Receivables

6 Months Ended

Oct. 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	October 31, 2019				October 31, 2018				April 30, 2019
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	23,554	$	43,322	$	26,964	$	38,489	$	22,427	$	35,325
Receivables for U.S. assisted and DIY tax preparation and related fees	18,531		3,716		6,033		5,503		34,284		3,716
H&R Block Instant Refund^TM receivables	530		695		—		2,008		37,319		1,701
H&R Block Emerald Advance^TM lines of credit	8,073		9,201		7,418		10,988		8,546		12,418
Software receivables from retailers	970		—		552		—		9,354		—
Royalties and other receivables from franchisees	8,094		147		9,103		710		11,888		97
Wave payment processing receivables	3,041		—		—		—		—		—
Other	11,917		2,165		11,216		2,831		15,147		2,382
Total	$	74,710	$	59,246	$	61,286	$	60,529	$	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 short–term loans and revolving lines of credit which are used to fund off–season working capital needs. As of October 31, 2019 and 2018, loans with a principal balance of $0.2 million and $1.1 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 October 31, 2019 are as follows:



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

2019	$	3,051		$	2,663
2018 and prior	441			441
	3,492			$	3,104
Allowance	(2,267		)
Net balance	$	1,225

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 October 31, 2019, by year of origination, are as follows:



(in 000s)
Year of origination:	Balance			Non-Accrual
2019	$	23,812		$	23,812
2018 and prior	6,718			6,718
Revolving loans	14,279			12,437
	44,809			$	42,967
Allowance	(27,535		)
Net balance	$	17,274

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 six months ended October 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	—		1,890			1,890
Charge-offs, recoveries and other	—		(1,217		)	(1,217		)
Balances as of October 31, 2019	$	27,535	$	54,611		$	82,146

Balances as of April 30, 2018	$	26,622	$	55,191		$	81,813
Provision	—		2,350			2,350
Charge-offs, recoveries and other	—		(4,196		)	(4,196		)
Balances as of October 31, 2018	$	26,622	$	53,345		$	79,967