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Receivables | 3 Months Ended
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Jul. 31, 2017
Accounts, Notes, Loans and Financing Receivable, Unclassified [Abstract] |
Receivables | NOTE 3: RECEIVABLES Receivables consist of the following:
(in 000s) |
As of |  | July 31, 2017 |  | July 31, 2016 |  | April 30, 2017
|  | Short-term |  | Long-term |  | Short-term |  | Long-term |  | Short-term |  | Long-term
Loans to franchisees |  | $ | 37,838 |  |  | $ | 40,111 |  |  | $ | 47,905 |  |  | $ | 46,461 |  |  | $ | 39,911 |  |  | $ | 36,614 |
Receivables for tax preparation and related fees |  | 39,031 |  |  | 6,316 |  |  | 39,115 |  |  | 5,528 |  |  | 54,506 |  |  | 6,316 |
Instant Cash Back® receivables |  | 4,338 |  |  | — |  |  | 4,515 |  |  | — |  |  | 37,150 |  |  | — |
H&R Block Emerald Advance® lines of credit |  | 21,755 |  |  | 9,711 |  |  | 24,857 |  |  | 111 |  |  | 26,325 |  |  | 5,069 |
Software receivables from retailers |  | 8,178 |  |  | — |  |  | 4,696 |  |  | — |  |  | 16,715 |  |  | — |
Royalties and other receivables from franchisees |  | 6,776 |  |  | 796 |  |  | 6,885 |  |  | — |  |  | 13,275 |  |  | 1,585 |
Other |  | 28,012 |  |  | 4,011 |  |  | 31,833 |  |  | 4,414 |  |  | 30,189 |  |  | 3,314 |
|  | 145,928 |  |  | 60,945 |  |  | 159,806 |  |  | 56,514 |  |  | 218,071 |  |  | 52,898 |
Allowance for doubtful accounts |  | (54,924 | ) |  | — |  |  | (56,381 | ) |  | — |  |  | (55,296 | ) |  | — |
|  | $ | 91,004 |  |  | $ | 60,945 |  |  | $ | 103,425 |  |  | $ | 56,514 |  |  | $ | 162,775 |  |  | $ | 52,898 |
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 as of July 31, 2017 and 2016 and April 30, 2017, consisted of $25.1 million, $31.5 million and $27.0 million, respectively, in revolving lines of credit primarily for the purpose of funding off-season working capital needs and $52.9 million, $62.8 million and $49.5 million, respectively, in term loans made primarily to finance the purchase of franchises. As of July 31, 2017 and 2016 and April 30, 2017, loans with a principal balance of $0.9 million, $2.2 million and $0.1 million, respectively, were more than 90 days past due. We had no loans to franchisees on non-accrual status. INSTANT CASH BACK® PROGRAM – Refunds advanced under the Instant Cash Back® program in Canada are not subject to credit approval, therefore the primary indicator of credit quality is the age of the receivable amount. Instant Cash Back® amounts are generally received within 60 days of filing the client's return. As of July 31, 2017 and 2016 and April 30, 2017, $1.2 million, $0.6 million and $1.5 million of Instant Cash Back® balances were more than 60 days old, respectively. H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT (EAs) – We review the credit quality of our purchased participation interests in 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 July 31, 2017, by year of origination, are as follows:
(in 000s) |
Credit Quality Indicator – Year of origination: |  |
2017 |  | $ | 9,346 |
2016 and prior |  | 6,898 |
Revolving loans |  | 15,222 |
|  | $ | 31,466 |
As of July 31, 2017 and 2016 and April 30, 2017, $28.1 million, $21.4 million and $28.0 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due, respectively. ALLOWANCE FOR DOUBTFUL ACCOUNTS – Activity in the allowance for doubtful accounts for our EA and all other short-term receivables for the three months ended July 31, 2017 and 2016 is as follows:
(in 000s) |
|  | EAs |  |  | All Other |  |  | Total |
Balances as of May 1, 2017 |  | $ | 10,123 |  |  | $ | 45,173 |  |  | $ | 55,296 |
Provision |  | — |  |  | 2,459 |  |  | 2,459 |
Charge-offs, net of recoveries |  | — |  |  | (2,831 | ) |  | (2,831 | )
Balances as of July 31, 2017 |  | $ | 10,123 |  |  | $ | 44,801 |  |  | $ | 54,924 |
Balances as of May 1, 2016 |  | $ | 9,007 |  |  | $ | 48,004 |  |  | $ | 57,011 |
Provision |  | 451 |  |  | 966 |  |  | 1,417 |
Charge-offs, net of recoveries |  | — |  |  | (2,047 | ) |  | (2,047 | )
Balances as of July 31, 2016 |  | $ | 9,458 |  |  | $ | 46,923 |  |  | $ | 56,381 |

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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 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5066-111524 Reference 2: 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(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 Reference 4: 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)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: 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=84173941&loc=d3e5162-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: 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=84173941&loc=d3e5074-111524 + Details
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