Goodwill And Intangible Assets

3 Months Ended

Jul. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill of our Tax Services segment for the three months ended July 31, 2015 and 2014 are as follows:



(in 000s)
	Goodwill			Accumulated Impairment Losses			Net
Balances as of April 30, 2015	$	474,128		$	(32,297	)	$	441,831
Acquisitions	14,030			—			14,030
Disposals and foreign currency changes, net	(1,467		)	—			(1,467		)
Impairments	—			—			—
Balances as of July 31, 2015	$	486,691		$	(32,297	)	$	454,394

Balances as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117
Acquisitions	42,274			—			42,274
Disposals and foreign currency changes, net	454			—			454
Impairments	—			—			—
Balances as of July 31, 2014	$	511,142		$	(32,297	)	$	478,845

The increase in goodwill resulted from acquired franchisee and competitor businesses during the period. We expect the purchase price allocation to be finalized during fiscal year 2016.

We test goodwill 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.

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



(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2015:
Reacquired franchise rights	$	294,918	$	(51,233	)	$	243,685
Customer relationships	169,998		(83,471		)	86,527
Internally-developed software	120,522		(84,215		)	36,307
Noncompete agreements	30,576		(24,091		)	6,485
Franchise agreements	19,201		(8,534		)	10,667
Purchased technology	54,700		(21,362		)	33,338
	$	689,915	$	(272,906	)	$	417,009
As of July 31, 2014:
Reacquired franchise rights	$	233,749	$	(29,152	)	$	204,597
Customer relationships	123,130		(62,514		)	60,616
Internally-developed software	104,580		(75,243		)	29,337
Noncompete agreements	24,697		(22,408		)	2,289
Franchise agreements	19,201		(7,254		)	11,947
Purchased technology	54,974		(15,870		)	39,104
	$	560,331	$	(212,441	)	$	347,890
As of April 30, 2015:
Reacquired franchise rights	$	294,647	$	(46,180	)	$	248,467
Customer relationships	170,851		(78,157		)	92,694
Internally-developed software	118,865		(80,689		)	38,176
Noncompete agreements	30,630		(23,666		)	6,964
Franchise agreements	19,201		(8,214		)	10,987
Purchased technology	54,700		(19,846		)	34,854
	$	688,894	$	(256,752	)	$	432,142

Amortization of intangible assets for the three months ended July 31, 2015 was $16.6 million. Amortization of intangible assets for the three months ended July 31, 2014 was $11.2 million. Estimated amortization of intangible assets for fiscal years 2016, 2017, 2018, 2019 and 2020 is $64.1 million, $55.7 million, $48.6 million, $36.9 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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