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H&R Block, Inc. | 2016 Form 10-K 41
CONSOLIDATED STATEMENTS OF CASH FLOWS (in 000s)
Year ended April 30, 2016 2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 374,267 $ 473,663 $ 475,157
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 173,598 159,804 115,604
Provision for bad debt and loan losses 75,395 74,993 80,007
Deferred taxes 36,276 (15,502) 20,958
Stock-based compensation 23,540 26,068 20,058
Changes in assets and liabilities, net of acquisitions:
Cash and cash equivalents - restricted (12,159) 23,252 2,522
Receivables (70,721) (68,109) (30,376)
Prepaid expenses and other current assets 4,321 (8,542) 2,293
Other noncurrent assets 4,197 2,260 (6,024)
Accounts payable and accrued expenses 16,723 681 8,430
Accrued salaries, wages and payroll taxes 17,388 (21,132) 33,362
Deferred revenue and other current liabilities (77,510) (34,491) 26,080
Deferred revenue and other noncurrent liabilities 3,055 3,289 (4,905)
Income tax receivables, accrued income taxes and income tax reserves (12,499) 33,410 83,328
Other, net (23,477) (23,036) (16,913)
Net cash provided by operating activities 532,394 626,608 809,581
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale securities —(90,581) (45,158)
Sales, maturities and payments received on available-for-sale securities 436,471 91,878 107,101
Principal payments on mortgage loans held for investment, net 33,721 23,886 46,664
Capital expenditures (99,923) (123,158) (147,011)
Payments made for business acquisitions, net of cash acquired (88,776) (113,252) (68,428)
Proceeds from notes receivable —— 64,865
Franchise loans funded (22,820) (49,695) (63,960)
Payments received on franchise loans 55,007 90,636 87,220
Other, net 15,835 21,354 29,397
Net cash provided by (used in) investing activities 329,515 (148,932) 10,690
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of commercial paper and line of credit borrowings (1,465,000) (1,049,136) (316,000)
Proceeds from issuance of commercial paper and line of credit borrowings 1,465,000 1,049,136 316,000
Repayments of long-term debt —(400,000) —
Proceeds from issuance of long-term debt 996,831 ——
Transfer of HRB Bank deposits (419,028) ——
Customer banking deposits, net (326,705) (28,544) (163,952)
Dividends paid (201,688) (219,960) (218,980)
Repurchase of common stock, including shares surrendered (2,018,338) (10,449) (6,106)
Proceeds from exercise of stock options 25,775 16,522 28,246
Other, net (18,576) (3,376) (4,138)
Net cash used in financing activities (1,961,729) (645,807) (364,930)
Effects of exchange rate changes on cash (10,569) (9,986) (17,618)
Net increase (decrease) in cash and cash equivalents (1,110,389) (178,117) 437,723
Cash and cash equivalents at beginning of the year 2,007,190 2,185,307 1,747,584
Cash and cash equivalents at end of the year $ 896,801 $ 2,007,190 $ 2,185,307
SUPPLEMENTARY CASH FLOW DATA:
Income taxes paid, net of refunds received $ 165,154 $ 236,624 $ 155,735
Interest paid on borrowings 59,058 44,847 55,221
Transfers of foreclosed loans to other assets 3,863 4,805 7,644
Accrued additions to property and equipment 2,822 14,282 5,257
Conversion of investment in preferred stock to available-for-sale common stock —5,000 —
Transfer of mortgage loans held for investment to held for sale —— 7,608
See accompanying notes to consolidated financial statements.