Receivables

6 Months Ended

Oct. 31, 2011

Receivables [Abstract]

Receivables

3. Receivables

Short-term receivables of our continuing operations consist of the following:

		(in 000s)
As of		October 31, 2011			April 30, 2011
Loans to franchisees	$	67,594		$	62,181
Receivables for tax preparation and related fees		34,561			38,930
Emerald Advance lines of credit		29,929			31,645
Royalties from franchisees		5,389			11,645
Tax client receivables related to RALs		1,933			2,412
Other		37,068			131,302
		176,474			278,115
Allowance for doubtful accounts		(48,412	)		(47,943	)
	$	128,062		$	230,172

     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 Lines of Credit		Tax Client Receivables - RALs		Loans to Franchisees
As of October 31, 2011:
Short-term	$	29,929	$	1,933	$	67,594
Long-term		17,749		5,260		130,280
	$	47,678	$	7,193	$	197,874
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 October 31, 2011, by year of origination, are as follows:

	(in 000s)
	Emerald Advance Lines of Credit		Tax Client Receivables - RALs
Credit Quality Indicator – Year of origination:
2011	$	24,829	$	—
2010		4,950		85
2009		4,930		2,122
2008 and prior		2,072		4,986
Revolving loans		10,897		—
	$	47,678	$	7,193

     As of October 31, 2011 and April 30, 2011, $44.4 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 $197.9 million at October 31, 2011, and consisted of $146.3 million in term loans made to finance the purchase of franchises and $51.6 million in revolving lines of credit made to existing franchisees primarily for the purpose of funding their off-season needs.

The allowance for doubtful accounts for continuing operations consists of the following:

		(in 000s)
As of		October 31, 2011		April 30, 2011
Allowance related to:
Emerald Advance lines of credit	$	5,930	$	4,400
Tax client receivables related to RALs		—		—
Loans to franchisees		—		—
All other receivables		42,482		43,543
	$	48,412	$	47,943

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

	(in 000s)
	Emerald Advance Lines of Credit		Tax Client Receivables - RALs		Loans to Franchisees			All Other			Total
Balance as of April 30, 2011	$	4,400	$	—	$	—		$	43,543		$	47,943
Provision		1,530		—		—			828			2,358
Charge-offs		—		—		—			(1,889	)		(1,889	)
Balance as of October 31, 2011	$	5,930	$	—	$	—		$	42,482		$	48,412
Balance as of April 30, 2010	$	35,239	$	12,191	$	4		$	43,723		$	91,157
Provision		1,120		2		—			984			2,106
Charge-offs		—		—		(4	)		(1,526	)		(1,530	)
Balance as of October 31, 2010	$	36,359	$	12,193	$	—		$	43,181		$	91,733

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