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Receivables | 12 Months Ended
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Apr. 30, 2013
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] |
Receivables | RECEIVABLES Short-term receivables consist of the following:
(in 000s) |
As of April 30, |  | 2013 |  |  | 2012 |
Loans to franchisees |  | $ | 65,413 |  |  | $ | 61,252 |
Receivables for tax preparation and related fees |  | 49,356 |  |  | 42,286 |
CashBack receivables |  | 47,658 |  |  | 56,846 |
Emerald Advance lines of credit |  | 23,218 |  |  | 23,717 |
Royalties from franchisees |  | 10,722 |  |  | 5,781 |
Credit cards |  | 7,733 |  |  | — |
Other |  | 53,134 |  |  | 48,565 |
|  | 257,234 |  |  | 238,447 |
Allowance for doubtful accounts |  | (50,399 | ) |  | (44,589 | )
|  | $ | 206,835 |  |  | $ | 193,858 |
The short-term portion of EAs, loans made to franchisees, CashBack balances and credit card balances is included in receivables, while the long-term portion is included in other assets in the consolidated balance sheets. These amounts are as follows:
(in 000s) |
|  | EAs |  |  | Loans to Franchisees |  |  | CashBack |  |  | Credit Cards |
As of April 30, 2013: |  |  |  |  |  |  |  |
Short-term |  | $ | 23,218 |  |  | $ | 65,413 |  |  | $ | 47,658 |  |  | $ | 7,733 |
Long-term |  | 9,819 |  |  | 103,047 |  |  | — |  |  | 15,538 |
|  | $ | 33,037 |  |  | $ | 168,460 |  |  | $ | 47,658 |  |  | $ | 23,271 |
As of April 30, 2012: |  |  |  |  |  |  |  |
Short-term |  | $ | 23,717 |  |  | $ | 61,252 |  |  | $ | 56,846 |  |  | $ | — |
Long-term |  | 13,007 |  |  | 109,837 |  |  | — |  |  | — |
|  | $ | 36,724 |  |  | $ | 171,089 |  |  | $ | 56,846 |  |  | $ | — |
EAs. We review the credit quality of our EA receivables 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, 2013, by year of origination, are as follows:
(in 000s) |
Credit Quality Indicator – Year of origination: |  |
2013 |  | $ | 11,548 |
2012 |  | 1,480 |
2011 |  | 2,412 |
2010 and prior |  | 6,434 |
Revolving loans |  | 11,163 |
|  | $ | 33,037 |
As of April 30, 2013 and 2012, $30.0 million and $31.4 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively. Loans to Franchisees. Loans made to franchisees as of April 30, 2013 totaled $168.5 million, and consisted of $121.2 million in term loans made to finance the purchase of franchises and $47.3 million in revolving lines of credit primarily for the purpose of funding off-season working capital needs. Loans made to franchisees totaled $171.1 million as of April 30, 2012, and consisted of $127.0 million in term loans and $44.1 million in revolving lines of credit. As of April 30, 2013, loans with a principal amount of $0.1 million were more than 30 days past due, however we had no loans to franchisees on non-accrual status. There were no loans to franchisees more than 30 days past due as of April 30, 2012. CashBack. Refunds advanced under the CashBack program are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. CashBack amounts are generally received within 60 days of filing the client's return. As of April 30, 2013 and 2012, $1.8 million and $3.8 million of CashBack balances were more than 60 days old, respectively. Credit Cards. We utilize a four-tier underwriting approach at origination. Each of the four tiers, with Tier 4 representing the most risk, is comprised of a combination of FICO scores ranging from 521 to 680, generic and custom credit bureau based risk scores and client attributes. The criteria in the tiers are not subsequently updated. The population also includes a sample of clients which are “un-scorable.” Although we utilize the borrower's credit score for underwriting, we do not consider the credit score to be a primary measure of credit quality, since it tends to be a lagging indicator. Credit card receivable balances as of April 30, 2013, by credit tier, are as follows:
(in 000s) |
Tier 1 |  | $ | 4,708 |
Tier 2 |  | 9,912 |
Tier 3 |  | 2,895 |
Tier 4 |  | 5,756 |
|  | $ | 23,271 |
An aging of our credit card receivable balances as of April 30, 2013 is as follows :
(in 000s) |
Current |  | $ | 14,447 |
Less than 30 days past due |  | 2,479 |
30 - 59 days past due |  | 1,716 |
60 - 89 days past due |  | 1,149 |
90 days or more past due |  | 3,480 |
|  | $ | 23,271 |
As of April 30, 2013, none of our credit card balances were more than 180 days past due. As of April 30, 2013, a total of $2.1 million in unamortized deferred fees and costs were capitalized related to our credit card balances. Other. We have a long-term note receivable in the amount of $54.0 million due from McGladrey & Pullen LLP (M&P) related to the sale of RSM in November 2011. This note is unsecured and bears interest at a rate of 8.0%, with all principal and accrued interest due in May 2017. As of April 30, 2013, there is no allowance recorded related to this note. We continue to monitor publicly available information relevant to the financial condition of M&P to assess future collectibility. This note is included in other assets on the consolidated balance sheet, with a total of $60.4 million and $55.4 million in principal and accrued interest recorded as of April 30, 2013 and 2012, respectively. Allowance for Doubtful Accounts. Activity in the allowance for doubtful accounts for our short-term and long-term receivables for the years ended April 30, 2013, 2012 and 2011 is as follows:
(in 000s) |
|  | EAs |  |  | Loans to Franchisees |  |  | CashBack |  |  | Credit Cards |  |  | All Other |  |  | Total |
Balance as of May 1, 2010 |  | $ | 35,239 |  |  | $ | 4 |  |  | $ | 3,850 |  |  | $ | — |  |  | $ | 52,064 |  |  | $ | 91,157 |
Provision |  | 91,546 |  |  | — |  |  | 4,853 |  |  | — |  |  | 41,540 |  |  | 137,939 |
Charge-offs |  | (122,385 | ) |  | (4 | ) |  | (4,811 | ) |  | — |  |  | (53,953 | ) |  | (181,153 | )
Balance as of April 30, 2011 |  | 4,400 |  |  | — |  |  | 3,892 |  |  | — |  |  | 39,651 |  |  | 47,943 |
Provision |  | 28,057 |  |  | — |  |  | 1,631 |  |  | — |  |  | 36,974 |  |  | 66,662 |
Charge-offs |  | (26,257 | ) |  | — |  |  | (3,244 | ) |  | — |  |  | (40,515 | ) |  | (70,016 | )
Balance as of April 30, 2012 |  | 6,200 |  |  | — |  |  | 2,279 |  |  | — |  |  | 36,110 |  |  | 44,589 |
Provision |  | 28,430 |  |  | — |  |  | 4,647 |  |  | 7,349 |  |  | 35,300 |  |  | 75,726 |
Charge-offs |  | (27,240 | ) |  | — |  |  | (4,157 | ) |  | (45 | ) |  | (31,170 | ) |  | (62,612 | )
Balance as of April 30, 2013 |  | $ | 7,390 |  |  | $ | — |  |  | $ | 2,769 |  |  | $ | 7,304 |  |  | $ | 40,240 |  |  | $ | 57,703 |
Other than the new methodology implemented to record the allowance for credit card receivables, there were no changes to our methodology related to the calculation of our allowance for doubtful accounts during fiscal year 2013.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
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