RECEIVABLES

9 Months Ended

Jan. 31, 2021

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	January 31, 2021				January 31, 2020				April 30, 2020
	Short-term		Long-term		Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	24,558	$	39,106	$	36,372	$	42,079	$	25,397	$	31,329
Receivables for U.S. assisted and DIY tax preparation and related fees	168,905		3,111		316,987		3,716		47,030		3,112
H&R Block Instant RefundTM receivables	1,398		314		6,733		563		15,031		1,325
H&R Block Emerald Advance® lines of credit	314,015		4,937		373,271		6,179		10,001		14,081
Software receivables from retailers	4,434		—		8,101		—		7,341		—
Royalties and other receivables from franchisees	31,346		214		55,645		67		9,861		42
Wave payment processing receivables	2,633		—		3,363		—		3,200		—
Other	15,800		1,448		19,474		1,444		15,336		1,828
Total	$	563,089	$	49,130	$	819,946	$	54,048	$	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 January 31, 2021 and 2020 loans with a principal balance of $0.5 million and $0.4 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 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 January 31, 2021 are as follows:

			(in 000s)
Year of Origination	Balance		Non-Accrual
2021	$	737	$	—
2020 and prior	1,002		1,002
	1,739		$	1,002
Allowance	(27)
Net balance	$	1,712

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our purchased participation interests in Emerald AdvanceSM (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 January 31, 2021, by year of origination, are as follows:

(in 000s)
Year of origination:	Balance		Non-Accrual
2021	$	309,382	$	—
2020 and prior	12,039		12,039
Revolving loans	23,699		14,246
	345,120		$	26,285
Allowance	(26,168)
Net balance	$	318,952

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 nine months ended January 31, 2021 and 2020 is as follows:

(in 000s)
	EAs		All Other		Total
Balances as of May 1, 2020	$	32,034	$	50,446	$	82,480
Provision	12,783		12,859		25,642
Charge-offs, recoveries and other	(18,649)		(54,457)		(73,106)
Balances as of January 31, 2021	$	26,168	$	8,848	$	35,016
Balances as of May 1, 2019	$	27,535	$	53,938	$	81,473
Provision	17,862		19,655		37,517
Charge-offs, recoveries and other	(17,273)		(55,101)		(72,374)
Balances as of January 31, 2020	$	28,124	$	18,492	$	46,616