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Commitments And Contingencies | 3 Months Ended
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Jul. 31, 2017
Commitments and Contingencies Disclosure [Abstract] |
Commitments And Contingencies | NOTE 9: COMMITMENTS AND CONTINGENCIES Changes in deferred revenue balances related to our Peace of Mind® Extended Service Plan (POM) for both company-owned and franchise offices, which is included in deferred revenue and other liabilities in the consolidated balance sheets, are as follows:
(in 000s) |
Three months ended July 31, |  | 2017 |  |  | 2016 |
Balance, beginning of the period |  | $ | 211,223 |  |  | $ | 204,342 |
Amounts deferred for new extended service plans issued |  | 1,403 |  |  | 978 |
Revenue recognized on previous deferrals |  | (35,534 | ) |  | (31,650 | )
Balance, end of the period |  | $ | 177,092 |  |  | $ | 173,670 |
Our liability related to estimated losses under the standard guarantee was $4.5 million, $5.8 million and $6.8 million as of July 31, 2017 and 2016 and April 30, 2017, respectively, and is included as part of our assisted tax preparation services. The short-term and long-term portions of this liability are included in deferred revenue and other liabilities in the consolidated balance sheets. Our liability related to acquisitions for estimated contingent consideration was $9.1 million, $8.3 million and $10.4 million as of July 31, 2017 and 2016 and April 30, 2017, respectively, with amounts recorded in deferred revenue and other liabilities. Estimates of contingent payments are typically based on expected financial performance of the acquired business and economic conditions at the time of acquisition. Should actual results differ from our assumptions, future payments made will differ from the above estimate and any differences will be recorded in results from continuing operations. We have contractual commitments to fund certain franchises with approved revolving lines of credit. Our total obligation under these lines of credit was $45.2 million at July 31, 2017, and net of amounts drawn and outstanding, our remaining commitment to fund totaled $20.3 million. LOSS CONTINGENCIES PERTAINING TO DISCONTINUED MORTGAGE OPERATIONS – SCC ceased originating mortgage loans in December 2007 and, in April 2008, sold its servicing assets and discontinued its remaining operations. Mortgage loans originated by SCC were sold either as whole loans to single third-party buyers, who generally securitized such loans, or in the form of residential mortgage-backed securities (RMBSs). In connection with the sale of loans and/or RMBSs, SCC made certain representations and warranties. Claims under these representations and warranties together with any settlement arrangements related to these losses are collectively referred to as “representation and warranty claims.” SCC accrues a liability for losses related to representation and warranty claims when those losses are believed to be both probable and reasonably estimable. SCC’s loss estimate as of July 31, 2017, is based on the best information currently available, management judgment, developments in relevant case law, and the terms of bulk settlements. The liability is included in deferred revenue and other current liabilities on the consolidated balance sheets. A rollforward of SCC’s accrued liability for these loss contingencies is as follows:
(in 000s) |
Three months ended July 31, |  | 2017 |  |  | 2016 |
Balance, beginning of the period |  | $ | 4,500 |  |  | $ | 65,265 |
Loss provisions |  | — |  |  | 235 |
Payments |  | — |  |  | (40,000 | )
Balance, end of the period |  | $ | 4,500 |  |  | $ | 25,500 |
See note 10, which addresses contingent losses that may be incurred with respect to various indemnification or contribution claims by underwriters, depositors, and securitization trustees in securitization transactions in which SCC participated.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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