REVENUE RECOGNITION

9 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

NOTE 2: REVENUE RECOGNITION

The majority of our revenues are from our U.S. Tax Services business. The following table disaggregates our U.S. Tax Services revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:


							(in 000s)
	Three months ended January 31,				Nine months ended January 31,
	2021		2020		2021		2020
Revenues:
U.S. assisted tax preparation	$	154,489	$	283,956	$	541,139	$	358,174
U.S. royalties	23,902		44,965		67,427		59,644
U.S. DIY tax preparation	21,681		34,089		94,331		42,040
International	15,671		11,804		132,347		97,311
Refund Transfers	7		50,494		11,752		52,794
Emerald Card®	21,951		16,657		48,801		39,128
Peace of Mind® Extended Service Plan	16,101		16,954		72,871		75,451
Tax Identity Shield®	4,927		8,138		19,129		17,308
Interest and fee income on Emerald AdvanceSM	27,590		32,741		28,754		33,780
Wave	14,803		11,213		41,197		25,740
Other	7,105		8,194		28,059		28,998
Total revenues	$	308,227	$	519,205	$	1,085,807	$	830,368

Revenue is recognized upon satisfaction of performance obligations by the transfer of a product or service to the customer. The majority of our services and products have multiple performance obligations. For our tax preparation services, the various performance obligations are generally provided simultaneously at a point in time, and revenue is recognized at that time. We allocate the transaction price to the various performance obligations based on relative standalone selling prices. The value of point-of-sale discounts and coupons are recorded as a reduction of revenue.

U.S. Assisted tax preparation services include tax preparation and electronic filing or printing of the completed tax return. Revenues from tax preparation services, including printing for clients that choose to print and mail their returns, are recognized when a completed return is accepted by the customer, and revenues for electronic filing a completed return are recognized when the return is electronically filed.

Royalties are based on contractual percentages of franchise gross receipts and are generally recognized in the period in which the services are provided by the franchisee to the customer.

U.S. DIY tax preparation includes fees for online and desktop tax preparation software and for electronic filing or printing. Revenues for online software, including printing for clients that choose to print and mail their returns, are recognized when the customer uses the software to complete a return and revenues for desktop software are recognized when the software is sold to the end user. Revenues for electronic filing are recognized when the return is electronically filed.

Refund Transfer revenues are recognized when the IRS filing acknowledgment is received and the bank account is established at our banking partner.

Revenues for electronic filing of U.S. returns totaling $18.7 million were deferred as of January 31, 2021 and will be recognized in February 2021 when the associated tax returns are electronically filed.

Changes in the balances of deferred revenue and wages for our Peace of Mind® Extended Service Plan (POM) are as follows:


							(in 000s)
POM	Deferred Revenue				Deferred Wages
Nine months ended January 31,	2021		2020		2021		2020
Balance, beginning of the period	$	183,685	$	212,511	$	21,618	$	27,306
Amounts deferred	35,977		28,686		1,118		1,827
Amounts recognized on previous deferrals	(84,573)		(87,850)		(9,652)		(12,134)
Balance, end of the period	$	135,089	$	153,347	$	13,084	$	16,999

As of January 31, 2021, deferred revenue related to POM was $135.1 million. We expect that $94.2 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following sixty months.

As of January 31, 2021 and 2020, Tax Identity Shield® (TIS) deferred revenue was $20.4 million and $21.2 million, respectively. Deferred revenue related to TIS was $30.8 million and $29.7 million as of April 30, 2020 and 2019, respectively. All deferred revenue related to TIS will be recognized within the next fifteen months.