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Receivables | 12 Months Ended
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Apr. 30, 2011
Receivables |
Receivables | NOTE 5: RECEIVABLES Short-term receivables consist of the following:
(in 000s) |  |  |  |
As of April 30, |  | 2011 |  |  | 2010 |  |  |  |
Business Services receivables |  | $ | 281,847 |  |  | $ | 326,681 |  |  |  |  |
Loans to franchisees |  |  | 62,181 |  |  |  | 55,047 |  |  |  |  |
Receivables for tax preparation and related fees |  |  | 38,930 |  |  |  | 45,248 |  |  |  |  |
Emerald Advance lines of credit |  |  | 31,645 |  |  |  | 57,914 |  |  |  |  |
Royalties from franchisees |  |  | 11,645 |  |  |  | 3,845 |  |  |  |  |
Tax client receivables related to RALs |  |  | 2,412 |  |  |  | 21,646 |  |  |  |  |
Other |  |  | 131,096 |  |  |  | 120,080 |  |  |  |  |
|  |  | 559,756 |  |  |  | 630,461 |  |  |  |  |
Allowance for doubtful accounts |  |  | (67,466 | ) |  |  | (112,475 | ) |  |  |  |
|  | $ | 492,290 |  |  | $ | 517,986 |  |  |  |  |
The short-term portion of EAs, tax client receivables related to RALs and loans made to franchisees is included in receivables, while the long-term portion is included in other assets in the consolidated financial statements. These amounts as of April 30, 2011 are as follows:
(in 000s) |  |  |  |
|  | Emerald Advance |  |  | Tax Client |  |  | Loans |  |  |  |
|  | Lines of Credit |  |  | Receivables - RALs |  |  | to Franchisees |  |  |  |
Short-term |  | $ | 31,645 |  |  | $ | 2,412 |  |  | $ | 62,181 |  |  |  |  |
Long-term |  |  | 21,619 |  |  |  | 5,855 |  |  |  | 110,420 |  |  |  |  |
|  | $ | 53,264 |  |  | $ | 8,267 |  |  | $ | 172,601 |  |  |  |  |
We review the credit quality of our EA receivables and tax client receivables related to RALs based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of April 30, 2011, by year of origination, are as follows:
(in 000s) |  |  |  |
|  | Emerald Advance |  |  | Tax Client |  |  |  |
|  | Lines of Credit |  |  | Receivables - RALs |  |  |  |
Credit Quality Indicator – Year of origination: |  |  |  |  |  |  |  |  |  |  |  |
2011 |  | $ | 28,800 |  |  | $ | – |  |  |  |  |
2010 |  |  | 5,236 |  |  |  | 446 |  |  |  |  |
2009 |  |  | 4,443 |  |  |  | 2,270 |  |  |  |  |
2008 and prior |  |  | 2,722 |  |  |  | 5,551 |  |  |  |  |
Revolving loans |  |  | 12,063 |  |  |  | – |  |  |  |  |
|  | $ | 53,264 |  |  | $ | 8,267 |  |  |  |  |
As of April 30, 2011, $46.8 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due. All tax client receivables related to RALs are considered impaired. Our allowance for doubtful accounts consists of the following:
(in 000s) |  |  |  |
As of April 30, |  | 2011 |  |  | 2010 |  |  |  |
Allowance related to: |  |  |  |  |  |  |  |  |  |  |  |
Emerald Advance lines of credit |  | $ | 4,400 |  |  | $ | 35,239 |  |  |  |  |
Tax client receivables related to RALs |  |  | – |  |  |  | 12,191 |  |  |  |  |
Loans to franchisees |  |  | – |  |  |  | 4 |  |  |  |  |
All other receivables |  |  | 63,066 |  |  |  | 65,041 |  |  |  |  |
|  | $ | 67,466 |  |  | $ | 112,475 |  |  |  |  |
Activity in the allowance for doubtful accounts for the years ended April 30, 2011, 2010 and 2009 is as follows:
(in 000s) |  |  |  |
|  | Emerald Advance |  |  | Tax Client |  |  | Loans |  |  | All |  |  |  |  |  |  |
|  | Lines of Credit |  |  | Receivables - RALs |  |  | to Franchisees |  |  | Other |  |  | Total |  |  |  |
Balance as of May 1, 2008 |  | $ | 31,393 |  |  | $ | 17,398 |  |  | $ | 4 |  |  | $ | 71,360 |  |  | $ | 120,155 |  |  |  |  |
Provision |  |  | 42,875 |  |  |  | 14,144 |  |  |  | – |  |  |  | 59,155 |  |  |  | 116,174 |  |  |  |  |
Recoveries |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 315 |  |  |  | 315 |  |  |  |  |
Charge-offs |  |  | (31,393 | ) |  |  | (17,406 | ) |  |  | – |  |  |  | (59,304 | ) |  |  | (108,103 | ) |  |  |  |
Balance as of April 30, 2009 |  | $ | 42,875 |  |  | $ | 14,136 |  |  | $ | 4 |  |  | $ | 71,526 |  |  | $ | 128,541 |  |  |  |  |
Provision |  |  | 33,919 |  |  |  | 12,193 |  |  |  | – |  |  |  | 65,642 |  |  |  | 111,754 |  |  |  |  |
Recoveries |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 534 |  |  |  | 534 |  |  |  |  |
Charge-offs |  |  | (41,555 | ) |  |  | (14,138 | ) |  |  | – |  |  |  | (72,661 | ) |  |  | (128,354 | ) |  |  |  |
Balance as of April 30, 2010 |  | $ | 35,239 |  |  | $ | 12,191 |  |  | $ | 4 |  |  | $ | 65,041 |  |  | $ | 112,475 |  |  |  |  |
Provision |  |  | 91,546 |  |  |  | 2 |  |  |  | – |  |  |  | 52,716 |  |  |  | 144,264 |  |  |  |  |
Recoveries |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 312 |  |  |  | 312 |  |  |  |  |
Charge-offs |  |  | (122,385 | ) |  |  | (12,193 | ) |  |  | (4 | ) |  |  | (55,003 | ) |  |  | (189,585 | ) |  |  |  |
Balance as of April 30, 2011 |  | $ | 4,400 |  |  | $ | – |  |  | $ | – |  |  | $ | 63,066 |  |  | $ | 67,466 |  |  |  |  |
There were no changes to our methodology related to the calculation of our allowance for doubtful accounts during fiscal year 2011.

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