Goodwill And Intangible Assets

12 Months Ended

Apr. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill of our Tax Services segment for the years ended April 30, 2015 and 2014 are as follows:



(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balance as of May 1, 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
Acquisitions	7,628			—			7,628
Disposals and foreign currency changes, net	(1,914		)	—			(1,914		)
Impairments	—			—			—
Balance as of April 30, 2015	$	474,128		$	(32,297	)	$	441,831

We tested goodwill for impairment in the fourth quarter of fiscal year 2015, and did not identify any impairment.

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



(in 000s)
As of April 30,	2015							2014
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Reacquired franchise rights	$	294,647	$	(46,180	)	$	248,467	$	233,749	$	(26,136	)	$	207,613
Customer relationships	170,851		(78,157		)	92,694		123,110		(59,521		)	63,589
Internally-developed software	118,865		(80,689		)	38,176		101,162		(72,598		)	28,564
Noncompete agreements	30,630		(23,666		)	6,964		24,694		(22,223		)	2,471
Franchise agreements	19,201		(8,214		)	10,987		19,201		(6,934		)	12,267
Purchased technology	54,700		(19,846		)	34,854		54,900		(13,782		)	41,118
	$	688,894	$	(256,752	)	$	432,142	$	556,816	$	(201,194	)	$	355,622

The increase in intangible assets resulted primarily from acquired franchisee and competitor businesses during fiscal year 2015, which added approximately 350 offices to our company-owned network. In fiscal year 2014, we acquired the assets of a business for $30.3 million. Assets acquired consisted primarily of purchased technology. The amounts and weighted-average lives of assets acquired during fiscal year 2015 are as follows:



($ in 000s)
	Amount Acquired		Weighted-Average Life (in years)
Reacquired franchise rights	$	60,906	6
Customer relationships	48,298		6
Noncompete agreements	6,000		5
Total	$	115,204	5

Amortization of intangible assets of continuing operations for the years ended April 30, 2015, 2014 and 2013 was $58.5 million, $30.9 million and $24.2 million, respectively. Estimated amortization of intangible assets for fiscal years 2016, 2017, 2018, 2019 and 2020 is $62.4 million, $53.7 million, $46.6 million, $36.5 million and $26.2 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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