NOTE 3: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	October 31, 2016					October 31, 2015					April 30, 2016
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	48,772		$	46,998	$	55,970		$	61,428	$	50,000		$	46,284
Receivables for tax preparation and related fees	37,303			5,528		37,751			6,103		52,327			5,528
Cash Back® receivables	2,630			—		901			—		37,663			—
Emerald Advance® lines of credit	23,495			—		19,373			246		25,092			869
Royalties and other receivables from franchisees	15,348			—		9,851			—		9,997			—
Other	33,278			3,712		24,254			7,498		35,048			7,726
	160,826			56,238		148,100			75,275		210,127			60,407
Allowance for doubtful accounts	(56,062		)	—		(53,340		)	—		(57,011		)	—
	$	104,764		$	56,238	$	94,760		$	75,275	$	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 October 31, 2016 and 2015 and April 30, 2016, consisted of $31.4 million, $41.1 million and $35.1 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $64.4 million, $76.3 million and $61.2 million, respectively, in term loans made primarily to finance the purchase of franchises.

As of October 31, 2016 and 2015 and April 30, 2016, loans with a principal balance of $2.0 million, $1.6 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 October 31, 2016 and 2015 and April 30, 2016, $29 thousand, $36 thousand 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 October 31, 2016, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2016	$	8,644
Revolving loans	14,851
	$	23,495

As of October 31, 2016 and 2015 and April 30, 2016, $20.8 million, $18.2 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 six months ended October 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		835			1,286
Charge-offs	—		(2,235		)	(2,235		)
Balances as of October 31, 2016	$	9,458	$	46,604		$	56,062

Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	877		349			1,226
Charge-offs	—		(2,413		)	(2,413		)
Balances as of October 31, 2015	$	8,230	$	45,110		$	53,340