NOTE 6: FAIR VALUE

ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS – The carrying amounts and estimated fair values of our financial instruments are as follows:



(in 000s)
As of	July 31, 2017				July 31, 2016				April 30, 2017
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	551,566	$	551,566	$	306,871	$	306,871	$	1,011,331	$	1,011,331
Cash and cash equivalents - restricted	116,594		116,594		122,025		122,025		106,208		106,208
Receivables, net - short-term	91,004		91,004		103,425		103,425		162,775		162,775
Receivables, net - long-term	60,945		60,945		56,514		56,514		52,898		52,898
Liabilities:
Long-term debt (excluding debt issuance costs)	1,502,694		1,595,945		1,502,747		1,606,364		1,502,735		1,569,033
Contingent consideration	9,125		9,125		8,347		8,347		10,428		10,428

Fair value estimates, methods and assumptions are set forth below. Fair value was not estimated for assets and liabilities that are not considered financial instruments.


▪	Cash and cash equivalents, including restricted - Fair value approximates the carrying amount (Level 1).


▪	Receivables, net - short-term - For short-term balances the carrying values reported in the balance sheet approximate fair market value due to the relative short-term nature of the respective instruments (Level 1).

▪

Receivables, net - long-term - The carrying values for the long-term portion of loans to franchisees approximate fair market value due to variable interest rates, low historical delinquency rates and franchise territories serving as collateral (Level 1). Long-term EA receivables and tax preparation receivables are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates.


▪	Long-term debt - The fair value of our Senior Notes is based on quotes from multiple banks (Level 2).


▪	Contingent consideration - Fair value approximates the carrying amount (Level 3).