GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill of our Tax Services segment for the years ended April 30, 2013 and 2012 are as follows:
|
| | | | | | | | | | | | |
(in 000s) | |
| | Goodwill |
| | Accumulated Impairment Losses |
| | Net |
|
Balance at April 30, 2011 | | $ | 459,039 |
| | $ | (24,888 | ) | | $ | 434,151 |
|
Acquisitions | | 5,377 |
| | — |
| | 5,377 |
|
Disposals and foreign currency changes, net | | (4,553 | ) | | — |
| | (4,553 | ) |
Impairments | | — |
| | (7,409 | ) | | (7,409 | ) |
Balance at April 30, 2012 | | 459,863 |
| | (32,297 | ) | | 427,566 |
|
Acquisitions | | 7,625 |
| | — |
| | 7,625 |
|
Disposals and foreign currency changes, net | | (409 | ) | | — |
| | (409 | ) |
Impairments | | — |
| | — |
| | — |
|
Balance at April 30, 2013 | | $ | 467,079 |
| | $ | (32,297 | ) | | $ | 434,782 |
|
We tested goodwill for impairment in the fourth quarter of fiscal year 2013, and did not identify any impairment.
In fiscal year 2012, we discontinued service under our ExpressTax brand and closed approximately 200 underperforming company-owned offices. As a result, we recorded an impairment of goodwill, in the amount of $7.4 million. There is no remaining goodwill related to our ExpressTax brand. We recorded a $22.7 million impairment in our former RedGear reporting unit in fiscal year 2011.
Components of the intangible assets of our Tax Services segment are as follows:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
(in 000s) | |
As of April 30, | | 2013 | | 2012 |
| | Gross Carrying Amount |
| | Accumulated Amortization |
| | Net |
| | Gross Carrying Amount |
| | Accumulated Amortization |
| | Net |
|
Reacquired franchise rights | | $ | 214,330 |
| | $ | (18,204 | ) | | $ | 196,126 |
| | $ | 214,330 |
| | $ | (14,083 | ) | | $ | 200,247 |
|
Customer relationships | | 100,719 |
| | (48,733 | ) | | 51,986 |
| | 90,433 |
| | (46,504 | ) | | 43,929 |
|
Internally-developed software | | 91,745 |
| | (72,764 | ) | | 18,981 |
| | 104,685 |
| | (92,472 | ) | | 12,213 |
|
Noncompete agreements | | 23,058 |
| | (21,728 | ) | | 1,330 |
| | 22,337 |
| | (21,425 | ) | | 912 |
|
Franchise agreements | | 19,201 |
| | (5,654 | ) | | 13,547 |
| | 19,201 |
| | (4,373 | ) | | 14,828 |
|
Purchased technology | | 14,800 |
| | (12,331 | ) | | 2,469 |
| | 14,700 |
| | (10,665 | ) | | 4,035 |
|
Trade name | | 300 |
| | (300 | ) | | — |
| | 1,300 |
| | (800 | ) | | 500 |
|
| | $ | 464,153 |
| | $ | (179,714 | ) | | $ | 284,439 |
| | $ | 466,986 |
| | $ | (190,322 | ) | | $ | 276,664 |
|
Amortization of intangible assets of continuing operations for the years ended April 30, 2013, 2012 and 2011 was $24.2 million, $27.8 million and $29.5 million, respectively. We recorded impairments of various intangible assets totaling $3.6 million during fiscal year 2013, including those related to our former RedGear reporting unit. We recorded an impairment of customer relationships of $4.0 million during fiscal year 2012, related to the discontinuation of our ExpressTax brand, as discussed above. Estimated amortization of intangible assets for fiscal years 2014, 2015, 2016, 2017 and 2018 is $22.1 million, $18.2 million, $14.8 million, $12.3 million and $11.3 million, respectively.
