Goodwill And Intangible Assets

3 Months Ended

Jul. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the three months ended July 31, 2017 and 2016 are as follows:



(in 000s)
	Goodwill		Accumulated Impairment Losses			Net
Balances as of April 30, 2017	$	523,504	$	(32,297	)	$	491,207
Acquisitions	252		—			252
Disposals and foreign currency changes, net	2,532		—			2,532
Impairments	—		—			—
Balances as of July 31, 2017	$	526,288	$	(32,297	)	$	493,991

Balances as of April 30, 2016	$	503,054	$	(32,297	)	$	470,757
Acquisitions	23		—			23
Disposals and foreign currency changes, net	162		—			162
Impairments	—		—			—
Balances as of July 31, 2016	$	503,239	$	(32,297	)	$	470,942

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 intangible assets are as follows:



(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of July 31, 2017:
Reacquired franchise rights	$	331,371	$	(96,600	)	$	234,771
Customer relationships	235,413		(140,881		)	94,532
Internally-developed software	143,206		(112,894		)	30,312
Noncompete agreements	32,498		(28,143		)	4,355
Franchise agreements	19,201		(11,094		)	8,107
Purchased technology	54,700		(33,444		)	21,256
Acquired assets pending final allocation ⁽¹⁾	639		—			639
	$	817,028	$	(423,056	)	$	393,972
As of July 31, 2016:
Reacquired franchise rights	$	319,545	$	(72,977	)	$	246,568
Customer relationships	206,606		(110,696		)	95,910
Internally-developed software	132,897		(99,873		)	33,024
Noncompete agreements	31,492		(26,045		)	5,447
Franchise agreements	19,201		(9,814		)	9,387
Purchased technology	54,700		(27,425		)	27,275
Acquired assets pending final allocation ⁽¹⁾	2,298		—			2,298
	$	766,739	$	(346,830	)	$	419,909
As of April 30, 2017:
Reacquired franchise rights	$	331,150	$	(90,877	)	$	240,273
Customer relationships	234,603		(133,207		)	101,396
Internally-developed software	139,709		(108,379		)	31,330
Noncompete agreements	32,408		(27,559		)	4,849
Franchise agreements	19,201		(10,774		)	8,427
Purchased technology	54,700		(31,973		)	22,727
Acquired assets pending final allocation ⁽¹⁾	362		—			362
	$	812,133	$	(402,769	)	$	409,364

⁽¹⁾ Represents business acquisitions for which final purchase price allocations have not yet been determined.

Amortization of intangible assets for the three months ended July 31, 2017 and 2016 was $19.2 million and $18.0 million, respectively. Estimated amortization of intangible assets for fiscal years 2018, 2019, 2020, 2021 and 2022 is $75.8 million, $61.0 million, $44.7 million, $30.5 million and $20.2 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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