RECEIVABLES

3 Months Ended

Sep. 30, 2021

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, 2021				June 30, 2021
	Short-term		Long-term		Short-term		Long-term
Loans to franchisees	$	12,409	$	27,348	$	9,497	$	28,026
Receivables for U.S. assisted and DIY tax preparation and related fees	10,234		3,793		41,900		3,793
H&R Block Instant RefundTM receivables	681		92		2,357		159
H&R Block Emerald Advance® lines of credit	5,742		5,982		8,248		8,089
Software receivables from retailers	1,045		—		2,910		—
Royalties and other receivables from franchisees	3,703		151		6,167		178
Wave payment processing receivables	2,930		—		2,187		—
Other	20,085		1,218		15,666		1,350
Total	$	56,829	$	38,584	$	88,932	$	41,595

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, 2021 and June 30, 2021 loans with a principal balance of $0.5 million and $0.2 million, respectively, were more than 90 days past due. We had no loans to franchisees on non-accrual status.

H&R BLOCK INSTANT REFUNDTM PROGRAM – H&R Block Instant RefundTM 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. Current balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, by tax return year of origination, as of September 30, 2021 are as follows:

			(in 000s)
Tax return year of origination:	Balance		Non-Accrual
2020	$	1,921	$	1,157
2019 and prior	435		435
	2,356		$	1,592
Allowance	(1,583)
Net balance	$	773

H&R BLOCK EMERALD ADVANCE® LINES OF CREDIT – We review the credit quality of our purchased participation interests in Emerald AdvanceSM (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. Balances and amounts on non-accrual status and classified as impaired, or more than 60 days past due, as of September 30, 2021, by fiscal year of origination, are as follows:

(in 000s)
Fiscal year of origination:	Balance		Non-Accrual
2021	$	23,638	$	23,638
2020 and prior	1,361		1,361
Revolving loans	14,429		12,462
	39,428		$	37,461
Allowance	(27,704)
Net balance	$	11,724

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, 2021 and 2020 is as follows:

(in 000s)
	EAs		All Other		Total
Balances as of July 1, 2021	$	27,704	$	60,272	$	87,976
Provision	—		1,850		1,850
Charge-offs, recoveries and other	—		(3,583)		(3,583)
Balances as of September 30, 2021	$	27,704	$	58,539	$	86,243
Balances as of July 1, 2020	$	32,034	$	52,166	$	84,200
Provision	(2,709)		2,709		—
Charge-offs, recoveries and other	—		(835)		(835)
Balances as of September 30, 2020	$	29,325	$	54,040	$	83,365