Goodwill And Intangible Assets

9 Months Ended

Jan. 31, 2012

Goodwill And Intangible Assets [Abstract]

7. Goodwill and Intangible Assets

Changes in the carrying amount of the goodwill of our continuing operations for the nine months ended January 31, 2012 consist of the following:


	(in 000s)
	Tax Services
Balance at April 30, 2011:
Goodwill	$ 459,039
Accumulated impairment losses	(24,888 )

	434,151

Changes:
Acquisitions	9,506
Disposals and foreign currency changes	(5,805 )
Impairments	(4,257 )

Balance at January 31, 2012:
Goodwill	462,740
Accumulated impairment losses	(29,145 )

	$ 433,595

In the current year, we discontinued service under our ExpressTax brand. As a result, we recorded an impairment of the reporting unit's goodwill, which totaled $4.3 million.

We test goodwill and other indefinite-life intangible assets for impairment annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

Intangible assets of our continuing operations consist of the following:


						(in 000s)
	January 31, 2012			April 30, 2011
As of	Gross Carrying Amount	Accumulated Amortization	Net	Gross Carrying Amount	Accumulated Amortization	Net
Tax Services:
Customer relationships	$ 90,355	$ (44,805 )	$ 45,550	$ 87,624	$ (41,076 )	$ 46,548
Noncompete agreements	23,725	(22,628 )	1,097	23,456	(22,059 )	1,397
Reacquired franchise rights	214,330	(13,052 )	201,278	214,330	(9,961 )	204,369
Franchise agreements	19,201	(4,053 )	15,148	19,201	(3,093 )	16,108
Purchased technology	14,700	(10,200 )	4,500	14,700	(8,505 )	6,195
Trade name	1,325	(750 )	575	1,325	(600 )	725

	$ 363,636	$ (95,488 )	$ 268,148	$ 360,636	$ (85,294 )	$ 275,342

Amortization of intangible assets of our continuing operations for the three and nine months ended January 31, 2012 was $4.7 and $15.2 million, respectively. Additionally, we recorded an impairment of customer relationships of $4.0 million, related to the discontinuation of our ExpressTax brand, as discussed above. Amortization of intangible assets of our continuing operations for the three and nine months ended January 31, 2011 was $4.5 and $12.8 million, respectively. Estimated amortization of intangible assets for fiscal years 2012 through 2016 is $17.7 million, $16.5 million, $14.6 million, $11.3 million and $10.7 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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