SEC filing – odaterad – R12.htm

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RECEIVABLES

6 Months Ended

Dec. 31, 2024

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 December 31, 2024 June 30, 2024
Short-term Long-term Short-term Long-term
Loans to franchisees $ 19,764   $ 20,861   $ 5,917  $ 16,498 
Receivables for U.S. assisted and DIY tax preparation and related fees 9,823   5,440   18,440  5,332 
H&R Block's Instant Refund® receivables
1,375   184   2,947  207 
Emerald Advance® 266,110   23,643   17,867  21,360 
Software receivables from retailers 2,073   —   1,029  — 
Royalties and other receivables from franchisees 6,955   —   5,808  — 
Wave payment processing receivables 693   —   1,078  — 
Other 14,378   659   15,989  427 
Total $ 321,171   $ 50,787   $ 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 revolving lines of credit primarily for the purpose of funding working capital needs. As of December 31, 2024 and June 30, 2024, loans with a principal balance more than 90 days past due or on non-accrual status were $2.2 million and $1.1 million, respectively.
H&R BLOCK'S INSTANT REFUND ® – H&R Block's Instant Refund® 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. 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 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 December 31, 2024 are as foll ows:

(in 000s)

Tax return year of origination Balance More Than 60 Days Past Due
2023 $ 375   $ 316  
2022 and prior 1,184   1,184  

1,559   $ 1,500  
Allowance —  
Net balance $ 1,559  

EMERALD ADVANCE ® – We review the credit quality of our purchased participation interests in Emerald Advance® (EA) receivables based on pools, which are segregated by the fiscal year of origination, with older years being deemed more unlikely to be repaid. We establish an allowance for credit losses at an amount that we believe reflects the receivable at net realizable value. Typically, in December of each year, we charge-off the receivables and the related allowance for EAs 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 December 31, 2024 are as follows:

(in 000s)
Fiscal year of origination Balance Non-Accrual
2025 $ 270,393   $ —  
2024 and prior 38,469   38,469  

308,862   $ 38,469  
Allowance (19,109)
Net balance $ 289,753  

ALLOWANCE FOR CREDIT LOSSES – Activity in the allowance for credit losses for EA and all other short-term and long-term receivables for the six months ended December 31, 2024 and 2023 is as follows:

(in 000s)
EAs All Other Total
Balances as of July 1, 2024 $ 33,536   $ 45,327   $ 78,863  
Provision for credit losses 19,109   1,618   20,727  
Charge-offs, recoveries and other (33,536) (45,552) (79,088)
Balances as of December 31, 2024 $ 19,109   $ 1,393   $ 20,502  
Balances as of July 1, 2023 $ 27,386  $ 35,108  $ 62,494 
Provision for credit losses 17,885  3,651  21,536 
Charge-offs, recoveries and other (27,714) (37,613) (65,327)
Balances as of December 31, 2023 $ 17,557  $ 1,146  $ 18,703 

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- References No definition available.

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- Definition The entire disclosure for claims held for amounts due a 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

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