Receivables

3 Months Ended

Jul. 31, 2011

Receivables

Receivables

4. Receivables

Our short-term receivables consist of the following:

					(in 000s)
As of		July 31, 2011			April 30, 2011
Business Services receivables	$	224,631		$	281,847
Loans to franchisees		62,313			62,181
Receivables for tax preparation and related fees		36,203			38,930
Emerald Advance lines of credit		30,699			31,645
Royalties from franchisees		707			11,645
Tax client receivables related to RALs		1,971			2,412
Other		40,446			131,096
		396,970			559,756
Allowance for doubtful accounts		(67,582	)		(67,466	)
	$	329,388		$	492,290

The short-term portion of Emerald Advance lines of credit (EAs), tax client receivables related to refund anticipation loans (RALs) and loans made to franchisees is included in receivables, while the long-term portion is included in other assets in the condensed consolidated financial statements. These amounts are as follows:

						(in 000s)
		Emerald Advance		Tax Client		Loans
		Lines of Credit		Receivables - RALs		to Franchisees
As of July 31, 2011:
Short-term	$	30,699	$	1,971	$	62,313
Long-term		18,539		5,271		123,962
	$	49,238	$	7,242	$	186,275
As of April 30, 2011:
Short-term	$	31,645	$	2,412	$	62,181
Long-term		21,619		5,855		110,420
	$	53,264	$	8,267	$	172,601

We review the credit quality of our EA receivables and tax client receivables related to RALs based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of July 31, 2011, by year of origination, are as follows:

(in 000s)

		Emerald Advance		Tax Client
		Lines of Credit		Receivables - RALs
Credit Quality Indicator – Year of origination:
2011	$	25,738	$	-
2010		5,006		86
2009		4,953		2,124
2008 and prior		2,082		5,032
Revolving loans		11,459		-
	$	49,238	$	7,242

As of July 31, 2011 and April 30, 2011, $44.6 million and $46.8 million, respectively, of EAs were on non-accrual status and classified as impaired, or more than 60 days past due. All tax client receivables related to RALs are considered impaired.

Loans made to franchisees totaled $186.3 million at July 31, 2011, and consisted of $140.0 million in term loans made to finance the purchase of franchises and $46.3 million in revolving lines of credit made to existing franchisees primarily for the purpose of funding their off-season needs.

Our allowance for doubtful accounts consists of the following:

				(in 000s)
As of		July 31, 2011		April 30, 2011
Allowance related to:
Emerald Advance lines of credit	$	5,350	$	4,400
Tax client receivables related to RALs		-		-
Loans to franchisees		-		-
All other receivables		62,232		63,066
	$	67,582	$	67,466

Activity in the allowance for doubtful accounts for the three months ended July 31, 2011 and 2010 is as follows:

												(in 000s)
Emerald Advance				Tax Client		Loans			All
	Lines of Credit Receivables - RALs to Franchisees								Other			Total
Balance as of April 30, 2011	$	4,400	$	-	$	-		$	63,066		$	67,466
Provision		950		-		-			1,955			2,905
Recoveries		-		-		-			51			51
Charge-offs		-		-		-			(2,840	)		(2,840	)
Balance as of July 31, 2011	$	5,350	$	-	$	-		$	62,232		$	67,582
Balance as of April 30, 2010	$	35,239	$	12,191	$	4		$	65,041		$	112,475
Provision		710		2		-			1,078			1,790
Recoveries		-		-		-			128			128
Charge-offs		-		-		(4	)		(2,015	)		(2,019	)
Balance as of July 31, 2010	$	35,949	$	12,193	$	-		$	64,232		$	112,374

There were no changes to our methodology related to the calculation of our allowance for doubtful accounts during the three months ended July 31, 2011.