0001574842-20-000033 | 10-Q | XBRL Viewer

Cover - shares	3 Months Ended
Cover - shares	Jul. 31, 2020	Aug. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2020
Document Transition Report	false
Entity File Number	1-06089
Entity Registrant Name	H&R Block, Inc.
Entity Incorporation, State or Country Code	MO
Entity Tax Identification Number	44-0607856
Entity Address, Address Line One	One H&R Block Way
Entity Address, City or Town	Kansas City
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	64105
City Area Code	816
Local Phone Number	854-3000
Title of 12(b) Security	Common Stock, without par value
Trading Symbol	HRB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		192,898,471
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000012659
Current Fiscal Year End Date	--04-30

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
REVENUES:
Total revenues	$ 601,030	$ 150,362
OPERATING EXPENSES:
Costs of revenues	315,036	229,392
Selling, general and administrative	133,038	116,136
Total operating expenses	448,074	345,528
Other income (expense), net	3,211	9,123
Interest expense on borrowings	(32,125)	(21,071)
Income (loss) from continuing operations before income taxes (benefit)	124,042	(207,114)
Income taxes (benefit)	30,486	(61,390)
Net income (loss) from continuing operations	93,556	(145,724)
Net loss from discontinued operations, net of tax benefits of $685 and $1,358	(2,297)	(4,523)
Net loss	$ 91,259	$ (150,247)
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations (in usd per share)	$ 0.48	$ (0.72)
Discontinued operations (in usd per share)	(0.01)	(0.02)
Consolidated (in usd per share)	0.47	(0.74)
Dividends declared per share (in usd per share)	$ 0.26	$ 0.26
COMPREHENSIVE INCOME (LOSS):
Net income (loss)	$ 91,259	$ (150,247)
Change in foreign currency translation adjustments	17,539	(2,320)
Other comprehensive income (loss)	17,539	(2,320)
Comprehensive income (loss)	108,798	(152,567)
Service revenues
REVENUES:
Total revenues	550,951	132,159
Royalty, product and other revenues
REVENUES:
Total revenues	$ 50,079	$ 18,203

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Income Statement [Abstract]
Tax benefit on discontinued operations	$ 685	$ 1,358

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References + Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
ASSETS
Cash and cash equivalents	$ 2,598,570	$ 2,661,914	$ 607,668
Cash and cash equivalents - restricted	208,015	211,106	157,786
Receivables, less allowance for credit losses of $67,636, $66,652 and $64,648	97,222	133,197	76,128
Prepaid expenses and other current assets	93,538	80,519	105,123
Total current assets	2,997,345	3,086,736	946,705
Property and equipment, at cost, less accumulated depreciation and amortization of $817,280, $764,891 and $796,192	168,830	184,367	199,679
Operating lease right of use asset	492,195	494,788	486,147
Intangible assets, net	400,025	414,976	419,391
Goodwill	724,288	712,138	821,278
Deferred tax assets and income taxes receivable	153,274	151,195	142,416
Other noncurrent assets	61,479	67,847	94,384
Total assets	4,997,436	5,112,047	3,110,000
LIABILITIES:
Accounts payable and accrued expenses	128,690	203,103	122,156
Accrued salaries, wages and payroll taxes	69,346	116,375	48,166
Accrued income taxes and reserves for uncertain tax positions	156,557	209,816	182,928
Current portion of long-term debt	0	649,384	0
Operating lease liabilities	209,556	195,537	186,355
Deferred revenue and other current liabilities	201,809	201,401	193,364
Total current liabilities	765,958	1,575,616	732,969
Long-term debt and line of credit borrowings	3,495,918	2,845,873	1,493,289
Deferred tax liabilities and reserves for uncertain tax positions	185,687	182,441	199,714
Operating lease liabilities	297,518	312,566	292,818
Deferred revenue and other noncurrent liabilities	117,078	124,510	100,406
Total liabilities	4,862,159	5,041,006	2,819,196
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, 236,744,360 and 228,206,684	2,282	2,282	2,367
Additional paid-in capital	772,782	775,387	759,449
Accumulated other comprehensive loss	(34,037)	(51,576)	(22,736)
Retained earnings	82,933	42,965	250,740
Less treasury shares, at cost, of 35,308,213, 35,785,391 and 35,731,376	(688,683)	(698,017)	(699,016)
Total stockholders' equity	135,277	71,041	290,804
Total liabilities and stockholders' equity	$ 4,997,436	$ 5,112,047	$ 3,110,000

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 67,636	$ 64,648	$ 66,652
Accumulated depreciation and amortization	$ 817,280	$ 796,192	$ 764,891
Common stock, stated value per share (in usd per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	800,000,000	800,000,000	800,000,000
Common stock, shares issued (in shares)	228,206,684	228,206,684	236,744,360
Treasury stock, shares (in shares)	35,308,213	35,731,376	35,785,391

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 91,259	$ (150,247)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	39,508	38,605
Provision	2,809	552
Deferred taxes	(1,368)	6,825
Stock-based compensation	7,597	6,674
Changes in assets and liabilities, net of acquisitions:
Receivables	26,052	60,519
Prepaid expenses, other current and noncurrent assets	(8,460)	(9,917)
Accounts payable, accrued expenses, salaries, wages and payroll taxes	(123,011)	(284,643)
Deferred revenue, other current and noncurrent liabilities	(7,136)	(45,769)
Income tax receivables, accrued income taxes and income tax reserves	(46,964)	(99,929)
Other, net	(786)	(6,499)
Net cash used in operating activities	(20,500)	(483,829)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(8,311)	(15,181)
Payments made for business acquisitions, net of cash acquired	(13)	(394,411)
Franchise loans funded	(128)	(2,806)
Payments from franchisees	14,150	2,647
Other, net	(1,318)	50,944
Net cash provided by (used in) investing activities	4,380	(358,807)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid	(50,044)	(52,512)
Repurchase of common stock, including shares surrendered	(2,913)	(36,456)
Proceeds from exercise of stock options	1,147	1,206
Other, net	(4,910)	(12,431)
Net cash used in financing activities	(56,720)	(100,193)
Effects of exchange rate changes on cash	6,405	556
Net decrease in cash and cash equivalents, including restricted balances	(66,435)	(942,273)
Cash, cash equivalents and restricted cash, beginning of period	2,873,020	1,707,727
Cash, cash equivalents and restricted cash, end of period	2,806,585	765,454
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net of refunds received	79,138	36,138
Interest paid on borrowings	26,457	15,519
Accrued purchase of common stock	0	16,801
Accrued additions to property and equipment	1,716	127
New operating right of use assets and related lease liabilities	$ 52,171	$ 157,216

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock
Beginning Balances, (in shares) at Apr. 30, 2019		238,337,000				36,377,000
Beginning Balances, Value at Apr. 30, 2019	$ 541,527	$ 2,383	$ 767,636	$ (20,416)	$ 499,386	$ (707,462)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(150,247)				(150,247)
Other comprehensive income (loss)	(2,320)			(2,320)
Stock-based compensation	6,557		6,557
Stock-based awards exercised or vested	$ 1,056		(13,789)		(2,786)	$ 17,631
Stock-based awards exercised or vested (in shares)	900,000					906,000
Acquisition of treasury shares (in shares)						(314,000)
Acquisition of treasury shares	$ (9,185)					$ (9,185)
Repurchase and retirement of common shares (in shares)		(1,593,000)
Repurchase and retirement of common shares	(44,072)	$ (16)	(955)		(43,101)
Cash dividends declared - $0.26 per share	(52,512)				(52,512)
Ending Balances, (in shares) at Jul. 31, 2019		236,744,000				35,785,000
Ending Balances, Value at Jul. 31, 2019	290,804	$ 2,367	759,449	(22,736)	250,740	$ (699,016)
Beginning Balances, (in shares) at Apr. 30, 2020		228,207,000				35,731,000
Beginning Balances, Value at Apr. 30, 2020	71,041	$ 2,282	775,387	(51,576)	42,965	$ (698,017)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	91,259				91,259
Other comprehensive income (loss)	17,539			17,539
Stock-based compensation	7,422		7,422
Stock-based awards exercised or vested	$ 973		(10,027)		(1,247)	$ 12,247
Stock-based awards exercised or vested (in shares)	600,000					627,000
Acquisition of treasury shares (in shares)						(204,000)
Acquisition of treasury shares	$ (2,913)					$ (2,913)
Cash dividends declared - $0.26 per share	(50,044)				(50,044)
Ending Balances, (in shares) at Jul. 31, 2020		228,207,000				35,308,000
Ending Balances, Value at Jul. 31, 2020	$ 135,277	$ 2,282	$ 772,782	$ (34,037)	$ 82,933	$ (688,683)

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in usd per share)	$ 0.26	$ 0.26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jul. 31, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION – The consolidated balance sheets as of July 31, 2020 and 2019, the consolidated statements of operations and comprehensive income (loss) for the three months ended July 31, 2020 and 2019, the consolidated statements of cash flows for the three months ended July 31, 2020 and 2019, and the consolidated statements of stockholders' equity for the three months ended July 31, 2020 and 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 July 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, 2020 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2020 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, fair value of reporting units, 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 – Because the majority of our clients file their tax returns during the period from February through April in a typical year, a substantial majority 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 the first three quarters of our fiscal year. As a result of the COVID-19 pandemic, on March 21, 2020, the federal tax filing deadline in the United States (U.S.) for individual 2019 tax returns was extended from April 15, 2020 to July 15, 2020. Substantially all U.S. states with an April 15 individual state income tax filing requirement extended their respective deadlines. In Canada, the deadline for individuals to file was extended to June 1, 2020. These extensions have impacted the typical seasonality of our business and the comparability of our financial results. Consequently, a portion of revenues and expenses that would have normally been recognized in our fourth quarter of fiscal year 2020 shifted to the first quarter of fiscal year 2021. Results for interim periods are not indicative of results to be expected for the full fiscal 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 note 10 for additional information on litigation, claims, and other loss contingencies related to our discontinued operations. NEW ACCOUNTING PRONOUNCEMENTS – Current Expected Credit Losses. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13), "Measurement of Credit Losses on Financial Instruments," which replaces the existing incurred credit loss model for an expected credit loss model. We adopted ASU 2016-13 as of May 1, 2020, which did not have a material impact on our consolidated financial statements.

REVENUE RECOGNITION

3 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 2: REVENUE RECOGNITION

The majority of our revenues are from our U.S. Tax Services business. The following table disaggregates our U.S. Tax Services revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:



			(in 000s)
	Three months ended July 31,
	2020		2019
Revenues:
U.S. assisted tax preparation	$	337,728	$	32,992
U.S. royalties	35,949		6,859
U.S. DIY tax preparation	67,595		3,410
International	67,818		40,581
Refund Transfers	10,553		1,509
Emerald Card®	17,055		13,855
Peace of Mind® Extended Service Plan	31,995		32,837
Tax Identity Shield®	9,367		4,522
Interest and fee income on Emerald Advance^TM	663		554
Wave	12,067		3,625
Other	10,240		9,618
Total revenues	$	601,030	$	150,362

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:



										(in 000s)
POM	Deferred Revenue						Deferred Wages
Three months ended July 31,	2020			2019			2020			2019
Balance, beginning of the period	$	183,685		$	212,511		$	21,618		$	27,306
Amounts deferred	18,217			1,723			128			23
Amounts recognized on previous deferrals	(37,205		)	(38,212		)	(4,348		)	(5,324		)
Balance, end of the period	$	164,697		$	176,022		$	17,398		$	22,005

As of July 31, 2020, deferred revenue related to POM was $164.7 million. We expect that $102.4 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following sixty months.

As of July 31, 2020 and 2019, Tax Identity Shield® (TIS) deferred revenue was $24.8 million and $25.4 million, respectively. Deferred revenue related to TIS was $30.8 million and $29.7 million at April 30, 2020 and 2019, respectively. All deferred revenue related to TIS will be recognized within the next nine months.

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

3 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

NOTE 3: EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY

EARNINGS (LOSS) PER SHARE – Basic and diluted earnings (loss) per share is computed using the two-class method. The two-class method is an earnings allocation formula that determines net income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Per share amounts are computed by dividing net income or loss from continuing operations attributable to common shareholders by the weighted average shares outstanding during each period. The dilutive effect of potential common shares is included in diluted earnings per share except in those periods with a loss from continuing operations. Diluted earnings per share excludes the impact of shares of common stock issuable upon the lapse of certain restrictions or the exercise of options to purchase 1.3 million shares for the three months ended July 31, 2020 as the effect would be antidilutive, and 3.7 million shares for the three months ended July 31, 2019, as the effect would be antidilutive due to the net loss from continuing operations during the period.

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:



(in 000s, except per share amounts)
	Three months ended July 31,
	2020			2019
Net earnings (loss) from continuing operations attributable to shareholders	$	93,556		$	(145,724	)
Amounts allocated to participating securities	(327		)	(149		)
Net earnings (loss) from continuing operations attributable to common shareholders	$	93,229		$	(145,873	)

Basic weighted average common shares	192,598			202,037
Potential dilutive shares	1,469			—
Dilutive weighted average common shares	194,067			202,037

Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic	$	0.48		$	(0.72	)
Diluted	0.48			(0.72		)

The weighted average shares outstanding for the three months ended July 31, 2020 decreased to 192.6 million from 202.0 million for the three months ended July 31, 2019. The decrease is due to share repurchases completed in the prior year.

STOCK-BASED COMPENSATION – During the three months ended July 31, 2020, we acquired 0.2 million shares of our common stock at an aggregate cost of $2.9 million, which represent shares swapped or surrendered to us in connection with the vesting or exercise of stock-based awards. During the three months ended July 31, 2019, we acquired 0.3 million shares at an aggregate cost of $9.2 million for similar purposes.

During the three months ended July 31, 2020 and 2019, we issued 0.6 million and 0.9 million shares of common stock, respectively, due to the vesting or exercise of stock-based awards.

During the three months ended July 31, 2020, we granted awards equivalent to 1.8 million shares under our stock-based compensation plans, consisting of nonvested units. Stock-based compensation expense of our continuing operations totaled $7.6 million for the three months ended July 31, 2020 and $6.7 million for the three months ended July 31, 2019. As of July 31, 2020, unrecognized compensation cost for nonvested shares and units totaled $53.8 million.

RECEIVABLES

3 Months Ended

Jul. 31, 2020

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

RECEIVABLES

NOTE 4: RECEIVABLES

Receivables, net of their related allowance, consist of the following:



(in 000s)
As of	July 31, 2020				July 31, 2019				April 30, 2020
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	10,981	$	31,360	$	12,301	$	45,542	$	25,397	$	31,329
Receivables for U.S. assisted and DIY tax preparation and related fees	34,586		3,112		19,686		3,716		47,030		3,112
H&R Block Instant Refund^TM receivables	1,129		1,596		880		1,780		15,031		1,325
H&R Block Emerald Advance® lines of credit	9,372		10,478		8,136		10,249		10,001		14,081
Software receivables from retailers	2,004		—		1,395		—		7,341		—
Royalties and other receivables from franchisees	20,135		39		7,834		99		9,861		42
Wave payment processing receivables	2,324		—		3,041		—		3,200		—
Other	16,691		1,646		22,855		2,251		15,336		1,828
Total	$	97,222	$	48,231	$	76,128	$	63,637	$	133,197	$	51,717

Balances presented above as short-term are included in receivables, while the long-term portions are included in other noncurrent assets in the consolidated balance sheets.

LOANS TO FRANCHISEES – Franchisee loan balances consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding working capital needs. As of July 31, 2020 loans with a principal balance of $0.1 million were more than 90 days past due. As of July 31, 2019, loans with a principal balance of $2.0 million were more than 90 days past due. We had no loans to franchisees on non-accrual status.

H&R BLOCK INSTANT REFUND^TM PROGRAM – H&R Block Instant Refund^TM amounts are generally received from the Canada Revenue Agency (CRA) within 60 days of filing the client's return, with the remaining balance collectible from the client.

We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. Current balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, by year of origination, as of July 31, 2020 are as follows:



				(in 000s)
Year of Origination	Balance			Non-Accrual

2020	$	4,737		$	366
2019 and prior	241			241
	4,978			$	607
Allowance	(2,253		)
Net balance	$	2,725

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our purchased participation interests in Emerald Advance^TM (EA) receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. Balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, as of July 31, 2020, by year of origination, are as follows:



(in 000s)
Year of origination:	Balance			Non-Accrual
2020	$	29,176		$	29,176
2019 and prior	4,886			4,886
Revolving loans	14,962			13,729
	49,024			$	47,791
Allowance	(29,174		)
Net balance	$	19,850

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for our EA and all other short-term and long-term receivables for the three months ended July 31, 2020 and 2019 is as follows:



(in 000s)
	EAs			All Other			Total
Balances as of April 30, 2020	$	32,034		$	50,446		$	82,480
Provision	(2,860		)	5,669			2,809
Charge-offs, recoveries and other	—			(2,214		)	(2,214		)
Balances as of July 31, 2020	$	29,174		$	53,901		$	83,075

Balances as of April 30, 2019	$	27,535		$	53,938		$	81,473
Provision	—			552			552
Charge-offs, recoveries and other	—			(322		)	(322		)
Balances as of July 31, 2019	$	27,535		$	54,168		$	81,703

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the three months ended July 31, 2020 and 2019 are as follows:



(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2020	$	850,435		$	(138,297	)	$	712,138
Acquisitions	—			—			—
Disposals and foreign currency changes, net	12,150			—			12,150
Impairments	—			—			—
Balances as of July 31, 2020	$	862,585		$	(138,297	)	$	724,288

Balances as of April 30, 2019	$	552,234		$	(32,297	)	$	519,937
Acquisition of Wave ⁽¹⁾	303,359			—			303,359
Other acquisitions	1,083			—			1,083
Disposals and foreign currency changes, net	(3,101		)	—			(3,101		)
Impairments	—			—			—
Balances as of July 31, 2019	$	853,575		$	(32,297	)	$	821,278


⁽¹⁾	At July 31, 2019, the fair value of the acquired goodwill related to our acquisition of Wave was provisional pending the final purchase price allocation.

We test goodwill for impairment annually in our fourth quarter, or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

Components of intangible assets are as follows:



(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2020:
Reacquired franchise rights	$	365,506	$	(165,721	)	$	199,785
Customer relationships	314,920		(235,645		)	79,275
Internally-developed software	159,195		(115,976		)	43,219
Noncompete agreements	41,112		(34,193		)	6,919
Franchise agreements	19,201		(14,934		)	4,267
Purchased technology	122,700		(61,313		)	61,387
Trade name	5,800		(627		)	5,173
	$	1,028,434	$	(628,409	)	$	400,025
As of July 31, 2019:
Reacquired franchise rights	$	350,679	$	(141,954	)	$	208,725
Customer relationships	300,156		(203,283		)	96,873
Internally-developed software	144,768		(111,892		)	32,876
Noncompete agreements	40,358		(31,980		)	8,378
Franchise agreements	19,201		(13,654		)	5,547
Purchased technology	104,700		(45,166		)	59,534
Trade name	5,800		(48		)	5,752
Acquired assets pending final allocation ⁽¹⁾	1,706		—			1,706
	$	967,368	$	(547,977	)	$	419,391
As of April 30, 2020:
Reacquired franchise rights	$	365,062	$	(159,754	)	$	205,308
Customer relationships	314,191		(227,445		)	86,746
Internally-developed software	154,083		(113,698		)	40,385
Noncompete agreements	41,072		(33,639		)	7,433
Franchise agreements	19,201		(14,614		)	4,587
Purchased technology	122,700		(57,548		)	65,152
Trade name	5,800		(483		)	5,317
Acquired assets pending final allocation ⁽¹⁾	48		—			48
	$	1,022,157	$	(607,181	)	$	414,976

⁽¹⁾ Represents franchisee and competitor business acquisitions for which final purchase price allocations have not yet been determined.

We made payments to acquire businesses totaling $13 thousand and $394.4 million during the three months ended July 31, 2020 and 2019, respectively. The three months ended July 31, 2019 included the acquisition of Wave HQ Inc. (formerly known as Wave Financial Inc.) and its subsidiaries (collectively, "Wave").

Amortization of intangible assets for the three months ended July 31, 2020 was $20.9 million compared to $18.2 million for the three months ended July 31, 2019. Estimated amortization of intangible assets for fiscal years 2021, 2022, 2023, 2024 and 2025 is $76.1 million, $59.8 million, $41.9 million, $31.0 million and $17.9 million, respectively.

LONG-TERM DEBT

3 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

LONG-TERM DEBT

NOTE 6: LONG-TERM DEBT

The components of long-term debt are as follows:



							(in 000s)
As of	July 31, 2020			July 31, 2019			April 30, 2020
Senior Notes, 4.125%, due October 2020	$	650,000		$	650,000		$	650,000
Senior Notes, 5.500%, due November 2022	500,000			500,000			500,000
Senior Notes, 5.250%, due October 2025	350,000			350,000			350,000
Committed line of credit borrowings	2,000,000			—			2,000,000
Debt issuance costs and discounts	(4,082		)	(6,711		)	(4,743		)
	3,495,918			1,493,289			3,495,257
Less: Current portion	—			—			(649,384		)
	$	3,495,918		$	1,493,289		$	2,845,873

UNSECURED COMMITTED LINE OF CREDIT – Our unsecured committed line of credit (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 $50.0 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 and meeting certain other conditions. The CLOC will mature on September 21, 2023, unless extended pursuant to the terms of the CLOC, at which time all outstanding amounts thereunder will be due and payable. Our CLOC includes an annual facility fee, which will vary depending on our then current credit ratings.

The 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 ratio (EBITDA-to-interest expense) 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 CLOC includes provisions for an equity cure which could potentially allow us to independently cure certain defaults. Proceeds under the CLOC may be used for working capital needs or for other general corporate purposes. We were in compliance with these requirements as of July 31, 2020.

In order to strengthen our liquidity and ensure maximum flexibility, during the fourth quarter of fiscal year 2020, we drew the full amount of our $2.0 billion CLOC. We had $2.0 billion outstanding on our CLOC as of July 31, 2020, which we expect to repay in full in September 2020.

The estimated fair value of our long-term debt, including the current portion of long-term debt, as of July 31, 2020 and 2019 and April 30, 2020 totaled $3.6 billion, $1.6 billion and $3.5 billion, respectively.

On August 7, 2020, we issued $650.0 million of 3.875% Senior Notes due August 15, 2030 (2030 Senior Notes). The 2030 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. As of April 30, 2020, our $650.0 million notes due in October 2020 (October 2020 Senior Notes) were classified as a current liability. As we intend to use the net proceeds from the 2030 Senior Notes to repay our October 2020 Senior Notes, our October 2020 Senior Notes have been reclassified to long-term as of July 31, 2020.

INCOME TAXES	3 Months Ended
INCOME TAXES	Jul. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7: INCOME TAXES We file a consolidated federal income tax return in the U.S. with the IRS and file tax returns in various state, local, and foreign jurisdictions. Tax returns are typically examined and either settled upon completion of the examination or through the appeals process. Our U.S. federal income tax returns for 2017 and later years remain open for examination. Our U.S. federal income tax returns for 2016 and all prior periods are closed. With respect to state and local jurisdictions and countries outside of the U.S., we 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 accompanying consolidated financial statements for any adjustments that might be incurred due to federal, state, local or foreign audits. A discrete income tax expense of $0.6 million was recorded in the three months ended July 31, 2020 compared to a discrete tax benefit of $8.3 million in the same period of the prior year. The discrete tax expense recorded in the current period primarily resulted from interest recorded on existing uncertain tax benefits. The discrete tax benefit recorded in the prior year resulted primarily from favorable audit settlements and valuation allowance changes related to utilization of foreign losses. Our effective tax rate for continuing operations, including the effects of discrete tax items, was 24.6% and 29.6% for the three months ended July 31, 2020 and 2019, respectively. Discrete items increased the effective tax rate for the three months ended July 31, 2020 and 2019 by 0.5% and 4.0%, respectively. The impact of discrete tax items combined with the seasonal nature of our business can cause the effective tax rate through our first quarter to be significantly different than the rate for our full fiscal year. We had gross unrecognized tax benefits of $171.6 million, $179.2 million and $168.1 million as of July 31, 2020 and 2019 and April 30, 2020, respectively. The gross unrecognized tax benefits increased $3.5 million and decreased$5.9 million during the three months ended July 31, 2020 and 2019, respectively. We believe it is reasonably possible that the balance of unrecognized tax benefits could decrease by approximately $12.1 million within the next twelve months. The anticipated decrease is due to the expiration of statutes of limitations and anticipated closure of various tax matters currently under exam. For such matters where a change in the balance of unrecognized tax benefits is not yet deemed reasonably possible, no estimate has been included.

OTHER INCOME AND OTHER EXPENSES

3 Months Ended

Jul. 31, 2020

Other Income and Expenses [Abstract]

OTHER INCOME AND OTHER EXPENSES

NOTE 8: OTHER INCOME AND OTHER EXPENSES

The following table shows the components of other income (expense), net:



(in 000s)
	Three months ended July 31,
	2020		2019
Interest income	$	1,159	$	8,026
Foreign currency gains (losses), net	392		9
Other, net	1,660		1,088
	$	3,211	$	9,123

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9: COMMITMENTS AND CONTINGENCIES Assisted tax returns, as well as services provided under Tax Pro Go^SMand Tax Pro Review®,are covered by our 100% accuracy guarantee, whereby we will reimburse a client for penalties and interest attributable to an H&R Block error on a return. DIY tax returns are covered by our 100% accuracy guarantee, whereby we will reimburse a client up to a maximum of $10,000 if our software makes an arithmetic error that results in payment of penalties and/or interest to the IRS that a client would otherwise not have been required to pay. Our liability related to estimated losses under the 100% accuracy guarantee was $10.1 million, $8.8 million and $9.4 million as of July 31, 2020 and 2019 and April 30, 2020, respectively. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets. Liabilities related to acquisitions for (1) estimated contingent consideration based on expected financial performance of the acquired business and economic conditions at the time of acquisition and (2) estimated accrued compensation related to continued employment of key employees were $13.3 million, $9.6 million and $14.2 million as of July 31, 2020 and 2019 and April 30, 2020, respectively, with amounts recorded in deferred revenue and other liabilities. Should actual results differ from our estimates, 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 $41.1 million at July 31, 2020, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $38.6 million. We have provided two limited guarantees related to our 2020 tax season Refund Advance Program Agreement. We have provided a limited guarantee up to $7.5 million related to loans to clients prior to the IRS accepting electronic filing. We accrued an estimated liability of $2.5 million at April 30, 2020 related to this guarantee. As of July 31, 2020, we have accrued $2.2 million related to this guarantee. Additionally, we provided a limited guarantee for the remaining loans, up to $57 million in the aggregate, which would cover certain incremental loan losses. We accrued an estimated liability of $2.9 million at April 30, 2020 related to this guarantee. We have no amounts accrued related to this guarantee as of July 31, 2020 as collections exceeded our expectations during the extended tax season. Both the U.S. and Canada implemented emergency economic relief programs as a way of minimizing the economic impact of the global COVID-19 pandemic. In the U.S., the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes, among other items, provisions relating to refundable payroll tax credits and deferment of certain tax payments through the end of calendar 2020. In Canada the COVID-19 Economic Response Plan includes the Canada Emergency Wage Subsidy (CEWS). For our U.S. businesses we have elected to defer the employer-paid portion of social security taxes and are evaluating the employee retention credit, and in Canada we have received $14.6 million in wage subsidies during the quarter ended July 31, 2020 which has been treated as a government subsidy to offset related operating expenses.

LITIGATION AND OTHER RELATED CONTINGENCIES	3 Months Ended
LITIGATION AND OTHER RELATED CONTINGENCIES	Jul. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
LITIGATION AND OTHER RELATED CONTINGENCIES	NOTE 10: LITIGATION AND OTHER 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, including indemnification and contribution claims, and other related 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. 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 July 31, 2020. 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 business and our consolidated financial position, results of operations, and cash flows. As of July 31, 2020 and 2019 and April 30, 2020, our total accrued liabilities were $1.6 million, $1.6 million and $1.6 million, respectively. Our estimate of the aggregate range of reasonably possible losses includes (1) matters where a liability has been accrued and there is a reasonably possible loss in excess of the amount accrued for that liability, and (2) matters where a liability has not been accrued but we believe a loss is reasonably possible. This aggregate range only represents those losses as to which we are currently able to estimate a reasonably possible loss or range of loss. It does not represent our maximum loss exposure. Matters for which we are not currently able to estimate the reasonably possible loss or range of loss are not included in this range. 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 precise information about the amount of damages or other remedies being asserted, the defenses to the claims being asserted, discovery from other parties and investigation of factual allegations, rulings by courts on motions or appeals, analysis by experts, or the status or terms of any settlement negotiations. The 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. As of July 31, 2020, we believe the estimate of the aggregate range of reasonably possible losses in excess of amounts accrued, where the range of loss can be estimated, is not material. 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. 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 business and our consolidated financial position, results of operations, and cash flows. LITIGATION, CLAIMS OR OTHER LOSS CONTINGENCIES PERTAINING TO CONTINUING OPERATIONS – Free File Litigation. On May 6, 2019, the Los Angeles City Attorney filed a lawsuit on behalf of the People of the State of California in the Superior Court of California, County of Los Angeles (Case No. 19STCV15742). The case is styled The People of the State of California v. HRB Digital LLC, et al. The complaint alleges that H&R Block, Inc. and HRB Digital LLC engaged in unfair, fraudulent and deceptive business practices and acts in connection with the IRS Free File Program in violation of the California Unfair Competition Law, California Business and Professions Code §§17200 et seq. The complaint seeks injunctive relief, restitution of monies paid to H&R Block by persons in the State of California who were eligible to file under the IRS Free File Program for the time period starting 4 years prior to the date of the filing of the complaint, pre-judgment interest, civil penalties and costs. The City Attorney subsequently dismissed H&R Block, Inc. from the case and amended its complaint to add HRB Tax Group, Inc. We filed a motion to stay the case based on the primary jurisdiction doctrine, which remains pending. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. On May 17, 2019, a putative class action complaint was filed against H&R Block, Inc., HRB Tax Group, Inc. and HRB Digital LLC in the Superior Court of the State of California, County of San Francisco (Case No. CGC-19576093). The case is styled Snarr v. HRB Tax Group, Inc., et al. The case was removed to the United States District Court for the Northern District of California on June 21, 2019 (Case No. 3:19-cv-03610-SK). The plaintiffs filed a first amended complaint on August 9, 2019, dropping H&R Block, Inc. from the case. In the amended complaint, the plaintiffs seek to represent classes of all persons, between May 17, 2015 and the present, who (1) paid to file one or more federal tax returns through H&R Block’s internet-based filing system, (2) were eligible to file those tax returns for free through the H&R Block Free File offer of the IRS Free File Program, and (3) resided in and were citizens of California at the time of the payments. The plaintiffs generally allege unlawful, unfair, fraudulent and deceptive business practices and acts in connection with the IRS Free File Program in violation of the California Consumers Legal Remedies Act, California Civil Code §§1750, et seq., California False Advertising Law, California Business and Professions Code §§17500, et seq., and California Unfair Competition Law, California Business and Professions Code §§17200 et seq. The plaintiffs seek declaratory and injunctive relief, restitution, compensatory damages, punitive damages, interest, attorneys’ fees and costs. We filed a motion to stay the proceedings based on the primary jurisdiction doctrine and a motion to compel arbitration, both of which were denied. An appeal of the denial of the motion to compel arbitration is pending. We filed a motion to stay the claims pending the outcome of the appeal, as well as a motion to dismiss the claims, which also were denied. We filed an answer to the amended complaint on April 7, 2020. The parties filed a stipulation of voluntary dismissal of the claims of plaintiff Olosoni, without prejudice, and the termination of plaintiff Olosoni as a named plaintiff in the action on July 21, 2020. A trial date has been set for October 18, 2022. 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 26, 2019, a putative class action complaint was filed against H&R Block, Inc., HRB Tax Group, Inc., HRB Digital LLC and Free File, Inc. in the United States District Court for the Western District of Missouri (Case No. 4:19-cv-00788-GAF) styled Swanson v. H&R Block, Inc., et al. The plaintiff seeks to represent both a nationwide class and a California subclass of all persons eligible for the IRS Free File Program who paid to use an H&R Block product to file an online tax return for the 2002 through 2018 tax filing years. The plaintiff generally alleges unlawful, unfair, fraudulent and deceptive business practices and acts in connection with the IRS Free File Program in violation of the California Consumers Legal Remedies Act, California Civil Code §§1750, et seq., California False Advertising Law, California Business and Professions Code §§17500, et seq., California Unfair Competition Law, California Business and Professions Code §§17200, et seq., in addition to breach of contract and fraud. The plaintiff seeks injunctive relief, disgorgement, compensatory damages, statutory damages, punitive damages, interest, attorneys’ fees and costs. The court granted a motion to dismiss filed by defendant Free File, Inc. for lack of personal jurisdiction. We filed a motion to stay the proceedings based on the primary jurisdiction doctrine and a motion to compel arbitration. The court granted our motion to compel arbitration on July 27, 2020 and stayed the case pending the outcome of arbitration. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. We have also received and are responding to certain governmental inquiries relating to the IRS Free File Program. LITIGATION, CLAIMS, INCLUDING INDEMNIFICATION AND CONTRIBUTION 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 lawsuits, claims, and other loss contingencies include actions by regulators, third parties seeking indemnification or contribution, 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 lawsuits, claims, and contingencies 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 or contribution, breach of contract, violations of securities laws, and violations of 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. It is difficult to predict either the likelihood of new matters being initiated or the outcome of existing matters. In many of these matters 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. Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of residential mortgage-backed securities (RMBSs). In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as "representation and warranty claims." The statute of limitations for a contractual claim to enforce a representation and warranty obligation is generally six years or such shorter limitations period that may apply under the law of a state where the economic injury occurred. 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. 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 have sought, and may in the future 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 2016 ruling by a New York intermediate appellate court, followed by the federal district court in the second Homeward case described below, 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. Additionally, plaintiffs in litigation to which SCC is not party have alleged breaches of an independent contractual duty to provide notice of material breaches of representations and warranties and pursued separate claims to which, they argue, the statute of limitations ruling in the ACE case does not apply. The impact on SCC 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 relating back to timely filed litigation. 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 trust was originally collateralized with approximately 7,500 loans. 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. Representatives of a holder of certificates in the trust filed a motion to intervene to add H&R Block, Inc. to the lawsuit and assert claims against H&R Block, Inc. based on alter ego, corporate veil-piercing, and agency law. On February 12, 2018, the court denied the motion to intervene. Discovery in the case closed on September 30, 2019. Motions for summary judgment were filed on December 6, 2019 and remain pending, with briefing on the motions concluded in March 2020. A mediation session between the parties was held on January 28, 2020, which did not result in resolution of the case. A trial date has not yet been set. 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 trust was originally collateralized with approximately 7,500 loans. 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. On September 30, 2016, the court granted a motion allowing the plaintiff to file a second amended complaint to include breach of contract claims with respect to 649 additional loans in the trust and to allow such claims with respect to other loans in the trust proven to be in material breach of SCC’s representations and warranties. SCC filed a motion for reconsideration, followed by a motion for leave to appeal the ruling, both of which were denied. On October 6, 2016, the plaintiff filed its second amended complaint. In response to a motion filed by SCC, the court dismissed the plaintiff's claim for breach of one of the representations. The case is proceeding on the remaining claims. Representatives of a holder of certificates in the trust filed a motion to intervene to add H&R Block, Inc. to the lawsuit and assert claims against H&R Block, Inc. based on alter ego, corporate veil-piercing, and agency law. On February 12, 2018, the court denied the motion to intervene. The settlement payments that were made in fiscal year 2018 for representation and warranty claims are related to some of the loans in this case. Discovery in the case closed on September 30, 2019. Motions for summary judgment were filed on December 6, 2019 and remain pending, with briefing on the motions concluded in March 2020. A mediation session between the parties was held on January 28, 2020, which did not result in resolution of the case. A trial date has not yet been set. We have not concluded that a loss related to this matter is probable, nor have we accrued a liability related to this matter. Parties, including underwriters, depositors, and securitization trustees, are, or have been, involved in multiple lawsuits, threatened lawsuits, and settlements related to securitization transactions in which SCC participated. A variety of claims are alleged in these matters, including violations of federal and state securities laws and common law fraud, based on alleged materially inaccurate or misleading disclosures, that originators, depositors, securitization trustees, or servicers breached their representations and warranties or otherwise failed to fulfill their obligations, or that securitization trustees violated statutory requirements by failing to properly protect the certificate holders’ interests. SCC has received notices of claims for indemnification or potential indemnification obligations relating to such matters, including lawsuits or settlements to which underwriters, depositors, or securitization trustees are party. Additional lawsuits against the parties to the securitization transactions may be filed in the future, and SCC may receive additional notices of claims for indemnification, contribution or similar obligations with respect to existing or new lawsuits or settlements of such lawsuits or other claims. Certain of the notices received included, and future notices may include, a reservation of rights to assert claims for contribution, which are referred to herein as "contribution claims." Contribution claims 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 or contribution claims is probable, nor have we accrued a liability related to any of these claims. 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, other potential claimants, 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 July 31, 2020, total approximately $274 million and consist 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. 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 others who may be 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 and our consolidated financial position, results of operations, and cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	Jul. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	The consolidated balance sheets as of July 31, 2020 and 2019, the consolidated statements of operations and comprehensive income (loss) for the three months ended July 31, 2020 and 2019, the consolidated statements of cash flows for the three months ended July 31, 2020 and 2019, and the consolidated statements of stockholders' equity for the three months ended July 31, 2020 and 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 July 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, 2020 Annual Report to Shareholders on Form 10-K. All amounts presented herein as of April 30, 2020 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, fair value of reporting units, 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.
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 note 10 for additional information on litigation, claims, and other loss contingencies related to our discontinued operations.
New Accounting Pronouncements	Current Expected Credit Losses. In June 2016, the FASB issued Accounting Standards Update No. 2016-13 (ASU 2016-13), "Measurement of Credit Losses on Financial Instruments," which replaces the existing incurred credit loss model for an expected credit loss model. We adopted ASU 2016-13 as of May 1, 2020, which did not have a material impact on our consolidated financial statements.

REVENUE RECOGNITION (Tables)

3 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue by Major Service Line



			(in 000s)
	Three months ended July 31,
	2020		2019
Revenues:
U.S. assisted tax preparation	$	337,728	$	32,992
U.S. royalties	35,949		6,859
U.S. DIY tax preparation	67,595		3,410
International	67,818		40,581
Refund Transfers	10,553		1,509
Emerald Card®	17,055		13,855
Peace of Mind® Extended Service Plan	31,995		32,837
Tax Identity Shield®	9,367		4,522
Interest and fee income on Emerald Advance^TM	663		554
Wave	12,067		3,625
Other	10,240		9,618
Total revenues	$	601,030	$	150,362

Schedule of Deferred Revenue Related To The Peace of Mind Program

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:



										(in 000s)
POM	Deferred Revenue						Deferred Wages
Three months ended July 31,	2020			2019			2020			2019
Balance, beginning of the period	$	183,685		$	212,511		$	21,618		$	27,306
Amounts deferred	18,217			1,723			128			23
Amounts recognized on previous deferrals	(37,205		)	(38,212		)	(4,348		)	(5,324		)
Balance, end of the period	$	164,697		$	176,022		$	17,398		$	22,005

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Computations of Basic And Diluted Earnings Per Share

The computations of basic and diluted earnings (loss) per share from continuing operations are as follows:



(in 000s, except per share amounts)
	Three months ended July 31,
	2020			2019
Net earnings (loss) from continuing operations attributable to shareholders	$	93,556		$	(145,724	)
Amounts allocated to participating securities	(327		)	(149		)
Net earnings (loss) from continuing operations attributable to common shareholders	$	93,229		$	(145,873	)

Basic weighted average common shares	192,598			202,037
Potential dilutive shares	1,469			—
Dilutive weighted average common shares	194,067			202,037

Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic	$	0.48		$	(0.72	)
Diluted	0.48			(0.72		)

RECEIVABLES (Tables)

3 Months Ended

Jul. 31, 2020

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

Schedule of Short-Term Receivables

Receivables, net of their related allowance, consist of the following:



(in 000s)
As of	July 31, 2020				July 31, 2019				April 30, 2020
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	10,981	$	31,360	$	12,301	$	45,542	$	25,397	$	31,329
Receivables for U.S. assisted and DIY tax preparation and related fees	34,586		3,112		19,686		3,716		47,030		3,112
H&R Block Instant Refund^TM receivables	1,129		1,596		880		1,780		15,031		1,325
H&R Block Emerald Advance® lines of credit	9,372		10,478		8,136		10,249		10,001		14,081
Software receivables from retailers	2,004		—		1,395		—		7,341		—
Royalties and other receivables from franchisees	20,135		39		7,834		99		9,861		42
Wave payment processing receivables	2,324		—		3,041		—		3,200		—
Other	16,691		1,646		22,855		2,251		15,336		1,828
Total	$	97,222	$	48,231	$	76,128	$	63,637	$	133,197	$	51,717

Schedule of Receivables Based On Year of Origination

Current balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, by year of origination, as of July 31, 2020 are as follows:



				(in 000s)
Year of Origination	Balance			Non-Accrual

2020	$	4,737		$	366
2019 and prior	241			241
	4,978			$	607
Allowance	(2,253		)
Net balance	$	2,725

Balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, as of July 31, 2020, by year of origination, are as follows:



(in 000s)
Year of origination:	Balance			Non-Accrual
2020	$	29,176		$	29,176
2019 and prior	4,886			4,886
Revolving loans	14,962			13,729
	49,024			$	47,791
Allowance	(29,174		)
Net balance	$	19,850

Schedule of Activity in Allowance For Credit Losses

Activity in the allowance for credit losses for our EA and all other short-term and long-term receivables for the three months ended July 31, 2020 and 2019 is as follows:



(in 000s)
	EAs			All Other			Total
Balances as of April 30, 2020	$	32,034		$	50,446		$	82,480
Provision	(2,860		)	5,669			2,809
Charge-offs, recoveries and other	—			(2,214		)	(2,214		)
Balances as of July 31, 2020	$	29,174		$	53,901		$	83,075

Balances as of April 30, 2019	$	27,535		$	53,938		$	81,473
Provision	—			552			552
Charge-offs, recoveries and other	—			(322		)	(322		)
Balances as of July 31, 2019	$	27,535		$	54,168		$	81,703

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill for the three months ended July 31, 2020 and 2019 are as follows:



(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2020	$	850,435		$	(138,297	)	$	712,138
Acquisitions	—			—			—
Disposals and foreign currency changes, net	12,150			—			12,150
Impairments	—			—			—
Balances as of July 31, 2020	$	862,585		$	(138,297	)	$	724,288

Balances as of April 30, 2019	$	552,234		$	(32,297	)	$	519,937
Acquisition of Wave ⁽¹⁾	303,359			—			303,359
Other acquisitions	1,083			—			1,083
Disposals and foreign currency changes, net	(3,101		)	—			(3,101		)
Impairments	—			—			—
Balances as of July 31, 2019	$	853,575		$	(32,297	)	$	821,278

⁽¹⁾

At July 31, 2019, the fair value of the acquired goodwill related to our acquisition of Wave was provisional pending the final purchase price allocation.

Schedule of Intangible Assets

Components of intangible assets are as follows:



(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2020:
Reacquired franchise rights	$	365,506	$	(165,721	)	$	199,785
Customer relationships	314,920		(235,645		)	79,275
Internally-developed software	159,195		(115,976		)	43,219
Noncompete agreements	41,112		(34,193		)	6,919
Franchise agreements	19,201		(14,934		)	4,267
Purchased technology	122,700		(61,313		)	61,387
Trade name	5,800		(627		)	5,173
	$	1,028,434	$	(628,409	)	$	400,025
As of July 31, 2019:
Reacquired franchise rights	$	350,679	$	(141,954	)	$	208,725
Customer relationships	300,156		(203,283		)	96,873
Internally-developed software	144,768		(111,892		)	32,876
Noncompete agreements	40,358		(31,980		)	8,378
Franchise agreements	19,201		(13,654		)	5,547
Purchased technology	104,700		(45,166		)	59,534
Trade name	5,800		(48		)	5,752
Acquired assets pending final allocation ⁽¹⁾	1,706		—			1,706
	$	967,368	$	(547,977	)	$	419,391
As of April 30, 2020:
Reacquired franchise rights	$	365,062	$	(159,754	)	$	205,308
Customer relationships	314,191		(227,445		)	86,746
Internally-developed software	154,083		(113,698		)	40,385
Noncompete agreements	41,072		(33,639		)	7,433
Franchise agreements	19,201		(14,614		)	4,587
Purchased technology	122,700		(57,548		)	65,152
Trade name	5,800		(483		)	5,317
Acquired assets pending final allocation ⁽¹⁾	48		—			48
	$	1,022,157	$	(607,181	)	$	414,976

⁽¹⁾ Represents franchisee and competitor business acquisitions for which final purchase price allocations have not yet been determined.

LONG-TERM DEBT LONG-TERM DEBT (Tables)

3 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

Components of Long-Term Debt

The components of long-term debt are as follows:



							(in 000s)
As of	July 31, 2020			July 31, 2019			April 30, 2020
Senior Notes, 4.125%, due October 2020	$	650,000		$	650,000		$	650,000
Senior Notes, 5.500%, due November 2022	500,000			500,000			500,000
Senior Notes, 5.250%, due October 2025	350,000			350,000			350,000
Committed line of credit borrowings	2,000,000			—			2,000,000
Debt issuance costs and discounts	(4,082		)	(6,711		)	(4,743		)
	3,495,918			1,493,289			3,495,257
Less: Current portion	—			—			(649,384		)
	$	3,495,918		$	1,493,289		$	2,845,873

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

OTHER INCOME AND OTHER EXPENSES (Tables)

3 Months Ended

Jul. 31, 2020

Other Income and Expenses [Abstract]

Components of Other Income (Expense), Net

The following table shows the components of other income (expense), net:



(in 000s)
	Three months ended July 31,
	2020		2019
Interest income	$	1,159	$	8,026
Foreign currency gains (losses), net	392		9
Other, net	1,660		1,088
	$	3,211	$	9,123

REVENUE RECOGNITION (Disaggregation of Revenue by Major Service Line) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 601,030	$ 150,362
U.S. assisted tax preparation
Disaggregation of Revenue [Line Items]
Total revenues	337,728	32,992
U.S. royalties
Disaggregation of Revenue [Line Items]
Total revenues	35,949	6,859
U.S. DIY tax preparation
Disaggregation of Revenue [Line Items]
Total revenues	67,595	3,410
International
Disaggregation of Revenue [Line Items]
Total revenues	67,818	40,581
Refund Transfers
Disaggregation of Revenue [Line Items]
Total revenues	10,553	1,509
Emerald Card®
Disaggregation of Revenue [Line Items]
Total revenues	17,055	13,855
Peace of Mind® Extended Service Plan
Disaggregation of Revenue [Line Items]
Total revenues	31,995	32,837
Tax Identity Shield®
Disaggregation of Revenue [Line Items]
Total revenues	9,367	4,522
Interest and fee income on Emerald AdvanceTM
Disaggregation of Revenue [Line Items]
Total revenues	663	554
Wave
Disaggregation of Revenue [Line Items]
Total revenues	12,067	3,625
Other
Disaggregation of Revenue [Line Items]
Total revenues	$ 10,240	$ 9,618

REVENUE RECOGNITION (Deferred Revenue) (Details) - POM - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Movement in Deferred Revenue [Roll Forward]
Balance, end of the period	$ 164,700
Deferred Revenue
Movement in Deferred Revenue [Roll Forward]
Balance, beginning of the period	183,685	$ 212,511
Amounts deferred	18,217	1,723
Amounts recognized on previous deferrals	(37,205)	(38,212)
Balance, end of the period	164,697	176,022
Deferred Wages
Movement in Deferred Revenue [Roll Forward]
Balance, beginning of the period	21,618	27,306
Amounts deferred	128	23
Amounts recognized on previous deferrals	(4,348)	(5,324)
Balance, end of the period	$ 17,398	$ 22,005

REVENUE RECOGNITION (Narrative) (Details) - USD ($) $ in Millions	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019	Apr. 30, 2019
POM
Disaggregation of Revenue [Line Items]
Deferred revenue	$ 164.7
Current deferred revenue	102.4
TIS
Disaggregation of Revenue [Line Items]
Current deferred revenue	$ 24.8	$ 30.8	$ 25.4	$ 29.7

REVENUE RECOGNITION (Remaining Performance Obligation) (Details)	Jul. 31, 2020
POM \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, expected timing of satisfaction, period	60 months

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	1,300	3,700
Basic weighted average common shares (in shares)	192,598	202,037
Shares repurchased during the period, (in shares)	200	300
Shares repurchased during the period, value	$ 2.9	$ 9.2
Shares issued during period (in shares)	600	900
Nonvested units granted (in shares)	1,800
Stock-based compensation	$ 7.6	$ 6.7
Unrecognized compensation costs, nonvested shares and units	$ 53.8

EARNINGS (LOSS) PER SHARE AND STOCKHOLDERS' EQUITY (Computations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Earnings Per Share [Abstract]
Net earnings (loss) from continuing operations attributable to shareholders	$ 93,556	$ (145,724)
Amounts allocated to participating securities	(327)	(149)
Net earnings (loss) from continuing operations attributable to common shareholders	$ 93,229	$ (145,873)
Basic weighted average common shares (in shares)	192,598	202,037
Potential dilutive shares (in shares)	1,469	0
Dilutive weighted average common shares (in shares)	194,067	202,037
Earnings (loss) per share from continuing operations attributable to common shareholders:
Basic (in usd per share)	$ 0.48	$ (0.72)
Diluted (in usd per share)	$ 0.48	$ (0.72)

RECEIVABLES (Schedule of Short-Term Receivables) (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	$ 97,222	$ 133,197	$ 76,128
Long-term	48,231	51,717	63,637
Loans to franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	10,981	25,397	12,301
Long-term	31,360	31,329	45,542
Receivables for U.S. assisted and DIY tax preparation and related fees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	34,586	47,030	19,686
Long-term	3,112	3,112	3,716
H&R Block Instant RefundTM receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	1,129	15,031	880
Long-term	1,596	1,325	1,780
H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	9,372	10,001	8,136
Long-term	10,478	14,081	10,249
Software receivables from retailers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	2,004	7,341	1,395
Long-term	0	0	0
Royalties and other receivables from franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	20,135	9,861	7,834
Long-term	39	42	99
Wave payment processing receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	2,324	3,200	3,041
Long-term	0	0	0
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Short-term	16,691	15,336	22,855
Long-term	$ 1,646	$ 1,828	$ 2,251

RECEIVABLES (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
RECEIVABLES (Narrative) (Details) - USD ($) $ in Millions	Apr. 30, 2019	Jul. 31, 2020	Jul. 31, 2019
Loans to franchisees
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans more than 90 days past due		$ 0.1	$ 2.0
H&R Block Instant RefundTM receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired, non-accrual status term	60 days
H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired, non-accrual status term	60 days

RECEIVABLES (Schedule of Receivables Based on Year of Origination) (Details) $ in Thousands	Jul. 31, 2020 USD ($)
H&R Block Instant RefundTM receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	$ 4,978
Allowance	(2,253)
Net balance	2,725
Non-Accrual	607
H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	49,024
Allowance	(29,174)
Net balance	19,850
Non-Accrual	47,791
Current year of origination \| H&R Block Instant RefundTM receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	4,737
Non-Accrual	366
Current year of origination \| H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	29,176
Non-Accrual	29,176
Prior year and before \| H&R Block Instant RefundTM receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	241
Non-Accrual	241
Prior year and before \| H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	4,886
Non-Accrual	4,886
Revolving loans \| H&R Block Emerald Advance® lines of credit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance	14,962
Non-Accrual	$ 13,729

RECEIVABLES (Schedule of Activity in the Allowance For Doubtful Accounts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance	$ 82,480	$ 81,473
Provision	2,809	552
Charge-offs, recoveries and other	(2,214)	(322)
Ending balance	83,075	81,703
EAs
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance	32,034	27,535
Provision	(2,860)	0
Charge-offs, recoveries and other	0	0
Ending balance	29,174	27,535
All Other
Allowance for Doubtful Accounts [Roll Forward]
Beginning balance	50,446	53,938
Provision	5,669	552
Charge-offs, recoveries and other	(2,214)	(322)
Ending balance	$ 53,901	$ 54,168

GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Goodwill [Roll Forward]
Goodwill before impairment losses, beginning balance	$ 850,435	$ 552,234
Accumulated impairment losses, beginning balance	(138,297)	(32,297)
Goodwill, beginning balance	712,138	519,937
Other acquisitions	0	1,083
Disposals and foreign currency changes, net	12,150	(3,101)
Impairments	0	0
Goodwill before impairment losses, ending balance	862,585	853,575
Accumulated impairment losses, ending balance	(138,297)	(32,297)
Goodwill, ending balance	$ 724,288	821,278
Wave
Goodwill [Roll Forward]
Other acquisitions		$ 303,359

GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,028,434	$ 1,022,157	$ 967,368
Accumulated Amortization	(628,409)	(607,181)	(547,977)
Net	400,025	414,976	419,391
Reacquired franchise rights
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	365,506	365,062	350,679
Accumulated Amortization	(165,721)	(159,754)	(141,954)
Net	199,785	205,308	208,725
Customer relationships
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	314,920	314,191	300,156
Accumulated Amortization	(235,645)	(227,445)	(203,283)
Net	79,275	86,746	96,873
Internally-developed software
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	159,195	154,083	144,768
Accumulated Amortization	(115,976)	(113,698)	(111,892)
Net	43,219	40,385	32,876
Noncompete agreements
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	41,112	41,072	40,358
Accumulated Amortization	(34,193)	(33,639)	(31,980)
Net	6,919	7,433	8,378
Franchise agreements
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	19,201	19,201	19,201
Accumulated Amortization	(14,934)	(14,614)	(13,654)
Net	4,267	4,587	5,547
Purchased technology
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	122,700	122,700	104,700
Accumulated Amortization	(61,313)	(57,548)	(45,166)
Net	61,387	65,152	59,534
Trade name
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount	5,800	5,800	5,800
Accumulated Amortization	(627)	(483)	(48)
Net	$ 5,173	5,317	5,752
Acquired assets pending final allocation
Goodwill and Intangible Assets [Line Items]
Gross Carrying Amount		48	1,706
Accumulated Amortization		0	0
Net		$ 48	$ 1,706

GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jan. 31, 2019
Business Acquisition [Line Items]
Payments made for business acquisitions, net of cash acquired	$ 13	$ 394,411
Amortization	20,900	$ 18,200
Estimated amortization, 2021	76,100
Estimated amortization, 2022	59,800
Estimated amortization, 2023	41,900
Estimated amortization, 2024	31,000
Estimated amortization, 2025	17,900
Franchisee and competitor businesses
Business Acquisition [Line Items]
Payments made for business acquisitions, net of cash acquired	$ 13		$ 394,400

LONG-TERM DEBT (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Committed line of credit borrowings	$ 2,000,000	$ 2,000,000	$ 0
Debt issuance costs and discounts	(4,082)	(4,743)	(6,711)
Long-term debt including current portion	3,495,918	3,495,257	1,493,289
Less: Current portion	0	(649,384)	0
Long-term debt and line of credit borrowings	$ 3,495,918	2,845,873	1,493,289
Senior Notes \| Senior Notes, 4.125%, due October 2020
Debt Instrument [Line Items]
Interest rate	4.125%
Senior notes	$ 650,000	650,000	650,000
Senior Notes \| Senior Notes, 5.500%, due November 2022
Debt Instrument [Line Items]
Interest rate	5.50%
Senior notes	$ 500,000	500,000	500,000
Senior Notes \| Senior Notes, 5.250%, due October 2025
Debt Instrument [Line Items]
Interest rate	5.25%
Senior notes	$ 350,000	$ 350,000	$ 350,000

LONG-TERM DEBT (Narrative) (Details)	3 Months Ended
LONG-TERM DEBT (Narrative) (Details)	Apr. 30, 2020 USD ($)	Aug. 07, 2020 USD ($)	Jul. 31, 2020 USD ($)	Jul. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Committed line of credit borrowings	$ 2,000,000,000		$ 2,000,000,000	$ 0
Estimated fair value of long-term debt	3,500,000,000		3,600,000,000	$ 1,600,000,000
Revolving credit facility
Line of Credit Facility [Line Items]
Aggregate principal amount			2,000,000,000.0
Available increase in borrowing capacity			$ 500,000,000.0
Maximum quarterly debt-to-EBITDA ratio			3.50
Maximum annual debt-to-EBITDA ratio			4.50
Minimum interest coverage ratio			2.50
Proceeds from lines of credit	$ 2,000,000,000.0
Committed line of credit borrowings			$ 2,000,000,000.0
Swingline Loans
Line of Credit Facility [Line Items]
Maximum borrowing capacity			200,000,000.0
Standby Letters of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 50,000,000.0
Subsequent Event \| 2030 Senior Notes \| Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, face amount		$ 650,000,000.0
Interest rate		3.875%

INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jul. 31, 2019	Apr. 30, 2020
Income Tax Disclosure [Abstract]
Discrete income tax expense (benefit)	$ 0.6	$ (8.3)
Effective tax rate	24.60%	29.60%
Increase in effective tax rate from discrete item, percent	0.50%	4.00%
Unrecognized tax benefits	$ 171.6	$ 179.2	$ 168.1
Gross unrecognized tax benefits increase (decrease)	3.5	$ (5.9)
Change in tax benefits that are reasonably possible	$ 12.1

OTHER INCOME AND OTHER EXPENSES (Schedule of Interest Income and Expense of Continuing Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Other Income and Expenses [Abstract]
Interest income	$ 1,159	$ 8,026
Foreign currency gains (losses), net	392	9
Other, net	1,660	1,088
Other income (expense), net	$ 3,211	$ 9,123

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2019
Loss Contingencies [Line Items]
POM maximum per tax return	$ 10,000
Standard guarantee accrual amount	10,100,000	$ 9,400,000	$ 8,800,000
Contingent business acquisition obligations	13,300,000	14,200,000	9,600,000
Lines of credit, total obligation	41,100,000
Remaining franchise equity lines of credit-undrawn commitment	38,600,000
Loss contingency accrual	1,600,000	1,600,000	$ 1,600,000
Social security subsidy received	14,600,000
Refund Advance \| Financial Guarantee \| Axos
Loss Contingencies [Line Items]
Limited guarantee	7,500,000
Loss contingency accrual	2,200,000	2,900,000
Estimate of possible loss	57,000,000
Loans Prior To IRS Acceptance \| Refund Advance \| Financial Guarantee \| Axos
Loss Contingencies [Line Items]
Loss contingency accrual	$ 0	$ 2,500,000

LITIGATION AND OTHER RELATED CONTINGENCIES (Details) $ in Millions	May 06, 2019	Jul. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jul. 31, 2019 USD ($)	Sep. 30, 2016 loan	Sep. 28, 2012 loan	May 31, 2012 loan
Loss Contingencies [Line Items]
Loss contingency accrual \| $		$ 1.6	$ 1.6	$ 1.6
Original loans collateralized							7,500
Number of loans sold to the trust						96
Loans sold to trust, with claims of breach of contract and indemnity					649
SCC
Loss Contingencies [Line Items]
Principal assets of SCC \| $		$ 274.0
Free File Litigation
Loss Contingencies [Line Items]
Eligibility period prior to filing complaint	4 years