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RECEIVABLES | 3 Months Ended
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Sep. 30, 2024
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 |  | September 30, 2024 |  | June 30, 2024
|  | Short-term |  | Long-term |  | Short-term |  | Long-term
Loans to franchisees |  | $ | 11,133 |  |  | $ | 18,958 |  |  | $ | 5,917 |  |  | $ | 16,498 |
Receivables for U.S. assisted and DIY tax preparation and related fees |  | 14,899 |  |  | 5,162 |  |  | 18,440 |  |  | 5,332 |
H&R Block's Instant Refund® receivables |  | 1,880 |  |  | 135 |  |  | 2,947 |  |  | 207 |
Emerald Advance® |  | 15,879 |  |  | 23,993 |  |  | 17,867 |  |  | 21,360 |
Software receivables from retailers |  | 111 |  |  | — |  |  | 1,029 |  |  | — |
Royalties and other receivables from franchisees |  | 8,339 |  |  | — |  |  | 5,808 |  |  | — |
Wave payment processing receivables |  | 728 |  |  | — |  |  | 1,078 |  |  | — |
Other |  | 16,960 |  |  | 404 |  |  | 15,989 |  |  | 427 |
Total |  | $ | 69,929 |  |  | $ | 48,652 |  |  | $ | 69,075 |  |  | $ | 43,824 |
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 September 30, 2024 and June 30, 2024, loans with a principal balance more than 90 days past due or on non-accrual status were $2.3 million and $1.1 million, respectively. H&R BLOCK'S INSTANT REFUND® – H&R Block's Instant Refund® 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 credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance to an amount we believe represents the net realizable value. Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of September 30, 2024 are as follows:
|  |  |  | (in 000s)
Tax return year of origination |  | Balance |  | More Than 60 Days Past Due
2023 |  | $ | 1,649 |  |  | $ | 1,617 |
2022 and prior |  | 1,390 |  |  | 1,390 |
|  | 3,039 |  |  | $ | 3,007 |
Allowance |  | (1,024) |  |  |
Net balance |  | $ | 2,015 |  |  |
EMERALD ADVANCE® – We review the credit quality of our purchased participation interests in 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 credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs to an amount we believe represents the net realizable value. Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination, as of September 30, 2024 are as follows:
(in 000s)
Fiscal year of origination |  | Balance |  | Non-Accrual
2024 |  | $ | 65,608 |  |  | $ | 65,608 |
2023 and prior |  | 7,800 |  |  | 7,800 |
|  | 73,408 |  |  | $ | 73,408 |
Allowance |  | (33,536) |  |  |
Net balance |  | $ | 39,872 |  |  |
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 three months ended September 30, 2024 and 2023 is as follows:
(in 000s)
|  | EAs |  |  |  |  |  |  |  | All Other |  | Total
Balances as of July 1, 2024 |  | $ | 33,536 |  |  |  |  |  |  |  |  | $ | 45,327 |  |  | $ | 78,863 |
Provision for credit losses |  | — |  |  |  |  |  |  |  |  | 1,024 |  |  | 1,024 |
Charge-offs, recoveries and other |  | — |  |  |  |  |  |  |  |  | (1,462) |  |  | (1,462) |
Balances as of September 30, 2024 |  | $ | 33,536 |  |  |  |  |  |  |  |  | $ | 44,889 |  |  | $ | 78,425 |
Balances as of July 1, 2023 |  | $ | 27,386 |  |  |  |  |  |  |  |  | $ | 35,108 |  |  | $ | 62,494 |
Provision for credit losses |  | 328 |  |  |  |  |  |  |  |  | 770 |  |  | 1,098 |
Charge-offs, recoveries and other |  | (27,714) |  |  |  |  |  |  |  |  | (409) |  |  | (28,123) |
Balances as of September 30, 2023 |  | $ | — |  |  |  |  |  |  |  |  | $ | 35,469 |  |  | $ | 35,469 |

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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/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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