RECEIVABLES

6 Months Ended

Oct. 31, 2020

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

RECEIVABLES

NOTE 4: RECEIVABLES

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

(in 000s)
As of	October 31, 2020				October 31, 2019				April 30, 2020
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	15,147	$	36,446	$	23,554	$	43,322	$	25,397	$	31,329
Receivables for U.S. assisted and DIY tax preparation and related fees	22,883		3,111		18,531		3,716		47,030		3,112
H&R Block Instant RefundTM receivables	531		1,451		530		695		15,031		1,325
H&R Block Emerald Advance® lines of credit	8,699		9,302		8,073		9,201		10,001		14,081
Software receivables from retailers	1,532		—		970		—		7,341		—
Royalties and other receivables from franchisees	5,964		—		8,094		147		9,861		42
Wave payment processing receivables	2,695		—		3,041		—		3,200		—
Other	13,802		1,481		11,917		2,165		15,336		1,828
Total	$	71,253	$	51,791	$	74,710	$	59,246	$	133,197	$	51,717

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 working capital needs. As of October 31, 2020 and 2019 loans with a principal balance of $1.7 million and $0.2 million, respectively, were more than 90 days past due. We had no loans to franchisees on non-accrual status.

H&R BLOCK INSTANT REFUNDTM PROGRAM – H&R Block Instant RefundTM 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, 2020 are as follows:

			(in 000s)
Year of Origination	Balance		Non-Accrual
2020	$	4,116	$	2,572
2019 and prior	209		209
	4,325		$	2,781
Allowance	(2,343)
Net balance	$	1,982

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our purchased participation interests in Emerald AdvanceTM (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, 2020, by year of origination, are as follows:

(in 000s)
Year of origination:	Balance		Non-Accrual
2020	$	27,565	$	27,565
2019 and prior	4,572		4,572
Revolving loans	15,189		13,822
	47,326		$	45,959
Allowance	(29,325)
Net balance	$	18,001

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for our EA and all other short-term and long-term receivables for the six months ended October 31, 2020 and 2019 is as follows:

(in 000s)
	EAs		All Other		Total
Balances as of May 1, 2020	$	32,034	$	50,446	$	82,480
Provision	(2,709)		7,287		4,578
Charge-offs, recoveries and other	—		(4,382)		(4,382)
Balances as of October 31, 2020	$	29,325	$	53,351	$	82,676
Balances as of May 1, 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