HR Block 2013 Annual Report Download - page 66

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H&R Block 2013 Form 10-K 59
An aging of our credit card receivable balances as of April 30, 2013 is as follows :
(in 000s)
Current $14,447
Less than 30 days past due 2,479
30 - 59 days past due 1,716
60 - 89 days past due 1,149
90 days or more past due 3,480
$23,271
As of April 30, 2013, none of our credit card balances were more than 180 days past due.
As of April 30, 2013, a total of $2.1 million in unamortized deferred fees and costs were capitalized related to our
credit card balances.
Other. We have a long-term note receivable in the amount of $54.0 million due from McGladrey & Pullen LLP
(M&P) related to the sale of RSM in November 2011. This note is unsecured and bears interest at a rate of 8.0%, with
all principal and accrued interest due in May 2017. As of April 30, 2013, there is no allowance recorded related to this
note. We continue to monitor publicly available information relevant to the financial condition of M&P to assess future
collectibility. This note is included in other assets on the consolidated balance sheet, with a total of $60.4 million and
$55.4 million in principal and accrued interest recorded as of April 30, 2013 and 2012, respectively.
Allowance for Doubtful Accounts. Activity in the allowance for doubtful accounts for our short-term and long-
term receivables for the years ended April 30, 2013, 2012 and 2011 is as follows:
(in 000s)
EAs
Loans
to Franchisees CashBack Credit Cards All Other Total
Balance as of May 1, 2010 $ 35,239 $ 4 $ 3,850 $ — $ 52,064 $91,157
Provision 91,546 — 4,853 —41,540 137,939
Charge-offs (122,385) (4) (4,811) — (53,953) (181,153)
Balance as of April 30, 2011 4,400 — 3,892 —39,651 47,943
Provision 28,057 — 1,631 —36,974 66,662
Charge-offs (26,257) — (3,244) — (40,515) (70,016)
Balance as of April 30, 2012 6,200 — 2,279 —36,110 44,589
Provision 28,430 — 4,647 7,349 35,300 75,726
Charge-offs (27,240) — (4,157) (45) (31,170) (62,612)
Balance as of April 30, 2013 $ 7,390 $ — $ 2,769 $7,304 $40,240 $57,703
Other than the new methodology implemented to record the allowance for credit card receivables, there were no
changes to our methodology related to the calculation of our allowance for doubtful accounts during fiscal year 2013.