NOTE 4: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	July 31, 2014					July 31, 2013						April 30, 2014
	Short-term			Long-term		Short-term			Long-term			Short-term			Long-term
Loans to franchisees	$	62,195		$	83,013	$	64,041		$	106,119		$	63,716		$	90,747
Receivables for tax preparation and related fees	38,204			—		37,547			—			45,619			—
Cash Back® receivables	4,170			—		2,412			—			48,812			—
Emerald Advance lines of credit	20,239			2,839		22,649			6,906			20,577			3,862
Royalties from franchisees	4,278			—		4,070			—			9,978			—
Note receivable	—			—		—			61,561			—			—
Other	44,629			15,294		43,196			27,774			55,494			17,186
	173,715			101,146		173,915			202,360			244,196			111,795
Allowance for doubtful accounts	(51,400		)	—		(52,606		)	(4,272		)	(52,578		)	—
	$	122,315		$	101,146	$	121,309		$	198,088		$	191,618		$	111,795

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

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our H&R Block Emerald Advance® lines of credit (EA) receivables 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, 2014, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2014	$	4,350
2013	1,614
2012 and prior	4,496
Revolving loans	12,618
	$	23,078

As of July 31, 2014 and 2013 and April 30, 2014, $20.0 million, $26.8 million and $20.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively.

LOANS TO FRANCHISEES – Franchisee loan balances as of July 31, 2014 and 2013 and April 30, 2014, consisted of $99.7 million, $124.2 million and $109.1 million, respectively, in term loans made primarily to finance the purchase of franchises and $45.5 million, $46.0 million and $45.4 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs.

As of July 31, 2014 and 2013, loans with a principal balance of $0.8 million and $2.5 million, respectively, were more than 30 days past due, while we had no loans more than 30 days past due at April 30, 2014. We had no loans to franchisees on non-accrual status.

CANADIAN CASH BACK® PROGRAM – Refunds advanced under the Cash Back program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Cash Back amounts are generally received within 60 days of filing the client's return. As of July 31, 2014 and 2013 and April 30, 2014, $1.1 million, $0.8 million and $1.9 million of Cash Back balances were more than 60 days old, respectively.

ALLOWANCE FOR DOUBTFUL ACCOUNTS – Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the three months ended July 31, 2014 and 2013 is as follows:



(in 000s)
	EAs		Loans to Franchisees		Cash Back ®			All Other			Total
Balances as of May 1, 2014	$	7,530	$	—	$	3,002		$	42,046		$	52,578
Provision	—		—		113			2,729			2,842
Charge-offs	—		—		(789		)	(3,231		)	(4,020		)
Balances as of July 31, 2014	$	7,530	$	—	$	2,326		$	41,544		$	51,400

Balances as of May 1, 2013	$	7,390	$	—	$	2,769		$	47,544		$	57,703
Provision	—		—		158			2,901			3,059
Charge-offs	—		—		(673		)	(3,211		)	(3,884		)
Balances as of July 31, 2013	$	7,390	$	—	$	2,254		$	47,234		$	56,878