Fair Value Of Financial Instruments

12 Months Ended

Apr. 30, 2012

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

NOTE 12: FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts and estimated fair values of our financial instruments are as follows:

	(in 000s)
	2012				2011
As of April 30,	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Assets:
Cash and cash equivalents	$	1,944,334	$	1,944,334	$	1,677,844	$	1,677,844		Level 1
Cash and cash equivalents – restricted		48,100		48,100		48,383		48,383		Level 1
Receivables, net – short-term		193,858		193,858		230,172		230,172		Level 1
Mortgage loans held for investment, net		406,201		248,535		485,008		295,154		Level 3
Investments in available-for- sale securities		372,352		372,352		166,917		166,917		Level 2
Receivables, net – long-term		127,468		127,468		137,894		137,894		Level 1 and 3
Note receivable (including interest)		55,444		55,444		—		—		Level 3
Liabilities:
Deposits		833,047		831,251		863,898		865,318		Level 1 and 3
Long-term borrowings		1,040,549		1,077,223		1,040,084		1,099,780		Level 3
FHLB advances		—		—		25,000		24,998		Level 3

Fair value estimates, methods and assumptions are set forth below. The 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.

• Receivables – 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.

• Mortgage loans held for investment, net – The fair value of mortgage loans held for investment is determined using market pricing sources based on projected future cash flows of each individual asset, and loan characteristics including channel and performance characteristics.

• Investments in available-for-sale securities – We use a third-party pricing service to determine fair value. The service's pricing model is based on market data and utilizes available trade, bid and other market information for similar securities.

• Receivables – long-term – The carrying values for the long-term portion of loans to franchisees approximate fair market value due to the variable interest rates (Level 1). Long-term EA and tax client receivables related to RALs are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates.

• Note receivable – The long-term note receivable from M&P bears interest at a rate similar to available market rates and has only been outstanding for five months, and therefore carrying value approximates fair market value.

• Deposits – The fair value of deposits with no stated maturity such as non-interest-bearing demand deposits, checking, money market and savings accounts was equal to the amount payable on demand (Level 1). The fair value of IRAs and other time deposits is estimated by discounting the future cash flows using the rates currently offered by HRB Bank for products with similar remaining maturities (Level 3).

• Long-term debt and FHLB borrowings – The fair value of borrowings is based on rates currently available to us for obligations with similar terms and maturities, including current market yields on our Senior Notes.