RECEIVABLES

14 Months Ended

Jun. 30, 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	June 30, 2021				April 30, 2021
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	9,497	$	28,026	$	16,666	$	28,909
Receivables for U.S. assisted and DIY tax preparation and related fees	41,900		3,793		92,531		3,793
H&R Block Instant RefundTM receivables	2,357		159		35,665		1,463
H&R Block Emerald Advance® lines of credit	8,248		8,089		9,210		17,095
Software receivables from retailers	2,910		—		4,823		—
Royalties and other receivables from franchisees	6,167		178		16,136		196
Wave payment processing receivables	2,187		—		1,569		—
Other	15,666		1,350		21,276		1,233
Total	$	88,932	$	41,595	$	197,876	$	52,689

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 June 30, 2021 and April 30, 2021 loans with a principal balance of $0.2 million and $0.1 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 tax return 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 tax return year of origination, as of June 30, 2021 are as follows:

			(in 000s)
Tax return year of origination:	Balance		Non-Accrual
2020	$	3,599	$	1,551
2019 and prior	500		500
	4,099		$	2,051
Allowance	(1,583)
Net balance	$	2,516

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 fiscal 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 June 30, 2021, by fiscal year of origination, are as follows:

(in 000s)
Fiscal year of origination:	Balance		Non-Accrual
2021	$	28,192	$	28,192
2020 and prior	2,017		2,017
Revolving loans	13,832		12,182
	44,041		$	42,391
Allowance	(27,704)
Net balance	$	16,337

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 two months ended June 30, 2021 and 2020 is as follows:

(in 000s)
	EAs		All Other		Total
Balances as of May 1, 2021	$	27,704	$	55,804	$	83,508
Provision	—		4,617		4,617
Charge-offs, recoveries and other	—		(149)		(149)
Balances as of June 30, 2021	$	27,704	$	60,272	$	87,976
Balances as of May 1, 2020	$	32,034	$	50,446	$	82,480
Provision	—		1,718		1,718
Charge-offs, recoveries and other	—		2		2
Balances as of June 30, 2020	$	32,034	$	52,166	$	84,200