term | 35,048 | 44,230 |
Accounts Receivable, Gross, Noncurrent | $ 7,726 | $ 8,379 |
Receivables (Schedule Of Receiv
Receivables (Schedule Of Receivables Based On Year Of Origination) (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Document Fiscal Year Focus | 2,016 |
Emerald Advance lines of credit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Net | $ 25,961 |
Year Of Origination 2016 [Member] | Emerald Advance lines of credit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Net | 10,867 |
Year Of Origination 2015 [Member] | Emerald Advance lines of credit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Net | 2,789 |
Year Of Origination 2014 and prior | Emerald Advance lines of credit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Net | (2,127) |
Revolving loans | Emerald Advance lines of credit | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Net | $ 14,432 |
Receivables (Schedule Of Activi
Receivables (Schedule Of Activity In The Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Premiums Receivable, Allowance for Doubtful Accounts, Provision Charged to Expense | $ 73,682 | $ 71,067 | $ 71,058 |
Premiums Receivable, Allowance for Doubtful Accounts, Write Offs Against Allowance | 71,198 | 69,118 | 76,183 |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 54,527 | 52,578 | 57,703 |
Ending balance | 57,011 | 54,527 | 52,578 |
Emerald Advance lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Premiums Receivable, Allowance for Doubtful Accounts, Provision Charged to Expense | 24,939 | 27,065 | 24,619 |
Premiums Receivable, Allowance for Doubtful Accounts, Write Offs Against Allowance | 23,285 | 27,242 | 24,479 |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 7,353 | 7,530 | 7,390 |
Ending balance | 9,007 | 7,353 | 7,530 |
All Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Premiums Receivable, Allowance for Doubtful Accounts, Provision Charged to Expense | 48,743 | 44,002 | 46,439 |
Premiums Receivable, Allowance for Doubtful Accounts, Write Offs Against Allowance | 47,913 | 41,876 | 51,704 |
Allowance for Doubtful Accounts [Roll Forward] | |||
Beginning balance | 47,174 | 45,048 | 50,313 |
Ending balance | $ 48,004 | $ 47,174 | $ 45,048 |
Mortgage Loans Held For Inves51
Mortgage Loans Held For Investment And Related Assets (Narrative) (Details) | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | ||
Allowance as Percent of Principal | 2.70% | 3.20% |
Document Fiscal Year Focus | 2,016 |
Mortgage Loans Held For Inves52
Mortgage Loans Held For Investment And Related Assets (Schedule Of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Mortgage Loans Held For Investment And Related Assets [Abstract] | ||||
Document Fiscal Year Focus | 2,016 | |||
Adjustable-rate loans | $ (108,251) | $ (130,182) | ||
Adjustable-rate loans, percent of total loans | 52.00% | 53.00% | ||
Fixed-rate loans | $ (97,957) | $ (115,034) | ||
Fixed-rate loans, percent of Total loans | 48.00% | 47.00% | ||
Total loans | $ 206,208 | $ 245,216 | ||
Total loans, percent of Total loans | 100.00% | 100.00% | ||
Unamortized deferred fees and costs | $ 1,695 | $ 2,008 | ||
Less: Allowance for loan losses | (5,518) | (7,886) | $ (11,272) | $ (14,314) |
Total | $ 202,385 | $ 239,338 |
Mortgage Loans Held For Inves53
Mortgage Loans Held For Investment And Related Assets (Schedule Of Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Mortgage Loans Held For Investment And Related Assets [Abstract] | |||
Document Fiscal Year Focus | 2,016 | ||
Loans and Leases Rollforward [Roll Forward] | |||
Balance as of the beginning of the year | $ 7,886 | $ 11,272 | $ 14,314 |
Provision | (1,173) | (10) | 8,271 |
Recoveries | 1,797 | 1,393 | 4,040 |
Charge-offs | (2,992) | (4,769) | (15,353) |
Balance as of the end of the year | $ 5,518 | $ 7,886 | $ 11,272 |
Mortgage Loans Held For Inves54
Mortgage Loans Held For Investment And Related Assets (Schedule Of Past Due Mortgage Loans) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | |
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | $ 206,208 | $ 245,216 | |
Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 122,044 | ||
All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 84,164 | ||
Less than 60 Days Past Due | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 12,090 | ||
Less than 60 Days Past Due | Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 9,775 | ||
Less than 60 Days Past Due | All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 2,315 | ||
60 – 89 Days Past Due | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 507 | ||
60 – 89 Days Past Due | Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 376 | ||
60 – 89 Days Past Due | All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 131 | ||
90 Days Past Due | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | [1] | 46,865 | |
90 Days Past Due | Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | [1] | 40,987 | |
90 Days Past Due | All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | [1] | 5,878 | |
Total Past Due | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 59,462 | ||
Total Past Due | Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 51,138 | ||
Total Past Due | All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 8,324 | ||
Current | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 146,746 | ||
Current | Purchased From SCC | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | 70,906 | ||
Current | All Other | |||
Mortgage Loans Held For Investment And Related Assets [Line Items] | |||
Total Portfolio | $ 75,840 | ||
[1] | We do not accrue interest on loans past due 90 days or more. |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Property, Plant and Equipment, Net [Abstract] | |||
Document Fiscal Year Focus | 2,016 | ||
Depreciation and amortization expense of property and equipment | $ 100.8 | $ 101.3 | $ 84.7 |
Property And Equipment (Compone
Property And Equipment (Components Of Property And Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Document Fiscal Year Focus | 2,016 | |
Property and equipment net | $ 293,565 | $ 311,387 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment net | 76,289 | 88,273 |
Computers and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment net | 128,815 | 140,636 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment net | 77,712 | 68,114 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment net | 9,126 | 12,741 |
Land and other non-depreciable assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment net | $ 1,623 | $ 1,623 |
Goodwill And Intangible Asset57
Goodwill And Intangible Assets (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2014USD ($)item | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of offices closed | item | 260 | ||
Amount | $ 74,855 | ||
Amortization | 72,800 | $ 58,500 | $ 30,900 |
Impairment of goodwill | 0 | $ 0 | |
Estimated amortization, 2016 | 75,600 | ||
Estimated amortization, 2017 | 65,200 | ||
Estimated amortization, 2018 | 50,800 | ||
Estimated amortization, 2019 | 37,200 | ||
Estimated amortization, 2020 | $ 26,100 |
Goodwill And Intangible Asset58
Goodwill And Intangible Assets (Schedule Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 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 | 27,765 | 7,628 |
Disposals and foreign currency changes, net | (1,161) | (1,914) |
Impairments | 0 | 0 |
Goodwill before impairment losses, ending balance | 503,054 | 474,128 |
Accumulated impairment losses, ending balance | (32,297) | (32,297) |
Goodwill, ending balance | $ 470,757 | $ 441,831 |
Goodwill And Intangible Asset59
Goodwill And Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Goodwill and Intangible Assets [Line Items] | ||
Document Fiscal Year Focus | 2,016 | |
Gross Carrying Amount | $ 762,984 | $ 688,894 |
Accumulated Amortization | (329,099) | (256,752) |
Net | 433,885 | 432,142 |
Reacquired franchise rights | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 319,354 | 294,647 |
Accumulated Amortization | (68,284) | (46,180) |
Net | 251,070 | 248,467 |
Customer relationships | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 206,607 | 170,851 |
Accumulated Amortization | (104,072) | (78,157) |
Net | 102,535 | 92,694 |
Computer Software, Intangible Asset [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 131,161 | 118,865 |
Accumulated Amortization | (95,768) | (80,689) |
Net | 35,393 | 38,176 |
Noncompete agreements | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,499 | 30,630 |
Accumulated Amortization | (25,572) | (23,666) |
Net | 5,927 | 6,964 |
Franchise agreements | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,201 | 19,201 |
Accumulated Amortization | (9,494) | (8,214) |
Net | 9,707 | 10,987 |
Purchased technology | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54,700 | 54,700 |
Accumulated Amortization | (25,909) | (19,846) |
Net | 28,791 | 34,854 |
Trade Name | ||
Goodwill and Intangible Assets [Line Items] | ||
Gross Carrying Amount | 462 | 0 |
Accumulated Amortization | 0 | 0 |
Net | $ 462 | $ 0 |
Goodwill And Intangible Asset60
Goodwill And Intangible Assets Intangible Assets Acquired (Details) $ in Thousands | 12 Months Ended |
Apr. 30, 2016USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 74,855 |
Weighted-Average Life (in years) | 5 years |
Reacquired franchise rights | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 23,412 |
Weighted-Average Life (in years) | 6 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 36,162 |
Weighted-Average Life (in years) | 6 years |
Computer Software, Intangible Asset [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 14,469 |
Weighted-Average Life (in years) | 3 years |
Noncompete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 812 |
Weighted-Average Life (in years) | 5 years |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | 12 Months Ended | |||||
Apr. 30, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 25, 2015USD ($) | Oct. 25, 2012USD ($) | |
Debt Instrument [Line Items] | ||||||
Maximum funding by facility | $ 2,000,000,000 | |||||
Interest Coverage Ratio | 2.50 | |||||
Document Fiscal Year Focus | 2,016 | |||||
Amount of debt issued | $ 1,502,751,000 | $ 506,088,000 | ||||
Proceeds from issuance of long-term debt | 996,831,000 | 0 | $ 0 | |||
Capital lease obligation, due over the next 7 years | 7,435,000 | $ 8,194,000 | ||||
Payments to retire debt in 2016 | 800,000 | |||||
Payments to retire debt in 2017 | 1,000,000 | |||||
Payments to retire debt in 2018 | 1,000,000 | |||||
Payments to retire debt in 2019 | 1,100,000 | |||||
Payments to retire debt in 2020 | 649,300,000 | |||||
Payments to retire debt beyond 2020 | 849,600,000 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,200,000,000 | |||||
Fiscal Quarter Ending April Thirty, July Thirty One, and October Thirty One | ||||||
Debt Instrument [Line Items] | ||||||
Threshold of Debt to EBITDA Ratio | 3.50 | |||||
Fiscal Quarter Ending January Thirty One | ||||||
Debt Instrument [Line Items] | ||||||
Threshold of Debt to EBITDA Ratio | 4.5 | |||||
Four Point One Two Five Percent Senior Notes, Due October 2020 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.125% | |||||
Amount of debt issued | $ 650,000,000 | |||||
Five Point Two Five Percent Senior Notes, Due October 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.25% | |||||
Amount of debt issued | $ 350,000,000 | |||||
Senior Notes, 5.500%, Due November 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.50% | |||||
Amount of debt issued | $ 500,000,000 | |||||
Standby Letters of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000,000 | |||||
Swingline Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line Of Credit Facility, Available Increase In Borrowing Capacity | $ 500,000,000 |
Long-Term Debt (Components Of L
Long-Term Debt (Components Of Long-Term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Sep. 25, 2015 | Apr. 30, 2015 | Oct. 25, 2012 | |
Debt Instrument [Line Items] | ||||
Document Fiscal Year Focus | 2,016 | |||
Capital lease obligation, due over the next 7 years | $ 7,435 | $ 8,194 | ||
Total long term debt | 1,502,751 | 506,088 | ||
Less: Current portion | (826) | (790) | ||
Long-term debt | 1,501,925 | 505,298 | ||
Four Point One Two Five Percent Senior Notes, Due October 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 648,129 | 0 | ||
Total long term debt | $ 650,000 | |||
Senior Notes, 5.500%, Due November 2022 | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | 498,175 | 497,894 | ||
Total long term debt | $ 500,000 | |||
Five Point Two Five Percent Senior Notes, Due October 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 349,012 | $ 0 | ||
Total long term debt | $ 350,000 |
Fair Value Fair Value Of Financ
Fair Value Fair Value Of Financial Instruments (Summary Of Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Cash and cash equivalents, Carrying Amount | $ 896,801 | $ 2,007,190 | $ 2,185,307 | $ 1,747,584 |
Cash and cash equivalents, Estimated Fair Value | 896,801 | 2,007,190 | ||
Cash and cash equivalents - restricted, Carrying Amount | 104,110 | 91,972 | ||
Cash and cash equivalents - restricted, Estimated Fair Value | 104,110 | 91,972 | ||
Receivables, net - short-term, Carrying Amount | 153,116 | 167,964 | ||
Receivables, net - short-term, Estimated Fair Value | 153,116 | 167,964 | ||
Mortgage loans held for investment, less allowance for loan losses of $5,518 and $7,886 | 202,385 | 239,338 | ||
Mortgage loans held for investment, net, Estimated Fair Value | 190,503 | 190,196 | ||
Investments in available-for-sale securities, Estimated Fair Value | 1,133 | 441,709 | ||
Receivables, net - long-term, Carrying Amount | 60,407 | 80,867 | ||
Receivables, net - long-term, Estimated Fair Value | 60,407 | 80,867 | ||
Deposits, Carrying Amount | 0 | 744,699 | ||
Deposits, Estimated Fair Value | 0 | 737,261 | ||
Long-term borrowings, Carrying Amount | 1,502,751 | 506,088 | ||
Long-term borrowings, Estimated Fair Value | 1,566,098 | 556,769 | ||
Contingent acquisition liabilities, Carrying Amount | 8,657 | 10,667 | ||
Contingent acquisition liabilities, Estimated Fair Value | $ 8,657 | $ 10,667 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ (12.4) | |
Treasury Stock Acquired, Average Cost Per Share | $ 35.46 | |
Realized gain on sale of residual interests in mortgage securities | $ 18.3 |
Stockholders' Equity Rollforwar
Stockholders' Equity Rollforward of OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Foreign Currency Translation Adjustments, beginning balance | $ (6,789) | $ 3,334 | $ 6,809 |
Unrealized Gains on AFS Securities, beginning balance | 8,529 | 1,843 | 3,741 |
Accumulated other comprehensive income, beginning balance | 1,740 | 5,177 | 10,550 |
Gross gains (losses) arising during the year | (10,198) | 1,942 | (822) |
Tax expense (benefit) | (2,207) | 5,420 | 846 |
Other comprehensive income before reclassifications: | (7,991) | (3,478) | (1,668) |
Amount reclassified (1) | 0 | 0 | 0 |
Amount reclassified (1) | (8,196) | 68 | (5,835) |
Tax expense (benefit) | 0 | 0 | 0 |
Tax effect of reclassification adjustment for gains included in income | (3,214) | 27 | (2,130) |
Amounts reclassified to net income: | 0 | 0 | 0 |
Amounts reclassified to net income: | (4,982) | 41 | (3,705) |
Unrealized translation gain | (4,461) | (10,123) | (3,475) |
Change in net unrealized gain on available-for-sale securities | (8,512) | 6,686 | (1,898) |
Other comprehensive income (loss) | (12,973) | (3,437) | (5,373) |
Realized gain on sale of residual interests in mortgage securities | 18,300 | ||
Other-than-temporary impairments of AFS securities | 12,400 | ||
Foreign Currency Translation Adjustments, ending balance | (11,250) | (6,789) | 3,334 |
Unrealized Gains on AFS Securities, ending balance | 17 | 8,529 | 1,843 |
Accumulated other comprehensive income, ending balance | (11,233) | 1,740 | 5,177 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross gains (losses) arising during the year | (4,398) | (9,004) | (3,416) |
Tax expense (benefit) | 63 | 1,119 | 59 |
Other comprehensive income before reclassifications: | (4,461) | (10,123) | (3,475) |
Unrealized Gains (Losses) on AFS Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Gross gains (losses) arising during the year | (5,800) | 10,946 | 2,594 |
Tax expense (benefit) | (2,270) | 4,301 | 787 |
Other comprehensive income before reclassifications: | $ (3,530) | $ 6,645 | $ 1,807 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Stock-based compensation expenses | $ 23.5 | $ 26.1 | $ 20.1 |
Document Fiscal Year Focus | 2,016 | ||
Tax benefit of stock-based compensation | $ 9.5 | 9.9 | 7.6 |
Realized tax benefits | $ 20.9 | 12.5 | 10.6 |
Shares reserved for future awards under stock-based compensation plans | 8.7 | ||
2003 Long-Term Executive Compensation Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Vesting period (in years), minimum | 3 years | ||
Nonvested Shares | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Fair value of shares vesting during period | $ 28.8 | 14.3 | 8.6 |
Unrecognized compensation cost | $ 32.1 | ||
Weighted-average period of recognition (years) | 2 years | ||
Stock Options | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Intrinsic value of options exercised | $ 11.7 | $ 8.4 | $ 13.6 |
Unrecognized compensation cost | $ 0.4 | ||
Weighted-average period of recognition (years) | 2 years | ||
Minimum | 2003 Long-Term Executive Compensation Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Vesting period (in years), minimum | 3 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Options) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Apr. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Outstanding, beginning of the year | shares | 2,613 |
Shares, Granted | shares | 112 |
Option exercises, shares | shares | (707) |
Shares, Forfeited or expired | shares | (42) |
Shares, Outstanding, end of the year | shares | 1,976 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted-Average Exercise Price, Outstanding, beginning of the year (in usd per share) | $ / shares | $ 17.71 |
Weighted-Average Exercise Price, Granted (in usd per share) | $ / shares | 34.73 |
Weighted-Average Exercise Price, Exercised (in usd per share) | $ / shares | 16.85 |
Weighted-Average Exercise Price, Forfeited or expired (in usd per share) | $ / shares | 27.15 |
Weighted-Average Exercise Price, Outstanding, end of the year (in usd per share) | $ / shares | $ 18.76 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Shares, Exercisable, end of the year | shares | 1,871 |
Shares, Exercisable and expected to vest | shares | 1,961 |
Weighted-Average Exercise Price, Exercisable, end of the year | $ / shares | $ 17.85 |
Weighted-Average Exercise Price, Exercisable and expected to vest | $ / shares | $ 18.64 |
Weighted-Average Remaining Contractual Term, Outstanding, end of the year | 5 years |
Weighted-Average Remaining Contractual Term, Exercisable, end of the year | 5 years |
Weighted-Average Remaining Contractual Term, Exercisable and expected to vest, years | 5 years |
Aggregate Intrinsic Value, Outstanding, end of the year | $ | $ 4,812 |
Aggregate Intrinsic Value, Exercisable, end of the year | $ | 4,812 |
Aggregate Intrinsic Value, Exercisable and expected to vest | $ | $ 4,812 |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used To Value Options) (Details) - $ / shares | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Document Fiscal Year Focus | 2,016 | |||
Expected term, years | 3 years | 3 years | 3 years | |
Stock Options For Management And Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility, minimum | 22.95% | 0.00% | 30.89% | |
Expected volatility, maximum | 24.87% | 26.25% | 31.57% | |
Expected term, years | 4 years | 4 years | 4 years | |
Dividend yield, minimum | 2.26% | 0.00% | 2.77% | |
Dividend yield, maximum | 2.69% | 2.62% | 2.87% | |
Risk-free interest rate, minimum | 1.29% | 0.00% | 1.06% | |
Risk-free interest rate, maximum | 1.43% | 1.43% | 1.31% | |
Weighted-average fair value | $ 5.28 | $ 5.18 | $ 5.57 | |
Performance Nonvested Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility, minimum | 12.85% | 12.28% | 11.75% | |
Expected volatility, maximum | 55.27% | 78.42% | 70.17% | |
Dividend yield, minimum | [1] | 0.00% | 0.00% | 0.00% |
Dividend yield, maximum | [1] | 2.70% | 2.39% | 2.88% |
Risk-free interest rate | 0.95% | 0.81% | 0.61% | |
Weighted-average fair value | $ 30 | $ 37.17 | $ 28.59 | |
Minimum | Stock Options For Management And Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term, years | 4 years | 4 years | ||
Maximum | Stock Options For Management And Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term, years | 4 years | 4 years | 4 years | |
[1] | The valuation model assumes that dividends are reinvested by the Company on a continuous basis. |
Stock-Based Compensation (Sum69
Stock-Based Compensation (Summary Of Nonvested Shares) (Details) shares in Thousands | 12 Months Ended |
Apr. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Outstanding, beginning of the year | shares | 1,487 |
Shares, Granted | shares | 593 |
Shares, Released | shares | (511) |
Shares, Forfeited | shares | (56) |
Shares, Outstanding, end of the year | shares | 1,513 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted-Average Grant Date Fair Value, Outstanding, beginning of the year (in usd per share) | $ / shares | $ 24.05 |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | 30.58 |
Weighted-Average Grant Date Fair Value, Released (in usd per share) | $ / shares | 24.26 |
Weighted-Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares | 30.11 |
Weighted-Average Grant Date Fair Value, Outstanding, end of the year (in usd per share) | $ / shares | $ 26.21 |
Nonvested Shares And Performance Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Outstanding, beginning of the year | shares | 1,192 |
Shares, Granted | shares | 912 |
Shares, Released | shares | (980) |
Shares, Forfeited | shares | (25) |
Shares, Outstanding, end of the year | shares | 1,099 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted-Average Grant Date Fair Value, Outstanding, beginning of the year (in usd per share) | $ / shares | $ 26.26 |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | 30 |
Weighted-Average Grant Date Fair Value, Released (in usd per share) | $ / shares | 16.74 |
Weighted-Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares | 33.45 |
Weighted-Average Grant Date Fair Value, Outstanding, end of the year (in usd per share) | $ / shares | $ 31.86 |
Stock-Based Compensation (Sum70
Stock-Based Compensation (Summary Of Nonvested Share And Performance-Based Nonvested Share Units) (Details) shares in Thousands | 12 Months Ended |
Apr. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Outstanding, beginning of the year | shares | 1,487 |
Shares, Granted | shares | 593 |
Shares, Released | shares | (511) |
Shares, Forfeited | shares | (56) |
Shares, Outstanding, end of the year | shares | 1,513 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted-Average Grant Date Fair Value, Outstanding, beginning of the year (in usd per share) | $ / shares | $ 24.05 |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | 30.58 |
Weighted-Average Grant Date Fair Value, Released (in usd per share) | $ / shares | 24.26 |
Weighted-Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares | 30.11 |
Weighted-Average Grant Date Fair Value, Outstanding, end of the year (in usd per share) | $ / shares | $ 26.21 |
Nonvested Shares And Performance Nonvested | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Outstanding, beginning of the year | shares | 1,192 |
Shares, Granted | shares | 912 |
Shares, Released | shares | (980) |
Shares, Forfeited | shares | (25) |
Shares, Outstanding, end of the year | shares | 1,099 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Weighted-Average Grant Date Fair Value, Outstanding, beginning of the year (in usd per share) | $ / shares | $ 26.26 |
Weighted-Average Grant Date Fair Value, Granted (in usd per share) | $ / shares | 30 |
Weighted-Average Grant Date Fair Value, Released (in usd per share) | $ / shares | 16.74 |
Weighted-Average Grant Date Fair Value, Forfeited (in usd per share) | $ / shares | 33.45 |
Weighted-Average Grant Date Fair Value, Outstanding, end of the year (in usd per share) | $ / shares | $ 31.86 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Effective tax rate, change from prior year, percent | (1.80%) | ||||||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, State and Local, Percent | (4.30%) | 0.00% | 0.00% | ||||||||
Net loss from discontinued operations, net of tax benefits | $ (563) | $ (3,080) | $ (2,489) | $ (3,154) | $ (5,292) | $ (1,637) | $ 1,229 | $ (7,381) | $ (9,286) | $ (13,081) | $ (24,940) |
Tax benefits from discontinued operations | 5,400 | 8,100 | 15,400 | ||||||||
Valuation on deferred tax assets increase | (3,400) | ||||||||||
Valuation allowance | 21,515 | 24,937 | $ 21,515 | 24,937 | |||||||
Document Fiscal Year Focus | 2,016 | ||||||||||
Unrecognized tax benefits that would impact effective tax rate | 82,300 | 55,300 | $ 82,300 | 55,300 | 73,700 | ||||||
Total gross interest and penalties accrued | 22,300 | $ 24,700 | 22,300 | 24,700 | 24,600 | ||||||
Settlement reducing uncertain tax benefits | 450 | $ 10,450 | $ 23,993 | ||||||||
State And Local Jurisdiction | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Valuation allowance | $ 20,700 | $ 20,700 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Income From Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Document Fiscal Year Focus | 2,016 | ||||||||||
Domestic | $ 513,746 | $ 682,744 | $ 754,036 | ||||||||
Foreign | 55,733 | 60,061 | 13,080 | ||||||||
Income from continuing operations before income taxes | $ 1,140,807 | $ (146,500) | $ (237,719) | $ (187,109) | $ 1,210,059 | $ (90,865) | $ (200,573) | $ (175,816) | $ 569,479 | $ 742,805 | $ 767,116 |
Income Taxes (Schedule Of Com73
Income Taxes (Schedule Of Components Of Income Tax Expense (Benefit) For Continuing Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Document Fiscal Year Focus | 2,016 | ||||||||||
Federal, Current | $ 167,233 | $ 245,473 | $ 195,277 | ||||||||
State, Current | (26,980) | 31,501 | 33,274 | ||||||||
Foreign, Current | 8,735 | 9,788 | 6,749 | ||||||||
Current income tax expense (benefit) | 148,988 | 286,762 | 235,300 | ||||||||
Federal, Deferred | 19,937 | (30,181) | 28,624 | ||||||||
State, Deferred | 13,801 | (4,040) | 5,475 | ||||||||
Foreign, Deferred | 3,200 | 3,520 | (2,380) | ||||||||
Deferred taxes | 36,938 | (30,701) | 31,719 | ||||||||
Total income taxes for continuing operations | $ 439,582 | $ (67,851) | $ (95,201) | $ (90,604) | $ 465,926 | $ (55,554) | $ (87,346) | $ (66,965) | $ 185,926 | $ 256,061 | $ 267,019 |
Income Taxes (Schedule Of Recon
Income Taxes (Schedule Of Reconciliation Between Income Tax Provision And Statutory Federal Tax Rate) (Details) | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2,016 | ||
U.S. statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 2.20% | 3.50% | 3.80% |
Earnings taxed in foreign jurisdictions | (2.00%) | (1.80%) | (0.20%) |
Permanent differences | (0.20%) | (0.30%) | 0.10% |
Uncertain tax positions | (2.80%) | 1.00% | 5.60% |
Change in valuation allowance | (0.50%) | 0.20% | 1.50% |
Effective Income Tax Rate Reconciliation, Tax Contingency, State and Local, Percent | (4.30%) | 0.00% | 0.00% |
Other | (0.30%) | (1.10%) | 0.20% |
Effective tax rate | 32.70% | 34.50% | 34.80% |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Document Fiscal Year Focus | 2,016 | |
Accrued expenses | $ 7,919 | $ 9,301 |
Deferred Tax Assets, Deferred Income | 35,066 | 39,604 |
Allowance for credit losses and related reserves | 69,347 | 107,554 |
Deferred Tax Assets, Goodwill and Intangible Assets | 51,998 | 46,376 |
Deferred and stock-based compensation | 19,075 | 21,776 |
Net operating loss carry-forward | 26,992 | 27,285 |
Federal tax benefits related to state unrecognized tax benefits | 31,123 | 26,862 |
Other | 10,187 | 7,278 |
Deferred Tax Assets, Valuation Allowance | (21,515) | (24,937) |
Total deferred tax assets | 230,192 | 261,099 |
Prepaid expenses and other | (3,225) | (7,295) |
Property and equipment | (19,913) | (25,589) |
Intangibles | (93,406) | (93,700) |
Total deferred tax liabilities | 116,544 | 126,584 |
Total deferred tax liabilities | (132,960) | (142,586) |
Net deferred tax assets | $ 113,648 | $ 134,515 |
Income Taxes (Schedule Of Rec76
Income Taxes (Schedule Of Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Balance, beginning of the year | $ 86,268 | $ 111,491 | $ 146,391 |
Additions based on tax positions related to prior years | 29,294 | 15,510 | 9,743 |
Reductions based on tax positions related to prior years | (25,413) | (38,783) | (25,403) |
Additions based on tax positions related to the current year | 27,220 | 22,319 | 7,399 |
Reductions related to settlements with tax authorities | (450) | (10,450) | (23,993) |
Expiration of statute of limitations | (8,922) | (11,423) | (11,853) |
Other | (3,517) | 2,396 | (9,207) |
Balance, end of the year | $ 111,514 | $ 86,268 | $ 111,491 |
Other Income And Expenses (Sche
Other Income And Expenses (Schedule Of Other Income And Expenses Of Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Other Nonoperating Income | $ (17,701) | $ (1,314) | $ (36,315) |
Other Nonoperating Expense | 12,452 | 7,929 | 32,410 |
Mortgage Loans [Member] | |||
Other Nonoperating Income | (4,914) | 0 | 0 |
Investment Securities [Member] | |||
Other Nonoperating Income | (8,548) | 0 | (19,918) |
Other Interest [Member] | |||
Other Nonoperating Income | (4,239) | (1,314) | (16,397) |
Foreign Currency Gain (Loss) [Member] | |||
Other Nonoperating Expense | 7,807 | 5,878 | 18,191 |
Gain (Loss) on Investments [Member] | |||
Other Nonoperating Expense | 2,500 | 1,368 | 12,856 |
Other Nonoperating Expense [Member] | |||
Other Nonoperating Expense | $ 2,145 | $ 683 | $ 1,363 |
Commitments And Contingencies78
Commitments And Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | 96 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2016 | |
Commitments And Contingencies [Line Items] | ||||
Additional tax assessment limit per client | $ 6,000 | $ 6,000 | ||
Standard guarantee accrual amount | $ 7,000,000 | $ 8,400,000 | 7,000,000 | |
Document Fiscal Year Focus | 2,016 | |||
Contingent acquisition liabilities, Carrying Amount | $ 8,657,000 | 10,667,000 | 8,657,000 | |
Lines of credit, total obligation | 69,400,000 | 69,400,000 | ||
Remaining franchise equity lines of credit-undrawn commitment | 34,300,000 | 34,300,000 | ||
Amounts deferred for new extended service plans issued | 113,849,000 | |||
Revenue recognized on previous deferrals | (90,329,000) | |||
Deferred revenue | 189,779,000 | $ 166,259,000 | ||
Obligation under deferred compensation plans | 29,000,000 | 33,800,000 | 29,000,000 | |
Rent expense | $ 228,500,000 | 213,100,000 | $ 203,300,000 | |
Claims received for loans | 2,600,000,000 | |||
Minimum | ||||
Commitments And Contingencies [Line Items] | ||||
Term of operating leases, years | 3 years | |||
Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Term of operating leases, years | 5 years | |||
Peace of Mind | ||||
Commitments And Contingencies [Line Items] | ||||
Amounts deferred for new extended service plans issued | $ 119,915,000 | |||
Revenue recognized on previous deferrals | (105,352,000) | |||
Deferred revenue | 204,342,000 | $ 189,779,000 | 204,342,000 | |
Emerald Advance lines of credit | ||||
Commitments And Contingencies [Line Items] | ||||
Commitments to Extend Credit, Total | $ 13,400,000 | $ 13,400,000 |
Commitments And Contingencies79
Commitments And Contingencies (Schedule Of Deferred Revenue Related To The Peace Of Mind Program) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of the year | $ 189,779 | $ 166,259 |
Amounts deferred for new extended service plans issued | 113,849 | |
Revenue recognized on previous deferrals | (90,329) | |
Balance, end of the year | 189,779 | |
Peace of Mind | ||
Movement in Deferred Revenue [Roll Forward] | ||
Balance, beginning of the year | 189,779 | |
Amounts deferred for new extended service plans issued | 119,915 | |
Revenue recognized on previous deferrals | (105,352) | |
Balance, end of the year | $ 204,342 | $ 189,779 |
Commitments And Contingencies80
Commitments And Contingencies (Future Minimum Operating Lease Commitments) (Details) $ in Thousands | Apr. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 213,523 |
2,017 | 165,281 |
2,018 | 124,750 |
2,019 | 81,190 |
2,020 | 32,191 |
2022 and beyond | 63,881 |
Total | $ 680,816 |
Litigation And Related Contin81
Litigation And Related Contingencies (Details) $ in Millions | 12 Months Ended | 35 Months Ended | |
Apr. 30, 2016USD ($)loanlawsuit | Nov. 30, 2007item | Apr. 30, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Document Fiscal Year Focus | 2,016 | ||
Accrued obligations under indemnifications | $ 2.3 | $ 8.9 | |
Number of loans sold to the trust | loan | 159 | ||
Number of lawsuits | lawsuit | 22 | ||
Securitization transactions | item | 39 | ||
Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Initial principal on loans securitized | $ 14,000 | ||
Principal outstanding on loans securitized | $ 4,000 |
Loss Contingencies Arising Fr82
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations and Warranties of Our Discontinued Mortgage Operations (Narrative) (Details) $ in Thousands | 12 Months Ended | 35 Months Ended | 36 Months Ended | 60 Months Ended | 96 Months Ended | ||
Apr. 30, 2016USD ($) | Nov. 30, 2007item | Apr. 30, 2007 | Apr. 30, 2013USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2014USD ($) | Apr. 30, 2012USD ($) | |
Loss Contingencies [Line Items] | |||||||
Percentage of fraud on originated loans | 68.00% | ||||||
Claims received for loans | $ 2,600,000 | ||||||
Document Fiscal Year Focus | 2,016 | ||||||
Principal Assets of SCC | $ 386,000 | 386,000 | |||||
Securitization transactions | item | 39 | ||||||
SCC | |||||||
Loss Contingencies [Line Items] | |||||||
Claims received for loans | $ 1,900,000 | ||||||
Accrued liability | $ 65,265 | $ 183,765 | $ 65,265 | $ 149,765 | $ 158,765 |
Loss Contingencies Arising Fr83
Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations Loss Contingencies Arising From Representations And Warranties of Our Discontinued Mortgage Operations (Contingency Rollforward) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Loss Contingencies [Line Items] | ||||
Document Fiscal Year Focus | 2,016 | |||
SCC | ||||
Loss Contingency Accrual [Roll Forward] | ||||
Balance, beginning of the year | $ 149,765 | $ 183,765 | $ 158,765 | |
Loss provisions | 4,000 | 16,000 | 25,000 | |
Payments | $ (88,500) | (50,000) | 0 | |
Balance, end of the year | $ 65,265 | $ 149,765 | $ 183,765 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 2,297,477 | $ 474,543 | $ 128,415 | $ 137,718 | $ 2,301,370 | $ 509,074 | $ 134,628 | $ 133,586 | $ 3,038,153 | $ 3,078,658 | $ 3,024,295 |
Document Fiscal Year Focus | 2,016 | ||||||||||
Assets | 2,857,775 | 4,515,420 | $ 2,857,775 | 4,515,420 | |||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 209,800 | 231,700 | 232,200 | ||||||||
Assets | $ 527,100 | $ 284,500 | $ 527,100 | $ 284,500 | $ 303,900 |
Segment Information (Continuing
Segment Information (Continuing Operations By Reportable Operating Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Document Fiscal Year Focus | 2,016 | ||||||||||
Total revenues | $ 2,297,477 | $ 474,543 | $ 128,415 | $ 137,718 | $ 2,301,370 | $ 509,074 | $ 134,628 | $ 133,586 | $ 3,038,153 | $ 3,078,658 | $ 3,024,295 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 1,140,807 | $ (146,500) | $ (237,719) | $ (187,109) | 1,210,059 | $ (90,865) | $ (200,573) | $ (175,816) | 569,479 | 742,805 | 767,116 |
IDENTIFIABLE ASSETS | $ 2,857,775 | $ 4,515,420 | 2,857,775 | 4,515,420 | |||||||
Tax Services [Member] | U.S. assisted | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,890,175 | 1,865,438 | 1,794,043 | ||||||||
Tax Services [Member] | International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 190,527 | 207,772 | 200,152 | ||||||||
Tax Services [Member] | U.S. DIY | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 234,341 | 231,854 | 206,516 | ||||||||
Tax Services [Member] | Tax preparation fees: | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 2,315,043 | 2,305,064 | 2,200,711 | ||||||||
Tax Services [Member] | Royalties | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 266,418 | 292,743 | 316,153 | ||||||||
Tax Services [Member] | Revenues from Refund Transfers | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 165,152 | 171,094 | 181,394 | ||||||||
Tax Services [Member] | Revenues from Emerald Card® | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 92,608 | 103,300 | 103,730 | ||||||||
Tax Services [Member] | Revenues from Peace of Mind® Extended Service Plan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 86,830 | 81,551 | 89,685 | ||||||||
Tax Services [Member] | Interest and fee income on Emerald Advance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 57,268 | 57,202 | 56,877 | ||||||||
Tax Services [Member] | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 54,834 | $ 67,704 | $ 75,745 |
Quarterly Financial Data (Summa
Quarterly Financial Data (Summary Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 2,297,477 | $ 474,543 | $ 128,415 | $ 137,718 | $ 2,301,370 | $ 509,074 | $ 134,628 | $ 133,586 | $ 3,038,153 | $ 3,078,658 | $ 3,024,295 |
Income (loss) from continuing operations before taxes (benefit) | 1,140,807 | (146,500) | (237,719) | (187,109) | 1,210,059 | (90,865) | (200,573) | (175,816) | 569,479 | 742,805 | 767,116 |
Income taxes (benefit) | 439,582 | (67,851) | (95,201) | (90,604) | 465,926 | (55,554) | (87,346) | (66,965) | 185,926 | 256,061 | 267,019 |
Net income (loss) from continuing operations | 701,225 | (78,649) | (142,518) | (96,505) | 744,133 | (35,311) | (113,227) | (108,851) | 383,553 | 486,744 | 500,097 |
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | (563) | (3,080) | (2,489) | (3,154) | (5,292) | (1,637) | 1,229 | (7,381) | (9,286) | (13,081) | (24,940) |
NET INCOME | $ 700,662 | $ (81,729) | $ (145,007) | $ (99,659) | $ 738,841 | $ (36,948) | $ (111,998) | $ (116,232) | $ 374,267 | $ 473,663 | $ 475,157 |
Continuing operations (in usd per share | $ 3.15 | $ (0.34) | $ (0.54) | $ (0.35) | $ 2.70 | $ (0.13) | $ (0.41) | $ (0.40) | $ 1.54 | $ 1.77 | $ 1.82 |
Discontinued operations (in usd per share) | 0 | (0.01) | (0.01) | (0.01) | (0.02) | 0 | 0 | (0.02) | (0.04) | (0.05) | (0.09) |
Consolidated (in usd per share) | 3.15 | (0.35) | (0.55) | (0.36) | 2.68 | (0.13) | (0.41) | (0.42) | 1.50 | 1.72 | 1.73 |
Continuing operations (in usd per share) | 3.13 | (0.34) | (0.54) | (0.35) | 2.68 | (0.13) | (0.41) | (0.40) | 1.53 | 1.75 | 1.81 |
Discontinued operations (in usd per share) | 0 | (0.01) | (0.01) | (0.01) | (0.02) | 0 | 0 | (0.02) | (0.04) | (0.04) | (0.09) |
Consolidated (in usd per share) | $ 3.13 | $ (0.35) | $ (0.55) | $ (0.36) | $ 2.66 | $ (0.13) | $ (0.41) | $ (0.42) | $ 1.49 | $ 1.71 | $ 1.72 |
Goodwill impairments | $ 0 | $ 0 |
Quarterly Financial Data (Sched
Quarterly Financial Data (Schedule Of Share Price And Dividends Paid) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | |
Quarterly Financial Data [Line Items] | ||||||||||
Dividends paid per share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 |
High | ||||||||||
Quarterly Financial Data [Line Items] | ||||||||||
Stock price range | 35.14 | 37.53 | 37.50 | 34.62 | 35.80 | 35.09 | 33.92 | 33.65 | 37.53 | 35.80 |
Low | ||||||||||
Quarterly Financial Data [Line Items] | ||||||||||
Stock price range | $ 19.75 | $ 31 | $ 31.03 | $ 29.15 | $ 30.10 | $ 31.41 | $ 27.42 | $ 27.23 | $ 19.75 | $ 27.23 |
Condensed Consolidating Finan88
Condensed Consolidating Financial Statements (Schedule Of Condensed Consolidating Income Statements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 2,297,477 | $ 474,543 | $ 128,415 | $ 137,718 | $ 2,301,370 | $ 509,074 | $ 134,628 | $ 133,586 | $ 3,038,153 | $ 3,078,658 | $ 3,024,295 |
Cost of revenues | 1,685,552 | 1,630,490 | 1,572,377 | ||||||||
Goodwill, Impairment Loss | 0 | 0 | |||||||||
Selling, general and administrative | 719,409 | 653,502 | 633,428 | ||||||||
Total operating expenses | 2,404,961 | 2,283,992 | 2,205,805 | ||||||||
Other income, net | 17,701 | 1,314 | 36,315 | ||||||||
Interest expense on borrowings | (68,962) | (45,246) | (55,279) | ||||||||
Other expenses | (12,452) | (7,929) | (32,410) | ||||||||
Income from continuing operations before income taxes | 1,140,807 | (146,500) | (237,719) | (187,109) | 1,210,059 | (90,865) | (200,573) | (175,816) | 569,479 | 742,805 | 767,116 |
Income taxes (benefit) | 439,582 | (67,851) | (95,201) | (90,604) | 465,926 | (55,554) | (87,346) | (66,965) | 185,926 | 256,061 | 267,019 |
Net income (loss) from continuing operations | 701,225 | (78,649) | (142,518) | (96,505) | 744,133 | (35,311) | (113,227) | (108,851) | 383,553 | 486,744 | 500,097 |
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | (563) | (3,080) | (2,489) | (3,154) | (5,292) | (1,637) | 1,229 | (7,381) | (9,286) | (13,081) | (24,940) |
NET INCOME | $ 700,662 | $ (81,729) | $ (145,007) | $ (99,659) | $ 738,841 | $ (36,948) | $ (111,998) | $ (116,232) | 374,267 | 473,663 | 475,157 |
Other comprehensive income (loss) | (12,973) | (3,437) | (5,373) | ||||||||
Comprehensive income | 361,294 | 470,226 | 469,784 | ||||||||
H&R Block, Inc. (Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Selling, general and administrative | 2,537 | ||||||||||
Total operating expenses | 2,537 | ||||||||||
Other income, net | 381,670 | 475,336 | 478,866 | ||||||||
Other expenses | (6,534) | ||||||||||
Income from continuing operations before income taxes | 372,599 | 475,336 | 478,866 | ||||||||
Income taxes (benefit) | (1,668) | 1,673 | 3,709 | ||||||||
Net income (loss) from continuing operations | 374,267 | 473,663 | 475,157 | ||||||||
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | 0 | ||||||||||
NET INCOME | 374,267 | 473,663 | 475,157 | ||||||||
Other comprehensive income (loss) | (12,973) | (3,437) | (5,373) | ||||||||
Comprehensive income | 361,294 | 470,226 | 469,784 | ||||||||
Block Financial (Issuer) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 192,698 | 226,285 | 235,075 | ||||||||
Cost of revenues | 102,707 | 96,493 | 124,887 | ||||||||
Selling, general and administrative | 30,780 | 19,053 | 22,505 | ||||||||
Total operating expenses | 133,487 | 115,546 | 147,392 | ||||||||
Other income, net | 25,420 | 2,726 | 20,925 | ||||||||
Interest expense on borrowings | (68,531) | (44,884) | (54,892) | ||||||||
Other expenses | (3,947) | (953) | (12,888) | ||||||||
Income from continuing operations before income taxes | 12,153 | 67,628 | 40,828 | ||||||||
Income taxes (benefit) | 1,411 | 2,602 | 10,551 | ||||||||
Net income (loss) from continuing operations | 10,742 | 65,026 | 30,277 | ||||||||
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | (9,286) | (16,725) | (23,771) | ||||||||
NET INCOME | 1,456 | 48,301 | 6,506 | ||||||||
Other comprehensive income (loss) | (8,444) | 6,738 | (2,012) | ||||||||
Comprehensive income | (6,988) | 55,039 | 4,494 | ||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 2,868,343 | 2,858,474 | 2,795,562 | ||||||||
Cost of revenues | 1,588,450 | 1,540,091 | 1,453,832 | ||||||||
Selling, general and administrative | 703,375 | 634,456 | 610,923 | ||||||||
Total operating expenses | 2,291,825 | 2,174,547 | 2,064,755 | ||||||||
Other income, net | 11,569 | 50,434 | 5,580 | ||||||||
Interest expense on borrowings | (431) | (362) | (387) | ||||||||
Other expenses | (21,534) | (14,976) | (19,522) | ||||||||
Income from continuing operations before income taxes | 566,122 | 719,023 | 716,478 | ||||||||
Income taxes (benefit) | 186,183 | 251,786 | 252,759 | ||||||||
Net income (loss) from continuing operations | 379,939 | 467,237 | 463,719 | ||||||||
Net loss from discontinued operations, net of tax benefits of $5,414, $8,125 and $15,422 | 3,644 | (1,169) | |||||||||
NET INCOME | 379,939 | 470,881 | 462,550 | ||||||||
Other comprehensive income (loss) | (12,973) | (3,437) | (5,373) | ||||||||
Comprehensive income | 366,966 | 467,444 | 457,177 | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (22,888) | (6,101) | (6,342) | ||||||||
Cost of revenues | (5,605) | (6,094) | (6,342) | ||||||||
Selling, general and administrative | (17,283) | (7) | |||||||||
Total operating expenses | (22,888) | (6,101) | (6,342) | ||||||||
Other income, net | (400,958) | (527,182) | (469,056) | ||||||||
Other expenses | 19,563 | 8,000 | |||||||||
Income from continuing operations before income taxes | (381,395) | (519,182) | (469,056) | ||||||||
Net income (loss) from continuing operations | (381,395) | (519,182) | (469,056) | ||||||||
NET INCOME | (381,395) | (519,182) | (469,056) | ||||||||
Other comprehensive income (loss) | 21,417 | (3,301) | 7,385 | ||||||||
Comprehensive income | $ (359,978) | $ (522,483) | $ (461,671) |
Condensed Consolidating Finan89
Condensed Consolidating Financial Statements (Schedule Of Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 896,801 | $ 2,007,190 | $ 2,185,307 | $ 1,747,584 |
Cash & cash equivalents - restricted | 104,110 | 91,972 | ||
Receivables, net | 153,116 | 167,964 | ||
Deferred tax assets and income taxes receivable | 174,267 | |||
Prepaid expenses and other current assets | 67,138 | 70,283 | ||
Investments in available-for-sale securities | 1,133 | 439,625 | ||
Total current assets | 1,222,298 | 2,951,301 | ||
Mortgage loans held for investment, net | 202,385 | 239,338 | ||
Fair Value | 1,133 | 441,709 | ||
Property and equipment, at cost, less accumulated depreciation and amortization of $601,120 and $518,797 | 293,565 | 311,387 | ||
Intangible assets, net | 433,885 | 432,142 | ||
Goodwill | 470,757 | 441,831 | 436,117 | |
Deferred tax assets and income taxes receivable | 120,123 | 13,461 | ||
Amounts due from affiliates | 0 | 0 | ||
Other noncurrent assets | 114,762 | 125,960 | ||
Total assets | 2,857,775 | 4,515,420 | ||
Customer banking deposits | 744,241 | |||
Accounts payable and accrued expenses | 259,586 | 231,322 | ||
Accrued salaries, wages and payroll taxes | 161,786 | 144,744 | ||
Accrued income taxes | 373,754 | 434,684 | ||
Current portion of long-term debt | 826 | 790 | ||
Deferred revenue and other current liabilities | 243,653 | 322,508 | ||
Total current liabilities | 1,039,605 | 1,878,289 | ||
Deferred revenue and other noncurrent liabilities | 1,501,925 | 505,298 | ||
Deferred tax liabilities and reserves for uncertain tax positions | 132,960 | 142,586 | ||
Deferred revenue and other noncurrent liabilities | 160,182 | 156,298 | ||
Total liabilities | 0 | |||
Total liabilities | 2,834,672 | 2,682,471 | ||
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 260,218,666 and 316,628,110 | 2,602 | 3,166 | ||
Accumulated other comprehensive income (loss) | (11,233) | 1,740 | 5,177 | 10,550 |
Retained earnings | 40,347 | 1,836,442 | ||
Treasury Stock, Value | 766,843 | 792,192 | ||
Stockholders' equity | 23,103 | 1,832,949 | 1,556,549 | 1,263,547 |
Total liabilities and stockholders' equity | 2,857,775 | 4,515,420 | ||
H&R Block, Inc. (Guarantor) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Deferred tax assets and income taxes receivable | 0 | |||
Deferred tax assets and income taxes receivable | 5,917 | |||
Investments in subsidiaries | 1,738,643 | 1,371,677 | ||
Amounts due from affiliates | 0 | 463,434 | ||
Total assets | 1,744,560 | 1,835,111 | ||
Accounts payable and accrued expenses | 1,531 | 1,104 | ||
Accrued salaries, wages and payroll taxes | 0 | |||
Current portion of long-term debt | 0 | |||
Deferred revenue and other current liabilities | 0 | |||
Total current liabilities | 1,531 | 1,104 | ||
Deferred tax liabilities and reserves for uncertain tax positions | 5,917 | |||
Total liabilities | 1,714,009 | 1,058 | ||
Total liabilities | 1,721,457 | 2,162 | ||
Stockholders' equity | 23,103 | 1,832,949 | ||
Total liabilities and stockholders' equity | 1,744,560 | 1,835,111 | ||
Block Financial (Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 9,025 | 478,077 | 612,376 | 558,110 |
Cash & cash equivalents - restricted | 29,004 | 45,098 | ||
Receivables, net | 71,882 | 80,332 | ||
Deferred tax assets and income taxes receivable | 77,418 | |||
Prepaid expenses and other current assets | 8,622 | 7,771 | ||
Investments in available-for-sale securities | 434,924 | |||
Total current assets | 118,533 | 1,123,620 | ||
Mortgage loans held for investment, net | 202,385 | 239,338 | ||
Property and equipment, at cost, less accumulated depreciation and amortization of $601,120 and $518,797 | 136 | 218 | ||
Deferred tax assets and income taxes receivable | 77,270 | 44,788 | ||
Amounts due from affiliates | 1,307,612 | 134,094 | ||
Other noncurrent assets | 71,659 | 81,075 | ||
Total assets | 1,777,595 | 1,623,133 | ||
Customer banking deposits | 744,681 | |||
Accounts payable and accrued expenses | 18,596 | 7,672 | ||
Accrued salaries, wages and payroll taxes | 1,766 | 1,946 | ||
Accrued income taxes | 52,976 | 49,529 | ||
Current portion of long-term debt | 0 | |||
Deferred revenue and other current liabilities | 87,982 | 177,063 | ||
Total current liabilities | 161,320 | 980,891 | ||
Deferred revenue and other noncurrent liabilities | 1,495,316 | 497,893 | ||
Deferred tax liabilities and reserves for uncertain tax positions | 10,786 | 25,696 | ||
Deferred revenue and other noncurrent liabilities | 1,178 | 1,783 | ||
Total liabilities | 1,668,600 | 1,506,263 | ||
Stockholders' equity | 108,995 | 116,870 | ||
Total liabilities and stockholders' equity | 1,777,595 | 1,623,133 | ||
Other Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 887,776 | 1,529,553 | 1,574,031 | 1,192,197 |
Cash & cash equivalents - restricted | 75,106 | 46,874 | ||
Receivables, net | 81,234 | 87,632 | ||
Deferred tax assets and income taxes receivable | 96,849 | |||
Prepaid expenses and other current assets | 58,516 | 62,512 | ||
Investments in available-for-sale securities | 1,133 | 4,701 | ||
Total current assets | 1,103,765 | 1,828,121 | ||
Property and equipment, at cost, less accumulated depreciation and amortization of $601,120 and $518,797 | 293,429 | 311,169 | ||
Intangible assets, net | 433,885 | 432,142 | ||
Goodwill | 470,757 | 441,831 | ||
Deferred tax assets and income taxes receivable | 36,936 | 0 | ||
Investments in subsidiaries | 108,995 | 116,870 | ||
Amounts due from affiliates | 1,714,009 | 1,058 | ||
Other noncurrent assets | 43,103 | 44,885 | ||
Total assets | 4,204,879 | 3,176,076 | ||
Accounts payable and accrued expenses | 239,459 | 222,546 | ||
Accrued salaries, wages and payroll taxes | 160,020 | 142,798 | ||
Accrued income taxes | 320,778 | 385,155 | ||
Current portion of long-term debt | 826 | 790 | ||
Deferred revenue and other current liabilities | 155,671 | 145,445 | ||
Total current liabilities | 876,754 | 896,734 | ||
Deferred revenue and other noncurrent liabilities | 6,609 | 7,405 | ||
Deferred tax liabilities and reserves for uncertain tax positions | 116,257 | 148,217 | ||
Deferred revenue and other noncurrent liabilities | 159,004 | 154,515 | ||
Total liabilities | 1,307,612 | 597,528 | ||
Total liabilities | 2,466,236 | 1,804,399 | ||
Stockholders' equity | 1,738,643 | 1,371,677 | ||
Total liabilities and stockholders' equity | 4,204,879 | 3,176,076 | ||
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | (440) | $ (1,100) | $ (2,723) |
Total current assets | 0 | (440) | ||
Deferred tax assets and income taxes receivable | (31,327) | |||
Investments in subsidiaries | (1,847,638) | (1,488,547) | ||
Amounts due from affiliates | (3,021,621) | (598,586) | ||
Total assets | (4,869,259) | (2,118,900) | ||
Customer banking deposits | (440) | |||
Total current liabilities | (440) | |||
Deferred tax liabilities and reserves for uncertain tax positions | (31,327) | |||
Total liabilities | (3,021,621) | (598,586) | ||
Total liabilities | (3,021,621) | (630,353) | ||
Stockholders' equity | (1,847,638) | (1,488,547) | ||
Total liabilities and stockholders' equity | $ (4,869,259) | $ (2,118,900) |
Condensed Consolidating Finan90
Condensed Consolidating Financial Statements (Schedule Of Condensed Consolidating Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities: | $ 532,394 | $ 626,608 | $ 809,581 |
Purchases of AFS securities | 0 | (90,581) | (45,158) |
Sales, maturities and payments received on AFS securities | 436,471 | 91,878 | 107,101 |
Mortgage loans held for investment, net | 33,721 | 23,886 | 46,664 |
Capital expenditures | (99,923) | (123,158) | (147,011) |
Payments for business acquisitions, net | (88,776) | (113,252) | (68,428) |
Proceeds from notes receivable | 0 | 0 | 64,865 |
Franchise loans funded | (22,820) | (49,695) | (63,960) |
Payments received on franchise loans | 55,007 | 90,636 | 87,220 |
Surrender of company-owned life insurance policies | 87,220 | ||
Intercompany borrowings (payments) | 0 | ||
Other, net | 15,835 | 21,354 | 29,397 |
Net cash provided by (used in) investing activities | 329,515 | (148,932) | 10,690 |
Repayments of commercial paper and line of credit borrowings | (1,465,000) | (1,049,136) | (316,000) |
Proceeds from short-term borrowings | 1,465,000 | 1,049,136 | 316,000 |
Repayments of long-term debt | 0 | (400,000) | 0 |
Proceeds from issuance of long-term debt | 996,831 | 0 | 0 |
Customer banking deposits, net | (326,705) | (28,544) | (163,952) |
Transfer of bank deposits | (419,028) | 0 | 0 |
Dividends paid | (201,688) | (219,960) | (218,980) |
Repurchase of common stock | (2,018,338) | (10,449) | (6,106) |
Proceeds from exercise of stock options | 25,775 | 16,522 | 28,246 |
Intercompany borrowings (payments) | 0 | 0 | |
Other, net | (18,576) | (3,376) | (4,138) |
Net cash used in financing activities | (1,961,729) | (645,807) | (364,930) |
Effects of exchange rate changes on cash | (10,569) | (9,986) | (17,618) |
Net increase (decrease) in cash and cash equivalents | (1,110,389) | (178,117) | 437,723 |
Cash and cash equivalents at beginning of the year | 2,007,190 | 2,185,307 | 1,747,584 |
Cash and cash equivalents at end of the year | 896,801 | 2,007,190 | 2,185,307 |
H&R Block, Inc. (Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities: | 0 | ||
Purchases of AFS securities | 0 | ||
Sales, maturities and payments received on AFS securities | 0 | ||
Mortgage loans held for investment, net | 0 | ||
Capital expenditures | 0 | ||
Payments for business acquisitions, net | 0 | ||
Proceeds from notes receivable | 0 | ||
Franchise loans funded | 0 | ||
Surrender of company-owned life insurance policies | 0 | ||
Intercompany borrowings (payments) | 0 | ||
Other, net | 0 | ||
Net cash provided by (used in) investing activities | 0 | ||
Repayments of commercial paper and line of credit borrowings | 0 | 0 | |
Proceeds from short-term borrowings | 0 | 0 | |
Repayments of long-term debt | 0 | ||
Proceeds from issuance of long-term debt | 0 | ||
Customer banking deposits, net | 0 | 0 | |
Dividends paid | (201,688) | (219,960) | (218,980) |
Repurchase of common stock | (2,018,338) | (10,449) | (6,106) |
Proceeds from exercise of stock options | 25,775 | 16,522 | 28,246 |
Intercompany borrowings (payments) | 2,197,954 | 213,887 | 196,840 |
Other, net | (3,703) | 0 | 0 |
Net cash used in financing activities | 0 | 0 | |
Effects of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of the year | 0 | 0 | 0 |
Cash and cash equivalents at end of the year | 0 | 0 | |
Block Financial (Issuer) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities: | (55,689) | 15,456 | 35,034 |
Purchases of AFS securities | (90,381) | (45,158) | |
Sales, maturities and payments received on AFS securities | 430,460 | 87,922 | 106,873 |
Mortgage loans held for investment, net | 33,721 | 23,886 | 46,664 |
Capital expenditures | (21) | (224) | (75) |
Payments for business acquisitions, net | 0 | ||
Proceeds from notes receivable | 0 | ||
Franchise loans funded | (22,479) | (49,220) | (63,960) |
Payments received on franchise loans | 54,613 | 90,199 | |
Surrender of company-owned life insurance policies | 87,220 | ||
Intercompany borrowings (payments) | (1,147,985) | 134,094 | 33,497 |
Other, net | 6,952 | 12,011 | 19,746 |
Net cash provided by (used in) investing activities | (644,739) | 208,287 | 184,807 |
Repayments of commercial paper and line of credit borrowings | (1,465,000) | (1,049,136) | (316,000) |
Proceeds from short-term borrowings | 1,465,000 | 1,049,136 | 316,000 |
Repayments of long-term debt | (400,000) | ||
Proceeds from issuance of long-term debt | 996,831 | ||
Customer banking deposits, net | (327,145) | (29,204) | (165,575) |
Transfer of bank deposits | (419,028) | ||
Dividends paid | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Proceeds from exercise of stock options | 0 | 0 | |
Intercompany borrowings (payments) | 71,162 | 0 | |
Other, net | (19,282) | 0 | 0 |
Net cash used in financing activities | 231,376 | (358,042) | (165,575) |
Effects of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | (469,052) | (134,299) | 54,266 |
Cash and cash equivalents at beginning of the year | 478,077 | 612,376 | 558,110 |
Cash and cash equivalents at end of the year | 9,025 | 478,077 | 612,376 |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities: | 588,083 | 611,152 | 774,547 |
Purchases of AFS securities | (200) | 0 | |
Sales, maturities and payments received on AFS securities | 6,011 | 3,956 | 228 |
Mortgage loans held for investment, net | 0 | ||
Capital expenditures | (99,902) | (122,934) | (146,936) |
Payments for business acquisitions, net | (88,776) | (113,252) | (68,428) |
Proceeds from notes receivable | 64,865 | ||
Franchise loans funded | (341) | (475) | 0 |
Payments received on franchise loans | 394 | 437 | |
Surrender of company-owned life insurance policies | 0 | ||
Intercompany borrowings (payments) | (2,197,954) | (285,049) | (196,840) |
Other, net | 8,883 | 9,343 | 9,651 |
Net cash provided by (used in) investing activities | (2,371,685) | (508,174) | (337,460) |
Repayments of commercial paper and line of credit borrowings | 0 | 0 | |
Proceeds from short-term borrowings | 0 | 0 | |
Repayments of long-term debt | 0 | ||
Proceeds from issuance of long-term debt | 0 | ||
Customer banking deposits, net | 0 | 0 | |
Dividends paid | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Proceeds from exercise of stock options | 0 | 0 | |
Intercompany borrowings (payments) | 1,147,985 | (134,094) | (33,497) |
Other, net | 4,409 | (3,376) | (4,138) |
Net cash used in financing activities | 1,152,394 | (137,470) | (37,635) |
Effects of exchange rate changes on cash | (10,569) | (9,986) | (17,618) |
Net increase (decrease) in cash and cash equivalents | (641,777) | (44,478) | 381,834 |
Cash and cash equivalents at beginning of the year | 1,529,553 | 1,574,031 | 1,192,197 |
Cash and cash equivalents at end of the year | 887,776 | 1,529,553 | 1,574,031 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities: | 0 | ||
Purchases of AFS securities | 0 | ||
Sales, maturities and payments received on AFS securities | 0 | ||
Mortgage loans held for investment, net | 0 | ||
Capital expenditures | 0 | ||
Payments for business acquisitions, net | 0 | ||
Proceeds from notes receivable | 0 | ||
Franchise loans funded | 0 | ||
Surrender of company-owned life insurance policies | 0 | ||
Intercompany borrowings (payments) | 3,345,939 | 150,955 | 163,343 |
Other, net | 0 | ||
Net cash provided by (used in) investing activities | 3,345,939 | 150,955 | 163,343 |
Repayments of commercial paper and line of credit borrowings | 0 | 0 | |
Proceeds from short-term borrowings | 0 | 0 | |
Repayments of long-term debt | 0 | ||
Proceeds from issuance of long-term debt | 0 | ||
Customer banking deposits, net | 440 | 660 | 1,623 |
Dividends paid | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Proceeds from exercise of stock options | 0 | 0 | |
Intercompany borrowings (payments) | (3,345,939) | (150,955) | (163,343) |
Other, net | 0 | 0 | |
Net cash used in financing activities | (3,345,499) | (150,295) | (161,720) |
Effects of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 440 | 660 | 1,623 |
Cash and cash equivalents at beginning of the year | (440) | (1,100) | (2,723) |
Cash and cash equivalents at end of the year | $ 0 | $ (440) | $ (1,100) |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2013 | |
Valuation and Qualifying Accounts [Abstract] | ||||
Valuation Allowances and Reserves, Balance | $ 21,515 | $ 24,937 | $ 19,176 | $ 54,613 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 3,207 | 6,788 | 12,467 | |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions | $ (6,629) | $ (1,027) | $ (47,904) |