NOTE 3: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	July 31, 2016					July 31, 2015					April 30, 2016
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	47,905		$	46,461	$	56,277		$	57,792	$	50,000		$	46,284
Receivables for tax preparation and related fees	39,115			5,528		39,927			6,103		52,327			5,528
Cash Back® receivables	4,515			—		2,777			—		37,663			—
Emerald Advance lines of credit	24,857			111		20,321			598		25,092			869
Royalties from franchisees	6,885			—		4,509			—		9,997			—
Other	36,529			4,414		33,154			7,934		35,048			7,726
	159,806			56,514		156,965			72,427		210,127			60,407
Allowance for doubtful accounts	(56,381		)	—		(53,771		)	—		(57,011		)	—
	$	103,425		$	56,514	$	103,194		$	72,427	$	153,116		$	60,407

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

LOANS TO FRANCHISEES – Franchisee loan balances as of July 31, 2016 and 2015 and April 30, 2016, consisted of $31.5 million, $38.4 million and $35.1 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $62.8 million, $75.7 million and $61.2 million, respectively, in term loans made primarily to finance the purchase of franchises.

As of July 31, 2016 and 2015 and April 30, 2016, loans with a principal balance of $2.6 million, $1.5 million and $0.3 million, respectively, were more than 30 days past due. 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, 2016 and 2015 and April 30, 2016, $0.6 million, $0.6 million and $1.5 million of Cash Back balances were more than 60 days old, respectively.

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – Beginning in fiscal year 2016, we no longer originate H&R Block Emerald Advance® lines of credit (EAs). These lines of credit are originated by BofI Federal Bank, a federal savings bank (BofI), and we purchase a participation interest in them.

We review the credit quality of our 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, 2016, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2016	$	9,224
2015 and prior	182
Revolving loans	15,562
	$	24,968

As of July 31, 2016 and 2015 and April 30, 2016, $21.4 million, $17.4 million and $21.1 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 receivables for the three months ended July 31, 2016 and 2015 is as follows:



(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2016	$	9,007	$	48,004		$	57,011
Provision	451		966			1,417
Charge-offs	—		(2,047		)	(2,047		)
Balances as of July 31, 2016	$	9,458	$	46,923		$	56,381

Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	—		713			713
Charge-offs	—		(1,469		)	(1,469		)
Balances as of July 31, 2015	$	7,353	$	46,418		$	53,771