HR Block 2014 Annual Report Download - page 63

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H&R Block, Inc. | 2014 Form 10-K 55
NOTE 4: RECEIVABLES
Short-term receivables consist of the following:
(in 000s)
As of April 30, 2014 2013
Loans to franchisees $ 63,716 $ 65,413
Receivables for tax preparation and related fees 45,619 49,356
Cash Back® receivables 48,812 47,658
Emerald Advance lines of credit 20,577 23,218
Royalties from franchisees 9,978 10,722
Other 55,494 60,867
244,196 257,234
Allowance for doubtful accounts (52,578) (50,399)
$ 191,618 $ 206,835
The short-term portion of EAs, loans made to franchisees and Cash Back® 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 Cash Back®
As of April 30, 2014:
Short-term $ 20,577 $ 63,716 $ 48,812
Long-term 3,862 90,747 —
$ 24,439 $ 154,463 $ 48,812
As of April 30, 2013:
Short-term $ 23,218 $ 65,413 $ 47,658
Long-term 9,819 103,047 —
$ 33,037 $ 168,460 $ 47,658
Emerald Advance Lines of Credit. 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, 2014, by year of origination, are as follows:
(in 000s)
Credit Quality Indicator – Year of origination:
2014 $ 6,065
2013 1,890
2012 and prior 4,677
Revolving loans 11,807
$ 24,439
As of April 30, 2014 and 2013, $20.7 million and $30.0 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, 2014 consisted of $109.1 million in term loans
made primarily to finance the purchase of franchises and $45.4 million in revolving lines of credit primarily for the
purpose of funding off-season working capital needs. Loans made to franchisees as of April 30, 2013 consisted of
$121.2 million in term loans and $47.3 million in revolving lines of credit.
As of April 30, 2014, we had no loans more than 30 days past due, compared to loans with a principal amount of
$0.1 million more than 30 days past due as of April 30, 2013. We had no loans to franchisees on non-accrual status
as of April 30, 2014 or 2013.