Goodwill and Intangible Assets |
13. Goodwill and Intangible Assets
Changes in the carrying value of goodwill by reportable segment
were as follows:
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Executive Search |
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North
America |
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EMEA |
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Asia
Pacific |
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Subtotal |
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Hay Group |
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Futurestep |
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Consolidated |
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(in
thousands) |
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Balance as of May 1, 2015.
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$ |
49,603 |
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$ |
45,922 |
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$ |
972 |
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$ |
96,497 |
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$ |
129,549 |
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$ |
28,394 |
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$ |
254,440 |
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Additions
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— |
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— |
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— |
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— |
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335,921 |
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— |
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335,921 |
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Exchange rate fluctuations.
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(1,283 |
) |
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271 |
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— |
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(1,012 |
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467 |
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256 |
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(289 |
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Balance as of April 30, 2016.
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48,320 |
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46,193 |
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972 |
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95,485 |
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465,937 |
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28,650 |
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590,072 |
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Adjustments
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— |
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— |
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— |
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— |
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(8,179 |
) |
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— |
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(8,179 |
) |
Exchange rate fluctuations.
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(2,119 |
) |
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(1,217 |
) |
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— |
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(3,336 |
) |
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(517 |
) |
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(1,175 |
) |
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(5,028 |
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Balance as of April 30, 2017.
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$ |
46,201 |
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$ |
44,976 |
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$ |
972 |
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$ |
92,149 |
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$ |
457,241 |
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$ |
27,475 |
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$ |
576,865 |
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Intangible assets include the following:
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April 30, 2017 |
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April 30, 2016 |
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(in
thousands) |
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Amortized intangible assets: |
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Gross |
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Accumulated
Amortization |
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Net |
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Gross |
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Accumulated
Amortization |
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Net |
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Customer lists
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$ |
125,099 |
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$ |
(31,094 |
) |
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$ |
94,005 |
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$ |
125,099 |
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$ |
(19,910 |
) |
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$ |
105,189 |
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Intellectual property
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33,100 |
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(16,994 |
) |
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16,106 |
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33,100 |
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(13,281 |
) |
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19,819 |
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Proprietary databases
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4,256 |
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(3,202 |
) |
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1,054 |
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4,256 |
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(2,777 |
) |
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1,479 |
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Trademarks
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3,986 |
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(3,986 |
) |
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— |
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3,986 |
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(3,986 |
) |
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— |
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Non-compete agreements
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910 |
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(833 |
) |
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77 |
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910 |
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(753 |
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157 |
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Total
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$ |
167,351 |
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$ |
(56,109 |
) |
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111,242 |
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$ |
167,351 |
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$ |
(40,707 |
) |
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126,644 |
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Unamortized intangible assets:
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Trademarks
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106,000 |
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106,000 |
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Exchange rate fluctuations
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77 |
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383 |
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Total Intangible assets
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$ |
217,319 |
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$ |
233,027 |
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Acquisition-related intangible assets acquired in fiscal 2016 in
connection with the acquisition of Legacy Hay consists of customer
lists and intellectual property of $84.0 million and $10.2 million,
respectively, with weighted-average useful lives from the date of
purchase of 11 years and seven years, respectively.
Acquisition-related intangible assets not subject to amortization
acquired in connection with the acquisition of Legacy Hay consists
of trademarks of $102.2 million.
Amortization expense for amortized intangible assets was $15.4
million, $11.7 million and $8.2 million during fiscal 2017, 2016
and 2015, respectively. Estimated annual amortization expense
related to amortizing intangible assets is as follows:
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Year Ending April 30,
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Estimated
Annual
Amortization
Expense
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(in thousands)
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2018
|
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$ |
14,742 |
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2019
|
|
|
13,487 |
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2020
|
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|
13,204 |
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2021
|
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|
13,280 |
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2022
|
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|
13,269 |
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Thereafter
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|
43,260 |
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$ |
111,242 |
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All amortizable intangible assets will be fully amortized by the
end of fiscal 2031.
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