☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
For the fiscal year ended | June 30, 2022 | ||||||||||
OR | |||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
For the transition period from to |
Missouri | 44-0607856 | |||||||
(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, without par value | HRB | New York Stock Exchange |
H&R Block, Inc. | 2022 Form 10-K | 1 |
During fiscal year 2022, we prepared | ||
20.5 million U.S. tax returns(1) | ||
which contributed to our consolidated revenues of | ||
$3.5 billion, | ||
net income from continuing operations of | ||
$560.6 million, | ||
EBITDA(2) from continuing operations of | ||
$889.5 million, | ||
and diluted EPS from continuing operations of | ||
$3.26 per share. | ||
We repurchased | ||
23.1 million shares of our common stock. |
2 | 2022 Form 10-K | H&R Block, Inc. |
Small Business | ||
We are focused on growing our base of tax customers by leveraging the Block Advisors® brand and serving more entrepreneurs through our Wave® platform. In small business, our strong marketing and more advanced tax pro training allowed us to grow our assisted tax clients and our net average charge as we serve more complex businesses. In Wave, we have been successful in attracting new clients and increasing the value of existing clients, as both average revenue per user and average invoicing volume saw accelerating growth trends year over year. | ||
Financial Products | ||
In January 2022, we launched our new mobile banking platform, SpruceSM. We believe there is an opportunity to combine leading technology and features with our trusted brand and established financial relationships. Throughout the year we tested multiple iterations of our sign-up offer and continued to release updates to improve the product. We introduced clients to SpruceSM only in the DIY channel at launch to learn and gain customer insights. During the next fiscal year, we will test customer acquisition outside the tax season and prepare for launch in the Assisted channel. | ||
Block Experience | ||
The Block Experience is all about blending technology and digital tools with human expertise. We have been successful in driving digital adoption by leveraging MyBlock features, such as uploading documents, approving returns online, and utilizing virtual chat. We are gaining traction as virtual uptake from our clients more than tripled in the current year. |
H&R Block, Inc. | 2022 Form 10-K | 3 |
4 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 5 |
6 | 2022 Form 10-K | H&R Block, Inc. |
Jeffrey J. Jones II, 54, became our President and Chief Executive Officer in October 2017 and was our President and Chief Executive Officer-Designate from August 2017 to October 2017. Before joining the Company, he served as the President of Ridesharing at Uber Technologies, Inc. from October 2016 until March 2017. He also served as the Executive Vice President and Chief Marketing Officer of Target Corporation from April 2012 until September 2016. | ||||||||
Tony G. Bowen, 47, became our Chief Financial Officer in May 2016. Prior to that, he served as our Vice President, U.S. Tax Services Finance from May 2013 through April 2016. | ||||||||
Kellie J. Logerwell, 52, became our Chief Accounting Officer in July 2016. Prior to that, she served as our Vice President of Corporate and Field Accounting from December 2014 until July 2016 and as our Assistant Controller from December 2010 until December 2014. | ||||||||
Dara S. Redler, 55, became our Chief Legal Officer in January 2022. Prior to joining the Company, she served as General Counsel and Corporate Secretary for Tilray, Inc. from January 2019 until September 2021. She also held various legal roles of increasing responsibility with The Coca-Cola Company from September 2001 until December 2018. | ||||||||
Karen Orosco, 51, became our President, Global Consumer Tax and Service Delivery in June 2021. Prior to that she served as our Senior Vice President, U.S. Retail beginning in May 2016, and our Vice President of Retail Operations from May 2011 until May 2016. |
H&R Block, Inc. | 2022 Form 10-K | 7 |
8 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 9 |
10 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 11 |
12 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 13 |
14 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 15 |
16 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 17 |
18 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 19 |
(in 000s, except per share amounts) | ||||||||||||||||||||||||||
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Dollar Value of Shares that May be Purchased Under the Plans or Programs (2) | |||||||||||||||||||||||
April 1 – April 30 | — | $ | — | — | $ | 13,797 | ||||||||||||||||||||
May 1 - May 31 | 1 | $ | 25.93 | — | $ | 13,797 | ||||||||||||||||||||
June 1 - June 30 | 224 | $ | 35.32 | — | $ | — | ||||||||||||||||||||
225 | $ | 35.27 | — | |||||||||||||||||||||||
20 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 21 |
(in 000s) | ||||||||||||||||||||||||||
Year ended April 30, 2021 | Plus: Two months ended June 30, 2021 (Transition Period) | Less: Two months ended June 30, 2020 | Year ended June 30, 2021 | |||||||||||||||||||||||
Revenues | $ | 3,413,987 | $ | 466,106 | $ | 291,448 | $ | 3,588,645 | ||||||||||||||||||
Operating expenses | 2,644,360 | 331,751 | 279,101 | 2,697,010 | ||||||||||||||||||||||
Pretax income (loss) | 668,736 | 120,995 | (7,402) | 797,133 | ||||||||||||||||||||||
Net income (loss) from continuing operations | 590,212 | 91,119 | (9,127) | 690,458 | ||||||||||||||||||||||
Year Ended June 30, 2022 Compared to Year Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||
Revenues | Operating Expenses | Net Income from Continuing Operations | ||||||||||||||||||||||||||||||||||||
$3.46B | 3.5% | $2.72B | 0.8% | $560.6M | 18.8% | |||||||||||||||||||||||||||||||||
Diluted EPS from Continuing Operations | EBITDA(1) from Continuing Operations | |||||||||||||||||||||||||||||||||||||
$3.26 | Reported: | 11.2% | $889.5M | 15.4% | ||||||||||||||||||||||||||||||||||
$3.51 | Adjusted(1): | 10.9% | ||||||||||||||||||||||||||||||||||||
22 | 2022 Form 10-K | H&R Block, Inc. |
Operating Statistics | ||||||||||||||||||||
Year ended June 30, | 2022 | 2021(1) | % Change | |||||||||||||||||
TAX RETURNS PREPARED : (in 000s) (2) | ||||||||||||||||||||
United States: | ||||||||||||||||||||
Company-owned operations | 8,769 | 9,558 | (8.3) | % | ||||||||||||||||
Franchise operations | 3,185 | 3,696 | (13.8) | % | ||||||||||||||||
Total assisted | 11,954 | 13,254 | (9.8) | % | ||||||||||||||||
Desktop | 1,868 | 2,298 | (18.7) | % | ||||||||||||||||
Online | 6,661 | 7,570 | (12.0) | % | ||||||||||||||||
Total DIY | 8,529 | 9,868 | (13.6) | % | ||||||||||||||||
Total U.S. returns | 20,483 | 23,122 | (11.4) | % | ||||||||||||||||
International: | ||||||||||||||||||||
Canada | 2,449 | 2,459 | (0.4) | % | ||||||||||||||||
Australia | 668 | 680 | (1.8) | % | ||||||||||||||||
Total international returns | 3,117 | 3,139 | (0.7) | % | ||||||||||||||||
Tax returns prepared worldwide | 23,600 | 26,261 | (10.1) | % | ||||||||||||||||
NET AVERAGE CHARGE (U.S. ONLY): (3) | ||||||||||||||||||||
Company-owned operations | $ | 238.87 | $ | 223.94 | 6.7 | % | ||||||||||||||
Franchise operations (4) | $ | 230.58 | $ | 212.32 | 8.6 | % | ||||||||||||||
Online | $ | 37.87 | $ | 39.17 | (3.3) | % | ||||||||||||||
TAX OFFICES (as of March 31): | ||||||||||||||||||||
U.S. offices: | ||||||||||||||||||||
Company-owned offices | 6,492 | 6,512 | (0.3) | % | ||||||||||||||||
Franchise offices | 2,605 | 2,759 | (5.6) | % | ||||||||||||||||
Total U.S. offices | 9,097 | 9,271 | (1.9) | % | ||||||||||||||||
International offices: | ||||||||||||||||||||
Canada | 987 | 983 | 0.4 | % | ||||||||||||||||
Australia | 404 | 422 | (4.3) | % | ||||||||||||||||
Total international offices | 1,391 | 1,405 | (1.0) | % | ||||||||||||||||
Tax offices worldwide | 10,488 | 10,676 | (1.8) | % | ||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 23 |
Consolidated – Financial Results | (in 000s, except per share amounts) | |||||||||||||||||||||||||
Year ended June 30, | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
U.S. assisted tax preparation | $ | 2,094,612 | $ | 2,140,410 | $ | (45,798) | (2.1) | % | ||||||||||||||||||
U.S. royalties | 225,242 | 238,629 | (13,387) | (5.6) | % | |||||||||||||||||||||
U.S. DIY tax preparation | 319,086 | 367,289 | (48,203) | (13.1) | % | |||||||||||||||||||||
International | 231,335 | 229,407 | 1,928 | 0.8 | % | |||||||||||||||||||||
Refund Transfers | 162,893 | 172,356 | (9,463) | (5.5) | % | |||||||||||||||||||||
Emerald Card® | 125,444 | 144,095 | (18,651) | (12.9) | % | |||||||||||||||||||||
Peace of Mind® Extended Service Plan | 94,637 | 97,851 | (3,214) | (3.3) | % | |||||||||||||||||||||
Tax Identity Shield® | 39,114 | 40,999 | (1,885) | (4.6) | % | |||||||||||||||||||||
Interest and fee income on Emerald AdvanceSM | 43,981 | 53,241 | (9,260) | (17.4) | % | |||||||||||||||||||||
Wave | 80,965 | 63,134 | 17,831 | 28.2 | % | |||||||||||||||||||||
Other | 45,961 | 41,234 | 4,727 | 11.5 | % | |||||||||||||||||||||
Total revenues | 3,463,270 | 3,588,645 | (125,375) | (3.5) | % | |||||||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||||||
Field wages | 808,903 | 812,123 | 3,220 | 0.4 | % | |||||||||||||||||||||
Other wages | 284,689 | 280,304 | (4,385) | (1.6) | % | |||||||||||||||||||||
Benefits and other compensation | 206,902 | 211,382 | 4,480 | 2.1 | % | |||||||||||||||||||||
1,300,494 | 1,303,809 | 3,315 | 0.3 | % | ||||||||||||||||||||||
Occupancy | 413,162 | 413,500 | 338 | 0.1 | % | |||||||||||||||||||||
Marketing and advertising | 284,244 | 264,745 | (19,499) | (7.4) | % | |||||||||||||||||||||
Depreciation and amortization | 142,178 | 154,818 | 12,640 | 8.2 | % | |||||||||||||||||||||
Bad debt | 71,778 | 82,353 | 10,575 | 12.8 | % | |||||||||||||||||||||
Other | 506,517 | 477,785 | (28,732) | (6.0) | % | |||||||||||||||||||||
Total operating expenses | 2,718,373 | 2,697,010 | (21,363) | (0.8) | % | |||||||||||||||||||||
Other income (expense), net | 2,454 | 4,989 | (2,535) | (50.8) | % | |||||||||||||||||||||
Interest expense on borrowings | (88,282) | (99,491) | 11,209 | 11.3 | % | |||||||||||||||||||||
Income from continuing operations before income taxes | 659,069 | 797,133 | (138,064) | (17.3) | % | |||||||||||||||||||||
Income taxes | 98,423 | 106,675 | 8,252 | 7.7 | % | |||||||||||||||||||||
Net income from continuing operations | 560,646 | 690,458 | (129,812) | (18.8) | % | |||||||||||||||||||||
Net loss from discontinued operations | (6,972) | (6,509) | (463) | (7.1) | % | |||||||||||||||||||||
Net income | $ | 553,674 | $ | 683,949 | $ | (130,275) | (19.0) | % | ||||||||||||||||||
DILUTED EARNINGS PER SHARE: | ||||||||||||||||||||||||||
Continuing operations | $ | 3.26 | $ | 3.67 | $ | (0.41) | (11.2) | % | ||||||||||||||||||
Discontinued operations | (0.04) | (0.03) | (0.01) | (33.3) | % | |||||||||||||||||||||
Consolidated | $ | 3.22 | $ | 3.64 | $ | (0.42) | (11.5) | % | ||||||||||||||||||
Adjusted diluted EPS(1) | $ | 3.51 | $ | 3.94 | $ | (0.43) | (10.9) | % | ||||||||||||||||||
EBITDA(1) | $ | 889,529 | $ | 1,051,442 | $ | (161,913) | (15.4) | % | ||||||||||||||||||
24 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||||||||||||||
Year ended June 30, | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Consulting and outsourced services | $ | 136,397 | $ | 136,288 | $ | (109) | (0.1) | % | ||||||||||||||||||
Bank partner fees | 26,648 | 22,616 | (4,032) | (17.8) | % | |||||||||||||||||||||
Client claims and refunds | 31,814 | 29,857 | (1,957) | (6.6) | % | |||||||||||||||||||||
Employee and travel expenses | 31,714 | 23,959 | (7,755) | (32.4) | % | |||||||||||||||||||||
Technology-related expenses | 97,934 | 85,499 | (12,435) | (14.5) | % | |||||||||||||||||||||
Credit card/bank charges | 90,209 | 86,203 | (4,006) | (4.6) | % | |||||||||||||||||||||
Insurance | 15,224 | 11,528 | (3,696) | (32.1) | % | |||||||||||||||||||||
Legal fees and settlements | 19,625 | 21,993 | 2,368 | 10.8 | % | |||||||||||||||||||||
Supplies | 28,846 | 31,927 | 3,081 | 9.7 | % | |||||||||||||||||||||
Other | 28,106 | 27,915 | (191) | (0.7) | % | |||||||||||||||||||||
$ | 506,517 | $ | 477,785 | $ | (28,732) | (6.0) | % | |||||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 25 |
Consolidated – Financial Results | (in 000s, except per share amounts) | |||||||||||||||||||||||||
Year ended April 30, | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
U.S. assisted tax preparation | $ | 2,035,107 | $ | 1,533,303 | $ | 501,804 | 32.7 | % | ||||||||||||||||||
U.S. royalties | 226,253 | 193,411 | 32,842 | 17.0 | % | |||||||||||||||||||||
U.S. DIY tax preparation | 313,055 | 208,901 | 104,154 | 49.9 | % | |||||||||||||||||||||
International | 249,868 | 180,065 | 69,803 | 38.8 | % | |||||||||||||||||||||
Refund Transfers | 163,329 | 154,687 | 8,642 | 5.6 | % | |||||||||||||||||||||
Emerald Card® | 136,717 | 92,737 | 43,980 | 47.4 | % | |||||||||||||||||||||
Peace of Mind® Extended Service Plan | 98,882 | 105,185 | (6,303) | (6.0) | % | |||||||||||||||||||||
Tax Identity Shield® | 40,624 | 31,797 | 8,827 | 27.8 | % | |||||||||||||||||||||
Interest and fee income on Emerald AdvanceSM | 53,430 | 60,867 | (7,437) | (12.2) | % | |||||||||||||||||||||
Wave | 58,277 | 36,711 | 21,566 | 58.7 | % | |||||||||||||||||||||
Other | 38,445 | 42,056 | (3,611) | (8.6) | % | |||||||||||||||||||||
Total revenues | 3,413,987 | 2,639,720 | 774,267 | 29.3 | % | |||||||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||||||
Field wages | 797,262 | 678,813 | (118,449) | (17.4) | % | |||||||||||||||||||||
Other wages | 272,664 | 218,548 | (54,116) | (24.8) | % | |||||||||||||||||||||
Benefits and other compensation | 208,147 | 175,535 | (32,612) | (18.6) | % | |||||||||||||||||||||
1,278,073 | 1,072,896 | (205,177) | (19.1) | % | ||||||||||||||||||||||
Occupancy | 414,389 | 410,402 | (3,987) | (1.0) | % | |||||||||||||||||||||
Marketing and advertising | 261,960 | 255,094 | (6,866) | (2.7) | % | |||||||||||||||||||||
Depreciation and amortization | 156,852 | 169,536 | 12,684 | 7.5 | % | |||||||||||||||||||||
Bad debt | 78,763 | 77,470 | (1,293) | (1.7) | % | |||||||||||||||||||||
Impairment of goodwill | — | 106,000 | 106,000 | 100.0 | % | |||||||||||||||||||||
Other | 454,323 | 471,239 | 16,916 | 3.6 | % | |||||||||||||||||||||
Total operating expenses | 2,644,360 | 2,562,637 | (81,723) | (3.2) | % | |||||||||||||||||||||
Other income (expense), net | 5,979 | 15,637 | (9,658) | (61.8) | % | |||||||||||||||||||||
Interest expense on borrowings | (106,870) | (96,094) | (10,776) | (11.2) | % | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefit) | 668,736 | (3,374) | 672,110 | ** | ||||||||||||||||||||||
Income taxes (benefit) | 78,524 | (9,530) | (88,054) | ** | ||||||||||||||||||||||
Net income from continuing operations | 590,212 | 6,156 | 584,056 | 9,487.6 | % | |||||||||||||||||||||
Net loss from discontinued operations | (6,421) | (13,682) | 7,261 | 53.1 | % | |||||||||||||||||||||
Net income (loss) | $ | 583,791 | $ | (7,526) | $ | 591,317 | ** | |||||||||||||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||
Continuing operations | $ | 3.11 | $ | 0.03 | $ | 3.08 | 10,266.7 | % | ||||||||||||||||||
Discontinued operations | (0.03) | (0.07) | 0.04 | 57.1 | % | |||||||||||||||||||||
Consolidated | $ | 3.08 | $ | (0.04) | $ | 3.12 | ** | |||||||||||||||||||
Adjusted diluted EPS(1) | $ | 3.39 | $ | 0.84 | $ | 2.55 | 303.6 | % | ||||||||||||||||||
EBITDA(1) | $ | 932,458 | $ | 262,256 | $ | 670,202 | 255.6 | % | ||||||||||||||||||
Adjusted EBITDA (1) | $ | 932,458 | $ | 368,256 | $ | 564,202 | 153.2 | % | ||||||||||||||||||
26 | 2022 Form 10-K | H&R Block, Inc. |
(in 000's) | ||||||||||||||||||||||||||
Year ended April 30, | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Consulting and outsourced services | $ | 127,262 | $ | 118,267 | $ | (8,995) | (7.6) | % | ||||||||||||||||||
Bank partner fees | 23,681 | 55,633 | 31,952 | 57.4 | % | |||||||||||||||||||||
Client claims and refunds | 28,756 | 35,498 | 6,742 | 19.0 | % | |||||||||||||||||||||
Employee and travel expenses | 21,704 | 40,892 | 19,188 | 46.9 | % | |||||||||||||||||||||
Technology-related expenses | 80,766 | 68,907 | (11,859) | (17.2) | % | |||||||||||||||||||||
Credit card/bank charges | 81,154 | 48,826 | (32,328) | (66.2) | % | |||||||||||||||||||||
Insurance | 11,420 | 15,015 | 3,595 | 23.9 | % | |||||||||||||||||||||
Legal fees and settlements | 22,172 | 27,436 | 5,264 | 19.2 | % | |||||||||||||||||||||
Supplies | 31,843 | 31,290 | (553) | (1.8) | % | |||||||||||||||||||||
Other | 25,565 | 29,475 | 3,910 | 13.3 | % | |||||||||||||||||||||
$ | 454,323 | $ | 471,239 | $ | 16,916 | 3.6 | % | |||||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 27 |
Consolidated – Financial Results | (in 000s) | |||||||||||||||||||||||||
Two months ended June 30, | (Transition Period) 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Total revenues | $ | 466,106 | $ | 291,448 | $ | 174,658 | 59.9 | % | ||||||||||||||||||
Compensation and benefits | 148,817 | 123,081 | (25,736) | (20.9) | % | |||||||||||||||||||||
Occupancy | 65,429 | 66,318 | 889 | 1.3 | % | |||||||||||||||||||||
Marketing and advertising | 11,873 | 9,088 | (2,785) | (30.6) | % | |||||||||||||||||||||
Depreciation and amortization | 24,586 | 26,621 | 2,035 | 7.6 | % | |||||||||||||||||||||
Bad debt | 6,458 | 2,869 | (3,589) | (125.1) | % | |||||||||||||||||||||
Other | 74,588 | 51,124 | (23,464) | (45.9) | % | |||||||||||||||||||||
Total operating expenses | 331,751 | 279,101 | (52,650) | (18.9) | % | |||||||||||||||||||||
Other income (expense), net | 672 | 1,661 | (989) | (59.5) | % | |||||||||||||||||||||
Interest expense on borrowings | (14,032) | (21,410) | 7,378 | 34.5 | % | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 120,995 | (7,402) | 128,397 | ** | ||||||||||||||||||||||
Income taxes | 29,876 | 1,725 | (28,151) | (1,631.9) | % | |||||||||||||||||||||
Net income (loss) from continuing operations | 91,119 | (9,127) | 100,246 | ** | ||||||||||||||||||||||
Net loss from discontinued operations | (1,509) | (1,423) | (86) | (6.0) | % | |||||||||||||||||||||
Net income (loss) | $ | 89,610 | $ | (10,550) | $ | 100,160 | ** | |||||||||||||||||||
28 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||
Year ended June 30, | 2022 | 2021 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||
Net income | $ | 553,674 | $ | 683,949 | ||||||||||
Other operating cash flows | 254,863 | 77,287 | ||||||||||||
Net cash provided by operating activities | 808,537 | 761,236 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||
Capital expenditures | (61,955) | (53,053) | ||||||||||||
Payments made for business acquisitions, net of cash acquired | (35,920) | (17,024) | ||||||||||||
Other investing cash flows | 21,334 | 27,430 | ||||||||||||
Net cash used in investing activities | (76,541) | (42,647) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||
Line of credit borrowings, net | — | (2,000,000) | ||||||||||||
Repayments of long-term debt | (500,000) | (650,000) | ||||||||||||
Proceeds from issuance of long-term debt | — | 1,142,400 | ||||||||||||
Dividends paid | (186,476) | (195,068) | ||||||||||||
Repurchase of common stock, including shares surrendered | (563,174) | (193,551) | ||||||||||||
Other financing cash flows | (7,696) | (21,610) | ||||||||||||
Net cash used in financing activities | (1,257,346) | (1,917,829) | ||||||||||||
Effects of exchange rate changes on cash | (8,101) | 13,457 | ||||||||||||
Net change in cash and cash equivalents | $ | (533,451) | $ | (1,185,783) | ||||||||||
H&R Block, Inc. | 2022 Form 10-K | 29 |
(in 000s, except per share amounts) | ||||||||||||||||||||||||||||||||
Year ended June 30, 2022 | Two months ended June 30, 2021 (Transition Period) | Year ended April 30, 2021 | Year ended April 30, 2020 | Year ended April 30, 2019 | ||||||||||||||||||||||||||||
Shares outstanding | 159,930 | 181,813 | 181,466 | 192,475 | 201,959 | |||||||||||||||||||||||||||
Shares Repurchased | 23,085 | — | 11,551 | 10,130 | 7,862 | |||||||||||||||||||||||||||
Dividends declared per share | $ | 1.08 | $ | 0.27 | $ | 1.04 | $ | 1.04 | $ | 1.00 |
30 | 2022 Form 10-K | H&R Block, Inc. |
As of | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Short-term | Long-term | Outlook | Short-term | Long-term | Outlook | |||||||||||||||||||||||||||||||||
Moody's | P-3 | Baa3 | Stable | P-3 | Baa3 | Stable | ||||||||||||||||||||||||||||||||
S&P | A-2 | BBB | Stable | A-2 | BBB | Stable |
SUMMARIZED BALANCE SHEET | (in 000s) | |||||||
As of June 30, 2022 | GUARANTOR AND ISSUER | |||||||
Current assets | $ | 38,922 | ||||||
Noncurrent assets | 1,698,242 | |||||||
Current liabilities | 75,855 | |||||||
Noncurrent liabilities | 1,495,732 | |||||||
SUMMARIZED STATEMENTS OF OPERATIONS | (in 000s) | |||||||
Year ended June 30, 2022 | GUARANTOR AND ISSUER | |||||||
Total revenues | $ | 199,683 | ||||||
Income from continuing operations before income taxes | 44,404 | |||||||
Net income from continuing operations | 41,979 | |||||||
Net income | 35,007 | |||||||
H&R Block, Inc. | 2022 Form 10-K | 31 |
32 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 33 |
34 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||||||||||||||
Year ended | June 30, 2022 | June 30, 2021 | April 30, 2021 | April 30, 2020 | ||||||||||||||||||||||
Net income (loss) - as reported | $ | 553,674 | $ | 683,949 | $ | 583,791 | $ | (7,526) | ||||||||||||||||||
Discontinued operations, net | 6,972 | 6,509 | 6,421 | 13,682 | ||||||||||||||||||||||
Net income from continuing operations - as reported | 560,646 | 690,458 | 590,212 | 6,156 | ||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||
Income taxes (benefit) | 98,423 | 106,675 | 78,524 | (9,530) | ||||||||||||||||||||||
Interest expense | 88,282 | 99,491 | 106,870 | 96,094 | ||||||||||||||||||||||
Depreciation and amortization | 142,178 | 154,818 | 156,852 | 169,536 | ||||||||||||||||||||||
328,883 | 360,984 | 342,246 | 256,100 | |||||||||||||||||||||||
EBITDA from continuing operations | $ | 889,529 | $ | 1,051,442 | $ | 932,458 | $ | 262,256 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Impairment of goodwill | — | — | — | 106,000 | ||||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 889,529 | $ | 1,051,442 | $ | 932,458 | $ | 368,256 | ||||||||||||||||||
(in 000s, except per share amounts) | ||||||||||||||||||||||||||
Year ended | June 30, 2022 | June 30, 2021 | April 30, 2021 | April 30, 2020 | ||||||||||||||||||||||
Net income from continuing operations - as reported | $ | 560,646 | $ | 690,458 | $ | 590,212 | $ | 6,156 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Amortization of intangibles related to acquisitions (pretax) | 56,292 | 66,246 | 68,387 | 74,561 | ||||||||||||||||||||||
Impairment of goodwill (pretax) | — | — | — | 106,000 | ||||||||||||||||||||||
Tax effect of adjustments(1) | (13,358) | (15,115) | (15,884) | (19,126) | ||||||||||||||||||||||
Adjusted net income from continuing operations | $ | 603,580 | $ | 741,589 | $ | 642,715 | $ | 167,591 | ||||||||||||||||||
Diluted earnings per share from continuing operations - as reported | $ | 3.26 | $ | 3.67 | $ | 3.11 | $ | 0.03 | ||||||||||||||||||
Adjustments, net of tax | 0.25 | 0.27 | 0.28 | 0.81 | ||||||||||||||||||||||
Adjusted diluted earnings per share from continuing operations | $ | 3.51 | $ | 3.94 | $ | 3.39 | $ | 0.84 | ||||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 35 |
36 | 2022 Form 10-K | H&R Block, Inc. |
/s/ Jeffrey J. Jones II | /s/ Tony G. Bowen | |||||||
Jeffrey J. Jones II | Tony G. Bowen | |||||||
President and Chief Executive Officer | Chief Financial Officer |
H&R Block, Inc. | 2022 Form 10-K | 37 |
38 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 39 |
40 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 41 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | (in 000s, except per share amounts) | |||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||
Service revenues | $ | 3,134,686 | $ | 427,575 | $ | 3,067,223 | $ | 2,327,323 | ||||||||||||||||||
Royalty, product and other revenues | 328,584 | 38,531 | 346,764 | 312,397 | ||||||||||||||||||||||
3,463,270 | 466,106 | 3,413,987 | 2,639,720 | |||||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||||
Costs of revenues | 1,881,262 | 232,763 | 1,842,092 | 1,712,276 | ||||||||||||||||||||||
Impairment of goodwill | — | — | — | 106,000 | ||||||||||||||||||||||
Selling, general and administrative | 837,111 | 98,988 | 802,268 | 744,361 | ||||||||||||||||||||||
Total operating expenses | 2,718,373 | 331,751 | 2,644,360 | 2,562,637 | ||||||||||||||||||||||
Other income (expense), net | 2,454 | 672 | 5,979 | 15,637 | ||||||||||||||||||||||
Interest expense on borrowings | (88,282) | (14,032) | (106,870) | (96,094) | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes (benefit) | 659,069 | 120,995 | 668,736 | (3,374) | ||||||||||||||||||||||
Income taxes (benefit) | 98,423 | 29,876 | 78,524 | (9,530) | ||||||||||||||||||||||
Net income from continuing operations | 560,646 | 91,119 | 590,212 | 6,156 | ||||||||||||||||||||||
Net loss from discontinued operations, net of tax benefits of $2,093, $451, $3,883 and $4,085 | (6,972) | (1,509) | (6,421) | (13,682) | ||||||||||||||||||||||
NET INCOME (LOSS) | $ | 553,674 | $ | 89,610 | $ | 583,791 | $ | (7,526) | ||||||||||||||||||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||
Continuing operations | $ | 3.31 | $ | 0.50 | $ | 3.15 | $ | 0.03 | ||||||||||||||||||
Discontinued operations | (0.04) | (0.01) | (0.04) | (0.07) | ||||||||||||||||||||||
Consolidated | $ | 3.27 | $ | 0.49 | $ | 3.11 | $ | (0.04) | ||||||||||||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||||||||||||||
Continuing operations | $ | 3.26 | $ | 0.49 | $ | 3.11 | $ | 0.03 | ||||||||||||||||||
Discontinued operations | (0.04) | (0.01) | (0.03) | (0.07) | ||||||||||||||||||||||
Consolidated | $ | 3.22 | $ | 0.48 | $ | 3.08 | $ | (0.04) | ||||||||||||||||||
COMPREHENSIVE INCOME (LOSS): | ||||||||||||||||||||||||||
Net income (loss) | $ | 553,674 | $ | 89,610 | $ | 583,791 | $ | (7,526) | ||||||||||||||||||
Change in foreign currency translation adjustments | (21,733) | (4,698) | 56,362 | (31,160) | ||||||||||||||||||||||
Other comprehensive income (loss) | (21,733) | (4,698) | 56,362 | (31,160) | ||||||||||||||||||||||
Comprehensive income (loss) | $ | 531,941 | $ | 84,912 | $ | 640,153 | $ | (38,686) | ||||||||||||||||||
42 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 43 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | (in 000s) | |||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||||
Net income (loss) | $ | 553,674 | $ | 89,610 | $ | 583,791 | $ | (7,526) | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
Depreciation and amortization | 142,178 | 24,586 | 156,852 | 169,536 | ||||||||||||||||||||||
Provision for bad debt | 66,807 | 4,617 | 73,451 | 76,621 | ||||||||||||||||||||||
Deferred taxes | (53,352) | 22,926 | (22,583) | (8,300) | ||||||||||||||||||||||
Stock-based compensation | 34,252 | 4,700 | 28,271 | 28,045 | ||||||||||||||||||||||
Impairment of goodwill | — | — | — | 106,000 | ||||||||||||||||||||||
Changes in assets and liabilities, net of acquisitions: | ||||||||||||||||||||||||||
Receivables | (37,889) | 108,470 | (150,933) | (66,896) | ||||||||||||||||||||||
Prepaid expenses, other current and noncurrent assets | (1,944) | 26,753 | (49,498) | 39,377 | ||||||||||||||||||||||
Accounts payable, accrued expenses, salaries, wages and payroll taxes | (19,645) | (186,754) | 150,635 | (124,019) | ||||||||||||||||||||||
Deferred revenue, other current and noncurrent liabilities | 7,342 | (15,809) | (1,160) | (9,096) | ||||||||||||||||||||||
Income tax receivables, accrued income taxes and income tax reserves | 118,713 | (43,476) | (138,152) | (87,423) | ||||||||||||||||||||||
Other, net | (1,599) | (797) | (4,746) | (7,358) | ||||||||||||||||||||||
Net cash provided by operating activities | 808,537 | 34,826 | 625,928 | 108,961 | ||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||
Capital expenditures | (61,955) | (5,188) | (52,792) | (81,685) | ||||||||||||||||||||||
Payments made for business acquisitions, net of cash acquired | (35,920) | (846) | (15,576) | (450,242) | ||||||||||||||||||||||
Franchise loans funded | (18,467) | (135) | (26,917) | (35,264) | ||||||||||||||||||||||
Payments from franchisees | 30,899 | 8,634 | 41,215 | 39,919 | ||||||||||||||||||||||
Other, net | 8,902 | 1,227 | 8,547 | 57,041 | ||||||||||||||||||||||
Net cash provided by (used in) investing activities | (76,541) | 3,692 | (45,523) | (470,231) | ||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||
Repayments of line of credit borrowings | (705,000) | — | (3,275,000) | (1,335,000) | ||||||||||||||||||||||
Proceeds from line of credit borrowings | 705,000 | — | 1,275,000 | 3,335,000 | ||||||||||||||||||||||
Repayments of long-term debt | (500,000) | — | (650,000) | — | ||||||||||||||||||||||
Proceeds from issuance of long-term debt | — | 494,435 | 647,965 | — | ||||||||||||||||||||||
Dividends paid | (186,476) | — | (195,068) | (204,870) | ||||||||||||||||||||||
Repurchase of common stock, including shares surrendered | (563,174) | (4,633) | (191,294) | (256,214) | ||||||||||||||||||||||
Proceeds from exercise of stock options | 6,334 | 308 | 2,140 | 2,075 | ||||||||||||||||||||||
Other, net | (14,030) | (5,584) | (22,566) | (9,143) | ||||||||||||||||||||||
Net cash provided by (used in) financing activities | (1,257,346) | 484,526 | (2,408,823) | 1,531,848 | ||||||||||||||||||||||
Effects of exchange rate changes on cash | (8,101) | (1,800) | 18,318 | (5,285) | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents, including restricted balances | (533,451) | 521,244 | (1,810,100) | 1,165,293 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of the period | 1,584,164 | 1,062,920 | 2,873,020 | 1,707,727 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash, end of the period | $ | 1,050,713 | $ | 1,584,164 | $ | 1,062,920 | $ | 2,873,020 | ||||||||||||||||||
SUPPLEMENTARY CASH FLOW DATA: | ||||||||||||||||||||||||||
Income taxes paid, net of refunds received | $ | 31,689 | $ | 52,149 | $ | 236,459 | $ | 89,204 | ||||||||||||||||||
Interest paid on borrowings | 81,960 | 14,317 | 103,855 | 87,426 | ||||||||||||||||||||||
Accrued additions to property and equipment | 4,315 | 2,085 | 1,643 | 1,185 | ||||||||||||||||||||||
Accrued dividends payable to common shareholders | 43,093 | 48,998 | — | — | ||||||||||||||||||||||
44 | 2022 Form 10-K | 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)(1) | Retained Earnings | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | (7,526) | — | — | (7,526) | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (31,160) | — | — | — | (31,160) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 27,848 | — | — | — | — | 27,848 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based awards exercised or vested | — | — | (14,019) | — | (3,419) | 969 | 18,874 | 1,436 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury shares(2) | — | — | — | — | — | (323) | (9,429) | (9,429) | ||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | (10,130) | (101) | (6,078) | — | (240,606) | — | — | (246,785) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared - $1.04 per share | — | — | — | — | (204,870) | — | — | (204,870) | ||||||||||||||||||||||||||||||||||||||||||
Balances as of April 30, 2020 | 228,207 | $ | 2,282 | $ | 775,387 | $ | (51,576) | $ | 42,965 | (35,731) | $ | (698,017) | $ | 71,041 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 583,791 | — | — | 583,791 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 56,362 | — | — | — | 56,362 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 26,138 | — | — | — | — | 26,138 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based awards exercised or vested | — | — | (11,417) | — | (1,900) | 755 | 14,748 | 1,431 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury shares(2) | — | — | — | — | — | (214) | (3,081) | (3,081) | ||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | (11,551) | (115) | (6,816) | — | (181,282) | — | — | (188,213) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared - $1.04 per share | — | — | — | — | (195,068) | — | — | (195,068) | ||||||||||||||||||||||||||||||||||||||||||
Balances as of April 30, 2021 | 216,656 | $ | 2,167 | $ | 783,292 | $ | 4,786 | $ | 248,506 | (35,190) | $ | (686,350) | $ | 352,401 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 89,610 | — | — | 89,610 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (4,698) | — | — | — | (4,698) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 4,285 | — | — | — | — | 4,285 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based awards exercised or vested | — | — | (8,112) | — | (2,424) | 545 | 10,627 | 91 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury shares(2) | — | — | — | — | — | (197) | (4,633) | (4,633) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared - $0.27 per share | — | — | — | — | (48,998) | — | — | (48,998) | ||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2021 | 216,656 | $ | 2,167 | $ | 779,465 | $ | 88 | $ | 286,694 | (34,842) | $ | (680,356) | $ | 388,058 | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 553,674 | — | — | 553,674 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (21,733) | — | — | — | (21,733) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 28,189 | — | — | — | — | 28,189 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based awards exercised or vested | — | — | (21,622) | — | (3,126) | 1,634 | 31,937 | 7,189 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury shares(2) | — | — | — | — | — | (433) | (12,828) | (12,828) | ||||||||||||||||||||||||||||||||||||||||||
Repurchase and retirement of common shares | (23,085) | (231) | (13,850) | — | (536,265) | — | — | (550,346) | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared - $1.08 per share | — | — | — | — | (180,572) | — | — | (180,572) | ||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2022 | 193,571 | $ | 1,936 | $ | 772,182 | $ | (21,645) | $ | 120,405 | (33,641) | $ | (661,247) | $ | 211,631 | ||||||||||||||||||||||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 45 |
46 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 47 |
48 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 49 |
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
U.S. assisted tax preparation | $ | 2,094,612 | $ | 259,527 | $ | 2,035,107 | $ | 1,533,303 | ||||||||||||||||||
U.S. royalties | 225,242 | 29,659 | 226,253 | 193,411 | ||||||||||||||||||||||
U.S. DIY tax preparation | 319,086 | 76,106 | 313,055 | 208,901 | ||||||||||||||||||||||
International | 231,335 | 22,071 | 249,868 | 180,065 | ||||||||||||||||||||||
Refund Transfers | 162,893 | 14,269 | 163,329 | 154,687 | ||||||||||||||||||||||
Emerald Card® | 125,444 | 19,193 | 136,717 | 92,737 | ||||||||||||||||||||||
Peace of Mind® Extended Service Plan | 94,637 | 20,231 | 98,882 | 105,185 | ||||||||||||||||||||||
Tax Identity Shield® | 39,114 | 3,928 | 40,624 | 31,797 | ||||||||||||||||||||||
Interest and fee income on Emerald AdvanceSM | 43,981 | 299 | 53,430 | 60,867 | ||||||||||||||||||||||
Wave | 80,965 | 12,481 | 58,277 | 36,711 | ||||||||||||||||||||||
Other | 45,961 | 8,342 | 38,445 | 42,056 | ||||||||||||||||||||||
Total revenues | $ | 3,463,270 | $ | 466,106 | $ | 3,413,987 | $ | 2,639,720 | ||||||||||||||||||
50 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s, except per share amounts) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Net income from continuing operations attributable to shareholders | $ | 560,646 | $ | 91,119 | $ | 590,212 | $ | 6,156 | ||||||||||||||||||
Amounts allocated to participating securities | (2,468) | (402) | (2,413) | (639) | ||||||||||||||||||||||
Net income from continuing operations attributable to common shareholders | $ | 558,178 | $ | 90,717 | $ | 587,799 | $ | 5,517 | ||||||||||||||||||
Basic weighted average common shares | 168,519 | 181,473 | 186,832 | 196,701 | ||||||||||||||||||||||
Potential dilutive shares | 2,916 | 3,389 | 1,945 | 1,407 | ||||||||||||||||||||||
Dilutive weighted average common shares | 171,435 | 184,862 | 188,777 | 198,108 | ||||||||||||||||||||||
Earnings per share from continuing operations attributable to common shareholders: | ||||||||||||||||||||||||||
Basic | $ | 3.31 | $ | 0.50 | $ | 3.15 | $ | 0.03 | ||||||||||||||||||
Diluted | 3.26 | 0.49 | 3.11 | 0.03 | ||||||||||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 51 |
(in 000s) | ||||||||||||||||||||||||||||||||||||||
As of | June 30, 2022 | June 30, 2021 | April 30, 2021 | |||||||||||||||||||||||||||||||||||
Short-term | Long-term | Short-term | Long-term | Short-term | Long-term | |||||||||||||||||||||||||||||||||
Loans to franchisees | $ | 6,194 | $ | 22,036 | $ | 9,497 | $ | 28,026 | $ | 16,666 | $ | 28,909 | ||||||||||||||||||||||||||
Receivables for U.S. assisted and DIY tax preparation and related fees | 18,893 | 2,560 | 41,900 | 3,793 | 92,531 | 3,793 | ||||||||||||||||||||||||||||||||
H&R Block's Instant RefundSM receivables | 3,491 | 198 | 2,357 | 159 | 35,665 | 1,463 | ||||||||||||||||||||||||||||||||
H&R Block Emerald Advance® lines of credit | 6,691 | 8,825 | 8,248 | 8,089 | 9,210 | 17,095 | ||||||||||||||||||||||||||||||||
Software receivables from retailers | 3,992 | — | 2,910 | — | 4,823 | — | ||||||||||||||||||||||||||||||||
Royalties and other receivables from franchisees | 3,682 | 73 | 6,167 | 178 | 16,136 | 196 | ||||||||||||||||||||||||||||||||
Wave payment processing receivables | 1,393 | — | 2,187 | — | 1,569 | — | ||||||||||||||||||||||||||||||||
Other | 14,111 | 1,172 | 15,666 | 1,350 | 21,276 | 1,233 | ||||||||||||||||||||||||||||||||
$ | 58,447 | $ | 34,864 | $ | 88,932 | $ | 41,595 | $ | 197,876 | $ | 52,689 | |||||||||||||||||||||||||||
52 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||
Tax return year of origination | Current Balance | More Than 60 Days Past Due | ||||||||||||
2021 | $ | 4,997 | $ | 2,903 | ||||||||||
2020 and prior | 131 | 131 | ||||||||||||
5,128 | $ | 3,034 | ||||||||||||
Allowance | (1,439) | |||||||||||||
Net balance | $ | 3,689 | ||||||||||||
(in 000s) | ||||||||||||||
Fiscal year of origination | Current Balance | Non-Accrual | ||||||||||||
2022 | $ | 26,040 | $ | 26,040 | ||||||||||
2021 and prior | 458 | 458 | ||||||||||||
Revolving loans | 15,159 | 12,867 | ||||||||||||
41,657 | $ | 39,365 | ||||||||||||
Allowance | (26,141) | |||||||||||||
Net balance | $ | 15,516 | ||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 53 |
(in 000s) | ||||||||||||||||||||
EAs | All Other | Total | ||||||||||||||||||
Balances as of May 1, 2019 | $ | 27,535 | $ | 53,938 | $ | 81,473 | ||||||||||||||
Provision | 21,771 | 54,850 | 76,621 | |||||||||||||||||
Charge-offs, recoveries and other | (17,272) | (58,342) | (75,614) | |||||||||||||||||
Balances as of April 30, 2020 | $ | 32,034 | $ | 50,446 | $ | 82,480 | ||||||||||||||
Provision | 14,319 | 59,132 | 73,451 | |||||||||||||||||
Charge-offs, recoveries and other | (18,649) | (53,774) | (72,423) | |||||||||||||||||
Balances as of April 30, 2021 | 27,704 | 55,804 | 83,508 | |||||||||||||||||
Provision | — | 4,617 | 4,617 | |||||||||||||||||
Charge-offs, recoveries and other | — | (149) | (149) | |||||||||||||||||
Balances as of June 30, 2021 | 27,704 | 60,272 | 87,976 | |||||||||||||||||
Provision | 14,814 | 51,993 | 66,807 | |||||||||||||||||
Charge-offs, recoveries and other | (16,377) | (61,139) | (77,516) | |||||||||||||||||
Balances as of June 30, 2022 | $ | 26,141 | $ | 51,126 | $ | 77,267 | ||||||||||||||
(in 000s) | ||||||||||||||||||||
As of | June 30, 2022 | June 30, 2021 | April 30, 2021 | |||||||||||||||||
Buildings | $ | 34,303 | $ | 42,379 | $ | 44,121 | ||||||||||||||
Computers and other equipment | 48,837 | 57,560 | 62,712 | |||||||||||||||||
Leasehold improvements | 38,142 | 35,768 | 37,772 | |||||||||||||||||
Purchased software | 1,253 | 2,192 | 2,508 | |||||||||||||||||
Land and other non-depreciable assets | 1,377 | 1,377 | 1,377 | |||||||||||||||||
$ | 123,912 | $ | 139,276 | $ | 148,490 | |||||||||||||||
54 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||||||||
Goodwill | Accumulated Impairment Losses | Net | ||||||||||||||||||
Balances as of May 1, 2019 | $ | 552,234 | $ | (32,297) | $ | 519,937 | ||||||||||||||
Acquisition of Wave | 300,560 | — | 300,560 | |||||||||||||||||
Other acquisitions | 23,795 | — | 23,795 | |||||||||||||||||
Disposals and foreign currency changes, net | (26,154) | — | (26,154) | |||||||||||||||||
Impairments | — | (106,000) | (106,000) | |||||||||||||||||
Balances as of April 30, 2020 | 850,435 | (138,297) | 712,138 | |||||||||||||||||
Acquisitions | 6,948 | — | 6,948 | |||||||||||||||||
Disposals and foreign currency changes, net | 38,573 | — | 38,573 | |||||||||||||||||
Impairments | — | — | — | |||||||||||||||||
Balances as of April 30, 2021 | 895,956 | (138,297) | 757,659 | |||||||||||||||||
Acquisitions | 166 | — | 166 | |||||||||||||||||
Disposals and foreign currency changes, net | (3,304) | — | (3,304) | |||||||||||||||||
Impairments | — | — | — | |||||||||||||||||
Balances as of June 30, 2021 | 892,818 | (138,297) | 754,521 | |||||||||||||||||
Acquisitions | 18,696 | — | 18,696 | |||||||||||||||||
Disposals and foreign currency changes, net | (12,816) | — | (12,816) | |||||||||||||||||
Impairments | — | — | — | |||||||||||||||||
Balances as of June 30, 2022 | $ | 898,698 | $ | (138,297) | $ | 760,401 | ||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 55 |
(in 000s) | ||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
As of June 30, 2022: | ||||||||||||||||||||
Reacquired franchise rights | $ | 379,114 | $ | (197,068) | $ | 182,046 | ||||||||||||||
Customer relationships | 331,020 | (278,717) | 52,303 | |||||||||||||||||
Internally-developed software | 137,638 | (107,111) | 30,527 | |||||||||||||||||
Noncompete agreements | 41,789 | (37,684) | 4,105 | |||||||||||||||||
Franchise agreements | 19,201 | (17,388) | 1,813 | |||||||||||||||||
Purchased technology | 122,700 | (87,910) | 34,790 | |||||||||||||||||
Trade name | 5,800 | (1,740) | 4,060 | |||||||||||||||||
$ | 1,037,262 | $ | (727,618) | $ | 309,644 | |||||||||||||||
As of June 30, 2021: | ||||||||||||||||||||
Reacquired franchise rights | $ | 370,405 | $ | (182,366) | $ | 188,039 | ||||||||||||||
Customer relationships | 316,547 | (255,294) | 61,253 | |||||||||||||||||
Internally-developed software | 160,315 | (119,460) | 40,855 | |||||||||||||||||
Noncompete agreements | 41,228 | (35,802) | 5,426 | |||||||||||||||||
Franchise agreements | 19,201 | (16,108) | 3,093 | |||||||||||||||||
Purchased technology | 122,700 | (74,913) | 47,787 | |||||||||||||||||
Trade name | 5,800 | (1,160) | 4,640 | |||||||||||||||||
$ | 1,036,196 | $ | (685,103) | $ | 351,093 | |||||||||||||||
As of April 30, 2021: | ||||||||||||||||||||
Reacquired franchise rights | $ | 370,112 | $ | (179,356) | $ | 190,756 | ||||||||||||||
Customer relationships | 316,508 | (251,160) | 65,348 | |||||||||||||||||
Internally-developed software | 156,308 | (116,126) | 40,182 | |||||||||||||||||
Noncompete agreements | 41,212 | (35,484) | 5,728 | |||||||||||||||||
Franchise agreements | 19,201 | (15,894) | 3,307 | |||||||||||||||||
Purchased technology | 122,700 | (72,609) | 50,091 | |||||||||||||||||
Trade name | 5,800 | (1,064) | 4,736 | |||||||||||||||||
$ | 1,031,841 | $ | (671,693) | $ | 360,148 | |||||||||||||||
(dollars in 000s) | ||||||||||||||
Amount | Weighted-Average Life (in years) | |||||||||||||
Internally-developed software | $ | 10,919 | 3 | |||||||||||
Customer relationships | 16,179 | 5 | ||||||||||||
Reacquired franchise rights | 9,081 | 4 | ||||||||||||
Noncompete agreements | 600 | 5 | ||||||||||||
Total | $ | 36,779 | 4 | |||||||||||
56 | 2022 Form 10-K | H&R Block, Inc. |
(dollars in 000s) | ||||||||||||||
Amount Acquired | Weighted-Average Life (in years) | |||||||||||||
Assets acquired and liabilities assumed, net | $ | 3,928 | ||||||||||||
Deferred tax liability | (8,126) | |||||||||||||
Purchased technology | 68,000 | 10 | ||||||||||||
Customer relationships | 23,000 | 5 | ||||||||||||
Non-compete agreements | 7,070 | 5 | ||||||||||||
Trade name | 5,800 | 10 | ||||||||||||
Total identifiable net assets | 99,672 | |||||||||||||
Goodwill (1) | 300,560 | |||||||||||||
Total identifiable assets and goodwill | $ | 400,232 | ||||||||||||
(in 000s) | ||||||||||||||||||||
As of | June 30, 2022 | June 30, 2021 | April 30, 2021 | |||||||||||||||||
Senior Notes, 5.500%, due November 2022 (1) | — | 500,000 | 500,000 | |||||||||||||||||
Senior Notes, 5.250%, due October 2025 (1) | 350,000 | 350,000 | 350,000 | |||||||||||||||||
Senior Notes, 2.500%, due July 2028 (1) | 500,000 | 500,000 | — | |||||||||||||||||
Senior Notes, 3.875%, due August 2030 (1) | 650,000 | 650,000 | 650,000 | |||||||||||||||||
Debt issuance costs and discounts | (13,124) | (16,281) | (9,961) | |||||||||||||||||
Total long-term debt | 1,486,876 | 1,983,719 | 1,490,039 | |||||||||||||||||
Less: Current portion | — | — | — | |||||||||||||||||
Long-term portion | $ | 1,486,876 | $ | 1,983,719 | $ | 1,490,039 | ||||||||||||||
Estimated fair value of long-term debt | $ | 1,377,000 | $ | 2,123,000 | $ | 1,609,000 | ||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 57 |
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Stock based compensation expense | $ | 34,252 | $ | 4,700 | $ | 28,271 | $ | 28,045 | ||||||||||||||||||
Tax benefit | 6,494 | 1,016 | 1,802 | 7,175 | ||||||||||||||||||||||
Realized tax benefit | 5,438 | 2,356 | 1,690 | 5,856 | ||||||||||||||||||||||
58 | 2022 Form 10-K | H&R Block, Inc. |
(shares in 000s) | ||||||||||||||||||||||||||
Restricted Share Units and Deferred Stock Units | Performance-Based Share Units | |||||||||||||||||||||||||
Shares | Weighted-Average Grant Date Fair Value | Shares | Weighted-Average Grant Date Fair Value | |||||||||||||||||||||||
Outstanding, beginning of the year | 2,012 | $ | 21.84 | 1,973 | $ | 23.49 | ||||||||||||||||||||
Granted | 1,158 | 27.30 | 576 | 27.94 | ||||||||||||||||||||||
Released | (897) | 22.73 | (478) | 24.55 | ||||||||||||||||||||||
Forfeited | (303) | 22.33 | (153) | 22.88 | ||||||||||||||||||||||
Outstanding, end of the year | 1,970 | $ | 24.40 | 1,918 | $ | 23.79 | ||||||||||||||||||||
Year Ended June 30, 2022 | Year Ended April 30, 2021 | Year Ended April 30, 2020 | ||||||||||||||||||
Expected volatility | 23.19% - 88.48% | 21.14% - 84.49% | 13.47% - 66.33% | |||||||||||||||||
Expected term | 3 years | 3 years | 3 years | |||||||||||||||||
Dividend yield (1) | 0% | 0% - 3.95% | 0%-3.55% | |||||||||||||||||
Risk-free interest rate | 0.37% | 0.14% - 0.18% | 1.70 | % | ||||||||||||||||
Weighted-average fair value | $ | 27.07 | $ | 16.74 | $ | 32.01 | ||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 59 |
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Domestic | $ | 478,166 | $ | 145,714 | $ | 489,499 | $ | 56,121 | ||||||||||||||||||
Foreign | 180,903 | (24,719) | 179,237 | (59,495) | ||||||||||||||||||||||
$ | 659,069 | $ | 120,995 | $ | 668,736 | $ | (3,374) | |||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
U.S. statutory tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||||||||||||
Change in tax rate resulting from: | ||||||||||||||||||||||||||
State income taxes, net of federal income tax benefit | 2.1 | % | 2.9 | % | 1.8 | % | 20.4 | % | ||||||||||||||||||
Earnings taxed in foreign jurisdictions | (2.4) | % | 0.8 | % | (1.2) | % | 619.4 | % | ||||||||||||||||||
Permanent differences | 0.9 | % | 0.4 | % | 0.5 | % | (257.5) | % | ||||||||||||||||||
Impairment of goodwill | — | % | — | % | — | % | (832.5) | % | ||||||||||||||||||
Uncertain tax positions | (6.3) | % | 2.9 | % | 7.5 | % | 508.3 | % | ||||||||||||||||||
U.S. tax on income from foreign affiliates | 2.0 | % | (1.6) | % | 1.0 | % | (247.4) | % | ||||||||||||||||||
Remeasurement of deferred tax assets and liabilities | (0.2) | % | (1.0) | % | (0.1) | % | 117.6 | % | ||||||||||||||||||
Changes in prior year estimates | 0.1 | % | — | % | (0.5) | % | 55.5 | % | ||||||||||||||||||
Federal income tax credits | (2.6) | % | (0.5) | % | (0.9) | % | 216.3 | % | ||||||||||||||||||
Tax impacts of stock-based compensation vesting | — | % | — | % | — | % | 44.8 | % | ||||||||||||||||||
Tax benefit due to NOL carryback under CARES Act | (0.1) | % | — | % | (17.5) | % | — | % | ||||||||||||||||||
Tax deductible write-down of foreign investment | 0.6 | % | (0.2) | % | (1.7) | % | — | % | ||||||||||||||||||
Change in valuation allowance - domestic | 0.2 | % | — | % | (0.2) | % | 37.1 | % | ||||||||||||||||||
Change in valuation allowance - foreign | (0.3) | % | 0.3 | % | 1.7 | % | 20.6 | % | ||||||||||||||||||
Other | (0.1) | % | (0.3) | % | 0.3 | % | (41.2) | % | ||||||||||||||||||
Effective tax rate | 14.9 | % | 24.7 | % | 11.7 | % | 282.4 | % | ||||||||||||||||||
60 | 2022 Form 10-K | H&R Block, Inc. |
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Current: | ||||||||||||||||||||||||||
Federal | $ | 121,319 | $ | 11,563 | $ | 58,834 | $ | 18,048 | ||||||||||||||||||
State | 25,108 | 743 | 12,000 | (16,614) | ||||||||||||||||||||||
Foreign | 8,956 | (1,481) | 26,032 | 1,991 | ||||||||||||||||||||||
155,383 | 10,825 | 96,866 | 3,425 | |||||||||||||||||||||||
Deferred: | ||||||||||||||||||||||||||
Federal | (58,487) | 16,950 | 2,493 | 1,703 | ||||||||||||||||||||||
State | (2,016) | 4,809 | (11,368) | (1,516) | ||||||||||||||||||||||
Foreign | 3,543 | (2,708) | (9,467) | (13,142) | ||||||||||||||||||||||
(56,960) | 19,051 | (18,342) | (12,955) | |||||||||||||||||||||||
Total income taxes (benefit) for continuing operations | $ | 98,423 | $ | 29,876 | $ | 78,524 | $ | (9,530) | ||||||||||||||||||
(in 000s) | ||||||||||||||||||||
As of | June 30, 2022 | June 30, 2021 | April 30, 2021 | |||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||
Accrued expenses | $ | 1,917 | $ | 1,735 | $ | 3,576 | ||||||||||||||
Deferred revenue | 35,519 | 7,644 | 10,445 | |||||||||||||||||
Allowance for credit losses and related reserves | 30,565 | 34,411 | 33,027 | |||||||||||||||||
Deferred and stock-based compensation | 6,964 | 7,111 | 24,712 | |||||||||||||||||
Net operating loss carry-forward | 105,710 | 108,446 | 104,013 | |||||||||||||||||
Lease liabilities | 109,397 | 114,700 | 112,249 | |||||||||||||||||
Federal tax benefits related to state unrecognized tax benefits | 19,115 | 16,177 | 16,682 | |||||||||||||||||
Property and equipment | 9,846 | 35,712 | 40,138 | |||||||||||||||||
Intangibles - intellectual property | 77,123 | 85,374 | 86,711 | |||||||||||||||||
Valuation allowance | (55,172) | (55,784) | (55,401) | |||||||||||||||||
Total deferred tax assets | 340,984 | 355,526 | 376,152 | |||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||
Prepaid expenses and other | (4,723) | (9,033) | (11,927) | |||||||||||||||||
Lease right of use assets | (107,445) | (111,762) | (109,726) | |||||||||||||||||
Income tax method change | (5,892) | (56,249) | (56,257) | |||||||||||||||||
Intangibles | (59,424) | (71,941) | (72,650) | |||||||||||||||||
Total deferred tax liabilities | (177,484) | (248,985) | (250,560) | |||||||||||||||||
Net deferred tax assets | $ | 163,500 | $ | 106,541 | $ | 125,592 | ||||||||||||||
(in 000s) | ||||||||||||||||||||
As of | June 30, 2022 | June 30, 2021 | April 30, 2021 | |||||||||||||||||
Deferred income tax assets | $ | 163,500 | $ | 142,981 | $ | 141,836 | ||||||||||||||
Deferred tax liabilities | — | (36,440) | (16,244) | |||||||||||||||||
Net deferred tax asset | $ | 163,500 | $ | 106,541 | $ | 125,592 | ||||||||||||||
H&R Block, Inc. | 2022 Form 10-K | 61 |
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Balance, beginning of the period | $ | 55,784 | $ | 55,401 | $ | 45,124 | $ | 47,070 | ||||||||||||||||||
Additions charged to costs and expenses | 4,752 | 389 | 13,492 | 2,151 | ||||||||||||||||||||||
Deductions | (5,364) | (6) | (3,215) | (4,097) | ||||||||||||||||||||||
Balance, end of the period | $ | 55,172 | $ | 55,784 | $ | 55,401 | $ | 45,124 | ||||||||||||||||||
(in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Balance, beginning of the period | $ | 264,323 | $ | 264,810 | $ | 168,062 | $ | 185,144 | ||||||||||||||||||
Additions based on tax positions related to prior years | 2,499 | 485 | 121,364 | 1,501 | ||||||||||||||||||||||
Reductions based on tax positions related to prior years | (5,332) | (1,209) | (34,470) | (10,128) | ||||||||||||||||||||||
Additions based on tax positions related to the current year | 32,948 | 679 | 43,800 | 12,093 | ||||||||||||||||||||||
Reductions related to settlements with tax authorities | (9,800) | (442) | (29,362) | (980) | ||||||||||||||||||||||
Expiration of statute of limitations | (52,634) | — | (4,584) | (19,568) | ||||||||||||||||||||||
Balance, end of the period | $ | 232,004 | $ | 264,323 | $ | 264,810 | $ | 168,062 | ||||||||||||||||||
62 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 63 |
(dollars in 000s) | ||||||||||||||||||||||||||
Year Ended June 30, 2022 | Two Months Ended June 30, 2021 (Transition Period) | Year Ended April 30, 2021 | Year Ended April 30, 2020 | |||||||||||||||||||||||
Operating lease costs | $ | 233,004 | $ | 36,853 | $ | 239,357 | $ | 242,314 | ||||||||||||||||||
Variable lease costs | 79,923 | 14,359 | 77,758 | 71,319 | ||||||||||||||||||||||
Subrental income | (520) | (52) | (650) | (1,277) | ||||||||||||||||||||||
Total lease costs | $ | 312,407 | $ | 51,160 | $ | 316,465 | $ | 312,356 | ||||||||||||||||||
Cash paid for operating lease costs | $ | 236,946 | $ | 35,394 | $ | 240,299 | $ | 223,080 | ||||||||||||||||||
New operating right of use assets and related lease liabilities(1) | $ | 222,352 | $ | 48,307 | $ | 167,827 | $ | 345,079 | ||||||||||||||||||
Weighted-average remaining operating lease term (years) | 2 | 2 | 3 | 3 | ||||||||||||||||||||||
Weighted-average operating lease discount rate | 2.8 | % | 2.9 | % | 3.0 | % | 3.3 | % | ||||||||||||||||||
64 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 65 |
66 | 2022 Form 10-K | H&R Block, Inc. |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | (in 000s, except per share amounts) | |||||||||||||
Two months ended: | June 30, 2021 (Transition Period) | June 30, 2020 (Unaudited) | ||||||||||||
REVENUES: | ||||||||||||||
Service revenues | $ | 427,575 | $ | 266,154 | ||||||||||
Royalty, product and other revenues | 38,531 | 25,294 | ||||||||||||
466,106 | 291,448 | |||||||||||||
OPERATING EXPENSES: | ||||||||||||||
Costs of revenues | 232,763 | 197,431 | ||||||||||||
Selling, general and administrative | 98,988 | 81,670 | ||||||||||||
Total operating expenses | 331,751 | 279,101 | ||||||||||||
Other income (expense), net | 672 | 1,661 | ||||||||||||
Interest expense on borrowings | (14,032) | (21,410) | ||||||||||||
Income (loss) from continuing operations before income taxes | 120,995 | (7,402) | ||||||||||||
Income taxes | 29,876 | 1,725 | ||||||||||||
Net income (loss) from continuing operations | 91,119 | (9,127) | ||||||||||||
Net loss from discontinued operations, net of tax benefits of $451 and $424 | (1,509) | (1,423) | ||||||||||||
NET INCOME (LOSS) | $ | 89,610 | $ | (10,550) | ||||||||||
BASIC EARNINGS (LOSS) PER SHARE: | ||||||||||||||
Continuing operations | $ | 0.50 | $ | (0.05) | ||||||||||
Discontinued operations | (0.01) | (0.01) | ||||||||||||
Consolidated | $ | 0.49 | $ | (0.06) | ||||||||||
DILUTED EARNINGS (LOSS) PER SHARE: | ||||||||||||||
Continuing operations | $ | 0.49 | $ | (0.05) | ||||||||||
Discontinued operations | (0.01) | (0.01) | ||||||||||||
Consolidated | $ | 0.48 | $ | (0.06) | ||||||||||
COMPREHENSIVE INCOME: | ||||||||||||||
Net income (loss) | $ | 89,610 | $ | (10,550) | ||||||||||
Change in foreign currency translation adjustments | (4,698) | 11,795 | ||||||||||||
Other comprehensive income (loss) | (4,698) | 11,795 | ||||||||||||
Comprehensive income | $ | 84,912 | $ | 1,245 | ||||||||||
H&R Block, Inc. | 2022 Form 10-K | 67 |
68 | 2022 Form 10-K | H&R Block, Inc. |
H&R Block, Inc. | 2022 Form 10-K | 69 |
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | ||||||||
4.12 | ||||||||
10.1 | * | |||||||
10.2 | * | |||||||
10.3 | * |
70 | 2022 Form 10-K | H&R Block, Inc. |
10.4 | * | |||||||
10.5 | * | |||||||
10.6 | * | |||||||
10.7 | * | |||||||
10.8 | * | |||||||
10.9 | ||||||||
10.10 | * | |||||||
10.11 | * | |||||||
10.12 | * | |||||||
10.13 | * | |||||||
10.14 | * | |||||||
10.15 | * | |||||||
10.16 | * | |||||||
10.17 | * | |||||||
10.18 | * | |||||||
10.19 | * | |||||||
10.20 | * | |||||||
10.21 | * | |||||||
10.22 | * | |||||||
10.23 | * | |||||||
10.24 | * |
H&R Block, Inc. | 2022 Form 10-K | 71 |
10.25 | * | |||||||
10.26 | * | |||||||
10.27 | * | |||||||
10.28 | * | |||||||
10.29 | * | |||||||
10.30 | ||||||||
10.31 | ||||||||
10.32 | ||||||||
10.33 | ||||||||
10.34 | ||||||||
10.35 | ||||||||
10.36 | ||||||||
21 | ||||||||
22 | ||||||||
23 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ** | |||||||
32.2 | ** | |||||||
101.INS | XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Extension Calculation Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
72 | 2022 Form 10-K | H&R Block, Inc. |
H&R BLOCK, INC. | ||
/s/ Jeffrey J. Jones II | ||
Jeffrey J. Jones II | ||
President and Chief Executive Officer | ||
August 16, 2022 |
/s/ Jeffrey J. Jones II | /s/ Tony G. Bowen | /s/ Kellie J. Logerwell | ||||||||||||
Jeffrey J. Jones II | Tony G. Bowen | Kellie J. Logerwell | ||||||||||||
President, Chief Executive Officer | Chief Financial Officer | Chief Accounting Officer | ||||||||||||
and Director | (principal financial officer) | (principal accounting officer) | ||||||||||||
(principal executive officer) |
/s/ Robert A. Gerard | /s/ Sean H. Cohan | /s/ Anuradha Gupta | ||||||||||||
Robert A. Gerard | Sean H. Cohan | Anuradha Gupta | ||||||||||||
Director, Chairman of the Board | Director | Director | ||||||||||||
/s/ Richard A. Johnson | /s/ Mia F. Mends | /s/ Yolande G. Piazza | ||||||||||||
Richard A. Johnson | Mia F. Mends | Yolande G. Piazza | ||||||||||||
Director | Director | Director | ||||||||||||
/s/ Victoria J. Reich | /s/ Matthew E. Winter | /s/ Christianna Wood | ||||||||||||
Victoria J. Reich | Matthew E. Winter | Christianna Wood | ||||||||||||
Director | Director | Director |
H&R Block, Inc. | 2022 Form 10-K | 73 |
Subsidiaries of the Registrant | Exhibit 21 | ||||
Entity Name | Domestic Jurisdiction | ||||
Aculink Mortgage Solutions, LLC | Florida | ||||
AcuLink of Alabama, LLC | Alabama | ||||
Ada Services Corporation | Massachusetts | ||||
BFC Transactions, Inc. | Delaware | ||||
Block Financial LLC | Delaware | ||||
Blue Acre SCS | Luxembourg | ||||
Blue Fountains International, ULC | Alberta | ||||
Blue Fountains LLC | Bermuda | ||||
Companion Insurance, Ltd. | Missouri | ||||
Companion Mortgage Corporation | Delaware | ||||
Emerald Financial Services, LLC | Delaware | ||||
EquiCo, Inc. | California | ||||
Everyday Financial Services LLC | Missouri | ||||
Financial Marketing Services, Inc. | Michigan | ||||
Franchise Partner, Inc. | Nevada | ||||
H&R Block (India) Private Limited | India | ||||
H&R Block Canada Financial Services, Inc. | Federally Chartered | ||||
H&R Block Canada, Inc. | Federally Chartered | ||||
H&R Block Eastern Enterprises, Inc. | Missouri | ||||
H&R Block Enterprises LLC | Missouri | ||||
H&R Block Group, Inc. | Delaware | ||||
H&R Block Health Insurance Agency, Inc. | Delaware | ||||
H&R Block Insurance Agency, Inc. | Delaware | ||||
H&R Block Limited | New South Wales | ||||
H&R Block Management, LLC | Delaware | ||||
H&R Block Personalized Services, LLC | Missouri | ||||
H&R Block Tax Institute, LLC | Missouri | ||||
H&R Block Tax Resolution Services, Inc. | Delaware | ||||
H&R Block Tax Services LLC | Missouri | ||||
Harbor Business Services, Inc. | Delaware | ||||
HRB Business Innovations LLC | Missouri | ||||
HRB Canada Holdings, ULC | Alberta | ||||
HRB Deployment & Support LLC | Missouri | ||||
HRB Development, LLC | Missouri | ||||
HRB Digital LLC | Delaware | ||||
HRB Expertise LLC | Missouri | ||||
HRB Green Resources LLC | Delaware | ||||
HRB GTC Ireland Unlimited Company | Ireland | ||||
HRB Innovations, Inc. | Delaware | ||||
HRB International LLC | Missouri | ||||
HRB International Management LLC | Missouri | ||||
HRB International Technology LLC | Delaware | ||||
HRB Luxembourg Financing S.a.r.l. | Luxembourg | ||||
HRB Luxembourg S.a.r.l. | Luxembourg | ||||
HRB Mortgage Holdings, LLC | Delaware | ||||
HRB Participant I LLC | Delaware | ||||
HRB PR Enterprises LLC | Nevada | ||||
HRB Products LLC | Missouri | ||||
Entity Name | Domestic Jurisdiction | ||||
HRB Professional Resources LLC | Delaware |
HRB Resources LLC | Delaware | ||||
HRB Retail Support Services LLC | Missouri | ||||
HRB Supply LLC | Delaware | ||||
HRB Tax Group, Inc. | Missouri | ||||
HRB Technology Holding LLC | Delaware | ||||
HRB Technology LLC | Missouri | ||||
Latino Tax and Business Services, LLC | Delaware | ||||
New Castle HoldCo LLC | Delaware | ||||
OOMC Residual Corporation | New York | ||||
PTF Services, LLC | Delaware | ||||
RedGear Technologies, Inc. | Missouri | ||||
RSM EquiCo, Inc. | Delaware | ||||
Sand Canyon Acceptance Corporation | Delaware | ||||
Sand Canyon Corporation | California | ||||
Sand Canyon Securities Corp. | Delaware | ||||
Sand Canyon Securities II Corp. | Delaware | ||||
Sand Canyon Securities III Corp. | Delaware | ||||
Sand Canyon Securities IV LLC | Delaware | ||||
ServiceWorks, Inc. | Delaware | ||||
TaxWorks, Inc. | Delaware | ||||
Tribena Limited | Cyprus | ||||
Wave Credit Inc. | Delaware | ||||
Wave Financial Inc. | Ontario | ||||
Wave Financial USA Inc. | Delaware | ||||
Wave Money Inc. | Ontario | ||||
Wave+ Inc. | Ontario | ||||
Woodbridge Mortgage Acceptance Corporation | Delaware |
Date: | August 16, 2022 | /s/ Jeffrey J. Jones II | |||||||||
Jeffrey J. Jones II | |||||||||||
Chief Executive Officer H&R Block, Inc. |
Date: | August 16, 2022 | /s/ Tony G. Bowen | |||||||||
Tony G. Bowen | |||||||||||
Chief Financial Officer H&R Block, Inc. |
/s/ Jeffrey J. Jones II | ||
Jeffrey J. Jones II Chief Executive Officer H&R Block, Inc. | ||
August 16, 2022 |
/s/ Tony G. Bowen | ||
Tony G. Bowen Chief Financial Officer H&R Block, Inc. | ||
August 16, 2022 |