Customer Accounts Receivable

Customer accounts receivable consisted of the following:



(in thousands)	April 30, 2020			January 31, 2020
Customer accounts receivable ⁽¹⁾	$	1,499,965		$	1,602,037
Deferred fees and origination costs, net	(14,950		)	(15,746		)
Allowance for no-interest option credit programs	(13,208		)	(14,984		)
Allowance for uncollectible interest	(29,305		)	(23,662		)
Carrying value of customer accounts receivable	1,442,502			1,547,645
Allowance for credit losses ⁽²⁾	(363,948		)	(210,142		)
Carrying value of customer accounts receivable, net of allowance for credit losses	1,078,554			1,337,503
Short-term portion of customer accounts receivable, net	(548,169		)	(673,742		)
Long-term customer accounts receivable, net	$	530,385		$	663,761



	Carrying Value
(in thousands)	April 30, 2020		January 31, 2020
Customer accounts receivable 60+ days past due ⁽³⁾	$	192,501	$	193,797
Re-aged customer accounts receivable ⁽⁴⁾	465,820		455,704
Restructured customer accounts receivable ⁽⁵⁾	224,081		211,857


(1)	As of April 30, 2020 and January 31, 2020, the customer accounts receivable balance included $42.5 million and $43.7 million, respectively, in interest receivable. Net of the allowance for uncollectible interest, interest receivable outstanding as of April 30, 2020 and January 31, 2020 was $13.2 million and $20.0 million, respectively.

(2)

Our current methodology to estimate expected credit losses utilized macroeconomic forecasts as of April 30, 2020, which incorporated the estimated potential impact that the global outbreak COVID-19 may have on the U.S. economy. Our forecast utilized economic projections from a major rating service reflecting an increase in unemployment with some offsetting benefits related to the positive impacts of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). As a result, our allowance for loan loss increased $65.5 million for the three months ended April 30, 2020. The allowance for credit losses as of January 31, 2020 is based on an incurred loss model, which reserves for expected credit losses over the next twelve months.


(3)	As of April 30, 2020 and January 31, 2020, the carrying value of customer accounts receivable past due one day or greater was $441.0 million and $527.0 million, respectively. These amounts include the 60+ days past due balances shown above.


(4)	The re-aged carrying value as of April 30, 2020 and January 31, 2020 includes $123.7 million and $131.4 million in carrying value that are both 60+ days past due and re-aged.


(5)	The restructured carrying value as of April 30, 2020 and January 31, 2020 includes $63.2 million and $64.8 million in carrying value that are both 60+ days past due and restructured.

The allowance for credit losses included in the current and long-term portion of customer accounts receivable, net as shown in the Condensed Consolidated Balance Sheet were as follows:



(in thousands)	Three Months Ended April 30, 2020
Customer accounts receivable - current	$	752,960
Allowance for credit losses for customer accounts receivable - current	(204,791		)
Customer accounts receivable, net of allowances	548,169
Customer accounts receivable - non current	718,847
Allowance for credit losses for customer accounts receivable - non current	(188,462		)
Long-term portion of customer accounts receivable, net of allowances	530,385
Total customer accounts receivable, net	$	1,078,554

The following presents the activity in our allowance for credit losses and uncollectible interest for customer receivables:



	Three Months Ended April 30, 2020									Three Months Ended April 30, 2019
(in thousands)	Customer Accounts Receivable			Restructured Accounts			Total			Customer Accounts Receivable			Restructured Accounts			Total
Allowance at beginning of period, prior to adoption of ASC 326	$	145,680		$	88,123		$	233,803		$	147,123		$	67,756		$	214,879
Impact of adoption ASC 326	95,136			3,526			98,662			—			—			—
Provision for credit loss expense ⁽¹⁾	109,065			28,224			137,289			35,275			16,925			52,200
Principal charge-offs ⁽²⁾	(46,351		)	(18,501		)	(64,852		)	(39,723		)	(14,809		)	(54,532		)
Interest charge-offs	(12,314		)	(5,300		)	(17,614		)	(9,099		)	(3,392		)	(12,491		)
Recoveries ^(2)(3)(4)	3,988			1,977			5,965			4,714			1,757			6,471
Allowance at end of period	$	295,204		$	98,049		$	393,253		$	138,290		$	68,237		$	206,527
Average total customer portfolio balance	$	1,333,197		$	224,565		$	1,557,762		$	1,368,094		$	190,228		$	1,558,322


(1)	Includes provision for uncollectible interest, which is included in finance charges and other revenues.

(2)

Charge-offs include the principal amount of losses (excluding accrued and unpaid interest). For the three months ended April 30, 2019, recoveries include the principal amount collected during the period for previously charged-off balances. For the three months ended April 30, 2020, recoveries include the principal amount collected during the period for previously charged-off balances and changes in expected future recoveries. Net charge-offs are calculated as the net of principal charge-offs and recoveries.


(3)	The increase in bad debt charge-offs, net of recoveries, was primarily due to higher risk loans originated during the first half of fiscal year 2020 and an increase in new customer mix.


(4)	For periods prior to fiscal year 2021, recoveries only included the principal amount collected during the period for previously charged-off balances.

We manage our Customer Accounts Receivable portfolio using delinquency as a key credit quality indicator. The following table presents the delinquency distribution of the carrying value of customer accounts receivable by year of origination. The information is updated as of April 30, 2020:



Delinquency Bucket	2020		2019		2018		2017		Prior		Total		% of Total
(in thousands)
Current	$	209,196	$	520,586	$	220,700	$	48,025	$	3,041	$	1,001,548	69.5	%
1-30	24,977		100,147		56,044		17,624		1,792		200,584		13.9	%
31-60	7,036		21,169		13,854		5,123		687		47,869		3.3	%
61-90	3,937		18,003		9,810		4,060		652		36,462		2.5	%
91+	—		77,232		52,382		22,477		3,948		156,039		10.8	%
Total	$	245,146	$	737,137	$	352,790	$	97,309	$	10,120	$	1,442,502	100.0	%