7. Stock Appreciation Rights, Deferred Compensation and Redeemable Noncontrolling Interests

Certain subsidiaries have equity based compensation arrangements with certain of the subsidiary’s employees and minority shareholders. These arrangements are stock appreciation rights, deferred compensation agreements and liabilities to noncontrolling interest holders. Since these arrangements are typically settled in cash or notes, and do not meet the criteria established by ASC 718 to be accounted for in “Stockholders’ equity”, they are accounted for as liability awards. These liability awards are reflected at their fair values as of July 31, 2017 and April 30, 2017.

Stock appreciation rights—Certain subsidiaries have granted stock appreciation rights to certain employees under which payments are dependent on the appreciation in the book value per share, adjusted for certain provisions, of the applicable subsidiary. Settlements of the awards can be made in a combination of cash or installment notes, generally paid over four years, upon a triggering event. Vesting periods vary by grant date but all remaining unvested awards will vest by the end of the second quarter in fiscal 2018. Current liabilities related to these plans of $529 and $878 were included in “Accrued compensation and employee benefits” at July 31, 2017 and April 30, 2017, respectively. Long‑term liabilities related to these plans of $20,723 and $19,784 were recorded as components of “Other liabilities” at July 31, 2017 and April 30, 2017, respectively. Below is a summary of changes to the liability:


Stock appreciation rights as of May 1, 2017 (fair value)	$	20,662
Amounts redeemed		—
Change in fair value		590
Stock appreciation rights as of July 31, 2017 (fair value)	$	21,252

Deferred compensation—Certain shareholders of the Company’s subsidiaries have entered into other deferred compensation agreements that granted the shareholders a payment based on a percentage in excess of book value, adjusted for certain provisions, upon an occurrence as defined in the related agreements, which are called “Buy Sell” agreements. Current liabilities related to these plans of $344 and $480 were included in “Accrued compensation and employee benefits” at July 31, 2017 and April 30, 2017, respectively The long-term liabilities related to these plans of $3,522 and $3,450 were included in “Other liabilities” at July 31, 2017 and April 30, 2017, respectively. These instruments are redeemed in cash or installment notes, generally paid in annual installments generally over the five years following termination of employment. Below is a summary of changes to the liability:


Deferred compensation as of May 1, 2017 (fair value)	$	3,750
Amounts redeemed		—
Change in fair value		116
Deferred compensation as of July 31, 2017 (fair value)	$	3,866

Liabilities to noncontrolling interest holders—As described in Note 1, noncontrolling interests were issued to certain employees of the Company’s subsidiaries. All of the noncontrolling interest awards are subject to mandatory redemption on termination of employment for any reason. These instruments are redeemed in cash or installment notes and are generally paid in annual installments generally over the five years following termination of employment.

Liabilities related to these agreements are classified as share based liability awards and are measured at fair value under ASC 718. As of July 31, 2017 and April 30, 2017, the total fair value of these liabilities was $24,059 and $24,309, respectively. Amounts expected to be paid in the next year as of July 31, 2017 and April 30, 2017 are included in “Accrued compensation and employee benefits” in the amounts of $2,498 and $1,733, respectively. As of July 31, 2017 and April 30, 2017, long-term liabilities related to this plan of $21,560 and $22,576, respectively, were included in “Liabilities to noncontrolling interest holders, less current portion.” Below is a summary of changes to the liability:


Non-controlling interests as of May 1, 2017 (fair value)	$	24,309
Amounts redeemed		(1,000)
Change in fair value		750
Non-controlling interests as of July 31, 2017 (fair value)	$	24,059

Upon the termination of employment or other triggering events including death or disability of the noncontrolling stockholders in the Company’s subsidiaries, we are obligated to purchase, or redeem, the noncontrolling interests at either an agreed upon price or a formula value provided in the stockholder agreements. This formula value is typically based on the book value per share of the subsidiary’s equity, including certain adjustments.