Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

14. Goodwill and Intangible Assets

Changes in the carrying value of goodwill by reportable segment were as follows:

							Executive Search
	Consulting			Digital			North America			EMEA			Asia Pacific		RPO & Professional Search			Consolidated
	(in thousands)
Balance as of May 1, 2019	$	173,147		$	284,214		$	46,571		$	45,480		$	972	$	27,914		$	578,298
Additions		—			38,926			—			—			—		—			38,926
Exchange rate fluctuations		(133	)		(413	)		(850	)		(986	)		—		(899	)		(3,281	)
Balance as of April 30, 2020		173,014			322,727			45,721			44,494			972		27,015			613,943
Adjustments		—			2,643			—			—			—		—			2,643
Exchange rate fluctuations		396			1,258			2,777			2,955			—		2,697			10,083
Balance as of April 30, 2021	$	173,410		$	326,628		$	48,498		$	47,449		$	972	$	29,712		$	626,669

Tax deductible goodwill from the Miller Heiman acquisition was $24.5 million and $34.9 million as of April 30, 2021 and 2020, respectively. Tax deductible goodwill from the PIVOT Leadership acquisition was $6.6 million and $7.2 million as of April 30, 2021 and 2020, respectively.

Intangible assets include the following:

	April 30, 2021							April 30, 2020
	(in thousands)
Amortized intangible assets:	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Customer lists	$	131,299	$	(76,489	)	$	54,810	$	131,299	$	(64,762	)	$	66,537
Intellectual property		69,100		(33,623	)		35,477		69,100		(26,548	)		42,552
Proprietary databases		4,256		(4,234	)		22		4,256		(4,202	)		54
Non-compete agreements		910		(910	)		—		910		(910	)		—
Trademarks		7,186		(4,636	)		2,550		7,186		(4,236	)		2,950
Total	$	212,751	$	(119,892	)		92,859	$	212,751	$	(100,658	)		112,093
Exchange rate fluctuations							90							(167	)
Total Intangible assets						$	92,949						$	111,926

Acquisition-related intangible assets acquired in fiscal 2020 consists of IP, customer relationships and tradenames of $36.0 million, $6.2 million, and $3.2 million, respectively, with weighted-average useful lives from the date of purchase of seven years, ten years, and nine years, respectively.

During fiscal 2019, the Company decided to further integrate our go-to-market activities under one master brand —Korn Ferry, and discontinued the use of all sub-brands. Two of the Company’s sub-brands, Hay Group and Lominger, were acquired by Korn Ferry through acquisitions. As a result of the decision to discontinue their use, the Company took a non-cash intangible asset impairment charge of $106.6 million during fiscal 2019, recorded in general and administrative expenses on the accompanying statement of income, of which $77.0 million was recorded in the Consulting reportable segment and $29.6 million in the Digital reportable segment.

Amortization expense for amortized intangible assets was $19.2 million, $16.3 million and $13.5 million during fiscal 2021, 2020 and 2019, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows:

Year Ending April 30,	Estimated Annual Amortization Expense
	(in thousands)
2022	$	19,123
2023		17,271
2024		14,794
2025		14,679
2026		14,174
Thereafter		12,908
	$	92,949

All amortizable intangible assets will be fully amortized by the end of fiscal 2032.