RECEIVABLES

9 Months Ended

Mar. 31, 2022

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	March 31, 2022				June 30, 2021
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	14,499	$	26,411	$	9,497	$	28,026
Receivables for U.S. assisted and DIY tax preparation and related fees	120,483		3,215		41,900		3,793
H&R Block Instant RefundTM receivables	38,213		1,547		2,357		159
H&R Block Emerald Advance® lines of credit	8,510		12,775		8,248		8,089
Software receivables from retailers	9,126		—		2,910		—
Royalties and other receivables from franchisees	48,562		98		6,167		178
Wave payment processing receivables	1,879		—		2,187		—
Other	20,330		1,212		15,666		1,350
Total	$	261,602	$	45,258	$	88,932	$	41,595

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 March 31, 2022 and June 30, 2021, loans with a principal balance more than 90 days past due, or on non-accrual status, are not material.

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. We establish an allowance for doubtful accounts at an amount that we believe represents the net realizable value. In December of each year we charge-off the receivables to an amount we believe represents the net realizable value.

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 March 31, 2022 are as follows:

			(in 000s)
Tax return year of origination:	Balance		Non-Accrual
2021	$	40,565	$	—
2020 and prior	266		266
	40,831		$	266
Allowance	(1,071)
Net balance	$	39,760

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. We establish an allowance for doubtful accounts at an amount that we believe represents the net realizable value. In December of each year we charge-off the receivables to an amount we believe represents the net realizable value.

Balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, by fiscal year of origination, as of March 31, 2022 are as follows:

(in 000s)
Fiscal year of origination:	Balance		Non-Accrual
2022	$	32,795	$	32,795
2021 and prior	777		777
Revolving loans	12,837		12,246
	46,409		$	45,818
Allowance	(25,124)
Net balance	$	21,285

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 March 31, 2022 and 2021 is as follows:

(in 000s)
	EAs		All Other		Total
Balances as of July 1, 2021	$	27,704	$	60,272	$	87,976
Provision	13,797		45,981		59,778
Charge-offs, recoveries and other	(16,377)		(60,343)		(76,720)
Balances as of March 31, 2022	$	25,124	$	45,910	$	71,034
Balances as of July 1, 2020	$	32,034	$	52,166	$	84,200
Provision	13,411		47,017		60,428
Charge-offs, recoveries and other	(18,650)		(54,092)		(72,742)
Balances as of March 31, 2021	$	26,795	$	45,091	$	71,886