Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2018

13. Goodwill and Intangible Assets

Changes in the carrying value of goodwill by reportable segment were as follows. Also see Note 16—Subsequent Events for information regarding an impairment charge that the Company will record in the first quarter of fiscal 2019:


	Executive Search
	North America			EMEA			Asia Pacific		Subtotal			Hay Group			Futurestep			Consolidated
	(in thousands)
Balance as of May 1, 2016.	$	48,320		$	46,193		$	972	$	95,485		$	465,937		$	28,650		$	590,072
Adjustments		—			—			—		—			(8,179	)		—			(8,179	)
Exchange rate fluctuations.		(2,119	)		(1,217	)		—		(3,336	)		(517	)		(1,175	)		(5,028	)

Balance as of April 30, 2017.		46,201			44,976			972		92,149			457,241			27,475			576,865
Exchange rate fluctuations.		1,556			2,525			—		4,081			928			2,348			7,357

Balance as of April 30, 2018.	$	47,757		$	47,501		$	972	$	96,230		$	458,169		$	29,823		$	584,222

Tax deductible goodwill from the PIVOT Leadership acquisition was $7.0 million and $7.4 million as of April 30, 2018 and 2017, respectively.

Intangible assets include the following:


	April 30, 2018							April 30, 2017
	(in thousands)
Amortized intangible assets:	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Customer lists	$	125,099	$	(42,248	)	$	82,851	$	125,099	$	(31,094	)	$	94,005
Intellectual property		33,100		(20,112	)		12,988		33,100		(16,994	)		16,106
Proprietary databases		4,256		(3,628	)		628		4,256		(3,202	)		1,054
Non-compete agreements		910		(873	)		37		910		(833	)		77
Trademarks		3,986		(3,986	)		—		3,986		(3,986	)		—

Total	$	167,351	$	(70,847	)		96,504	$	167,351	$	(56,109	)		111,242

Unamortized intangible assets:
Trademarks							106,000							106,000
Exchange rate fluctuations							712							77

Total Intangible assets						$	203,216						$	217,319

Amortization expense for amortized intangible assets was $14.7 million, $15.4 million and $11.7 million during fiscal 2018, 2017 and 2016, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows:


Year Ending April 30,	Estimated Annual Amortization Expense
	(in thousands)
2019	$	13,487
2020		13,204
2021		13,071
2022		13,060
2023		11,208
Thereafter		32,474

	$	96,504

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

- 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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