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H&R Block, Inc. | 2015 Form 10-K 57
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, 2015, by year of origination, are as follows:
(in 000s)
Credit Quality Indicator – Year of origination:
2015 $ 7,367
2014 218
2013 and prior 2,202
Revolving loans 14,034
$ 23,821
As of April 30, 2015 and 2014, $18.7 million and $20.7 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 short-term and long-
term receivables is as follows:
(in 000s)
EAs All Other Total
Balance as of May 1, 2012 $ 6,200 $ 38,389 $ 44,589
Provision 28,430 47,296 75,726
Charge-offs (27,240) (35,372) (62,612)
Balance as of April 30, 2013 7,390 50,313 57,703
Provision 24,619 46,439 71,058
Charge-offs (24,479) (51,704) (76,183)
Balances as of April 30, 2014 7,530 45,048 52,578
Provision 27,065 44,002 71,067
Charge-offs (27,242) (41,876) (69,118)
Balances as of April 30, 2015 $ 7,353 $ 47,174 $ 54,527
NOTE 5: MORTGAGE LOANS HELD FOR INVESTMENT
The composition of our mortgage loan portfolio is as follows:
(dollars in 000s)
As of April 30, 2015 2014
Amount % of Total Amount % of Total
Adjustable-rate loans $ 130,182 53% $ 149,480 54%
Fixed-rate loans 115,034 47% 127,943 46%
245,216 100% 277,423 100%
Unamortized deferred fees and costs 2,008 2,277
Less: Allowance for loan losses (7,886) (11,272)
$ 239,338 $ 268,428
Our loan loss allowance as a percent of mortgage loans was 3.2% and 4.1% as of April 30, 2015 and 2014,
respectively.