Goodwill And Intangible Assets

12 Months Ended

Apr. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the years ended April 30, 2018 and 2017 are as follows:



(in 000s)
	Goodwill		Accumulated Impairment Losses			Net
Balances as of May 1, 2016	$	503,054	$	(32,297	)	$	470,757
Acquisitions	19,261		—			19,261
Disposals and foreign currency changes, net	1,189		—			1,189
Impairments	—		—			—
Balances as of April 30, 2017	523,504		(32,297		)	491,207
Acquisitions	15,983		—			15,983
Disposals and foreign currency changes, net	681		—			681
Impairments	—		—			—
Balances as of April 30, 2018	$	540,168	$	(32,297	)	$	507,871

We tested goodwill for impairment in the fourth quarter of fiscal year 2018, and did not identify any impairment.

Components of intangible assets are as follows:



(in 000s)
As of April 30,	2018							2017
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Reacquired franchise rights	$	339,779	$	(113,856	)	$	225,923	$	331,150	$	(90,877	)	$	240,273
Customer relationships	256,137		(164,005		)	92,132		234,603		(133,207		)	101,396
Internally-developed software	140,255		(111,734		)	28,521		139,709		(108,379		)	31,330
Noncompete agreements	32,899		(29,673		)	3,226		32,408		(27,559		)	4,849
Franchise agreements	19,201		(12,054		)	7,147		19,201		(10,774		)	8,427
Purchased technology	54,700		(37,770		)	16,930		54,700		(31,973		)	22,727
Acquired assets pending final allocation ⁽¹⁾	102		—			102		362		—			362
	$	843,073	$	(469,092	)	$	373,981	$	812,133	$	(402,769	)	$	409,364

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

The increase in the gross carrying amount of intangible assets resulted primarily from the acquisition of approximately 110 offices to our company-owned network. The amounts and weighted-average lives of assets acquired or added during fiscal year 2018 are as follows:



(dollars in 000s)
	Amount		Weighted-Average Life (in years)
Reacquired franchise rights	$	8,480	5
Customer relationships	24,518		6
Internally-developed software	16,821		2
Noncompete agreements	453		5
Total	$	50,272	4

Amortization of intangible assets of continuing operations for the years ended April 30, 2018, 2017 and 2016 was $79.9 million, $78.9 million and $72.8 million, respectively. Estimated amortization of intangible assets for fiscal years 2019, 2020, 2021, 2022 and 2023 is $68.6 million, $51.9 million, $36.5 million, $25.2 million and $13.4 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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