Revenue Recognition

12 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

NOTE 2: REVENUE RECOGNITION

The majority of our revenues are from our U.S. tax services business. The following table disaggregates our U.S. revenues by major service line, with revenues from our international tax services businesses and from Wave included as separate lines:

					(in 000s)
Year ended June 30,	2024		2023		2022
Revenues:
U.S. assisted tax preparation	$	2,274,835	$	2,167,138	$	2,094,612
U.S. royalties	204,802		210,631		225,242
U.S. DIY tax preparation	349,812		314,758		319,086
Refund Transfers	142,249		143,310		162,893
Peace of Mind® Extended Service Plan	93,087		95,181		94,637
Tax Identity Shield®	33,386		38,265		39,114
Emerald Card® and SpruceSM	76,093		84,651		125,444
Interest and fee income on Emerald Advance®	40,933		47,554		43,981
International	247,123		235,131		231,335
Wave	96,472		90,314		80,965
Other	51,555		45,252		45,961
Total revenues	$	3,610,347	$	3,472,185	$	3,463,270

Changes in the balances of deferred revenue and wages for POM are as follows:

							(in 000s)
POM	Deferred Revenue				Deferred Wages
Year ended June 30,	2024		2023		2024		2023
Balance, beginning of the year	$	167,257	$	173,486	$	21,828	$	19,495
Amounts deferred	97,125		103,136		11,819		14,247
Amounts recognized on previous deferrals	(107,772)		(109,365)		(13,435)		(11,914)
Balance, end of the year	$	156,610	$	167,257	$	20,212	$	21,828

As of June 30, 2024, deferred revenue related to POM was $156.6 million. We expect that $93.3 million will be recognized over the next twelve months, while the remaining balance will be recognized over the following five years. POM deferred revenues are included in deferred revenue and other liabilities in the consolidated balance sheets. POM deferred wages are included in prepaid expenses and other current assets and other noncurrent assets.

As of June 30, 2024 and 2023, TIS deferred revenue was $21.4 million and $25.2 million, respectively. The related liabilities are included in deferred revenue and other current liabilities in the consolidated balance sheets. All deferred revenue related to TIS as of June 30, 2024 will be recognized by April 2025.

A significant portion of our accounts receivable balances arise from services and products that we provide to our customers, with the exception of those related to EAs which arise from purchased participation interests with our bank partner. The majority of our receivables are related to RTs. Generally the prices of our services and products are fixed and determinable at the time of sale. For RTs, we record a receivable for our fees which is then collected at the time the IRS issues the client’s refund. Our receivables from customers are generally collected on a periodic basis during and subsequent to the tax season. See note 4 for our accounts receivable balances.