NOTE 3: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	January 31, 2017					January 31, 2016					April 30, 2016
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	62,603		$	50,021	$	63,093		$	62,431	$	50,000		$	46,284
Receivables for tax preparation and related fees	258,981			5,528		278,735			6,103		52,327			5,528
Cash Back® receivables	6,279			—		5,427			—		37,663			—
H&R Block Emerald Advance® lines of credit	385,513			6,398		402,946			268		25,092			869
Royalties and other receivables from franchisees	64,929			—		60,182			—		9,997			—
Other	57,291			4,304		66,625			7,669		35,048			7,726
	835,596			66,251		877,008			76,471		210,127			60,407
Allowance for doubtful accounts	(47,731		)	—		(47,234		)	—		(57,011		)	—
	$	787,865		$	66,251	$	829,774		$	76,471	$	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 January 31, 2017 and 2016 and April 30, 2016, consisted of $48.4 million, $48.6 million and $35.1 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $64.3 million, $76.9 million and $61.2 million, respectively, in term loans made primarily to finance the purchase of franchises.

As of January 31, 2017 and 2016 and April 30, 2016, loans with a principal balance of $0.1 million, $0.1 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 January 31, 2017 and 2016 and April 30, 2016, $26 thousand, $0.3 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 January 31, 2017, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2017	$	354,235
2016 and prior	12,839
Revolving loans	24,837
	$	391,911

As of January 31, 2017 and 2016 and April 30, 2016, $25.3 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 EA and all other short-term receivables for the nine months ended January 31, 2017 and 2016 is as follows:



(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2016	$	9,007	$	48,004		$	57,011
Provision	22,479		7,155			29,634
Charge-offs	—		(38,914		)	(38,914		)
Balances as of January 31, 2017	$	31,486	$	16,245		$	47,731

Balances as of May 1, 2015	$	7,353	$	47,174		$	54,527
Provision	22,851		14,135			36,986
Charge-offs	—		(44,279		)	(44,279		)
Balances as of January 31, 2016	$	30,204	$	17,030		$	47,234