Goodwill And Intangible Assets

12 Months Ended

Apr. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill of our Tax Services segment for the years ended April 30, 2014 and 2013 are as follows:



(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balance as of May 1, 2012	$	459,863		$	(32,297	)	$	427,566
Acquisitions	7,625			—			7,625
Disposals and foreign currency changes, net	(409		)	—			(409		)
Impairments	—			—			—
Balance as of April 30, 2013	467,079			(32,297		)	434,782
Acquisitions	3,086			—			3,086
Disposals and foreign currency changes, net	(1,751		)	—			(1,751		)
Impairments	—			—			—
Balance as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117

We tested goodwill for impairment in the fourth quarter of fiscal year 2014, and did not identify any impairment.

In fiscal year 2012, we discontinued service under our ExpressTax brand and closed approximately 200 underperforming company-owned offices. As a result, we recorded an impairment of goodwill, in the amount of $7.4 million. There is no remaining goodwill related to our ExpressTax brand.

Components of the intangible assets of our Tax Services segment are as follows:



(in 000s)
As of April 30,	2014							2013
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Reacquired franchise rights	$	233,749	$	(26,136	)	$	207,613	$	214,330	$	(18,204	)	$	196,126
Customer relationships	123,110		(59,521		)	63,589		100,719		(48,733		)	51,986
Internally-developed software	101,162		(72,598		)	28,564		91,745		(72,764		)	18,981
Noncompete agreements	24,694		(22,223		)	2,471		23,058		(21,728		)	1,330
Franchise agreements	19,201		(6,934		)	12,267		19,201		(5,654		)	13,547
Purchased technology	54,900		(13,782		)	41,118		14,800		(12,331		)	2,469
Trade name	300		(300		)	—		300		(300		)	—
	$	557,116	$	(201,494	)	$	355,622	$	464,153	$	(179,714	)	$	284,439

In fiscal year 2014, we acquired the assets of a business for $30.3 million. Assets acquired consisted primarily of purchased technology.

Amortization of intangible assets of continuing operations for the years ended April 30, 2014, 2013 and 2012 was $30.9 million, $24.2 million and $27.8 million, respectively. We recorded impairments of various intangible assets totaling $3.6 million during fiscal year 2013, including those related to our former RedGear reporting unit. We recorded an impairment of customer relationships of $4.0 million during fiscal year 2012, related to the discontinuation of our ExpressTax brand, as discussed above. Estimated amortization of intangible assets for fiscal years 2015, 2016, 2017, 2018 and 2019 is $39.2 million, $32.4 million, $27.0 million, $23.7 million and $20.7 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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