XML 43 R13.htm IDEA: XBRL DOCUMENT v3.25.2 Receivables 12 Months Ended Jun. 30, 2025 Receivables [Abstract]   Receivables NOTE 4: RECEIVABLES Receivables, net of their related allowance, consist of the following: (in 000s) As of June 30, 2025 June 30, 2024 Short-term Long-term Short-term Long-term Loans to franchisees $ 7,386   $ 16,402   $ 5,917  $ 16,498  Receivables for U.S. assisted and DIY tax preparation and related fees 15,896   6,361   18,440  5,332  H&R Block's Instant Refund ® receivables 2,243   939   2,947  207  Emerald Advance ® 13,899   22,816   17,867  21,360  Software receivables from retailers 2,582   —   1,029  —  Royalties and other receivables from franchisees 4,414   —   5,808  —  Wave payment processing receivables 1,533   —   1,078  —  Other 15,668   498   15,989  427  $ 63,621   $ 47,016   $ 69,075  $ 43,824  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 short-term lines of credit primarily for the purpose of funding seasonal working capital needs. Loans with a principal balance more than 90 days past due or on non-accrual status were $3.1 million and $1.1 million as of June 30, 2025 and June 30, 2024, respectively. The credit quality of these receivables is assessed at origination at an individual franchisee level. Payment history is monitored on a regular basis. Based upon our internal analysis and underwriting activities, we believe all loans to franchisees are of similar credit quality. Loans are evaluated for collectibility when they become delinquent or more than 90 days past due. Amounts deemed to be uncollectible are written off to bad debt expense and bad debt related to these loans has typically been immaterial. Additionally, the franchise territory serves as additional protection in the event a franchisee defaults on the loan, as we may revoke franchise rights, write off the remaining balance of the loan and refranchise the territory or begin operating it as company-owned. H&R Block's Instant Refund®. Our Canadian operations advance refunds due to certain clients from the Canada Revenue Agency (CRA), in exchange for a fee. The total fee we charge for this service is mandated by legislation which is administered by the CRA. The client assigns to us the full amount of the tax refund to be issued by the CRA and the refund is then sent by the CRA directly to us. The amount we advance to clients under this program is the amount of their estimated refund, less our fees, any amounts expected to be withheld by the CRA for amounts the client may owe to government authorities and any amounts owed to us from prior years. The CRA system for tracking amounts due to various government agencies also indicates if the client has already filed a return, does not exist in CRA records, or is bankrupt. This serves to greatly reduce the amounts of uncollectible receivables and the risk of fraudulent returns. H&R Block's Instant Refund ® amounts are generally received from the CRA within 60 days of filing the client's return, with the remaining balance collectible from the client. Credit losses from these receivables are not specifically identified and charged off; instead we review the credit quality of these receivables on a pooled basis, segregated by the tax return year of origination with older years being deemed more unlikely to be repaid. At the end of the fiscal year, the outstanding balances on these receivables are evaluated based on collections received and expected collections over subsequent tax seasons. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year we charge-off the receivables to an amount we believe represents the net realizable value. Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by tax return year of origination, as of June 30, 2025 are as follows: (in 000s) Tax return year of origination Balance More Than 60 Days Past Due 2024 $ 3,451   $ 3,254   2023 and prior 819   819   4,270   $ 4,073   Allowance (1,088) Net balance $ 3,182   H&R Block Emerald Advance® . EA term loans are offered by our bank partner to clients, in November and December, in amounts of $350 to $1,300. EA term loans are interest bearing with principal and interest due in full on March 31, late fees assessed as of April 14, and any amounts unpaid are placed on non-accrual status as of April 30. We purchase participation interests in their loans, as discussed further in note 10 . Credit losses from EAs are not specifically identified and charged off; instead we review the credit quality of our purchased participation interest in EA receivables on a pooled basis, which are segregated by the fiscal year of origination with older years being deemed more unlikely to be repaid. At the end of the fiscal year, the outstanding balances on these receivables are evaluated based on collections received and expected collections over subsequent years. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. In December of each year, we charge-off the receivables and the related allowance for EA term loans to an amount we believe represents the net realizable value. Balances and amounts on non-accrual status, classified as impaired, or more than 60 days past due, by fiscal year of origination as of June 30, 2025, are as follows: (in 000s) Fiscal year of origination Balance Non-Accrual 2025 $ 33,723   $ 33,723   2024 and prior 22,655   22,655   56,378   $ 56,378   Allowance (19,663) Net balance $ 36,715   Allowance for Credit Losses. Activity in the allowance for credit losses for EAs and all other short-term and long-term receivables for the years ended June 30, 2025, 2024 and 2023 is as follows: (in 000s) EAs All Other Total Balances as of July 1, 2022 $ 26,141  $ 51,126  $ 77,267  Provision for credit losses 16,059  36,231  52,290  Charge-offs, recoveries and other (14,814) (52,249) (67,063) Balances as of June 30, 2023 27,386  35,108  62,494  Provision for credit losses 33,864  48,703  82,567  Charge-offs, recoveries and other (27,714) (38,484) (66,198) Balances as of June 30, 2024 33,536  45,327  78,863  Provision for credit losses 19,663   45,528   65,191   Charge-offs, recoveries and other (33,536) (45,699) (79,235) Balances as of June 30, 2025 $ 19,663   $ 45,156   $ 64,819   X - Definition The entire disclosure for claims held for amounts due to entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/310-10/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 + Details Name: us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock Namespace Prefix: us-gaap_ Data Type: dtr-types:textBlockItemType Balance Type: na Period Type: duration X - References No definition available. + Details Name: us-gaap_ReceivablesAbstract Namespace Prefix: us-gaap_ Data Type: xbrli:stringItemType Balance Type: na Period Type: duration