8.	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, 2012				April 30, 2012
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Fair Value Hierarchy
Assets:
Cash and cash equivalents	$	939,871	$	939,871	$	1,944,334	$	1,944,334		Level 1
Cash and cash equivalents – restricted		43,109		43,109		48,100		48,100		Level 1
Receivables, net – short-term		116,357		116,357		193,858		193,858		Level 1
Mortgage loans held for investment, net		386,759		238,658		406,201		248,535		Level 3
Investments in available-for-sale securities		381,791		381,791		372,352		372,352		Level 2
Receivables, net – long-term		128,930		128,930		127,468		127,468		Level 1 & 3
Note receivable (including interest)		56,917		62,748		55,444		55,444		Level 3

Liabilities:
Deposits		653,681		653,382		833,047		831,251		Level 1 & 3
Long-term debt		1,009,634		1,037,169		1,040,549		1,077,223		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.

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Cash and cash equivalents, including restricted – Fair value approximates the carrying amount.

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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.

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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.

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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.

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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 receivables are carried at net realizable value which approximates fair value (Level 3). Net realizable value is determined based on historical collection rates.

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Note receivable – The fair value of the long-term note receivable from M&P assumes no prepayment and is determined using market pricing sources for similar instruments based on projected future cash flows.

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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).

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Long-term debt – 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.