| Goodwill and Intangible Assets |
14. 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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|
|
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|
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|
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|
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Consulting
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Digital
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North
America
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EMEA
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Asia
Pacific
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RPO &
Professional
Search
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Consolidated
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(in thousands)
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Balance as of May 1, 2020
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$
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173,014
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$
|
322,727
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|
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$
|
45,721
|
|
|
$
|
44,494
|
|
|
$
|
972
|
|
|
$
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27,015
|
|
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$
|
613,943
|
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Adjustments
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—
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2,643
|
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|
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—
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|
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—
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|
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—
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|
|
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—
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2,643
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|
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Exchange rate fluctuations
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|
396
|
|
|
|
1,258
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|
|
|
2,777
|
|
|
|
2,955
|
|
|
|
—
|
|
|
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2,697
|
|
|
|
10,083
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Balance as of April 30, 2021
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173,410
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326,628
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48,498
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47,449
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|
972
|
|
|
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29,712
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|
|
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626,669
|
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Additions (1)
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—
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|
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—
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|
|
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—
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|
|
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—
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|
|
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—
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|
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104,962
|
|
|
|
104,962
|
|
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Exchange rate fluctuations
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(440
|
)
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(1,274
|
)
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|
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(934
|
)
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|
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(877
|
)
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|
—
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(2,514
|
)
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(6,039
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)
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Balance as of April 30, 2022
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$
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172,970
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$
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325,354
|
|
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$
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47,564
|
|
|
$
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46,572
|
|
|
$
|
972
|
|
|
$
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132,160
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$
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725,592
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(1)
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Additions to goodwill in fiscal 2022 was due to $76.8 million and $28.2 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively.
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Tax deductible goodwill from the Miller Heiman acquisition was $22.7 million and $24.5 million as of April 30, 2022 and 2021, respectively. Tax deductible goodwill from the PIVOT Leadership acquisition was $5.9 million and $6.6 million as of April 30, 2022 and 2021, respectively.
Intangible assets include the following:
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April 30, 2022
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April 30, 2021
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(in thousands)
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Amortized intangible assets:
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Gross
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Accumulated
Amortization
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Net
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Gross
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Accumulated
Amortization
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Net
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Customer lists
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$
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146,799
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$
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(89,024
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)
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$
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57,775
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|
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$
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131,299
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|
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$
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(76,489
|
)
|
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$
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54,810
|
|
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Intellectual property
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69,100
|
|
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(40,720
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)
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28,380
|
|
|
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69,100
|
|
|
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(33,623
|
)
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35,477
|
|
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Proprietary databases
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4,256
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|
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(4,256
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)
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|
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—
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4,256
|
|
|
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(4,234
|
)
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|
22
|
|
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Non-compete agreements
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|
910
|
|
|
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(910
|
)
|
|
|
—
|
|
|
|
910
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|
|
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(910
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)
|
|
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—
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Trademarks
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8,986
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|
|
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(5,261
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)
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3,725
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7,186
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|
|
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(4,636
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)
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2,550
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Total (1)
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$
|
230,051
|
|
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$
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(140,171
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)
|
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|
89,880
|
|
|
$
|
212,751
|
|
|
$
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(119,892
|
)
|
|
|
92,859
|
|
|
Exchange rate fluctuations
|
|
|
|
|
|
|
|
|
|
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(110
|
)
|
|
|
|
|
|
|
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|
90
|
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Total Intangible assets
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|
|
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|
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$
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89,770
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|
|
|
|
|
|
|
|
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$
|
92,949
|
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(1)
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In fiscal 2022 there were intangible assets additions of $11.6 million and $5.7 million from the acquisition of the Lucas Group and Patina Solutions Group, respectively.
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Acquisition-related intangible assets acquired in fiscal 2022 consists of customer relationships and tradenames of $15.5 million and $1.8 million, respectively, with weighted-average useful lives from the date of purchase of seven years and two years, respectively.
Amortization expense for amortized intangible assets was $20.3 million, $19.2 million and $16.3 million during fiscal 2022, 2021 and 2020, respectively. Estimated annual amortization expense related to amortizing intangible assets is as follows:
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Year Ending April 30,
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Estimated
Annual
Amortization
Expense
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(in thousands)
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2023
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$
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20,384
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2024
|
|
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17,583
|
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2025
|
|
|
16,889
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2026
|
|
|
16,388
|
|
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2027
|
|
|
10,635
|
|
|
Thereafter
|
|
|
7,891
|
|
|
|
|
$
|
89,770
|
|
All amortizable intangible assets will be fully amortized by the end of fiscal 2032.
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