Goodwill And Intangible Assets

6 Months Ended

Oct. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6: GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill for the six months ended October 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	1,852			—			1,852
Disposals and foreign currency changes, net	(1,615		)	—			(1,615		)
Impairments	—			—			—
Balances as of October 31, 2015	$	474,365		$	(32,297	)	$	442,068

Balances as of April 30, 2014	$	468,414		$	(32,297	)	$	436,117
Acquisitions	28,378			—			28,378
Disposals and foreign currency changes, net	(313		)	—			(313		)
Impairments	—			—			—
Balances as of October 31, 2014	$	496,479		$	(32,297	)	$	464,182

The increase in goodwill during the period ended October 31, 2014, resulted from acquired franchisee and competitor businesses where the purchase price allocation had not been finalized. These allocations were finalized by the end of fiscal year 2015.

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 are as follows:



(in 000s)
	Gross Carrying Amount		Accumulated Amortization			Net
As of October 31, 2015:
Reacquired franchise rights	$	316,142	$	(56,731	)	$	259,411
Customer relationships	182,137		(89,340		)	92,797
Internally-developed software	123,263		(88,091		)	35,172
Noncompete agreements	32,428		(24,632		)	7,796
Franchise agreements	19,201		(8,854		)	10,347
Purchased technology	54,700		(22,877		)	31,823
Acquired assets pending final allocation ⁽¹⁾	28,878		—			28,878
	$	756,749	$	(290,525	)	$	466,224
As of October 31, 2014:
Reacquired franchise rights	$	278,159	$	(33,721	)	$	244,438
Customer relationships	148,407		(66,714		)	81,693
Internally-developed software	110,140		(77,925		)	32,215
Noncompete agreements	28,960		(22,774		)	6,186
Franchise agreements	19,201		(7,574		)	11,627
Purchased technology	54,700		(16,814		)	37,886
	$	639,567	$	(225,522	)	$	414,045
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

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

Amortization of intangible assets for the three and six months ended October 31, 2015 was $17.9 million and $34.5 million, respectively. Amortization of intangible assets for the three and six months ended October 31, 2014 was $13.2 million and $24.5 million, respectively. Estimated amortization of intangible assets for fiscal years 2016, 2017, 2018, 2019 and 2020 is $68.8 million, $61.9 million, $54.2 million, $42.2 million and $31.1 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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