Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2013

Financial Instruments Carried at Fair Value on Recurring Basis

The following table presents financial instruments carried at fair value on our consolidated balance sheet, in accordance with the valuation hierarchy described above, on a recurring basis:


	June 30,
	2013								2012
	Level 1		Level 2		Level 3		Total carrying value		Level 1		Level 2		Level 3		Total carrying value
	(dollars in thousands)
Assets:
Investments available-for-sale	$	—	$	84,782	$	—	$	84,782	$	—	$	68,598	$	—	$	68,598
Deposits for participation interest accounts		—		—		13,147		13,147		—		—		4,039		4,039
Service revenue receivables		—		—		14,817		14,817		—		—		16,341		16,341

Total assets	$	—	$	84,782	$	27,964	$	112,746	$	—	$	68,598	$	20,380	$	88,978

The following table presents activity related to our financial assets categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for fiscal 2013 and fiscal 2012. All realized and unrealized gains and losses recorded during the periods presented relate to assets still held at our consolidated balance sheet date. There have been no transfers in or out of Level 3 of the hierarchy, or between Levels 1 and 2, for the periods presented.


	Fiscal years ended June 30,
	2013						2012
	Deposits for participation interest accounts			Service revenue receivables			Deposits for participation interest accounts			Service revenue receivables
	(dollars in thousands)
Fair value, beginning of year	$	4,039		$	16,341		$	8,512		$	29,610
Realized and unrealized gains (losses)		(144	)		2,068			(14	)		947
Net contributions (distributions)(1)		9,252			(3,592	)		(4,459	)		(14,216	)

Fair value, end of year	$	13,147		$	14,817		$	4,039		$	16,341

(1)	During fiscal 2012, we recorded a settlement of our asset servicing fee receivable and additional structural advisory fee receivable of $13.0 million in connection with the sale of the rights to this revenue stream on November 14, 2011.

Additional Quantitative Information About Assets Measured at Fair Value on Recurring Basis

The following table presents additional quantitative information about the assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value at June 30, 2013:


Asset	Fair Value		Valuation Techniques	Significant Unobservable Inputs	Range
	(dollars in thousands)
Deposits for participation interest accounts	$	13,147	Discounted cash flows	Discount rate		8-15	%
				Annual prepayment rates		5-12	%
				Annual net recovery rates		2.67	%
				Annual default rates		0-2.25	%

Service revenue receivables	$	14,817	Discounted cash flows	Discount rate		10-16	%
				Annual prepayment rates		3-9	%
				Annual net recovery rates		2-2.5	%
				Annual default rates		1-10	%

Carrying Amount, Estimated Fair Value and Placement in Fair Value Hierarchy for Financial Instruments

The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy for our financial instruments not measured at fair value on our consolidated balance sheets at June 30, 2013 and June 30, 2012:


June 30, 2013	Carrying Amount		Estimated Fair Value		Fair Value Measurements
June 30, 2013	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	81,910	$	81,910	$	81,910	$	—	$	—
Short-term investments		55,179		55,179		55,179		—		—
Restricted cash		87,338		87,338		87,338		—		—
Mortgage loans, net of allowance		12,629		12,538		—		—		12,538
Educations loans, net of allowance		62,996		63,197		—		—		63,197
Financial liabilities:
Time deposits	$	38,922	$	39,273	$	—	$	39,273	$	—
Savings, checking and money market deposits		125,055		125,055		125,055		—		—
Restricted funds due to clients		86,994		86,994		86,994		—		—


June 30, 2012	Carrying Amount		Estimated Fair Value		Fair Value Measurements
June 30, 2012	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	123,497	$	123,497	$	123,497	$	—	$	—
Short-term investments		85,007		85,007		85,007		—		—
Restricted cash		65,401		65,401		65,401		—		—
Mortgage loans, net of allowance		7,811		7,811		—		—		7,811
Educations loans, net of allowance		33,095		33,280		—		—		33,280
Financial liabilities:
Time deposits	$	43,155	$	43,248	$	—	$	43,248	$	—
Savings, checking and money market deposits		40,273		40,273		40,273		—		—
Restricted funds due to clients		104,981		104,981		104,981		—		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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