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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Apr. 30, 2014	Jun. 19, 2014	Oct. 31, 2013
Document and Entity Information
Entity Registrant Name	JTH Holding, Inc.
Entity Central Index Key	0001528930
Document Type	10-K
Document Period End Date	Apr. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		11,643,767
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Public Float			$ 94,605,337

Consolidated Balance Sheets - USD ($)	Apr. 30, 2014	Apr. 30, 2013
Current assets:
Cash and cash equivalents	$ 46,080,000	$ 19,013,000
Receivables (note 2):
Trade accounts	43,122,000	41,856,000
Notes	27,715,000	34,156,000
Interest, net	415,000	877,000
Allowance for doubtful accounts	(5,596,000)	(5,583,000)
Total receivables, net	65,656,000	71,306,000
Available-for-sale securities (note 3)	0	3,619,000
Assets Held-for-sale, at Carrying Value	4,413,000	0
Deferred income taxes (note 13)	4,058,000	4,232,000
Other current assets	5,325,000	4,963,000
Total current assets	125,532,000	103,133,000
Property, equipment, and software, net (note 4)	38,343,000	33,037,000
Notes receivable, excluding current portion, net (note 2)	15,824,000	14,352,000
Goodwill (note 5)	2,997,000	5,685,000
Other intangible assets, net (note 5)	14,295,000	10,921,000
Other assets, net	1,772,000	2,402,000
Total assets	198,763,000	169,530,000
Current liabilities:
Current installments of long-term debt (note 6)	6,797,000	3,400,000
Accounts payable and accrued expenses	15,023,000	11,954,000
Due to ADs (note 2)	18,236,000	18,248,000
Income taxes payable (note 13)	9,676,000	5,897,000
Deferred revenue - short-term portion	6,051,000	7,555,000
Total current liabilities	55,783,000	47,054,000
Long-term debt, excluding current installments (note 6)	21,691,000	24,283,000
Revolving credit facility (note 7)	0	0
Deferred revenue - long-term portion	8,059,000	10,381,000
Liability classified stock-based compensation awards (note 10)	0	5,111,000
Deferred income taxes (note 13)	3,045,000
Deferred Tax Liabilities, Net, Noncurrent		865,000
Total liabilities	88,578,000	87,694,000
Stockholders' equity (notes 9, 10, and 14):
Additional paid-in capital	9,411,000	1,920,000
Accumulated other comprehensive income, net of taxes	66,000	1,194,000
Retained earnings	100,574,000	78,592,000
Total stockholders' equity	110,185,000	81,836,000
Total liabilities and stockholders' equity	198,763,000	169,530,000
Class A Preferred stock
Stockholders' equity (notes 9, 10, and 14):
Preferred stock	0	0
Special voting preferred stock
Stockholders' equity (notes 9, 10, and 14):
Preferred stock	0	0
Class A Common stock
Stockholders' equity (notes 9, 10, and 14):
Common stock	124,000	120,000
Class B Common stock
Stockholders' equity (notes 9, 10, and 14):
Common stock	9,000	9,000
Exchangeable shares
Stockholders' equity (notes 9, 10, and 14):
Common stock	$ 1,000	$ 1,000

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2014	Apr. 30, 2013
Class A Preferred stock
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred stock, shares authorized	190,000	190,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Special voting preferred stock
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred stock, shares authorized	10	10
Preferred stock, shares issued	10	10
Preferred stock, shares outstanding	10	10
Class A Common stock
Par value (in dollars per share)	$ 0.01	$ 0.01
Authorized shares	21,200,000	21,200,000
Common stock, shares issued	12,409,208	11,975,128
Common stock, shares outstanding	12,409,208	11,975,128
Class B Common stock
Par value (in dollars per share)	$ 0.01	$ 0.01
Authorized shares	1,000,000	1,000,000
Common stock, shares issued	900,000	900,000
Common stock, shares outstanding	900,000	900,000
Exchangeable shares
Par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued	100,000	100,000
Common stock, shares outstanding	100,000	100,000

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Revenue:
Franchise fees	$ 7,844	$ 8,721	$ 7,996
AD fees	6,680	7,699	6,702
Royalties and advertising fees	78,426	73,129	70,016
Financial products	34,512	30,345	22,903
Interest income (note 2)	14,231	13,848	12,406
Tax preparation fees, net of discounts	14,295	10,148	7,026
Other revenue	3,708	3,723	4,176
Total revenue	159,696	147,613	131,225
Operating expenses:
Employee compensation and benefits	38,399	37,998	29,802
Selling, general, and administrative expenses	34,756	31,212	26,878
AD expense	27,319	25,736	23,872
Advertising expense	15,124	15,293	15,346
Depreciation, amortization, and impairment charges (notes 4 and 5)	9,277	6,538	5,999
Costs associated with postponed IPO	0	0	1,348
Total operating expenses	124,875	116,777	103,245
Income from operations	34,821	30,836	27,980
Other income (expense):
Foreign currency transaction gain (loss)	(13)	0	4
Net Realized and Unrealized Gain (Loss) on Trading Securities	2,183	0	0
Interest expense	(1,355)	(2,039)	(1,854)
Income before income taxes	35,636	28,797	26,130
Income tax expense (note 13)	13,654	11,170	9,747
Net income	$ 21,982	$ 17,627	$ 16,383
Net income per share of Class A and Class B common stock:
Basic (in dollars per share)	$ 1.57	$ 1.26	$ 1.17
Diluted (in dollars per share)	$ 1.51	$ 1.25	$ 1.16

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Statement of Comprehensive Income [Abstract]
Net income	$ 21,982	$ 17,627	$ 16,383
Interest rate swap agreements, net of taxes of $-, $268, and $123, respectively (note 8)	0	438	196
Unrealized gain on available-for-sale securities, net of taxes of $608, $237, and $-, respectively (note 4)	975	387	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	(1,362)	0	0
Foreign currency translation adjustment	(741)	(307)	99
Comprehensive income	$ 20,854	$ 18,145	$ 16,678

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Consolidated Statements of Comprehensive Income OCI Parentheticals - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2014	Apr. 30, 2013	Apr. 30, 2012
Statement of Comprehensive Income [Abstract]
Interest rate swap agreements	$ 0	$ 268	$ 123
Unrealized appreciation on available-for-sale securities	608	237	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	$ 821	$ 0	$ 0

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Additional paid-in capital	Accumulated other comprehensive income	Retained earnings	Class A Common stock	Class B Common stock	Class A Preferred stock	Special voting preferred stock	Exchangeable shares
Balance at beginning of period (As Reported) at Apr. 30, 2011	$ 52,018	$ 4,811	$ 381	$ 44,582	$ 105	$ 9	$ 2,129	$ 0	$ 1
Balance at beginning of period at Apr. 30, 2011					$ 103	$ 9	$ 2,129	$ 0
Balance at beginning of period (in shares) (As Reported) at Apr. 30, 2011					10,519	900	170	0	100
Balance at beginning of period (in shares) at Apr. 30, 2011					10,344	900	170	0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (note 10)	742	741	0	0	$ 1	$ 0	$ 0	$ 0	$ 0
Exercise of stock options (note 10) (in shares)					110	0	0	0	0
Repurchase of common stock	(4,260)	(4,257)	0	0	$ (3)	$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(285)	0	0	0	0
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures									0
Stock-based compensation expense (note 10)	1,429	1,429	0	0					$ 0
Conversion of stock-based compensation awards from liability to equity classification (note 10)	0
Conversion of stock based compensation from liability to equity method	0
Tax benefit of stock option exercises (note 13)	458	458	0	0					0
Net income (As Restated)	16,383	0	0						0
Interest rate swap agreements, net of taxes (note 8)	196	0	196	0					0
Foreign currency translation adjustment	99	0	99	0					0
Unrealized gain on equity securities available-for-sale, net of taxes (note 3)	0
Balance at end of period at Apr. 30, 2012	67,065	3,182	676	60,965	$ 103	$ 9	$ 2,129	$ 0	$ 1
Balance at end of period (in shares) at Apr. 30, 2012					10,344	900	170	0	100
Stock Issued During Period, Shares, Conversion of Convertible Securities									0
Stock Issued During Period, Value, Conversion of Convertible Securities	0	2,112	0	0					$ 0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (note 10)	3,801	3,797	0	0	$ 4	$ 0	$ 0	$ 0	$ 0
Exercise of stock options (note 10) (in shares)					350	0	0	0	0
Repurchase of common stock	(6,456)	(6,452)	0	0	$ (4)	$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(422)	0	0	0	0
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures									0
Conversion of Stock, Description					1703	0	-170	0
Conversion of Stock, Amount Converted					$ 17	$ 0	$ (2,129)	$ 0
Stock-based compensation expense (note 10)	1,496	1,496	0	0					$ 0
Conversion of stock-based compensation awards from liability to equity classification (note 10)	(2,486)	(2,486)	0	0					0
Conversion of stock based compensation from liability to equity method	0
Tax benefit of stock option exercises (note 13)	271	271	0	0					0
Net income (As Restated)	17,627	0	0		16,386	1,241			0
Interest rate swap agreements, net of taxes (note 8)	438	0	438	0					0
Foreign currency translation adjustment	(307)	0	(307)	0					0
Unrealized gain on equity securities available-for-sale, net of taxes (note 3)	387	0	387	0					0
Balance at end of period at Apr. 30, 2013	$ 81,836	1,920	1,194	78,592	$ 120	$ 9	$ 0	$ 0	$ 1
Balance at end of period (in shares) at Apr. 30, 2013					11,975	900	0	0	100
Stock Issued During Period, Shares, Conversion of Convertible Securities	0				15		0	0
Stock Issued During Period, Value, Conversion of Convertible Securities					$ 0	$ 0	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (note 10)	$ 13,979	13,970	0	0	$ 9	$ 0	$ 0	$ 0	$ 0
Exercise of stock options (note 10) (in shares)					956	0	0	0	0
Stock Issued During Period, Shares, New Issues					1	0	0	0
Stock Issued During Period, Value, New Issues					$ 0	$ 0	$ 0	$ 0
Repurchase of common stock	(13,079)	(13,074)	0	0	$ (5)	$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(538)	0	0		0
Repurchase of preferred stock (in shares)								0
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures									0
Stock-based compensation expense (note 10)	2,074	2,074	0	0					$ 0
Conversion of stock-based compensation awards from liability to equity classification (note 10)	0	4,238	0	0					0
Conversion of stock based compensation from liability to equity method	4,238
Tax benefit of stock option exercises (note 13)	283	283	0	0					0
Net income (As Restated)	21,982	0	0		$ 20,459	$ 1,523			0
Interest rate swap agreements, net of taxes (note 8)	0
Foreign currency translation adjustment	(741)	0	(741)	0					0
Unrealized gain on equity securities available-for-sale, net of taxes (note 3)	975	0		0					0
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes			(387)
Balance at end of period at Apr. 30, 2014	$ 110,185	$ 9,411	$ 66	$ 100,574	$ 124	$ 9	$ 0	$ 0	$ 1
Balance at end of period (in shares) at Apr. 30, 2014					12,409	900	0	0	100

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Apr. 30, 2014 USD ($)	Apr. 30, 2013 USD ($)	Apr. 30, 2012 USD ($)
Statement of Cash Flows [Abstract]
Payments to Acquire Short-term Investments	$ (59)	$ 0	$ 0
Cash flows from operating activities:
Net income	21,982	17,627	16,383
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	8,692	7,098	5,788
Depreciation and amortization	7,836	5,750	5,511
Amortization of deferred financing costs	334	301	418
Impairment of goodwill and other intangible assets	1,441	788	488
Impairment of Long-Lived Assets to be Disposed of	75	0	0
Stock-based compensation expense related to equity classified awards	2,074	1,496	1,429
Stock-based compensation expense (income) related to liability classified awards	(872)	2,625	0
Gain on bargain purchases and sales of Company-owned offices	(1,143)	(777)	(973)
Net Realized and Unrealized Gain (Loss) on Trading Securities	(2,183)	0	0
Equity in loss of affiliate	214	193	138
Deferred tax expense	2,605	4,119	2,304
Changes in:
Trade, notes, and interest receivable and deferred revenue	(7,708)	(13,857)	(11,599)
Prepaid expenses and other assets	(573)	210	(95)
Accounts payable and accrued expenses	2,643	(1,837)	(3,559)
Due to ADs	4,284	5,213	3,989
Income taxes	3,781	(508)	221
Net cash provided by operating activities	43,482	28,441	20,443
Cash flows from investing activities:
Issuance of operating loans to franchisees	(76,013)	(75,605)	(67,969)
Payments received on operating loans to franchisees	71,722	68,782	60,918
Purchases of AD rights, Company-owned offices, and acquired customer lists	(8,706)	(5,980)	(4,741)
Proceeds from sale of Company-owned offices and AD rights	2,879	4,072	2,146
Purchase of available-for-sale securities	0	(2,980)	0
Proceeds from Sale of Short-term Investments	5,163	0	0
Purchase of equity method investment	0	0	(1,009)
Purchases of property, equipment, and software	(9,149)	(11,928)	(10,288)
Net cash used in investing activities	(14,045)	(23,639)	(20,943)
Cash flows from financing activities:
Proceeds from the exercise of stock options	13,979	3,801	742
Repurchase of common stock	(13,079)	(6,456)	(4,260)
Term debt borrowings	0	0	25,000
Repayment of long-term debt	(3,398)	(2,953)	(2,118)
Borrowings under revolving credit facility	137,391	121,216	124,270
Repayments under revolving credit facility	(137,391)	(121,216)	(124,270)
Payment for debt issue costs	0	(289)	(1,123)
Tax benefit of stock option exercises	283	271	458
Net cash provided by (used in) financing activities	(2,215)	(5,626)	18,699
Effect of exchange rate changes on cash, net	(155)	(11)	(13)
Net increase (decrease) in cash and cash equivalents	27,067	(835)	18,186
Cash and cash equivalents at beginning of year	19,013	19,848	1,662
Cash and cash equivalents at end of year	46,080	19,013	19,848
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest of $378	1,179	1,872	1,640
Cash paid for taxes, net of refunds	7,022	7,328	7,222
During the years ended April 30, 2014, 2013, and 2012, the Company acquired certain assets from franchisees, ADs, and third parties as follows:
Fair value of assets purchased	18,253	10,714	12,050
Receivables applied, net of amounts due ADs and related deferred revenue	(5,336)	(3,079)	(5,769)
Notes and accounts payable issued	(4,211)	(1,655)	(1,540)
Cash paid to franchisees, ADs, and third parties	8,706	5,980	4,741
During the years ended April 30, 2014, 2013, and 2012, the Company sold certain assets to franchisees and ADs as follows:
Book value of assets sold	8,135	6,517	5,929
Loss on sale	(160)	(417)	(191)
Deferred gain on sale	1,872	2,846	1,370
Notes received	(6,968)	(4,874)	(4,962)
Cash received from franchisees and ADs	2,879	4,072	2,146
Accrued capitalized software costs included in accounts payable	149	733	345
Assets Held for Sale, net of impairment	4,413	0	0
Adjustments to Additional Paid in Capital, Stock Options Settled, Conversion of Stock-based Compensation Awards to Liability Classification	0	2,486	0
Conversion of stock based compensation from liability to equity method	$ 4,238	$ 0	$ 0

Organization and Significant Accounting Policies

12 Months Ended

Apr. 30, 2014

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

Description of Business and Summary of Significant Accounting Policies

Description of Business

JTH Holding, Inc. (the "Company"), a Delaware corporation, is a holding company engaged through its subsidiaries as a franchisor and operator of a system of income tax preparation offices located in the United States and Canada. The Company's principal operations are conducted through JTH Tax, Inc. (d/b/a Liberty Tax Service), the Company's largest subsidiary. Through this system of income tax preparation offices, the Company also facilitates refund-based tax settlement financial products, such as instant cash advances, refund transfer products, and personal income tax refund discounting. Additionally, the Company offers online tax preparation services.

Basis of Presentation

The consolidated financial statements include the accounts of JTH Holding, Inc. and its wholly-owned subsidiaries. Assets and liabilities of the Company's Canadian operations have been translated into U.S. dollars using the exchange rate in effect at the end of the year. Revenues and expenses have been translated using the average exchange rates in effect each month of the year. Transaction gains and losses are recognized when incurred. The Company consolidates entities in which it has a controlling interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation an entity, in which the Company has certain interest where a controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity ("VIE"), is required to be consolidated by its primary beneficiary. The Company does not possess any ownership interests in franchisee entities; however, the Company may provide financial support to franchisee entities. Because the Company's franchise arrangements provide franchisee entities the power to direct the activities that most significantly impact their economic performance, the Company does not consider itself the primary beneficiary of any such entity that might be a VIE. Based on the results of management's analysis of potential VIEs, the Company has not consolidated any franchisee entities. The Company's maximum exposure to loss resulting from involvement with potential VIEs is attributable to accounts and notes receivables and future lease payments due from franchisees. When the Company does not have a controlling interest in an entity but exerts significant influence over the entity, the Company applies the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation.

The audited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). In the opinion of management, all adjustments necessary for a fair presentation of such financial statements in accordance with GAAP have been recorded.

Office Count

The following table shows the U.S. office activity and the number of Canadian and Company-owned offices for the 2014, 2013, and 2012 tax seasons.



	Tax Season
	2014		2013		2012

Franchised U.S. offices, operated during the prior tax season	4,028		3,845		3,549
U.S. offices opened	558		596		676
U.S. offices purchased from the Company	66		60		37
U.S. offices acquired by the Company	(91	)	(64	)	(76	)
U.S. offices closed	(566	)	(409	)	(341	)
Franchised U.S. offices, operated during the tax season	3,995		4,028		3,845

Franchised Canadian offices, operated during the tax season	227		231		244

Total franchised offices, operated during the tax season	4,222		4,259		4,089

Company-owned offices, operated during the tax season
U.S.	180		234		75
Canadian	36		27		19
Total	216		261		94

Total offices operated during the tax season	4,438		4,520		4,183

Significant Accounting Policies

Cash and Cash Equivalents - For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents in bank deposit accounts, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on its cash and cash equivalents balances.

Trade Accounts Receivable - Trade accounts receivable are recorded at the invoiced amount less an allowance for doubtful accounts and accrue finance charges at 12% annually if unpaid after 30 days. Account balances are charged off against the allowance after all possible means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance-sheet credit exposure related to its accounts receivable.

Notes Receivable - Notes receivable are recorded less unrecognized revenue, net of an allowance for doubtful accounts. Unrecognized revenue relates to the financed portion of franchise fees and area developer ("AD") fees and, in the case of sales of Company-owned offices, the financed portion of gains related to such sales in each case where revenue has not yet been recognized. The Company provides an allowance against accrued interest on a delinquent note when a scheduled payment becomes 90 days past due. Notes are written off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote.

Concentrations of credit risks - Financial instruments that could potentially subject the Company to concentrations of credit risks consist of accounts and notes receivable with its franchisees. The Company manages such risk by evaluating the financial position of the franchisees, value of the franchises, as well as the personal guarantee of the individual franchisees. At April 30, 2014 and 2013, there were no significant concentrations of credit risk associated with any individual franchisee or group of franchisees. The Company maintains an allowance for potential losses based on its expected collectability of the receivables, which the Company believes is adequate for its credit loss exposure.

Allowance for Doubtful Accounts - The allowance for doubtful accounts includes the Company's best estimate of the amount of probable credit losses in the Company's existing accounts and notes receivable. Because the repayment of accounts and notes receivable is dependent on the performance of the underlying franchises, management estimates the amount of the allowance for doubtful accounts based on a comparison of amounts due to the estimated fair value of the underlying franchises.

Available-for-sale Securities - During 2013, the Company purchased corporate equity securities that were subsequently sold during 2014. The Company classified this investment as available-for-sale and recognized the unrealized gain on the available-for-sale securities, net of tax, in accumulated other comprehensive income in the stockholders' equity section of the balance sheets. Cash flows for the purchase and sale of this investment were classified as investing activities.

Assets Held for Sale - Assets held for sale consist of Company-owned offices that the Company intends to sell to a new or existing franchisee within one year. Assets held for sale are recorded at the lower of the carrying value or the estimated sales price, less costs to sell, and are evaluated for impairment at least annually.

Property, Equipment, and Software - Property, equipment, and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets, generally three to five years for computer equipment, three to seven years for software, seven years for furniture and fixtures, and twenty to thirty-five years for buildings. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful lives of the assets. Certain allowable costs of software developed or obtained for internal use are capitalized and typically amortized over the estimated useful life of the software.

Goodwill - Goodwill represents the excess of costs over fair value of assets of businesses acquired. The reporting unit for the acquisition of assets from various franchisees is considered to be the franchise territory, and these assets are operated as Company-owned offices. Goodwill is not amortized, but instead tested for impairment at least annually. Goodwill is tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset's fair value. This determination is made at the reporting unit level and consists of two steps. First, the Company determines the fair value of a reporting unit and compares it with its carrying amount. Second, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. Fair value of the reporting unit for Company-owned offices is determined using the net fees of the offices in the franchise territory. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed.

Deferred Revenue - Deferred revenue represents the amount of cash received for AD fees in excess of the revenue recognized.

Revenue Recognition - The Company earns revenue from the sales of franchises and granting of AD rights. Additionally, the Company earns revenue from royalties and advertising fees and other products. Typically, franchise rights are granted to franchisees for a term of 5 years with an option to renew at no additional cost. In exchange for franchise fees and royalties and advertising fees, the Company is obligated by its franchise agreements to provide training, an operations manual, site selection guidance, tax preparation software, operational assistance, tax and technical support, the ability to perform electronic filing, and marketing and advertising. Franchise fee revenue for the sales of individual territories is recognized when the obligations of the Company to prepare the franchisee for operation are substantially complete and cash has been received.

AD rights have historically been granted for a term of 10 years. AD fees are recognized as revenue on a straight-line basis over the initial contract term of each AD agreement with the cumulative amount of revenue recognized not to exceed the amount of cash received. Amounts due to ADs for their services under an area development agreement are expensed as the related franchise fees and royalty revenues are recognized.

Royalties and advertising fees are recognized as franchise territories generate sales. Tax return preparation fees and financial products revenue are recognized as revenue in the period the related tax return is filed for the customer. Discounts for promotional programs are recorded at the time the return is filed and are recorded as reductions to revenues.

Interest income is recognized when cash is received for notes associated with franchise fees or AD fees. For all other notes, interest income is recognized when earned, and is recorded net of an allowance.

Gains on sales of Company-owned offices are recognized when the purchase price is paid. Losses on sales of Company-owned offices are recognized immediately.

Derivative Instruments and Hedging Activities - The Company recognizes all derivative instruments as either assets or liabilities in the balance sheet at their respective fair values. For derivatives designated in hedging relationships, changes in fair value are either offset through earnings against the change in fair value of the hedged item attributable to the risk being hedged or recognized in accumulated other comprehensive income to the extent the derivative is effective at offsetting the changes in cash flows being hedged until the hedged item affects earnings.

The Company only enters into a derivative contract when it intends to designate the contract as a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). For all hedging relationships, the Company formally documents the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk; the derivative expires or is sold, terminated, or exercised; the cash flow hedge is de-designated because a forecasted transaction is not probable of occurring; or management determines to remove the designation of the cash flow hedge.

In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is no longer probable that a forecasted transaction will occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship.

At April 30, 2014 and 2013, the Company did not have any outstanding derivative instruments or hedging activities; however, at April 30, 2012, the Company had interest rate swaps.

Deferred Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities, which are shown on our consolidated balance sheets, are recognized for the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company has elected to classify interest charged on a tax settlement in interest expense, and accrued penalties, if any, in selling, general, and administrative expenses.

Intangible Assets and Other Long-Lived Assets - The Company's long-lived assets, such as property, plant, and equipment, and other purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. Recognition and measurement of a potential impairment is performed for these assets at the lowest level where cash flows are individually identifiable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Fair value is determined through various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, as considered necessary. Assets to be disposed of are no longer depreciated. These assets are classified as held-for-sale and are presented separately in the appropriate section of the consolidated balance sheets at the lower of their carrying amount or fair value less estimated cost to sell.

Comprehensive Income - Comprehensive income consists of net income, foreign currency translation adjustments, interest rate swap agreements, net of taxes, and the unrealized gain on equity securities available for sale, net of taxes, and is presented in the accompanying consolidated statements of stockholders' equity and comprehensive income.

Advertising Expenses - Advertising costs are expensed in the period incurred.

Stock-Based Compensation - The Company records the cost of its employee stock-based compensation as compensation expense in its consolidated statements of income based on the grant-date fair value of awards using the Black-Scholes-Merton option pricing model. For liability classified awards the Company records costs based on the fair value at the reporting date. The Company recognizes compensation costs for an award that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. The Company reflects the excess tax benefits related to stock option exercises as additional paid-in capital on its consolidated balance sheets and as financing cash flows on its consolidated statements of cash flows.

Compensation costs related to restricted stock units are based on the grant-date fair value and are amortized to compensation expense over the vesting period.

Costs Associated with Postponed IPO - During April 2012, the Company determined it would postpone its planned initial public offering and, accordingly, expensed the direct, incremental fees charged by attorneys, accountants, and printers that had been incurred and capitalized up to that date.

Use of Estimates

Management has made a number of estimates and assumptions related to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements and accompanying notes in conformity with GAAP. Actual results could differ from those estimates.

Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360). This update changes the criteria for reporting discontinued operations for all public and nonpublic entities as well as requiring new disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations reporting. Public business entities should apply the amendments in this update prospectively to all disposals of components of an entity and all business or nonprofit activities that, on acquisition, are classified as held for sale that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements.

On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company on May 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting.

Segment Reporting

Management has identified two operating segments, U.S. operations and Canadian operations. Although there are two operating segments, each segment is engaged in providing tax return preparation and related services and products. These two operating segments, which have similar gross margin and sales trends, have been aggregated into a single reporting segment because both segments are similar in the nature of services offered, production process, type of customer, the distribution methods, and the regulatory environment that they operate in. Canadian operations contributed $6.4 million, $5.9 million, and $5.4 million in revenues for the years ended April 30, 2014, 2013, and 2012, respectively.

Notes and Accounts Receivable

12 Months Ended

Apr. 30, 2014

Receivables [Abstract]

Notes and Accounts Receivable

Accounts and Notes Receivable

The Company provides financing to franchisees for the purchase of franchises, clusters of territories, Company-owned offices, and for working capital and equipment needs. The franchise-related notes generally are payable over five years and the working capital and equipment notes generally are due within one year. Most notes bear interest at 12%. Activity related to notes receivable for the years ended April 30, 2014 and 2013 is as follows:



	2014			2013
	(In thousands)
Balance at beginning of year	$	89,340		$	79,838
Notes received for:
Sales of franchises and clusters of territories	8,032			6,770
Sales of certain assets to franchisees and ADs	11,714			15,130
Franchisee to franchisee note assumptions	9,421			11,259
Working capital and equipment loans to franchisees	76,012			75,642
Refinancing of accounts receivable	7,176			18,527
	112,355			127,328
Repayment of notes	(95,469		)	(95,664		)
Notes canceled	(21,325		)	(21,981		)
Foreign currency adjustment	(407		)	(181		)
Balance at end of year	84,494			89,340
Unrecognized revenue portion of notes receivable	(39,701		)	(39,731		)
Notes receivable less unrecognized revenue	$	44,793		$	49,609

Most of the notes receivable are due from the Company's franchisees and ADs and are collateralized by the underlying franchise and, when the franchise or AD is an entity, are guaranteed by the owners of the respective entity. The debtors' ability to repay the notes is dependent upon both the performance of the tax preparation industry as a whole and the individual franchisees' or ADs' areas.

The refinancing of accounts receivable resulted from a franchisee electing to deliver to the Company a promissory note for past-due royalties and advertising fees that had been previously recorded as accounts receivable in the consolidated financial statements. Effective October 1, 2013, the Company reduced the interest rate on its past due accounts receivable from 18% to 12% and ceased its practice of refinancing accounts receivable into notes receivable.

Notes canceled are comprised of the cancellation of existing unpaid notes of selling franchisees in franchisee to franchisee sales that include the assumption of debt by the acquiring franchisee and any unpaid notes receivable from a franchisee or AD related to specific territories or clusters of territories that the Company reacquires or terminates. In the latter transactions, the cancellation of notes is part of the consideration paid by the Company, and any excess of the consideration paid over the fair value of assets acquired is written off to the allowance for doubtful accounts. The adequacy of the allowance for doubtful accounts is assessed and adjusted as deemed necessary on a quarterly basis.

Unrecognized revenue relates to the financed portion of franchise fees and AD fees and, in the case of sales of Company-owned offices, the financed portion of gains related to these sales in each case where revenue has not yet been recognized. For franchise fees and gains related to the sale of Company-owned offices, revenue is recorded as note payments are received by the Company. Payments on AD fee notes receivable generate a corresponding increase in deferred revenue, which is amortized into revenue over the life of the AD contract, generally 10 years. Although the timing of actual payments will determine revenues recognized in future periods, the scheduled contractual note payments on the unrecognized portion of these notes for the next five years and thereafter are as follows.



	2015		2016		2017		2018		2019		Thereafter		Total
	(In thousands)
Franchise fees and Company-owned offices	$	7,024	$	3,215	$	2,893	$	3,037	$	200	$	—	$	16,369
AD fees	5,952		3,563		3,861		3,508		2,531		3,917		23,332
Total unrecognized revenue	$	12,976	$	6,778	$	6,754	$	6,545	$	2,731	$	3,917	$	39,701

Notes and accounts receivable include royalties billed that relate to territories operated by franchisees located in AD territories. The Company has recorded amounts payable to ADs for their share of these receivables of $18.2 million at both April 30, 2014 and 2013.

Allowance for Doubtful Accounts

Management believes that the recorded allowance is adequate based upon its consideration of the estimated value of the franchises and ADs supporting the receivables. Any adverse change in the tax preparation industry or the individual franchisees' or ADs' areas could affect the Company's estimate of the allowance. Activity in the allowance for doubtful accounts for the years ended April 30, 2014, 2013, and 2012 was as follows.



	2014			2013			2012
	(In thousands)
Beginning balance	$	6,684		$	5,290		$	4,827
Additions charged to expense	8,692			7,098			5,788
Write-offs	(8,460		)	(5,655		)	(5,595		)
Foreign currency adjustment	(66		)	(49		)	270
Ending balance	$	6,850		$	6,684		$	5,290

The allocation of the allowance for doubtful accounts between short-term and long-term as of April 30, 2014, 2013, and 2012 was as follows.



	2014		2013		2012
	(In thousands)
Short-term	$	5,596	$	5,583	$	4,496
Long-term	1,254		1,101		794
Total allowance for doubtful accounts	$	6,850	$	6,684	$	5,290

Management considers accounts and notes receivable to be impaired if the amounts due exceed the fair value of the underlying franchise and estimates an allowance for doubtful accounts based on that excess. Amounts due include contractually obligated accounts and notes receivable plus accrued interest less unrecognized revenue reduced by the allowance for uncollected interest, amounts due ADs, the related deferred revenue, and amounts owed to the franchisee by the Company. In establishing the fair value of the underlying franchise, management considers net fees of open offices earned during the most recently completed tax season and the number of unopened offices.

The allowance for doubtful accounts at April 30, 2014 and 2013 is allocated as follows.



	2014			2013
	(In thousands)
Impaired:
Accounts receivable	$	6,083		$	5,907
Notes receivable including interest less unrecognized revenue	9,221			9,399
Less allowance for uncollected interest, amounts due ADs, related deferred revenue, and amounts due franchisees	(2,592		)	(2,336		)
Net amount due	$	12,712		$	12,970
Allowance for doubtful accounts for impaired accounts and notes receivable	$	6,131		$	6,120
Nonimpaired:
Accounts receivable	$	38,965		$	37,650
Notes receivable including interest less unrecognized revenue	37,050			42,459
Less allowance for uncollected interest, amounts due ADs, related deferred revenue, and amounts due franchisees	(19,381		)	(19,992		)
Net amount due	$	56,634		$	60,117
Allowance for doubtful accounts for nonimpaired accounts and notes receivable	$	719		$	564
Total allowance for doubtful accounts	$	6,850		$	6,684

The Company's average investment in impaired notes receivable during the fiscal years ended April 30, 2014, 2013, and 2012 was $8.7 million, $8.1 million, and $6.4 million, respectively. Interest income recognized related to performing impaired notes was $874 thousand, $794 thousand, and $423 thousand for the fiscal years ended April 30, 2014, 2013, and 2012, respectively.

Age Analysis of Past Due Receivables

The aging analysis of accounts and notes receivable at April 30, 2014 and 2013 was as follows.



	2014
	Total past due		Allowance for uncollected interest			Current		Total receivables
	(In thousands)
Accounts receivable	$	19,672	$	(1,926	)	$	25,376	$	43,122
Notes receivable including interest less unrecognized revenue	11,880		(1,063		)	34,391		45,208
Total accounts and notes receivable	$	31,552	$	(2,989	)	$	59,767	$	88,330



	2013
	Total past due		Allowance for uncollected interest			Current		Total receivables
	(In thousands)
Accounts receivable	$	16,821	$	(1,701	)	$	26,736	$	41,856
Notes receivable including interest less unrecognized revenue	9,747		(1,372		)	42,111		50,486
Total accounts and notes receivable	$	26,568	$	(3,073	)	$	68,847	$	92,342

Accounts receivable are considered to be past due if unpaid after 30 days, and notes receivable are considered past due if unpaid after 90 days, at which time the notes are put on nonaccrual status. The Company's investment in notes receivable on nonaccrual status at April 30, 2014 and 2013 was $10.8 million and $8.4 million, respectively. Payments received on notes in nonaccrual status are applied to interest first until the note is current and then to the principal balance of the note. Nonaccrual notes that are paid current are moved back into accrual status during an annual review.

Property, Equipment, and Software, Net

12 Months Ended

Apr. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Equipment, and Software, Net

Property, equipment, and software at April 30, 2014 and 2013 was as follows:



	2014		2013
	(In thousands)
Land and land improvements	$	2,253	$	1,328
Buildings and building improvements	7,419		7,602
Leasehold improvements	200		225
Furniture, fixtures, and equipment	6,746		6,388
Software	44,036		36,500
Property, equipment, and software, gross	60,654		52,043
Less accumulated depreciation and amortization	22,311		19,006
Property, equipment, and software, net	$	38,343	$	33,037

Total depreciation and amortization expense on property, equipment, and software was $3.8 million, $3.1 million, and $3.6 million for the years ended April 30, 2014, 2013, and 2012, respectively.

The software included above includes both internally developed software and purchased software. Included in software are $6.7 million and $21.7 million of assets that had not been placed into service at April 30, 2014 and 2013, respectively.

The Company is obligated under various operating leases for office space that expire at various dates. At April 30, 2014, future minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year, together with amounts due from franchisees under subleases, are as follows.



	Lease payments		Sublease receipts
	(In thousands)
Year ending April 30:
2015	$	3,334	$	2,052
2016	1,775		1,009
2017	1,045		613
2018	484		234
2019	236		141
Thereafter	114		121
Total minimum lease payments	$	6,988	$	4,170

Total rent expense for operating leases, net of subleases, was $3.4 million, $3.2 million, and $2.4 million for the years ended April 30, 2014, 2013, and 2012, respectively.

Investments	12 Months Ended
Investments	Apr. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Investments	Investments During the year ended April 30, 2013, the Company purchased corporate equity securities for $3.0 million as a strategic investment in a business partner. The Company classified this investment as available for sale. These securities were sold during the fiscal year ended April 30, 2014. The sale resulted in a realized gain of $2.2 million, which was reclassified out of accumulated other comprehensive income and recorded as other income in our consolidated statements of income. No sales of available-for-sale securities occurred and, therefore, no gross realized gains or losses were recorded for the fiscal years ended April 30, 2013 and 2012. The unrealized gain, net of tax, on the available-for-sale securities at April 30, 2013 was $387 thousand. We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We did not record any other-than-temporary impairments of available-for-sale securities during fiscal years 2014, 2013, or 2012.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Goodwill and Intangible Assets

12 Months Ended

Apr. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill for the years ended April 30, 2014 and 2013 are as follows.



	Goodwill			Accumulated impairment loss			Net
	(In thousands)
Balance at April 30, 2012	$	6,157		$	(757	)	$	5,400
Acquisitions of assets from franchisees	3,449			—			3,449
Disposals and foreign currency changes, net	(3,149		)	610			(2,539		)
Impairments and write-downs	—			(625		)	(625		)
Balance at April 30, 2013	6,457			(772		)	5,685
Acquisitions of assets from franchisees	4,855			—			4,855
Disposals and foreign currency changes, net	(3,805		)	188			(3,617		)
Impairments and write-downs	—			(1,026		)	(1,026		)
Reclassified to assets held for sale	(4,425		)	1,525			(2,900		)
Balance at April 30, 2014	$	3,082		$	(85	)	$	2,997

The Company performed its annual impairment review of goodwill and recorded impairment of $606 thousand and $625 thousand for the years ended April 30, 2014 and 2013, respectively.

Components of our amortizable intangible assets are as follows.



	April 30, 2014
	Weighted average amortization period	Gross carrying amount		Accumulated amortization			Net carrying amount
	(In thousands)
Amortizable intangible assets:
Acquired customer lists	6 years	$	4,816	$	(995	)	$	3,821
Assets acquired from franchisees:
Customer lists	4 years	551		(387		)	164
Reacquired rights	2 years	481		(338		)	143
AD rights	10 years	13,641		(3,474		)	10,167
Total intangible assets		$	19,489	$	(5,194	)	$	14,295



	April 30, 2013
	Weighted average amortization period	Gross carrying amount		Accumulated amortization			Net carrying amount
	(In thousands)
Amortizable intangible assets:
Acquired customer lists	7 years	$	1,603	$	(171	)	$	1,432
Assets acquired from franchisees:
Customer lists	4 years	1,834		(582		)	1,252
Reacquired rights	2 years	1,640		(905		)	735
AD rights	10 years	9,842		(2,340		)	7,502
Total intangible assets		$	14,919	$	(3,998	)	$	10,921

In January 2014, the Company purchased certain assets of an online tax preparation software provider for $3.2 million. In December 2012, the Company purchased certain assets of an online tax preparation software provider for $1.6 million. The entire purchase price of both acquisitions has been allocated to identifiable intangible assets.

For the years ended April 30, 2014, 2013, and 2012 the Company acquired assets from various franchisees for $9.0 million, $6.3 million, and $8.4 million respectively. These acquisitions were accounted for as business combinations, with all value allocated to intangible assets. Acquired businesses are operated as Company-owned offices until a buyer is located and a new franchise agreement is entered into. The purchase price of assets acquired from franchisees was allocated as follows.



	2014		2013		2012
	(In thousands)
Customer lists	$	2,372	$	1,631	$	1,913
Reacquired rights	1,806		1,216		1,674
Goodwill	4,855		3,449		4,859
Total purchase price of assets acquired from franchisees	$	9,033	$	6,296	$	8,446

For the years ended April 30, 2014, 2013, and 2012, amortization expense was $4.1 million, $2.7 million, and $1.9 million, respectively.

The Company expects that assets associated with Company-owned offices will be sold before the end of their estimated useful life. Therefore, during the years ended April 30, 2014, 2013, and 2012, impairment analyses were performed for amortizable intangible assets. Write-downs of assets acquired from franchisees relate to purchases of offices that the Company decided not to operate. As a result, the carrying values of assets acquired from franchisees were reduced by $941 thousand for the fiscal year ended April 30, 2014, $788 thousand for 2013, and $488 thousand for 2012. These amounts were expensed to depreciation, amortization, and impairment charges on the consolidated statements of income. The Company estimated the fair value of the assets acquired from franchisees based on a third-party valuation.

The Company reclassified assets associated with its U.S. Company-owned offices from goodwill, other intangible assets, and property, equipment and software to assets held for sale. It is the Company's intent to sell these offices within one year and they are being actively marketed. An impairment charge of $500 thousand was recorded upon classification of these assets as held for sale and expensed to depreciation, amortization, and impairment charges on the consolidated statements of income. The amounts reclassified from each category were as follows:



	Assets Held for Sale
	(In thousands)
Customer lists	$	1,259
Reacquired rights	624
Goodwill	2,900
Property, equipment, and software	130
Total assets transferred to assets held for sale	4,913
Impairment charge on assets held for sale	(500		)
Total assets held for sale at April 30, 2014	$	4,413

Estimated aggregate annual amortization expense for the next five years is as follows.



	Amortization expense
	(In thousands)
Year ending April 30:
2015	$	2,730
2016	2,313
2017	2,060
2018	1,877
2019	1,636
Total amortization expense	$	10,616

- 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.

+ References + Details

Credit Facility	12 Months Ended
Credit Facility	Apr. 30, 2014
Line of Credit Facility [Abstract]
Credit Facility	Credit Facility In April 2012, JTH Tax, Inc. entered into a revolving credit facility which consists of a $25.0 million term loan and a $105.0 million revolving credit facility with an accordion feature permitting the Company to request an increase in availability of up to an additional $70.0 million. On December 28, 2012, the Company utilized the accordion feature to increase the borrowing limit under the revolving credit facility by $38.4 million increasing the maximum borrowings under that portion of its credit facility to $143.4 million. The outstanding borrowings on both loans accrue interest, which is paid monthly, at an adjusted one-month London Inter-Bank Offered Rate ("LIBOR") rate plus a margin that varies from 1.50% to 2.25%, depending on the Company's leverage ratio. At April 30, 2014, the interest rate was 1.78%, and the average interest rate paid was 1.88% during the fiscal year ended April 30, 2014. A commitment fee that varies from 0.25% to 0.50% depending on the Company's leverage ratio on the unused portion of the credit facility is paid monthly. The indebtedness is collateralized by substantially all the assets of the Company and both loans mature on April 30, 2017. The credit facility contains certain financial covenants that the Company must meet, including leverage and fixed-charge coverage ratios as well as minimum net worth requirements. In addition, the Company must reduce the outstanding balance under its revolving loan to zero for a period of at least 45 consecutive days each fiscal year. The Company's borrowing availability on the credit facility at April 30, 2014 was $118.2 million. At April 30, 2014 and 2013, the Company had no outstanding borrowings under its revolving credit facility, and at April 30, 2014, the balance of the term loan was $21.9 million. The Company was in compliance with the financial covenants of its credit facility at April 30, 2014. The credit facility also contains certain events of default that if they occur may cause the bank syndicate to terminate the credit facility and declare amounts owed to become immediately payable. At April 30, 2014, the Company has not incurred an event of default.

Long-Term Debt

12 Months Ended

Apr. 30, 2014

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt at April 30, 2014 and 2013 is as follows.



	2014		2013
	(In thousands)
Term loan payable in quarterly principal installments of 2.5%, 2.5%, and 3.125% of the original amount borrowed for the years ending April 30, 2015, 2016, and 2017, respectively; at that time a balloon payment of $14,531 is payable.	$	21,875	$	23,750
Mortgage note payable to a bank in monthly installments of $16 including interest at 6.06% through September 2016; at that time a balloon payment of $2,213 is payable; subject to a prepayment penalty; collateralized by land and building.	2,326		2,370
Notes payable for acquired assets from former ADs at zero percent interest; due May 2014 through August 2014.	4,211		1,439
Other debt	76		124
Total long-term debt	28,488		27,683
Less current installments	6,797		3,400
Total long-term debt, less current installments	$	21,691	$	24,283

Aggregate maturities of long-term debt at April 30, 2014 are as follows (in thousands).



Year ending April 30:
2015	$	6,797
2016	2,580
2017	19,111
Total long-term debt	$	28,488

Derivative Instruments and Hedging Activities	12 Months Ended
Derivative Instruments and Hedging Activities	Apr. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities From time to time, the Company uses interest-rate-related derivative financial instruments to manage its exposure related to changes in interest rates on its variable-rate line of credit and forward contracts to manage its exposure to foreign currency fluctuation related to short-term advances made to its Canadian subsidiary. The Company does not speculate using derivative instruments nor does it enter into derivative instruments for any purpose other than cash flow hedging. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company money, which creates credit risk for the Company. When the fair value of a derivative contract is negative, the Company owes the counterparty money, and therefore, the Company is not exposed to the counterparty's credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high-quality counterparties. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates. The market risk associated with interest rates is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Company assesses interest rate risk by continually identifying and monitoring changes in interest rates that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate risk attributable to both the Company's outstanding or forecasted debt obligations and forecasted revenues as well as the Company's offsetting hedge positions. The risk management control systems involve the use of analytical techniques, including cash flow sensitivity analysis, to estimate the expected impact of changes in interest rates and foreign currency rates on the Company's future cash flows. It is the policy of the Company to enter into forward contracts at the time short-term advances are made to its Canadian subsidiary. Interest rate swap agreements. On July 1, 2009, the Company entered into interest rate swap agreements with a financial institution to manage fluctuations in cash flows resulting from changes in the one-month LIBOR interest rate on its line of credit. These swaps effectively changed the variable-rate line of credit into a fixed-rate line of credit. For the notional amounts, the Company received a variable interest rate based on the one-month LIBOR and paid a fixed interest rate of 2.49% to 2.52%, depending on the agreement. The notional amounts of the interest rate swaps varied from $10.0 million to $70.0 million per month, in relation to the Company's forecasted seasonal borrowings. These interest rate swaps were designated as cash flow hedges. During the year ended April 30, 2012, $92 thousand of income was recognized in the consolidated statements of income due to the ineffectiveness of these interest rate swaps. No income was recognized in connection with the interest rate swaps during the year ended April 30, 2013 and they expired in March 2013. Forward contracts related to foreign currency exchange rates. In connection with short-term advances made to its Canadian subsidiary related to personal income tax refund discounting, the Company enters into forward contracts to eliminate the exposure related to foreign currency fluctuations. Under the terms of the forward currency contracts, the exchange rate for repayments is fixed at the time advance is made and the advances are repaid prior to April 30 of each year. These forward contracts are designated as cash flow hedges. At April 30, 2014 and 2013, there were no remaining forward contracts outstanding. During the years ended April 30, 2014, 2013, and 2012, these foreign currency hedges were effective and, therefore, no amounts were recognized in the consolidated statements of income. At April 30, 2014, there were no deferred gains on derivative instruments accumulated in other comprehensive income.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Income Taxes

12 Months Ended

Apr. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

The Company computes its expense or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.

In January 2013, the American Taxpayer Relief Act of 2012 was signed into law. The Act includes a reinstatement of the federal research and experimentation credit through December 31, 2013 that was retroactive to January 1, 2012. During the three months ended January 31, 2013, we recorded a discrete tax benefit of approximately $395 thousand for the retroactive effect. Due to the expiration of the credit on December 31, 2013, we reduced the projected tax benefit of fiscal 2014 credit by $140 thousand, which represents a third of our fiscal year projected credit. Should the credit again be extended retroactively, we will record the benefit in the quarter of enactment.

Interest incurred from income taxes is recognized as incurred and recorded as income tax expense on the financial statement. Penalties are recognized as incurred and recorded as nondeductible penalties expense and included in general and administrative expense on the income statement.

Total income taxes were calculated for the years ended April 30, 2014, 2013, and 2012 as follows.



	2014			2013			2012
	(In thousands)
Income taxes	$	13,654		$	11,170		$	9,747
Tax expense (benefit) related to stock option exercises	(283		)	(271		)	(458		)
Interest rate swap agreements	—			257			152
Unrealized appreciation on available-for-sale securities	(252		)	252			—
Foreign currency translation adjustment	—			—			(550		)
Total income taxes	$	13,119		$	11,408		$	8,891

Components of income tax expense for the years ended April 30, 2014, 2013, and 2012 are as follows.



	2014			2013			2012
	(In thousands)
Current:
Federal	$	8,632		$	5,368		$	5,961
State	2,036			1,254			1,160
Foreign	381			429			322
Current tax expense	11,049			7,051			7,443
Deferred:
Federal	2,192			3,365			1,963
State	517			787			382
Foreign	(104		)	(33		)	(41