NOTE 4: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	January 31, 2015					January 31, 2014						April 30, 2014
	Short-term			Long-term		Short-term			Long-term			Short-term			Long-term
Loans to franchisees	$	71,420		$	84,770	$	104,841		$	114,676		$	63,716		$	90,747
Receivables for tax preparation and related fees	234,056			—		73,575			—			45,619			—
Cash Back® receivables	7,130			—		10,099			—			48,812			—
Emerald Advance lines of credit	370,041			2,254		444,590			5,555			20,577			3,862
Royalties from franchisees	68,486			—		30,309			—			9,978			—
Other	76,179			15,404		56,523			23,384			55,494			17,186
	827,312			102,428		719,937			143,615			244,196			111,795
Allowance for doubtful accounts	(49,859		)	—		(42,716		)	(2,531		)	(52,578		)	—
	$	777,453		$	102,428	$	677,221		$	141,084		$	191,618		$	111,795

We recognize revenue for tax preparation services when tax returns are electronically filed. As of January 31, 2014, we did not recognize revenue and related receivables for 1.8 million tax returns. 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.

LOANS TO FRANCHISEES – Franchisee loan balances as of January 31, 2015 and 2014 and April 30, 2014, consisted of $100.3 million, $132.3 million and $109.1 million, respectively, in term loans made primarily to finance the purchase of franchises and $55.9 million, $87.2 million and $45.4 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs.

As of January 31, 2015 and 2014, loans with a principal balance of $1.4 million and $0.6 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 January 31, 2015 and 2014 and April 30, 2014, $0.3 million, $0.5 million and $1.9 million of Cash Back balances were more than 60 days old, respectively.

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 January 31, 2015, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2015	$	342,461
2014	3,374
2013	1,472
2012 and prior	4,171
Revolving loans	20,817
	$	372,295

As of January 31, 2015 and 2014 and April 30, 2014, $19.5 million, $25.7 million and $20.7 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively.

ALLOWANCE FOR DOUBTFUL ACCOUNTS – Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the nine months ended January 31, 2015 and 2014 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	28,521		—			199			12,944			41,664
Charge-offs	—		—			(1,521		)	(42,862		)	(44,383		)
Balances as of January 31, 2015	$	36,051	$	—		$	1,680		$	12,128		$	49,859

Balances as of May 1, 2013	$	7,390	$	—		$	2,769		$	47,544		$	57,703
Provision	24,787		42			248			12,202			37,279
Charge-offs	—		(2		)	(1,667		)	(48,066		)	(49,735		)
Balances as of January 31, 2014	$	32,177	$	40		$	1,350		$	11,680		$	45,247