NOTE 3: RECEIVABLES

Receivables consist of the following:



(in 000s)
As of	July 31, 2017					July 31, 2016					April 30, 2017
	Short-term			Long-term		Short-term			Long-term		Short-term			Long-term
Loans to franchisees	$	37,838		$	40,111	$	47,905		$	46,461	$	39,911		$	36,614
Receivables for tax preparation and related fees	39,031			6,316		39,115			5,528		54,506			6,316
Instant Cash Back® receivables	4,338			—		4,515			—		37,150			—
H&R Block Emerald Advance® lines of credit	21,755			9,711		24,857			111		26,325			5,069
Software receivables from retailers	8,178			—		4,696			—		16,715			—
Royalties and other receivables from franchisees	6,776			796		6,885			—		13,275			1,585
Other	28,012			4,011		31,833			4,414		30,189			3,314
	145,928			60,945		159,806			56,514		218,071			52,898
Allowance for doubtful accounts	(54,924		)	—		(56,381		)	—		(55,296		)	—
	$	91,004		$	60,945	$	103,425		$	56,514	$	162,775		$	52,898

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, 2017 and 2016 and April 30, 2017, consisted of $25.1 million, $31.5 million and $27.0 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $52.9 million, $62.8 million and $49.5 million, respectively, in term loans made primarily to finance the purchase of franchises.

As of July 31, 2017 and 2016 and April 30, 2017, loans with a principal balance of $0.9 million, $2.2 million and $0.1 million, respectively, were more than 90 days past due. We had no loans to franchisees on non-accrual status.

INSTANT CASH BACK® PROGRAM – Refunds advanced under the Instant Cash Back® program in Canada are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Instant Cash Back® amounts are generally received within 60 days of filing the client's return. As of July 31, 2017 and 2016 and April 30, 2017, $1.2 million, $0.6 million and $1.5 million of Instant Cash Back® balances were more than 60 days old, respectively.

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT (EAs) – We review the credit quality of our purchased participation interests in 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, 2017, by year of origination, are as follows:



(in 000s)
Credit Quality Indicator – Year of origination:
2017	$	9,346
2016 and prior	6,898
Revolving loans	15,222
	$	31,466

As of July 31, 2017 and 2016 and April 30, 2017, $28.1 million, $21.4 million and $28.0 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 three months ended July 31, 2017 and 2016 is as follows:



(in 000s)
	EAs		All Other			Total
Balances as of May 1, 2017	$	10,123	$	45,173		$	55,296
Provision	—		2,459			2,459
Charge-offs, net of recoveries	—		(2,831		)	(2,831		)
Balances as of July 31, 2017	$	10,123	$	44,801		$	54,924

Balances as of May 1, 2016	$	9,007	$	48,004		$	57,011
Provision	451		966			1,417
Charge-offs, net of recoveries	—		(2,047		)	(2,047		)
Balances as of July 31, 2016	$	9,458	$	46,923		$	56,381