Receivables

3 Months Ended

Jul. 31, 2019

Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract]

NOTE 4: RECEIVABLES

Receivables, net of their related allowance, consist of the following:



(in 000s)
As of	July 31, 2019				July 31, 2018				April 30, 2019
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	12,301	$	45,542	$	28,250	$	35,776	$	22,427	$	35,325
Receivables for U.S. assisted and DIY tax preparation and related fees	19,686		3,716		9,084		5,503		34,284		3,716
H&R Block Instant Refund^TM receivables	880		1,780		1,306		2,031		37,319		1,701
H&R Block Emerald Advance^TM lines of credit	8,136		10,249		7,694		11,800		8,546		12,418
Software receivables from retailers	1,395		—		3,372		—		9,354		—
Royalties and other receivables from franchisees	7,834		99		4,257		—		11,888		97
Wave payment processing receivables	3,041		—		—		—		—		—
Other	22,855		2,251		16,613		3,665		15,147		2,382
Total	$	76,128	$	63,637	$	70,576	$	58,775	$	138,965	$	55,639

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 consist of term loans made primarily to finance the purchase of franchises and revolving lines of credit primarily for the purpose of funding off-season working capital needs. As of July 31, 2019 and 2018, loans with a principal balance of $2.0 million and $1.2 million, respectively, were more than 90 days past due. We had no loans to franchisees on non-accrual status.

H&R BLOCK INSTANT REFUND^TM PROGRAM – H&R Block Instant Refund^TM (formerly Instant Cash Back®) amounts are generally received from the Canada Revenue Agency (CRA) within 60 days of filing the client's return, with the remaining balance collectible from the client.

We review the credit quality of our Instant Refund receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. Current balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, by year of origination, as of July 31, 2019 are as follows:



				(in 000s)
Year of Origination	Current Balance			Non-Accrual

2019	$	4,431		$	2,795
2018 and prior	455			455
	4,886			$	3,250
Allowance	(2,226		)
Net balance	$	2,660

H&R BLOCK EMERALD ADVANCE^TM LINES OF CREDIT – We review the credit quality of our purchased participation interests in Emerald Advance^TM (EA) receivables based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. Balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, as of July 31, 2019, by year of origination, are as follows:



(in 000s)
Year of origination:	Balance			Non-Accrual
2019	$	25,002		$	25,002
2018 and prior	6,941			6,941
Revolving loans	13,977			11,888
	45,920			$	43,831
Allowance	(27,535		)
Net balance	$	18,385

ALLOWANCE FOR DOUBTFUL ACCOUNTS – Activity in the allowance for doubtful accounts for our EA and all other short-term and long-term receivables for the three months ended July 31, 2019 and 2018 is as follows:



(in 000s)
	EAs		All Other			Total
Balances as of April 30, 2019	$	27,535	$	53,938		$	81,473
Provision	—		552			552
Charge-offs, recoveries and other	—		(322		)	(322		)
Balances as of July 31, 2019	$	27,535	$	54,168		$	81,703

Balances as of April 30, 2018	$	26,622	$	55,191		$	81,813
Provision	—		1,617			1,617
Charge-offs, recoveries and other	—		(4,630		)	(4,630		)
Balances as of July 31, 2018	$	26,622	$	52,178		$	78,800