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	January 31, 2017				January 31, 2016				April 30, 2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Cash and cash equivalents	$	221,172	$	221,172	$	189,511	$	189,511	$	896,801	$	896,801
Cash and cash equivalents - restricted	70,166		70,166		69,649		69,649		104,110		104,110
Receivables, net - short-term	787,865		787,865		829,774		829,774		153,116		153,116
Receivables, net - long-term	66,251		66,251		76,471		76,471		60,407		60,407
Liabilities:
Long-term debt and line of credit borrowings	2,593,564		2,672,370		2,616,640		2,709,807		1,492,201		1,566,098
Contingent consideration	9,332		9,332		13,903		13,903		8,657		8,657

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 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). For outstanding balances on the 2016 CLOC, fair value approximates the carrying amount (Level 1).


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