false--04-30Q320202020-01-310000012659800834000745761000803272000440330006722800045254000340000037000000.250.250.250.260.260.010.010.018000000008000000008000000002415012782383367602282066840.041250.055000.0525019620004731000488000317300000364603053637744135732666
0000012659
2019-05-01
2020-01-31
0000012659
2020-02-28
0000012659
2019-11-01
2020-01-31
0000012659
2018-05-01
2019-01-31
0000012659
2018-11-01
2019-01-31
0000012659
us-gaap:ServiceMember
2019-05-01
2020-01-31
0000012659
us-gaap:RoyaltyMember
2018-05-01
2019-01-31
0000012659
us-gaap:RoyaltyMember
2019-11-01
2020-01-31
0000012659
us-gaap:RoyaltyMember
2019-05-01
2020-01-31
0000012659
us-gaap:ServiceMember
2018-05-01
2019-01-31
0000012659
us-gaap:ServiceMember
2018-11-01
2019-01-31
0000012659
us-gaap:ServiceMember
2019-11-01
2020-01-31
0000012659
us-gaap:RoyaltyMember
2018-11-01
2019-01-31
0000012659
2019-01-31
0000012659
2019-04-30
0000012659
2020-01-31
0000012659
2018-04-30
0000012659
us-gaap:RetainedEarningsMember
2019-02-01
2019-04-30
0000012659
us-gaap:RetainedEarningsMember
2019-04-30
0000012659
us-gaap:TreasuryStockMember
2018-08-01
2018-10-31
0000012659
us-gaap:RetainedEarningsMember
2019-01-31
0000012659
2018-08-01
2018-10-31
0000012659
us-gaap:TreasuryStockMember
2018-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-08-01
2018-10-31
0000012659
2018-05-01
2018-07-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-01-31
0000012659
us-gaap:RetainedEarningsMember
2018-05-01
2018-07-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-11-01
2019-01-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-05-01
2018-07-31
0000012659
us-gaap:TreasuryStockMember
2019-01-31
0000012659
us-gaap:RetainedEarningsMember
2018-11-01
2019-01-31
0000012659
us-gaap:CommonStockMember
2019-02-01
2019-04-30
0000012659
us-gaap:RetainedEarningsMember
2018-05-01
0000012659
us-gaap:RetainedEarningsMember
2018-08-01
2018-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-02-01
2019-04-30
0000012659
us-gaap:CommonStockMember
2019-01-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-05-01
2018-07-31
0000012659
2019-02-01
2019-04-30
0000012659
us-gaap:TreasuryStockMember
2018-11-01
2019-01-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-11-01
2019-01-31
0000012659
us-gaap:RetainedEarningsMember
2018-07-31
0000012659
us-gaap:RetainedEarningsMember
2018-04-30
0000012659
us-gaap:CommonStockMember
2018-11-01
2019-01-31
0000012659
us-gaap:TreasuryStockMember
2019-02-01
2019-04-30
0000012659
us-gaap:CommonStockMember
2018-10-31
0000012659
us-gaap:CommonStockMember
2018-04-30
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-01-31
0000012659
us-gaap:TreasuryStockMember
2018-04-30
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-07-31
0000012659
us-gaap:CommonStockMember
2019-04-30
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-04-30
0000012659
2018-10-31
0000012659
us-gaap:CommonStockMember
2018-05-01
2018-07-31
0000012659
us-gaap:CommonStockMember
2018-07-31
0000012659
2018-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-04-30
0000012659
us-gaap:TreasuryStockMember
2019-04-30
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-07-31
0000012659
us-gaap:TreasuryStockMember
2018-05-01
2018-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2018-08-01
2018-10-31
0000012659
us-gaap:TreasuryStockMember
2018-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2018-04-30
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-02-01
2019-04-30
0000012659
2018-05-01
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-04-30
0000012659
us-gaap:RetainedEarningsMember
2018-10-31
0000012659
us-gaap:AccountingStandardsUpdate201616Member
2018-05-01
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-05-01
2019-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-08-01
2019-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-08-01
2019-10-31
0000012659
us-gaap:TreasuryStockMember
2019-08-01
2019-10-31
0000012659
us-gaap:TreasuryStockMember
2019-10-31
0000012659
us-gaap:TreasuryStockMember
2019-07-31
0000012659
us-gaap:TreasuryStockMember
2019-05-01
2019-07-31
0000012659
us-gaap:TreasuryStockMember
2020-01-31
0000012659
us-gaap:TreasuryStockMember
2019-11-01
2020-01-31
0000012659
us-gaap:RetainedEarningsMember
2019-08-01
2019-10-31
0000012659
2019-05-01
2019-07-31
0000012659
2019-07-31
0000012659
us-gaap:CommonStockMember
2019-08-01
2019-10-31
0000012659
us-gaap:RetainedEarningsMember
2019-05-01
2019-07-31
0000012659
us-gaap:CommonStockMember
2019-10-31
0000012659
us-gaap:CommonStockMember
2019-05-01
2019-07-31
0000012659
2019-10-31
0000012659
us-gaap:RetainedEarningsMember
2019-11-01
2020-01-31
0000012659
us-gaap:RetainedEarningsMember
2019-07-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2020-01-31
0000012659
2019-08-01
2019-10-31
0000012659
us-gaap:CommonStockMember
2020-01-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-05-01
2019-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-11-01
2020-01-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-07-31
0000012659
us-gaap:CommonStockMember
2019-11-01
2020-01-31
0000012659
us-gaap:CommonStockMember
2019-07-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-01-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-11-01
2020-01-31
0000012659
us-gaap:RetainedEarningsMember
2019-10-31
0000012659
us-gaap:AdditionalPaidInCapitalMember
2019-10-31
0000012659
us-gaap:RetainedEarningsMember
2020-01-31
0000012659
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-07-31
0000012659
hrb:WaveHQInc.Member
2019-06-28
2020-01-31
0000012659
hrb:WaveHQInc.Member
2019-06-28
0000012659
hrb:WaveHQInc.Member
2019-06-28
2019-06-28
0000012659
hrb:WaveHQInc.Member
2019-11-01
2020-01-31
0000012659
hrb:WaveHQInc.Member
us-gaap:TradeNamesMember
2019-06-28
0000012659
hrb:WaveHQInc.Member
us-gaap:TradeNamesMember
2019-06-28
2019-06-28
0000012659
hrb:WaveHQInc.Member
us-gaap:NoncompeteAgreementsMember
2019-06-28
0000012659
hrb:WaveHQInc.Member
us-gaap:CustomerRelationshipsMember
2019-06-28
0000012659
hrb:WaveHQInc.Member
us-gaap:NoncompeteAgreementsMember
2019-06-28
2019-06-28
0000012659
hrb:WaveHQInc.Member
hrb:PurchasedTechnologyMember
2019-06-28
0000012659
hrb:WaveHQInc.Member
hrb:PurchasedTechnologyMember
2019-06-28
2019-06-28
0000012659
hrb:WaveHQInc.Member
us-gaap:CustomerRelationshipsMember
2019-06-28
2019-06-28
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2019-05-01
2020-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2019-01-31
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2019-04-30
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2019-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2020-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2018-05-01
2019-01-31
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2018-05-01
2019-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2019-05-01
2020-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2018-04-30
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2018-04-30
0000012659
hrb:DeferredRevenueMember
hrb:PeaceofMindRevenuesMember
2020-01-31
0000012659
hrb:DeferredWagesMember
hrb:PeaceofMindRevenuesMember
2019-04-30
0000012659
hrb:TaxIdentityShieldMember
2018-04-30
0000012659
hrb:PeaceofMindRevenuesMember
2020-01-31
0000012659
hrb:TaxIdentityShieldMember
2019-01-31
0000012659
hrb:TaxIdentityShieldMember
2020-02-01
2020-01-31
0000012659
hrb:TaxIdentityShieldMember
2019-04-30
0000012659
hrb:TaxIdentityShieldMember
2020-01-31
0000012659
hrb:PeaceofMindRevenuesMember
2020-02-01
2020-01-31
0000012659
hrb:FeesfromEmeraldCardMember
2018-11-01
2019-01-31
0000012659
hrb:TaxPreparationFeesMember
2018-11-01
2019-01-31
0000012659
hrb:TaxIdentityShieldMember
2019-11-01
2020-01-31
0000012659
hrb:RoyaltiesMember
2018-05-01
2019-01-31
0000012659
hrb:OtherrevenueMember
2019-05-01
2020-01-31
0000012659
hrb:TaxPreparationFeesMember
2019-05-01
2020-01-31
0000012659
hrb:InterestandFeeIncomeonEmeraldAdvanceMember
2018-05-01
2019-01-31
0000012659
hrb:InterestandFeeIncomeonEmeraldAdvanceMember
2019-11-01
2020-01-31
0000012659
hrb:RefundTransferRevenuesMember
2018-11-01
2019-01-31
0000012659
hrb:InternationalMember
2018-11-01
2019-01-31
0000012659
hrb:OtherrevenueMember
2019-11-01
2020-01-31
0000012659
hrb:WaveHQInc.Member
2018-05-01
2019-01-31
0000012659
hrb:TaxPreparationFeesMember
2018-05-01
2019-01-31
0000012659
hrb:RoyaltiesMember
2019-11-01
2020-01-31
0000012659
hrb:FeesfromEmeraldCardMember
2018-05-01
2019-01-31
0000012659
hrb:PeaceofMindRevenuesMember
2018-11-01
2019-01-31
0000012659
hrb:DIYTaxPreparationFeesMember
2018-05-01
2019-01-31
0000012659
hrb:FeesfromEmeraldCardMember
2019-05-01
2020-01-31
0000012659
hrb:DIYTaxPreparationFeesMember
2018-11-01
2019-01-31
0000012659
hrb:OtherrevenueMember
2018-05-01
2019-01-31
0000012659
hrb:TaxIdentityShieldMember
2018-11-01
2019-01-31
0000012659
hrb:FeesfromEmeraldCardMember
2019-11-01
2020-01-31
0000012659
hrb:WaveHQInc.Member
2019-05-01
2020-01-31
0000012659
hrb:InterestandFeeIncomeonEmeraldAdvanceMember
2018-11-01
2019-01-31
0000012659
hrb:WaveHQInc.Member
2019-11-01
2020-01-31
0000012659
hrb:InternationalMember
2018-05-01
2019-01-31
0000012659
hrb:RefundTransferRevenuesMember
2018-05-01
2019-01-31
0000012659
hrb:TaxPreparationFeesMember
2019-11-01
2020-01-31
0000012659
hrb:DIYTaxPreparationFeesMember
2019-11-01
2020-01-31
0000012659
hrb:TaxIdentityShieldMember
2019-05-01
2020-01-31
0000012659
hrb:PeaceofMindRevenuesMember
2018-05-01
2019-01-31
0000012659
hrb:InternationalMember
2019-11-01
2020-01-31
0000012659
hrb:RefundTransferRevenuesMember
2019-11-01
2020-01-31
0000012659
hrb:TaxIdentityShieldMember
2018-05-01
2019-01-31
0000012659
hrb:PeaceofMindRevenuesMember
2019-11-01
2020-01-31
0000012659
hrb:DIYTaxPreparationFeesMember
2019-05-01
2020-01-31
0000012659
hrb:OtherrevenueMember
2018-11-01
2019-01-31
0000012659
hrb:PeaceofMindRevenuesMember
2019-05-01
2020-01-31
0000012659
hrb:RoyaltiesMember
2019-05-01
2020-01-31
0000012659
hrb:WaveHQInc.Member
2018-11-01
2019-01-31
0000012659
hrb:InternationalMember
2019-05-01
2020-01-31
0000012659
hrb:RoyaltiesMember
2018-11-01
2019-01-31
0000012659
hrb:RefundTransferRevenuesMember
2019-05-01
2020-01-31
0000012659
hrb:InterestandFeeIncomeonEmeraldAdvanceMember
2019-05-01
2020-01-31
0000012659
hrb:AllOtherReceivablesMember
2019-04-30
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2019-05-01
2020-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2020-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2019-04-30
0000012659
hrb:AllOtherReceivablesMember
2018-05-01
2019-01-31
0000012659
hrb:AllOtherReceivablesMember
2018-04-30
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2018-05-01
2019-01-31
0000012659
hrb:AllOtherReceivablesMember
2019-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2018-04-30
0000012659
hrb:AllOtherReceivablesMember
2019-05-01
2020-01-31
0000012659
hrb:AllOtherReceivablesMember
2020-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2019-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
hrb:RevolvingLoansMember
2020-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
hrb:PriorYearOfOriginationandBeforeMember
2020-01-31
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
hrb:CurrentYearOfOriginationMember
2020-01-31
0000012659
hrb:HRBlockInstantRefundMember
2020-01-31
0000012659
hrb:HRBlockInstantRefundMember
hrb:CurrentYearOfOriginationMember
2020-01-31
0000012659
hrb:HRBlockInstantRefundMember
hrb:PriorYearOfOriginationandBeforeMember
2020-01-31
0000012659
hrb:RoyaltiesFromFranchiseesMember
2019-01-31
0000012659
hrb:ReceivablesForTaxPreparationAndRelatedFeesMember
2019-04-30
0000012659
hrb:ReceivablesForTaxPreparationAndRelatedFeesMember
2020-01-31
0000012659
hrb:OtherReceivablesMember
2019-01-31
0000012659
hrb:LoansToFranchiseesMember
2020-01-31
0000012659
hrb:RoyaltiesFromFranchiseesMember
2020-01-31
0000012659
hrb:HRBlockInstantRefundMember
2019-01-31
0000012659
hrb:WavePaymentProcessingReceivablesMember
2019-01-31
0000012659
hrb:LoansToFranchiseesMember
2019-01-31
0000012659
hrb:SoftwareReceivablefromRetailersMember
2020-01-31
0000012659
hrb:WavePaymentProcessingReceivablesMember
2019-04-30
0000012659
hrb:OtherReceivablesMember
2020-01-31
0000012659
hrb:WavePaymentProcessingReceivablesMember
2020-01-31
0000012659
hrb:LoansToFranchiseesMember
2019-04-30
0000012659
hrb:SoftwareReceivablefromRetailersMember
2019-04-30
0000012659
hrb:OtherReceivablesMember
2019-04-30
0000012659
hrb:ReceivablesForTaxPreparationAndRelatedFeesMember
2019-01-31
0000012659
hrb:HRBlockInstantRefundMember
2019-04-30
0000012659
hrb:RoyaltiesFromFranchiseesMember
2019-04-30
0000012659
hrb:SoftwareReceivablefromRetailersMember
2019-01-31
0000012659
hrb:HRBlockInstantRefundMember
2018-05-01
2019-04-30
0000012659
hrb:EmeraldAdvanceLinesOfCreditMember
2018-05-01
2019-04-30
0000012659
hrb:ReacquiredFranchiseRightsMember
2019-05-01
2020-01-31
0000012659
us-gaap:CustomerRelationshipsMember
2019-05-01
2020-01-31
0000012659
us-gaap:NoncompeteAgreementsMember
2019-05-01
2020-01-31
0000012659
us-gaap:ComputerSoftwareIntangibleAssetMember
2019-05-01
2020-01-31
0000012659
hrb:WaveHQInc.Member
2019-05-01
2020-01-31
0000012659
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2019-01-31
0000012659
hrb:ReacquiredFranchiseRightsMember
2020-01-31
0000012659
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2020-01-31
0000012659
hrb:ReacquiredFranchiseRightsMember
2019-01-31
0000012659
us-gaap:TradeNamesMember
2020-01-31
0000012659
us-gaap:FranchiseRightsMember
2019-01-31
0000012659
us-gaap:OtherIntangibleAssetsMember
2020-01-31
0000012659
us-gaap:CustomerRelationshipsMember
2019-04-30
0000012659
hrb:PurchasedTechnologyMember
2020-01-31
0000012659
us-gaap:NoncompeteAgreementsMember
2020-01-31
0000012659
us-gaap:FranchiseRightsMember
2020-01-31
0000012659
hrb:ReacquiredFranchiseRightsMember
2019-04-30
0000012659
us-gaap:CustomerRelationshipsMember
2020-01-31
0000012659
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2019-04-30
0000012659
us-gaap:NoncompeteAgreementsMember
2019-04-30
0000012659
us-gaap:OtherIntangibleAssetsMember
2019-01-31
0000012659
us-gaap:NoncompeteAgreementsMember
2019-01-31
0000012659
us-gaap:CustomerRelationshipsMember
2019-01-31
0000012659
hrb:PurchasedTechnologyMember
2019-01-31
0000012659
us-gaap:OtherIntangibleAssetsMember
2019-04-30
0000012659
hrb:PurchasedTechnologyMember
2019-04-30
0000012659
us-gaap:FranchiseRightsMember
2019-04-30
0000012659
hrb:FranchiseeandCompetitorBusinessesMember
2018-11-01
2019-01-31
0000012659
hrb:FranchiseeandCompetitorBusinessesMember
2019-05-01
2020-01-31
0000012659
us-gaap:RevolvingCreditFacilityMember
2020-01-31
0000012659
us-gaap:StandbyLettersOfCreditMember
2020-01-31
0000012659
hrb:SwinglineCreditFacilityMember
2020-01-31
0000012659
hrb:SeniorNotesdue2020Member
us-gaap:SeniorNotesMember
2020-01-31
0000012659
hrb:SeniorNotesdue2022Member
us-gaap:SeniorNotesMember
2019-01-31
0000012659
hrb:SeniorNotesdue2025Member
us-gaap:SeniorNotesMember
2019-01-31
0000012659
hrb:SeniorNotesdue2020Member
us-gaap:SeniorNotesMember
2019-01-31
0000012659
hrb:SeniorNotesdue2020Member
us-gaap:SeniorNotesMember
2019-04-30
0000012659
hrb:SeniorNotesdue2022Member
us-gaap:SeniorNotesMember
2020-01-31
0000012659
hrb:SeniorNotesdue2025Member
us-gaap:SeniorNotesMember
2020-01-31
0000012659
hrb:SeniorNotesdue2022Member
us-gaap:SeniorNotesMember
2019-04-30
0000012659
hrb:SeniorNotesdue2025Member
us-gaap:SeniorNotesMember
2019-04-30
0000012659
hrb:SccMember
2020-01-31
0000012659
hrb:AxosMember
2020-01-31
0000012659
hrb:AxosMember
2019-01-31
0000012659
hrb:SccMember
2019-01-31
0000012659
hrb:SccMember
2019-04-30
0000012659
2016-09-30
0000012659
2012-05-31
0000012659
hrb:MGRIDLLCv.MerrillLynchMortgageLendingIncMember
2020-01-31
0000012659
hrb:SccMember
hrb:ClaimswithKnowledgeofOutstandingPrincipalAmountMember
2020-01-31
0000012659
hrb:FreeFileLitigationMember
2019-05-06
2019-05-06
0000012659
2012-09-28
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2018-11-01
2019-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2018-11-01
2019-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2018-11-01
2019-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2018-11-01
2019-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2019-11-01
2020-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2019-11-01
2020-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2019-11-01
2020-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2019-11-01
2020-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2019-05-01
2020-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2019-05-01
2020-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2019-05-01
2020-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2019-05-01
2020-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2018-05-01
2019-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2018-05-01
2019-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2018-05-01
2019-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2018-05-01
2019-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2019-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2019-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2019-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2019-01-31
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2020-01-31
0000012659
us-gaap:IntersegmentEliminationMember
2020-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2020-01-31
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2020-01-31
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2019-04-30
0000012659
us-gaap:IntersegmentEliminationMember
2019-04-30
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2019-04-30
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2019-04-30
0000012659
srt:ParentCompanyMember
srt:ReportableLegalEntitiesMember
2018-04-30
0000012659
srt:SubsidiariesMember
srt:ReportableLegalEntitiesMember
2018-04-30
0000012659
us-gaap:IntersegmentEliminationMember
2018-04-30
0000012659
srt:SubsidiaryIssuerMember
srt:ReportableLegalEntitiesMember
2018-04-30
xbrli:shares
iso4217:USD
xbrli:shares
iso4217:USD
hrb:loan
hrb:securities
hrb:lawsuit
hrb:office
xbrli:pure
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
| | |
(Mark One) | | |
☑ | | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| | For the quarterly period ended January 31, 2020 |
OR |
☐ | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| | For the transition period from to |
Commission file number 1-06089
H&R Block, Inc.
(Exact name of registrant as specified in its charter)
|
| | |
Missouri | | 44-0607856 |
(State or other jurisdiction of | | (I.R.S. Employer |
incorporation or organization) | | Identification No.) |
One H&R Block Way, Kansas City, Missouri 64105
(Address of principal executive offices, including zip code)
(816) 854-3000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
|
| | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, without par value | HRB | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one)
Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
The number of shares outstanding of the registrant's Common Stock, without par value, at the close of business on February 28, 2020: 192,475,284 shares.
Form 10-Q for the Period Ended January 31, 2020
Table of Contents
|
| | |
| | |
| | |
| Consolidated Statements of Operations and Comprehensive Loss | |
| Three and nine months ended January 31, 2020 and 2019 | |
| | |
| Consolidated Balance Sheets | |
| As of January 31, 2020, January 31, 2019 and April 30, 2019 | |
| | |
| Consolidated Statements of Cash Flows | |
| Nine months ended January 31, 2020 and 2019 | |
| | |
| Consolidated Statements of Stockholders' Equity | |
| Three and nine months ended January 31, 2020 and the fiscal year ended April 30, 2019 | |
| | |
| Notes to Consolidated Financial Statements | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Legal Proceedings | |
| | |
| Risk Factors | |
| | |
| Unregistered Sales of Equity Securities and Use of Proceeds | |
| | |
Item 3. | Defaults Upon Senior Securities | |
| | |
Item 4. | Mine Safety Disclosures | |
| | |
| | |
| | |
| Exhibits | |
| | |
| | |
PART I FINANCIAL INFORMATION
| |
ITEM 1. | FINANCIAL STATEMENTS |
|
| | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | (unaudited, in 000s, except per share amounts) | |
| | Three months ended January 31, | | Nine months ended January 31, |
| | 2020 |
| | 2019 |
| | 2020 |
| | 2019 |
|
| | | | | | | | |
REVENUES: | | | | | | | | |
Service revenues | | $ | 419,955 |
| | $ | 373,659 |
| | $ | 691,762 |
| | $ | 627,786 |
|
Royalty, product and other revenues | | 99,250 |
| | 94,725 |
| | 138,606 |
| | 134,652 |
|
| | 519,205 |
| | 468,384 |
| | 830,368 |
| | 762,438 |
|
OPERATING EXPENSES: | | | | | | | | |
Costs of revenues | | 462,521 |
| | 421,026 |
| | 945,119 |
| | 893,401 |
|
Selling, general and administrative | | 209,288 |
| | 185,458 |
| | 475,758 |
| | 404,517 |
|
Total operating expenses | | 671,809 |
| | 606,484 |
| | 1,420,877 |
| | 1,297,918 |
|
| | | | | | | | |
Other income (expense), net | | 1,879 |
| | 2,269 |
| | 13,741 |
| | 11,275 |
|
Interest expense on borrowings | | (26,305 | ) | | (22,833 | ) | | (68,682 | ) | | (65,214 | ) |
Loss from continuing operations before income tax benefit | | (177,030 | ) | | (158,664 | ) | | (645,450 | ) | | (589,419 | ) |
Income tax benefit | | (49,004 | ) | | (38,885 | ) | | (188,146 | ) | | (149,906 | ) |
Net loss from continuing operations | | (128,026 | ) | | (119,779 | ) | | (457,304 | ) | | (439,513 | ) |
Net loss from discontinued operations, net of tax benefits of $488 and $1,962, $3,173 and $4,731 | | (1,657 | ) | | (6,675 | ) | | (10,625 | ) | | (15,887 | ) |
NET LOSS | | $ | (129,683 | ) | | $ | (126,454 | ) | | $ | (467,929 | ) | | $ | (455,400 | ) |
| | | | | | | | |
BASIC AND DILUTED LOSS PER SHARE: | | | | | | | | |
Continuing operations | | $ | (0.66 | ) | | $ | (0.58 | ) | | $ | (2.31 | ) | | $ | (2.13 | ) |
Discontinued operations | | (0.01 | ) | | (0.04 | ) | | (0.05 | ) | | (0.08 | ) |
Consolidated | | $ | (0.67 | ) | | $ | (0.62 | ) | | $ | (2.36 | ) | | $ | (2.21 | ) |
| | | | | | | | |
DIVIDENDS DECLARED PER SHARE | | $ | 0.26 |
| | $ | 0.25 |
| | $ | 0.78 |
| | $ | 0.75 |
|
| | | | | | | | |
COMPREHENSIVE LOSS: | | | | | | | | |
Net loss | | $ | (129,683 | ) | | $ | (126,454 | ) | | $ | (467,929 | ) | | $ | (455,400 | ) |
Change in foreign currency translation adjustments and other | | (3,574 | ) | | 1,238 |
| | (4,975 | ) | | (3,339 | ) |
Other comprehensive income (loss) | | (3,574 | ) | | 1,238 |
| | (4,975 | ) | | (3,339 | ) |
Comprehensive loss | | $ | (133,257 | ) | | $ | (125,216 | ) | | $ | (472,904 | ) | | $ | (458,739 | ) |
| | | | | | | | |
See accompanying notes to consolidated financial statements.
|
| |
H&R Block, Inc. | Q3 FY2020 Form 10-Q | 1 |
|
| | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS | | (unaudited, in 000s, except share and per share amounts) | |
As of | | January 31, 2020 |
| | January 31, 2019 |
| | April 30, 2019 |
|
| |
|
| |
|
| | |
ASSETS | | | | | | |
Cash and cash equivalents | | $ | 192,340 |
| | $ | 203,226 |
| | $ | 1,572,150 |
|
Cash and cash equivalents - restricted | | 169,447 |
| | 101,903 |
| | 135,577 |
|
Receivables, less allowance for doubtful accounts of $45,254, $44,033 and $67,228 | | 819,946 |
| | 758,217 |
| | 138,965 |
|
Prepaid expenses and other current assets | | 120,229 |
| | 171,306 |
| | 146,667 |
|
Total current assets | | 1,301,962 |
| | 1,234,652 |
| | 1,993,359 |
|
Property and equipment, at cost, less accumulated depreciation and amortization of $803,272, $800,834 and $745,761 | | 197,569 |
| | 220,505 |
| | 212,092 |
|
Operating lease right of use asset | | 463,777 |
| | — |
| | — |
|
Intangible assets, net | | 433,074 |
| | 356,952 |
| | 342,493 |
|
Goodwill | | 838,830 |
| | 520,005 |
| | 519,937 |
|
Deferred tax assets and income taxes receivable | | 134,901 |
| | 141,366 |
| | 141,979 |
|
Other noncurrent assets | | 82,317 |
| | 95,326 |
| | 90,085 |
|
Total assets | | $ | 3,452,430 |
| | $ | 2,568,806 |
| | $ | 3,299,945 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
LIABILITIES: | | | | | | |
Accounts payable and accrued expenses | | $ | 156,766 |
| | $ | 202,101 |
| | $ | 249,525 |
|
Accrued salaries, wages and payroll taxes | | 117,459 |
| | 140,902 |
| | 196,527 |
|
Accrued income taxes and reserves for uncertain tax positions | | 36,242 |
| | 49,009 |
| | 271,973 |
|
Current portion of long-term debt | | 649,022 |
| | — |
| | — |
|
Operating lease liabilities | | 187,890 |
| | — |
| | — |
|
Deferred revenue and other current liabilities | | 190,242 |
| | 195,634 |
| | 204,976 |
|
Total current liabilities | | 1,337,621 |
| | 587,646 |
| | 923,001 |
|
Long-term debt and line of credit borrowings | | 1,880,589 |
| | 1,876,989 |
| | 1,492,629 |
|
Deferred tax liabilities and reserves for uncertain tax positions | | 172,954 |
| | 214,217 |
| | 197,906 |
|
Operating lease liabilities | | 289,299 |
| | — |
| | — |
|
Deferred revenue and other noncurrent liabilities | | 90,346 |
| | 103,545 |
| | 144,882 |
|
Total liabilities | | 3,770,809 |
| | 2,782,397 |
| | 2,758,418 |
|
COMMITMENTS AND CONTINGENCIES | |
|
| |
|
| |
|
|
STOCKHOLDERS' EQUITY: | | | | | | |
Common stock, no par, stated value $.01 per share, 800,000,000 shares authorized, shares issued of 228,206,684, 241,501,278 and 238,336,760 | | 2,282 |
| | 2,415 |
| | 2,383 |
|
Additional paid-in capital | | 769,990 |
| | 764,982 |
| | 767,636 |
|
Accumulated other comprehensive loss | | (25,391 | ) | | (17,642 | ) | | (20,416 | ) |
Retained earnings (deficit) | | (367,218 | ) | | (254,277 | ) | | 499,386 |
|
Less treasury shares, at cost, of 35,732,666, 36,460,305 and 36,377,441 | | (698,042 | ) | | (709,069 | ) | | (707,462 | ) |
Total stockholders' equity (deficiency) | | (318,379 | ) | | (213,591 | ) | | 541,527 |
|
Total liabilities and stockholders' equity | | $ | 3,452,430 |
| | $ | 2,568,806 |
| | $ | 3,299,945 |
|
| | | | | | |
See accompanying notes to consolidated financial statements.
|
| |
2 | Q3 FY2020 Form 10-Q | H&R Block, Inc. |
|
| | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | | (unaudited, in 000s) | |
Nine months ended January 31, | | 2020 |
| | 2019 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | |
Net loss | | $ | (467,929 | ) | | $ | (455,400 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | |
Depreciation and amortization | | 125,409 |
| | 126,013 |
|
Provision for bad debt | | 37,517 |
| | 35,009 |
|
Deferred taxes | | 10,795 |
| | 20,557 |
|
Stock-based compensation | | 22,699 |
| | 18,009 |
|
Changes in assets and liabilities, net of acquisitions: | | | | |
Receivables | | (684,323 | ) | | (641,157 | ) |
Prepaid expenses, other current and noncurrent assets | | (1,990 | ) | | (56,160 | ) |
Accounts payable, accrued expenses, salaries, wages and payroll taxes | | (166,204 | ) | | (47,975 | ) |
Deferred revenue, other current and noncurrent liabilities | | (55,064 | ) | | (66,804 | ) |
Income tax receivables, accrued income taxes and income tax reserves | | (282,488 | ) | | (277,240 | ) |
Other, net | | (6,213 | ) | | (2,308 | ) |
Net cash used in operating activities | | (1,467,791 | ) | | (1,347,456 | ) |
| | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | |
Capital expenditures | | (66,510 | ) | | (79,982 | ) |
Payments made for business acquisitions, net of cash acquired | | (450,282 | ) | | (42,428 | ) |
Franchise loans funded | | (32,890 | ) | | (16,875 | ) |
Payments from franchisees | | 14,604 |
| | 15,149 |
|
Other, net | | 45,376 |
| | 4,877 |
|
Net cash used in investing activities | | (489,702 | ) | | (119,259 | ) |
| | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | |
Repayments of line of credit borrowings | | (285,000 | ) | | (230,000 | ) |
Proceeds from line of credit borrowings | | 1,320,000 |
| | 615,000 |
|
Dividends paid | | (154,827 | ) | | (154,866 | ) |
Repurchase of common stock, including shares surrendered | | (256,199 | ) | | (102,152 | ) |
Proceeds from exercise of stock options | | 2,074 |
| | 2,527 |
|
Other, net | | (14,136 | ) | | (20,126 | ) |
Net cash provided by financing activities | | 611,912 |
| | 110,383 |
|
| | | | |
Effects of exchange rate changes on cash | | (359 | ) | | (2,217 | ) |
| | | | |
Net decrease in cash and cash equivalents, including restricted balances | | (1,345,940 | ) | | (1,358,549 | ) |
Cash, cash equivalents and restricted cash, beginning of period | | 1,707,727 |
| | 1,663,678 |
|
Cash, cash equivalents and restricted cash, end of period | | $ | 361,787 |
| | $ | 305,129 |
|
| | | | |
SUPPLEMENTARY CASH FLOW DATA: | | | | |
Income taxes paid, net of refunds received | | $ | 84,872 |
| | $ | 103,789 |
|
Interest paid on borrowings | | 65,972 |
| | 55,581 |
|
Accrued additions to property and equipment | | 1,662 |
| | 2,241 |
|
Accrued purchase of common stock | | — |
| | 12,301 |
|
| | | | |
See accompanying notes to consolidated financial statements.
|
| |
H&R Block, Inc. | Q3 FY2020 Form 10-Q | 3 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | | (amounts in 000s, except per share amounts) | |
| | Common Stock | | Additional Paid-in Capital |
| | Accumulated Other Comprehensive Income (Loss) |
| | Retained Earnings (Deficit) |
| | Treasury Stock | | Total Stockholders’ Equity (Deficiency) |
|
| | Shares |
| | Amount |
| | | | | Shares |
| | Amount |
| |
Balances as of May 1, 2019 | | 238,337 |
| | $ | 2,383 |
| | $ | 767,636 |
| | $ | (20,416 | ) | | $ | 499,386 |
| | (36,377 | ) | | $ | (707,462 | ) | | $ | 541,527 |
|
Net loss | | — |
| | — |
| | — |
| | — |
| | (150,247 | ) | | — |
| | — |
| | (150,247 | ) |
Other comprehensive loss | | — |
| | — |
| | — |
| | (2,320 | ) | | — |
| | — |
| | — |
| | (2,320 | ) |
Stock-based compensation | | — |
| | — |
| | 6,557 |
| | — |
| | — |
| | — |
| | — |
| | 6,557 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (13,789 | ) | | — |
| | (2,786 | ) | | 906 |
| | 17,631 |
| | 1,056 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (314 | ) | | (9,185 | ) | | (9,185 | ) |
Repurchase and retirement of common shares | | (1,593 | ) | | (16 | ) | | (955 | ) | | — |
| | (43,101 | ) | | — |
| | — |
| | (44,072 | ) |
Cash dividends declared - $0.26 per share | | — |
| | — |
| | — |
| | — |
| | (52,512 | ) | | — |
| | — |
| | (52,512 | ) |
Balances as of July 31, 2019 | | 236,744 |
| | $ | 2,367 |
| | $ | 759,449 |
| | $ | (22,736 | ) | | $ | 250,740 |
| | (35,785 | ) | | $ | (699,016 | ) | | $ | 290,804 |
|
Net loss | | — |
| | — |
| | — |
| | — |
| | (187,999 | ) | | — |
| | — |
| | (187,999 | ) |
Other comprehensive income | | — |
| | — |
| | — |
| | 919 |
| | — |
| | — |
| | — |
| | 919 |
|
Stock-based compensation | | — |
| | — |
| | 9,331 |
| | — |
| | — |
| | — |
| | — |
| | 9,331 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (127 | ) | | — |
| | (276 | ) | | 13 |
| | 264 |
| | (139 | ) |
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (6 | ) | | (173 | ) | | (173 | ) |
Repurchase and retirement of common shares | | (5,720 | ) | | (57 | ) | | (3,433 | ) | | — |
| | (133,449 | ) | | — |
| | — |
| | (136,939 | ) |
Cash dividends declared - $0.26 per share | | — |
| | — |
| | — |
| | — |
| | (51,551 | ) | | — |
| | — |
| | (51,551 | ) |
Balances as of October 31, 2019 | | 231,024 |
| | $ | 2,310 |
| | $ | 765,220 |
| | $ | (21,817 | ) | | $ | (122,535 | ) | | (35,778 | ) | | $ | (698,925 | ) | | $ | (75,747 | ) |
Net loss | | — |
| | — |
| | — |
| | — |
| | (129,683 | ) | | — |
| | — |
| | (129,683 | ) |
Other comprehensive loss | | — |
| | — |
| | — |
| | (3,574 | ) | | — |
| | — |
| | — |
| | (3,574 | ) |
Stock-based compensation | | — |
| | — |
| | 6,529 |
| | — |
| | — |
| | — |
| | — |
| | 6,529 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (69 | ) | | — |
| | (180 | ) | | 47 |
| | 939 |
| | 690 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (2 | ) | | (56 | ) | | (56 | ) |
Repurchase and retirement of common shares | | (2,817 | ) | | (28 | ) | | (1,690 | ) | | — |
| | (64,056 | ) | | — |
| | — |
| | (65,774 | ) |
Cash dividends declared - $0.26 per share | | — |
| | — |
| | — |
| | — |
| | (50,764 | ) | | — |
| | — |
| | (50,764 | ) |
Balances as of January 31, 2020 | | 228,207 |
| | $ | 2,282 |
| | $ | 769,990 |
| | $ | (25,391 | ) | | $ | (367,218 | ) | | (35,733 | ) | | $ | (698,042 | ) | | $ | (318,379 | ) |
| | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements.
|
| |
4 | Q3 FY2020 Form 10-Q | H&R Block, Inc. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | | (amounts in 000s, except per share amounts) | |
| | Common Stock | | Additional Paid-in Capital |
| | Accumulated Other Comprehensive Income (Loss) |
| | Retained Earnings (Deficit) |
| | Treasury Stock | | Total Stockholders’ Equity (Deficiency) |
|
| | Shares |
| | Amount |
| | | | | Shares |
| | Amount |
| |
Balances as of May 1, 2018 | | 246,199 |
| | $ | 2,462 |
| | $ | 760,250 |
| | $ | (14,303 | ) | | $ | 362,980 |
| | (36,945 | ) | | $ | (717,678 | ) | | $ | 393,711 |
|
Net loss | | — |
| | — |
| | — |
| | — |
| | (152,670 | ) | | — |
| | — |
| | (152,670 | ) |
Cumulative effect of ASU 2016-16 (1) | | — |
| | — |
| | — |
| | — |
| | 100,950 |
| | — |
| | — |
| | 100,950 |
|
Other comprehensive loss | | — |
| | — |
| | — |
| | (1,731 | ) | | — |
| | — |
| | — |
| | (1,731 | ) |
Stock-based compensation | | — |
| | — |
| | 4,307 |
| | — |
| | — |
| | — |
| | — |
| | 4,307 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (9,945 | ) | | — |
| | (1,029 | ) | | 627 |
| | 12,185 |
| | 1,211 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (200 | ) | | (4,560 | ) | | (4,560 | ) |
Repurchase and retirement of common shares | | (4,173 | ) | | (42 | ) | | (2,503 | ) | | — |
| | (94,560 | ) | | — |
| | — |
| | (97,105 | ) |
Cash dividends declared - $0.25 per share | | — |
| | — |
| | — |
| | — |
| | (52,104 | ) | | — |
| | — |
| | (52,104 | ) |
Balances as of July 31, 2018 | | 242,026 |
| | $ | 2,420 |
| | $ | 752,109 |
| | $ | (16,034 | ) | | $ | 163,567 |
| | (36,518 | ) | | $ | (710,053 | ) | | $ | 192,009 |
|
Net loss | | — |
| | — |
| | — |
| | — |
| | (176,276 | ) | | — |
| | — |
| | (176,276 | ) |
Other comprehensive loss | | — |
| | — |
| | — |
| | (2,846 | ) | | — |
| | — |
| | — |
| | (2,846 | ) |
Stock-based compensation | | — |
| | — |
| | 7,352 |
| | — |
| | — |
| | — |
| | — |
| | 7,352 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (226 | ) | | — |
| | (202 | ) | | 35 |
| | 675 |
| | 247 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (16 | ) | | (431 | ) | | (431 | ) |
Cash dividends declared - $0.25 per share | | — |
| | — |
| | — |
| | — |
| | (51,380 | ) | | — |
| | — |
| | (51,380 | ) |
Balances as of October 31, 2018 | | 242,026 |
| | $ | 2,420 |
| | $ | 759,235 |
| | $ | (18,880 | ) | | $ | (64,291 | ) | | (36,499 | ) | | $ | (709,809 | ) | | $ | (31,325 | ) |
Net loss | | — |
| | — |
| | — |
| | — |
| | (126,454 | ) | | — |
| | — |
| | (126,454 | ) |
Other comprehensive income | | — |
| | — |
| | — |
| | 1,238 |
| | — |
| | — |
| | — |
| | 1,238 |
|
Stock-based compensation | | — |
| | — |
| | 6,067 |
| | — |
| | — |
| | — |
| | — |
| | 6,067 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (5 | ) | | — |
| | (169 | ) | | 41 |
| | 796 |
| | 622 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (2 | ) | | (56 | ) | | (56 | ) |
Repurchase and retirement of common shares | | (525 | ) | | (5 | ) | | (315 | ) | | — |
| | (11,981 | ) | | — |
| | — |
| | (12,301 | ) |
Cash dividends declared - $0.25 per share | | — |
| | — |
| | — |
| | — |
| | (51,382 | ) | | — |
| | — |
| | (51,382 | ) |
Balances as of January 31, 2019 | | 241,501 |
| | $ | 2,415 |
| | $ | 764,982 |
| | $ | (17,642 | ) | | $ | (254,277 | ) | | (36,460 | ) | | $ | (709,069 | ) | | $ | (213,591 | ) |
Net income | | — |
| | — |
| | — |
| | — |
| | 877,909 |
| | — |
| | — |
| | 877,909 |
|
Other comprehensive loss | | — |
| | — |
| | — |
| | (2,774 | ) | | — |
| | — |
| | — |
| | (2,774 | ) |
Stock-based compensation | | — |
| | — |
| | 5,784 |
| | — |
| | — |
| | — |
| | — |
| | 5,784 |
|
Stock-based awards exercised or vested | | — |
| | — |
| | (1,231 | ) | | — |
| | (150 | ) | | 84 |
| | 1,634 |
| | 253 |
|
Acquisition of treasury shares | | — |
| | — |
| | — |
| | — |
| | — |
| | (1 | ) | | (27 | ) | | (27 | ) |
Repurchase and retirement of common shares | | (3,164 | ) | | (32 | ) | | (1,899 | ) | | — |
| | (73,501 | ) | | — |
| | — |
| | (75,432 | ) |
Cash dividends declared - $0.25 per share | | — |
| | — |
| | — |
| | — |
| | (50,595 | ) | | — |
| | — |
| | (50,595 | ) |
Balances as of April 30, 2019 | | 238,337 |
| | $ | 2,383 |
| | $ | 767,636 |
| | $ | (20,416 | ) | | $ | 499,386 |
| | (36,377 | ) | | $ | (707,462 | ) | | $ | 541,527 |
|
| | | | | | | | | | | | | | | | |
|
| |
H&R Block, Inc. | Q3 FY2020 Form 10-Q | 5 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION – The consolidated balance sheets as of January 31, 2020 and 2019, the consolidated statements of operations and comprehensive loss for the three and nine months ended January 31, 2020 and 2019, the consolidated statements of cash flows for the nine months ended January 31, 2020 and 2019, and the consolidated statements of stockholders' equity for the three and nine months ended January 31, 2020 and the quarterly periods within the fiscal year ended April 30, 2019 have been prepared by the Company, without audit. In the opinion of management, all adjustments, which include only normal recurring adjustments, necessary to present fairly the financial position, results of operations, and cash flows as of January 31, 2020 and 2019 and for all periods presented, have been made.
"H&R Block," "the Company," "we," "our," and "us" are used interchangeably to refer to H&R Block, Inc. or to H&R Block, Inc. and its subsidiaries, as appropriate to the context.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted. These consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our April 30, 2019 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2019 or for the year then ended are derived from our Annual Report on Form 10-K.
MANAGEMENT ESTIMATES – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions and judgments are applied in the evaluation of contingent losses arising from our discontinued mortgage business, contingent losses associated with pending claims and litigation, reserves for uncertain tax positions, and related matters. Estimates have been prepared based on the best information available as of each balance sheet date. As such, actual results could differ materially from those estimates.
SEASONALITY OF BUSINESS – Our operating revenues are seasonal in nature with peak revenues typically occurring in the months of February through April. Therefore, results for interim periods are not indicative of results to be expected for the full year.
DISCONTINUED OPERATIONS – Our discontinued operations include the results of operations of Sand Canyon Corporation, previously known as Option One Mortgage Corporation (including its subsidiaries, collectively, SCC), which exited its mortgage business in fiscal year 2008. See notes 9 and 11 for additional information on litigation, claims, and other loss contingencies related to our discontinued operations.
WAVE ACQUISITION –