Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2014

13. Goodwill and Intangible Assets

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


	Executive Recruitment
	North America			EMEA			Asia Pacific		Subtotal			LTC		Futurestep			Consolidated
	(in thousands)
Balance as of April 30, 2012.	$	55,608		$	50,664		$	972	$	107,244		$	36,251	$	32,843		$	176,338
Additions		—			—			—		—			82,839		—			82,839
Exchange rate fluctuations.		(1,095	)		(400	)		—		(1,495	)		—		(389	)		(1,884	)

Balance as of April 30, 2013.		54,513			50,264			972		105,749			119,090		32,454			257,293
Additions (1)		—			—			—		—			229		—			229
Exchange rate fluctuations.		(2,427	)		1,293			—		(1,134	)		31		1,163			60

Balance as of April 30, 2014.	$	52,086		$	51,557		$	972	$	104,615		$	119,350	$	33,617		$	257,582

(1)	During fiscal 2014, adjustments to the preliminary purchase accounting allocation relating to the PDI acquisition, resulted in an increase in goodwill (see Note 12 — Acquisitions).

Intangible assets include the following:


	Weighted- Average Amortization Period		April 30, 2014								April 30, 2013
			(in thousands)
Amortized intangible assets:			Gross		Accumulated Amortization			Net			Gross		Accumulated Amortization			Net
Customer lists		10 years	$	34,899	$	(8,674	)	$	26,225		$	34,899	$	(4,887	)	$	30,012
Intellectual property		20 years		22,900		(7,009	)		15,891			22,900		(3,887	)		19,013
Proprietary databases		10 years		4,256		(1,925	)		2,331			4,256		(1,500	)		2,756
Trademarks		4 years		3,686		(2,559	)		1,127			3,686		(1,331	)		2,355
Non-compete agreements		5 years		810		(610	)		200			810		(510	)		300

Total		11 years	$	66,551	$	(20,777	)		45,774		$	66,551	$	(12,115	)		54,436

Unamortized intangible assets:
Trademarks									3,800								3,800
Exchange rate fluctuations									(14	)							(49	)

Intangible assets								$	49,560							$	58,187

Amortization expense for amortized intangible assets was $8.7 million, $5.0 million and $2.2 million during fiscal 2014, 2013 and 2012, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows:


Year Ending April 30,	Estimated Annual Amortization Expense
	(in thousands)
2015	$	8,081
2016		7,017
2017		5,701
2018		5,008
2019		3,754
Thereafter		16,213

	$	45,774

All amortizable intangible assets will be fully amortized by the end of fiscal 2031.

- 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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