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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Apr. 30, 2015	Jun. 23, 2015	Oct. 31, 2014
Document and Entity Information
Entity Registrant Name	Liberty Tax, Inc.
Entity Central Index Key	0001528930
Document Type	10-K
Document Period End Date	Apr. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Entity Common Stock, Shares Outstanding		11,920,712
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 268,395,343

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 30, 2015	Apr. 30, 2014
Current assets:
Cash and cash equivalents	$ 21,387	$ 46,080
Receivables:
Accounts receivable	46,121	43,122
Notes receivable - current	24,465	27,715
Interest receivable, net of uncollectible amounts	1,033	415
Allowance for doubtful accounts - current	(5,692)	(5,596)
Total current receivables, net	65,927	65,656
Assets Held for Sale	5,160	4,413
Deferred income tax asset	6,921	4,058
Other current assets	6,470	5,325
Total current assets	105,865	125,532
Property, equipment, and software, net	36,232	38,343
Notes, Loans and Financing Receivable, Gross, Noncurrent	22,416	17,078
Allowance for Doubtful Accounts Receivable, Noncurrent	(1,663)	(1,254)
Accounts, Notes, Loans and Financing Receivable, Net, Noncurrent	20,753	15,824
Goodwill	3,377	2,997
Other intangible assets, net	14,672	14,295
Other assets, net	3,247	1,772
Total assets	184,146	198,763
Current liabilities:
Current installments of long-term debt	3,934	6,797
Accounts payable and accrued expenses	17,321	15,023
Due to Area Developers (ADs)	24,340	18,236
Income taxes payable	2,147	9,676
Deferred revenue - current	6,076	6,051
Total current liabilities	53,818	55,783
Long-term debt, excluding current installments	21,463	21,691
Deferred revenue - non-current	7,640	8,059
Deferred income tax liability	2,363	3,045
Total liabilities	85,284	88,578
Stockholders' equity:
Additional paid-in capital	4,082	9,402
Accumulated other comprehensive income (loss), net of taxes	(697)	66
Retained earnings	95,339	100,574
Total stockholders' equity	98,862	110,185
Total liabilities and stockholders' equity	184,146	198,763
Special voting preferred stock
Stockholders' equity:
Preferred stock	0	0
Class A Common stock
Stockholders' equity:
Common stock	119	124
Class B Common stock
Stockholders' equity:
Common stock	9	9
Exchangeable shares
Stockholders' equity:
Common stock	$ 10	$ 10

Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 30, 2015	Apr. 30, 2014
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	11,905,156	12,409,208
Common stock, shares outstanding	11,905,156	12,409,208
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	1,000,000	1,000,000
Common stock, shares outstanding	1,000,000	1,000,000

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Revenues:
Franchise fees	$ 6,246	$ 7,844	$ 8,721
AD fees	6,901	6,680	7,699
Royalties and advertising fees	80,469	78,426	73,129
Financial products	37,058	34,512	30,345
Interest income	14,707	14,231	13,848
Tax preparation fees, net of discounts	13,877	14,295	10,148
Other revenue	2,914	3,708	3,723
Total revenues	162,172	159,696	147,613
Operating expenses:
Employee compensation and benefits	41,079	38,399	37,998
Selling, general, and administrative expenses	40,604	34,756	31,212
AD expense	28,497	27,319	25,736
Advertising expense	18,308	15,124	15,293
Depreciation, amortization, and impairment charges	9,900	9,277	6,538
Capitalized Computer Software, Impairments	8,392	0	0
Total operating expenses	146,780	124,875	116,777
Income from operations	15,392	34,821	30,836
Other income (expense):
Foreign currency transaction loss	(2)	(13)	0
Net Realized and Unrealized Gain (Loss) on Trading Securities	0	2,183	0
Interest expense	(1,889)	(1,355)	(2,039)
Income before income taxes	13,501	35,636	28,797
Income tax expense (note 13)	4,811	13,654	11,170
Net income	8,690	21,982	17,627
Undistributed Earnings Allocated to Participating Securities Class A Preferred Stock	(633)	(1,571)	(1,525)
Net Income (Loss) Available to Common Stockholders, Basic	$ 8,057	$ 20,411	$ 16,102
Net income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ 0.63	$ 1.57	$ 1.26
Diluted (in dollars per share)	$ 0.61	$ 1.51	$ 1.25
WeightedAverageNumberOfSharesOutstandingBasic	12,738,887,000	12,990,522,000	12,783,214,000
WeightedAverageNumberOfDilutedSharesOutstanding	14,294,773,000	14,536,971,000	14,072,358,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 8,690	$ 21,982	$ 17,627
Interest rate swap agreements, net of taxes of $-, $-, and $268, respectively	0	0	438
Unrealized gain on available-for-sale securities, net of taxes of $-, $608, and $237, respectively	0	975	387
Reclassified gain on sale of available-for-sale securities included in income, net of taxes of $-, $821, and $-, respectively	0	(1,362)	0
Foreign currency translation adjustment	(763)	(741)	(307)
Comprehensive income	$ 7,927	$ 20,854	$ 18,145

- Definition

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

+ References + Details

Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Statement of Comprehensive Income [Abstract]
Taxes on interest rate swap agreements	$ 0	$ 0	$ 268
Taxes on unrealized gain on AFS securities	0	608	237
Taxes on reclassified gain on sale of AFS securities included in income	$ 0	$ 821	$ 0

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Additional paid-in capital	Accumulated other comprehensive income (loss), net	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 (in shares) (As Reported) at Apr. 30, 2012					10,344,000	900,000	170,000	0	1,000,000
Balance at beginning of period (in shares) at Apr. 30, 2012					11,975,000	900,000	0	0
Balance at beginning of period (As Reported) at Apr. 30, 2012	$ 67,065	$ 3,173	$ 676	$ 60,965	$ 103	$ 9	$ 2,129	$ 0	$ 10
Balance at beginning of period at Apr. 30, 2012					$ 120	$ 9	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (note 10) (in shares)					350,000	0	0	0	0
Exercise of stock options	3,801	3,797	0	0	$ 4	$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(422,000)	0	0	0	0
Repurchase of common stock	(6,456)	(6,452)	0	0	$ (4)	$ 0	$ 0	$ 0	$ 0
conversion of preferred stock to common stock					1,703,000	0	(170,000)	0	0
Stock-based compensation expense (in shares)									0
Stock-based compensation expense	1,496	1,496	0	0					$ 0
Stock Issued During Period, Shares, Conversion of Stock Options from Equity to Liability									0
conversion of stock based compensation from equity to liability_value	(2,486)	(2,486)	0	0					$ 0
Conversion of stock based compensation from liability to equity method	0
Tax benefit of stock option exercises (in shares)									0
Tax benefit of stock option exercises	271	271	0	0					$ 0
Net income (in shares)									0
Net income (As Restated)	17,627	0	0		$ 16,386	$ 1,241			$ 0
interest rate swap agreement									0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	438	0	438	0					$ 0
Foreign currency translation (in shares)									0
Foreign currency translation adjustment	(307)	0	(307)	0					$ 0
Unrealized gain (in shares)									0
Unrealized gain on available-for-sale securities, net of taxes	387	0	387	0					$ 0
Balance at end of period (in shares) at Apr. 30, 2013					11,975,000	900,000	0	0	1,000,000
Balance at end of period at Apr. 30, 2013	81,836	1,911	1,194	78,592	$ 120	$ 9	$ 0	$ 0	$ 10
Increase (Decrease) in Stockholders' Equity
conversion of preferred stock to common stock_value	0	(2,112)	0	0	$ (17)	$ 0	$ 2,129	$ 0	$ 0
Exercise of stock options (note 10) (in shares)					956,000	0	0	0	0
Exercise of stock options	13,979	13,970	0	0	$ 9	$ 0	$ 0	$ 0	$ 0
Stock Issued During Period, New Issues (in shares)					1,000	0	0	0
Stock Issued During Period, New Issues					$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(538,000)	0	0	0	0
Repurchase of common stock	(13,079)	(13,074)	0	0	$ (5)	$ 0	$ 0	$ 0	$ 0
Vesting of restricted stock (in shares)					15,000	0	0	0
Vesting of restricted stock					$ 0	$ 0	$ 0	$ 0
Stock-based compensation expense (in shares)									0
Stock-based compensation expense	$ 2,074	2,074	0	0					$ 0
Stock Issued During Period, Shares, Conversion of Stock Options from Equity to Liability	997,824
Conversion of stock based compensation from liability to equity method (in shares)									0
Conversion of stock based compensation from liability to equity method	$ 4,238	4,238	0	0					$ 0
Tax benefit of stock option exercises (in shares)									0
Tax benefit of stock option exercises	283	283	0	0					$ 0
Net income (in shares)									0
Net income (As Restated)	21,982	0	0		$ 20,459	$ 1,523			$ 0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	0
Foreign currency translation (in shares)									0
Foreign currency translation adjustment	(741)	0	(741)	0					$ 0
Unrealized gain (in shares)									0
Unrealized gain on available-for-sale securities, net of taxes	(387)	0	(387)	0					$ 0
Balance at end of period (in shares) at Apr. 30, 2014					12,409,000	900,000	0	0	1,000,000
Balance at end of period at Apr. 30, 2014	110,185	9,402	66	100,574	$ 124	$ 9	$ 0	$ 0	$ 10
Stock Issued During Period, Shares, Conversion of Convertible Securities					15,000	0	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) (in shares)					762,000	0	0	0	0
Exercise of stock options	11,983	11,975	0	0	$ 8	$ 0	$ 0	$ 0	$ 0
Stock Issued During Period, New Issues (in shares)					3,000	0	0	0
Stock Issued During Period, New Issues					$ 0	$ 0	$ 0	$ 0
Repurchase of common stock (in shares)					(1,284,000)	0	0	0	0
Repurchase of common stock	(36,308)	(24,575)	0	(11,720)	$ (13)	$ 0	$ 0	$ 0	$ 0
Stock-based compensation expense (in shares)									0
Stock-based compensation expense	2,477	2,477	0	0					$ 0
Conversion of stock based compensation from liability to equity method (in shares)									0
Conversion of stock based compensation from liability to equity method	0	0	0	0					$ 0
Tax benefit of stock option exercises (in shares)									0
Tax benefit of stock option exercises	4,803	4,803	0	0					$ 0
Net income (in shares)									0
Net income (As Restated)	8,690	0	0		$ 8,076	$ 614			$ 0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent	0
Cash dividends ($0.16 per share) (in shares)									0
Payments of Dividends	(2,205)	0	0	(2,205)					$ 0
Foreign currency translation (in shares)									0
Foreign currency translation adjustment	(763)	0	(763)	0					$ 0
Unrealized gain (in shares)									0
Unrealized gain on available-for-sale securities, net of taxes	0	0	0	0					$ 0
Balance at end of period (in shares) at Apr. 30, 2015					11,905,000	900,000	0	0	1,000,000
Balance at end of period at Apr. 30, 2015	$ 98,862	$ 4,082	$ (697)	$ 95,339	$ 119	$ 9	$ 0	$ 0	$ 10

Consolidated Statement of Stockholders' Equity Consolidated Statement of Stockholders' Equity (Parenthetical)	12 Months Ended
	Apr. 30, 2015 USD ($)
Statement of Stockholders' Equity [Abstract]
Dividends, Common Stock, Cash	$ 0.16

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Cash flows from operating activities:
Net income	$ 8,690	$ 21,982	$ 17,627
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	5,726	8,692	7,098
Depreciation and amortization	8,499	7,836	5,750
Impairment of goodwill and other intangible assets	9,793	1,441	788
Amortization of deferred financing costs	547	334	301
Impairment of Long-Lived Assets to be Disposed of	246	75	0
Stock-based compensation expense related to equity classified awards	2,477	2,074	1,496
Stock-based compensation expense (income) related to liability classified awards	0	(872)	2,625
Gain on bargain purchases and sales of Company-owned offices	(414)	(1,143)	(777)
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	0	(2,183)	0
Equity in loss of affiliate	160	214	193
Deferred tax expense	(3,545)	2,605	4,119
Changes in:
Accounts, notes, and interest receivable and deferred revenue	(8,869)	(7,708)	(13,857)
Prepaid expenses and other assets	(2,911)	(573)	210
Accounts payable and accrued expenses	2,685	2,643	(1,837)
Due to ADs	8,924	4,284	5,213
Income taxes	(7,491)	3,781	(508)
Net cash provided by operating activities	24,517	43,482	28,441
Cash flows from investing activities:
Issuance of operating loans to franchisees	(93,365)	(76,013)	(75,605)
Payments received on operating loans to franchisees	88,776	71,722	68,782
Purchases of Company-owned offices, AD rights, and acquired customer lists	(8,246)	(8,706)	(5,980)
Proceeds from sale of Company-owned offices and AD rights	3,687	2,879	4,072
Purchase of available-for-sale securities	0	0	(2,980)
Proceeds from Sale of Short-term Investments	0	5,163	0
Purchases of property, equipment, and software	(11,463)	(9,149)	(11,928)
Payments to Acquire Short-term Investments	0	(59)	0
Net cash used in investing activities	(20,611)	(14,045)	(23,639)
Cash flows from financing activities:
Proceeds from the exercise of stock options	11,983	13,979	3,801
Repurchase of common stock	(36,308)	(13,079)	(6,456)
Payments for Repurchase of Preferred Stock and Preference Stock	2,205	0	0
Repayment of other long-term debt	(5,850)	(3,398)	(2,953)
Borrowings under revolving credit facility	154,633	137,391	121,216
Repayments under revolving credit facility	(154,633)	(137,391)	(121,216)
Payment for debt issue costs	(917)	0	(289)
Tax benefit of stock option exercises	4,803	283	271
Net cash provided by (used in) financing activities	(28,494)	(2,215)	(5,626)
Effect of exchange rate changes on cash, net	(105)	(155)	(11)
Net increase (decrease) in cash and cash equivalents	(24,693)	27,067	(835)
Cash and cash equivalents at beginning of year	46,080	19,013	19,848
Cash and cash equivalents at end of year	$ 21,387	$ 46,080	$ 19,013

Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows - Supplemental Disclosures - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Supplemental disclosures of cash flow information:
Cash paid for interest, net of capitalized interest of $200, $378, and $406	$ 1,467	$ 1,179	$ 1,872
Cash paid for taxes, net of refunds	11,160	7,022	7,328
Accrued capitalized software costs included in accounts payable	168	149	733
Increase (Decrease) in Assets Held-for-sale	5,160	4,413	0
Adjustments to Additional Paid in Capital, Stock Options Settled, Conversion of Stock-based Compensation Awards to Liability Classification	0	0	2,486
Conversion of stock based compensation from liability to equity method	0	4,238	0
During the years ended April 30, 2015, 2014, and 2013, the Company acquired certain assets from franchisees, ADs, and third parties as follows:
Fair value of assets purchased	18,310	18,740	11,124
Receivables applied, net of amounts due ADs and related deferred revenue	(6,931)	(5,336)	(3,079)
Franchisee Accounts Payable Canceled	(367)	(487)	(410)
Notes and accounts payable issued	(2,766)	(4,211)	(1,655)
Cash paid to franchisees, ADs, and third parties	8,246	8,706	5,980
During the years ended April 30, 2015, 2014, and 2013, the Company sold certain assets to franchisees and ADs as follows:
Book value of assets sold	11,469	8,135	6,517
Loss on sale - loss recognized	(298)	(160)	(417)
Gain on sale - revenue deferred	2,000	1,872	2,846
Notes received	(9,484)	(6,968)	(4,874)
Cash received from franchisees and ADs	$ 3,687	$ 2,879	$ 4,072

Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Apr. 30, 2015	Apr. 30, 2014	Apr. 30, 2013
Statement of Cash Flows [Abstract]
Interest Costs Capitalized	$ 200	$ 378	$ 406

Organization and Significant Accounting Policies - Text Blocks

12 Months Ended

Apr. 30, 2015

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

Description of Business and Summary of Significant Accounting Policies

Description of Business

Liberty Tax, Inc. (the "Company"), a Delaware corporation, is a holding company engaged through its subsidiaries as a franchisor and, to a lesser degree, an 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 refund transfer products and personal income tax refund discounting. The Company also offers online tax preparation services. Effective July 15, 2014, the Company changed its name from JTH Holding, Inc. to Liberty Tax, Inc.

The Company provides a substantial amount of lending to its franchisees and area developers ("ADs"). The Company allows franchisees and ADs to defer a portion of the franchise fee and AD fee, which are paid over time. The Company also offers its franchisees working capital loans to fund their operations between tax seasons.

Basis of Presentation

The consolidated financial statements include the accounts of Liberty Tax, 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. Foreign exchange transaction gains and losses are recognized when incurred. The Company consolidates any 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, the number of processing centers and Canadian offices, and a breakdown of Company-owned and franchised offices for the 2015, 2014, and 2013 tax seasons.



	Tax Season
	2015		2014		2013

U.S. Office Locations:
Permanent Office Locations:
Operated during the prior tax season	3,663		3,816		3,730
Offices opened	397		289		405
Offices closed	(296	)	(442	)	(319	)
Operated during the current tax season	3,764		3,663		3,816
Seasonal Office Locations:
Operated during the prior tax season	486		427		176
Offices opened	118		334		344
Offices closed	(342	)	(275	)	(93	)
Operated during the current tax season	262		486		427

Processing Centers	43		26		19
Total U.S. Office Locations	4,069		4,175		4,262

Canada Office Locations	259		263		258

Total Office Locations	4,328		4,438		4,520

Additional Office Information:
U.S. franchised offices	3,944		3,995		4,028
U.S. Company-owned offices	125		180		234
Total U.S. offices	4,069		4,175		4,262
Canadian franchised offices	202		227		231
Canadian Company-owned offices	57		36		27
Total Canadian offices	259		263		258
Total office locations	4,328		4,438		4,520

The Company's new brand, SiempreTax+, operated 57 offices during the 2015 tax season. These offices consist of second offices opened by current franchisees in territories they already owned, conversions of existing Liberty Tax offices, and offices opened in new territories.

Territory Sales

During fiscal 2015, the Company sold 212 new territories, compared to 225 during fiscal 2014, and 376 during fiscal 2013. The 2013 number of new territories includes 137 territories purchased under the now discontinued "zero franchise fee" program. The 2013 number net of these zero franchise fee purchases was 239. New territories include territories sold to new franchisees and additional territories sold to existing franchisees.

Significant Accounting Policies

Cash and Cash Equivalents - The Company considers all highly liquid debt instruments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents are maintained 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.

Accounts Receivable - 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 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. Interest income is accrued on the unpaid principal balance. 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 risk - Financial instruments that could potentially subject the Company to concentrations of credit risk consist of accounts and notes receivable with its franchisees. The Company manages such risk by evaluating the financial position and value of the franchisees as well as obtaining the personal guarantee of the individual franchisees. At April 30, 2015 and 2014, there were no significant concentrations of credit risk associated with any individual franchisee or group of franchisees.

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. Management believes the allowance is adequate to cover the Company's credit loss exposure. If the carrying amount exceeds the fair value, the receivable is considered impaired.

Available-for-sale Securities - During fiscal 2013, the Company purchased corporate equity securities that were subsequently sold during fiscal 2014. Prior to sale, this investment was classified as available-for-sale and an unrealized gain was recognized, net of tax, in accumulated other comprehensive income in the stockholders' equity section of the balance sheet. 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, five to seven years for furniture and fixtures, and twenty to thirty 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 five 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 ten years. The Company recently changed the term of new and renewal AD contracts to six 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 AD 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 and accounts receivable, 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, 2015, 2014, and 2013 the Company did not have any outstanding derivative instruments or hedging activities.

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 - Amortization on intangible assets is calculated using the straight-line method over the estimated useful lives of the assets, generally from two to ten years. Long-lived assets, such as property, equipment, and software, 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 or amortized. 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.

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.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), 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 GAAP when it becomes effective. The new standard is effective for annual periods beginning on or after December 15, 2016, and interim periods therein. 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.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810), which amends certain requirements for determining whether a variable interest entity must be consolidated. The amendments are effective for public business entities for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption of the new guidance is not expected to have a material impact on the Company's consolidated financial statements.

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 in which they operate. Canadian operations contributed $6.9 million, $6.4 million, and $5.9 million in revenues for the years ended April 30, 2015, 2014, and 2013, respectively.

Accounts and Notes Receivable - Text Blocks

12 Months Ended

Apr. 30, 2015

Receivables [Abstract]

Notes and Accounts Receivable

Accounts and Notes Receivable

The Company provides financing to franchisees and ADs for the purchase of franchises, areas and Company-owned offices, and operating loans for working capital and equipment needs. The franchise-related notes generally are payable over five years and the operating loans generally are due within one year. Most notes bear interest at 12%.

Notes and interest receivable, net of unrecognized revenue, as of April 30, 2015 and 2014 are presented in the consolidated balance sheets as follows:



	2015		2014
	(In thousands)
Notes receivable - current	$	24,465	$	27,715
Notes receivable - non-current	22,416		17,078
Interest receivable, net of uncollectible amounts	1,033		415
Total notes and interest receivable, net	$	47,914	$	45,208

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 table above does not include unrecognized revenue. 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, historically ten years. In fiscal 2015 the Company changed the term of new and renewal AD contracts to six years from ten years and the revenue for these contracts will be recognized over that period, subject to the receipt of cash. Unrecognized revenue was $38.6 million and $39.7 million at April 30, 2015 and 2014, respectively.

Accounts and notes receivable include royalties billed and franchise fees that relate to territories operated by franchisees located in AD territories and a portion of those accounts and notes are payable to the AD. The Company has recorded amounts payable to ADs for their share of these receivables of $24.3 million and $18.2 million at April 30, 2015 and 2014, respectively.

Allowance for Doubtful Accounts

The adequacy of the allowance for doubtful accounts is assessed on a quarterly basis and adjusted as deemed necessary. Management believes the recorded allowance is adequate based upon its consideration of the estimated value of the franchises and AD areas 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, 2015, 2014, and 2013 was as follows.



	2015			2014			2013
	(In thousands)
Balance at beginning of year	$	6,850		$	6,684		$	5,290
Provision for doubtful accounts	5,726			8,692			7,098
Write-offs	(5,122		)	(8,460		)	(5,655		)
Foreign currency adjustment	(99		)	(66		)	(49		)
Balance at end of year	$	7,355		$	6,850		$	6,684

Management considers specific accounts and notes receivable to be impaired if the net amounts due exceed the fair value of the underlying franchise at the time of the annual valuation and estimates an allowance for doubtful accounts based on that excess. While not specifically identifiable as of the balance sheet date, the Company's experience also indicates that a portion of other accounts and notes receivable are also impaired, because management does not expect to collect all principal and interest due under the current contractual terms. Net amounts due include contractually obligated accounts and notes receivable plus accrued interest, net of unrecognized revenue, reduced by the allowance for uncollected interest, amounts due ADs, related deferred revenue, and amounts owed to the franchisee by the Company. In establishing the fair value of the underlying franchise, management considers recent sales between franchisees, 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, 2015 and 2014 was allocated as follows.



	2015			2014
	(In thousands)
Impaired:
Accounts receivable	$	7,634		$	5,351
Notes and interest receivable, net of unrecognized revenue	10,921			8,527
Less amounts due to ADs and franchisees	(1,535		)	(1,166		)
Amounts receivable less amounts due to ADs and franchisees	$	17,020		$	12,712

Allowance for doubtful accounts for impaired accounts and notes receivable	$	6,594		$	6,131

Non-impaired:
Accounts receivable	$	38,487		$	37,771
Notes and interest receivable, net of unrecognized revenue	36,993			36,681
Less amounts due to ADs and franchisees	(25,150		)	(17,818		)
Amounts receivable less amounts due to ADs and franchisees	$	50,330		$	56,634

Allowance for doubtful accounts for non-impaired accounts and notes receivable	$	761		$	719

Total:
Accounts receivable	$	46,121		$	43,122
Notes and interest receivable, net of unrecognized revenue	47,914			45,208
Less amounts due to ADs and franchisees	(26,685		)	(18,984		)
Amounts receivable less amounts due to ADs and franchisees	$	67,350		$	69,346

Total allowance for doubtful accounts	$	7,355		$	6,850

The Company's average investment in impaired notes receivable during the fiscal years ended April 30, 2015, 2014, and 2013 was $7.9 million, $8.5 million, and $8.1 million, respectively. Interest income recognized related to performing impaired notes was $0.7 million, $0.9 million, and $0.8 million for the fiscal years ended April 30, 2015, 2014, and 2013, respectively.

Analysis of Past Due Receivables

The breakdown of accounts and notes receivable past due at April 30, 2015 and 2014 was as follows.



	2015
	Past due		Allowance for uncollectible interest			Current		Total receivables
	(In thousands)
Accounts receivable	$	22,115	$	(938	)	$	24,944	$	46,121
Notes and interest receivable, net	10,492		(1,165		)	38,587		47,914
Total accounts, notes, and interest receivable, net	$	32,607	$	(2,103	)	$	63,531	$	94,035



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

Accounts receivable are considered to be past due if unpaid 30 days after billing and notes receivable are considered past due if unpaid 90 days after due date, at which time the notes are put on nonaccrual status. The Company's investment in notes receivable on nonaccrual status at April 30, 2015 and 2014 was $9.3 million and $10.8 million, respectively. Payments received on notes in nonaccrual status are applied to interest income first until the note is current and then to the principal note balance. Nonaccrual notes that are paid current are moved back into accrual status during the next annual review.

Property, Equipment, and Software, Net - Text Blocks

12 Months Ended

Apr. 30, 2015

Property, Plant and Equipment [Abstract]

Property, Equipment, and Software, Net

Property, equipment, and software at April 30, 2015 and 2014 was as follows:



	2015		2014
	(In thousands)
Land and land improvements	$	2,259	$	2,253
Buildings and building improvements	8,481		7,419
Leasehold improvements	143		200
Furniture, fixtures, and equipment	6,013		6,746
Software	37,894		44,036
Construction in progress	393		—
Property, equipment, and software, gross	55,183		60,654
Less accumulated depreciation and amortization	18,951		22,311
Property, equipment, and software, net	$	36,232	$	38,343

Total depreciation and amortization expense on property, equipment, and software was $5.5 million, $3.8 million, and $3.1 million for the years ended April 30, 2015, 2014, and 2013, respectively.

The software included above includes both internally developed software and purchased software. Included in software are $12.9 million and $6.7 million of assets that had not been placed into service at April 30, 2015 and 2014, respectively. See Note 5 for a description of the impairment related to the Company's online software and acquired online customer lists.

The Company is obligated under various operating leases for office space that expire at various dates. At April 30, 2015, 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, were as follows:



	Lease payments		Sublease receipts
	(In thousands)
Year ending April 30:
2016	$	2,819	$	1,323
2017	1,613		720
2018	765		250
2019	259		139
2020	90		31
Thereafter	40		—
Total minimum lease payments	$	5,586	$	2,463

Total rent expense for operating leases, net of subleases, was $3.2 million, $3.4 million, and $3.2 million for the years ended April 30, 2015, 2014, and 2013, respectively.

Investments - Text Blocks	12 Months Ended
Investments - Text Blocks	Apr. 30, 2015
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 fiscal year ended April 30, 2014 for a realized gain of $2.2 million, which was reclassified out of accumulated other comprehensive income and recorded as other income in the 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 year ended April 30, 2013. The unrealized gain, net of tax, on the available-for-sale securities at April 30, 2013 was $0.4 million. We periodically review our investment portfolios to determine whether any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. The Company did not record any other-than-temporary impairments of available-for-sale securities during fiscal years 2014 or 2013.

- Definition

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

+ References + Details

Goodwill and Intangible Assets - Text Blocks

12 Months Ended

Apr. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

At the end of the fourth quarter of fiscal 2014, assets associated with tax offices acquired from U.S. franchisees were transferred out of goodwill and intangible assets and classified as assets held for sale.

Changes in the carrying amount of goodwill for the years ended April 30, 2015 and 2014 were as follows:



	2015			2014
	(In thousands)
Balance at beginning of year	$	2,997		$	5,685
Acquisitions of assets from franchisees	1,107			4,855
Disposals and foreign currency changes, net	(465		)	(3,769		)
Impairments	(262		)	(874		)
Reclassified to assets held for sale	—			(2,900		)
Balance at end of year	$	3,377		$	2,997

The Company performed its annual impairment review of goodwill and recorded impairment of $0.3 million and $0.6 million for the years ended April 30, 2015 and 2014, respectively.

As of April 30, 2015, the Company reviewed for impairment the assets related to its online tax preparation business as a result of changes in the pricing environment in the online tax preparation market, a significant decline in the number of returns prepared online and a decline in the related revenues experienced in fiscal 2015. The Company believed that these changes indicated that the carrying amount of assets related to its online tax preparation business may not be recoverable. Accordingly, the undiscounted future cash flows generated by its online software and acquired online customer lists were estimated and the Company concluded that the carrying value of those assets was not recoverable. An impairment loss of $8.4 million was recorded equal to the excess of the carrying amount of those assets over their fair value. The fair value of those assets was determined using a discounted cash flow model.

The impairment loss was allocated as follows at April 30, 2015:



	April 30, 2015
	(In thousands)
Software	$	6,882
Acquired customer lists	1,510
Impairment of online software and acquired customer lists	$	8,392

Components of amortizable intangible assets as of April 30, 2015 and 2014 were as follows:



	April 30, 2015
	Weighted average amortization period	Gross carrying amount		Accumulated amortization			Net carrying amount
	(In thousands)
Customer lists acquired from unrelated third parties	4 years	$	1,027	$	—		$	1,027
Assets acquired from franchisees:
Customer lists	4 years	759		(441		)	318
Reacquired rights	2 years	559		(473		)	86
AD rights	10 years	17,345		(4,104		)	13,241
Total intangible assets		$	19,690	$	(5,018	)	$	14,672



	April 30, 2014
	Weighted average amortization period	Gross carrying amount		Accumulated amortization			Net carrying amount
	(In thousands)
Customer lists acquired from unrelated third parties	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

During fiscal 2014, the Company purchased certain assets of an online tax preparation software provider for $3.2 million and allocated the purchase price to identifiable intangible assets.

For the years ended April 30, 2015, 2014, and 2013 the Company recorded as intangible assets $1.7 million, $9.0 million, and $6.3 million, respectively, from acquisitions of various franchises. During fiscal 2014 and 2013, both U.S. and Canadian franchise acquisitions were recorded an intangible assets; however, during fiscal 2015, the majority of U.S. franchise acquisitions were recorded as assets held for sale, while Canadian franchise acquisitions continued to be recorded as intangible assets. These acquisitions were accounted for as business combinations.

The purchase price of assets acquired from franchisees and recorded as customer lists, reacquired rights, and goodwill during fiscal 2015, 2014, and 2013 was allocated as follows.



	2015		2014		2013
	(In thousands)
Customer lists	$	435	$	2,372	$	1,631
Reacquired rights	284		1,806		1,216
Goodwill	975		4,855		3,449
Purchase price of assets acquired from franchisees, not held for sale	$	1,694	$	9,033	$	6,296

The Company expects that assets associated with Company-owned offices will be sold before the end of their estimated useful life. During the years ended April 30, 2015, 2014, and 2013, impairment analyses were performed for amortizable intangible assets. Write-downs of assets acquired from franchisees relate to Company-owned offices that were subsequently closed and impairment of the fair value of existing Company-owned offices based on the impairment analysis. As a result, the carrying values of assets acquired from franchisees were reduced by $0.5 million for the fiscal year ended April 30, 2015, $0.9 million for 2014, and $0.8 million for 2013. These amounts were expensed to impairment charges on the consolidated statements of income. The Company estimated the fair value of assets associated with Company-owned offices based on various models, including data and input from a third-party.

For the years ended April 30, 2015, 2014, and 2013, amortization expense was $3.6 million, $4.1 million, and $2.7 million, respectively. Annual amortization expense for the next five years is estimated to be as follows (in thousands):



Year ending April 30:
2016	$	2,358
2017	2,120
2018	2,005
2019	1,833
2020	1,481
Total estimated amortization expense	$	9,797

- 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

Assets Held for Sale - Text Blocks

12 Months Ended

Apr. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

assets held for sale [Text Block]

Assets Held for Sale

At the end of the fourth quarter of fiscal 2014, the Company reclassified certain assets associated with Company-owned offices from goodwill, other intangible assets, and property, equipment, and software to assets held for sale. An impairment charge of $0.5 million 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 (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

During fiscal 2015, the Company acquired $8.7 million in assets from U.S. franchisees and third parties that were first accounted for as business combinations, with the value allocated to customer lists and reacquired rights of $4.4 million and goodwill of $4.3 million prior to being recorded as assets held for sale. The acquired businesses are operated as Company-owned offices until a buyer is located and a new franchise agreement is entered into.

Changes in the carrying amounts of assets held for sale for the fiscal years ended April 30, 2015 and 2014 were as follows:



	2015			2014
	(In thousands)
Balance at beginning of year	$	4,413		$	—
Reacquired	8,517			4,913
Dispositions	(7,014		)	—
Impairment	(756		)	(500		)
Balance at end of year	$	5,160		$	4,413

Debt - Text Blocks

12 Months Ended

Apr. 30, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Debt

In October 2014, the Company amended its credit facility. The amended credit facility consists of a $21.2 million term loan and a revolving credit facility that currently allows borrowing of up to $203.8 million with an accordion feature that permits the Company to request an increase in availability of up to an additional $50.0 million. Outstanding borrowings accrue interest, which is paid monthly, at a rate of the one-month London Interbank Offered Rate ("LIBOR") plus a margin ranging from 1.50% to 2.25% depending on the Company's leverage ratio. At April 30, 2015 and 2014, the interest rate was 1.8% and 1.78%, respectively, and the average interest rate paid during the fiscal year ended April 30, 2015 was 1.79%. A commitment fee is paid monthly that varies from 0.25% to 0.50% depending on the Company's leverage ratio on the unused portion of the credit facility. The indebtedness is collateralized by substantially all the assets of the Company and both loans mature on April 30, 2019 (except as to the commitments of one lender under the revolving credit facility, which mature on September 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, 2015 was $108.4 million. At April 30, 2015 and 2014, the Company had no outstanding borrowings under its revolving credit facility. The Company was in compliance with the financial covenants of its credit facility at April 30, 2015.

The credit facility also contains certain events of default that may cause the bank syndicate to terminate the credit facility and declare amounts owed to become immediately payable if they occur. At April 30, 2015, the Company has not incurred an event of default.

Debt at April 30, 2015 and 2014 was as follows:



	2015		2014
	(In thousands)
Term loan payable in quarterly principal installments of 1.875%, 2.5%, 2.5%, and 3.125% of the original amount borrowed for the years ending April 30, 2016, 2017, 2018 and 2019, respectively; at that time a balloon payment of $14,875 is payable.	$	20,453	$	21,875
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.	2,279		2,326
Amounts due to former ADs at zero percent interest; due May 2015 through August 2015.	2,626		4,211
Other debt	39		76
Total long-term debt	25,397		28,488
Less current installments	3,934		6,797
Total long-term debt, less current installments	$	21,463	$	21,691

Aggregate maturities of long-term debt at April 30, 2015 are as follows (in thousands):



Year ending April 30:
2016	$	3,934
2017	4,463
2018	2,125
2019	14,875
Total long-term debt	$	25,397

Derivative Instruments and Hedging Activities - Text Blocks	12 Months Ended
	Apr. 30, 2015
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, 2013, $0.1 million of income was recognized in the consolidated statements of income due to the ineffectiveness of these interest rate swaps. These interest rate swaps 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, 2015 and 2014, there were no remaining forward contracts outstanding. During the years ended April 30, 2015, 2014, and 2013, these foreign currency hedges were effective and, therefore, no amounts were recognized in the consolidated statements of income. At April 30, 2015, 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

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+ Details

Stockholders' Equity - Text Blocks

12 Months Ended

Apr. 30, 2015

Equity [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

Stockholders' Equity

Preferred Stock and Exchangeable Shares

The Company has 190,000 shares of authorized Class A preferred stock with a par value of $0.01, of which none were issued and outstanding at April 30, 2015 and 2014.

The Company also has 10 shares of special voting preferred stock authorized, issued and outstanding with a par value of $0.01 and no liquidation value. Each share of special voting preferred stock entitles the holder to vote as if it represents 100,000 shares of Class A common stock. In conjunction with the special voting preferred stock, there are 1,000,000 exchangeable shares that are exchangeable at any time into Class A common stock of the Company. The special voting preferred stock will be canceled at the time the holder exchanges the exchangeable shares.

Common Stock

The Company is authorized to issue 21,200,000 shares of Class A common stock, par value $0.01 per share, and 1,000,000 shares of Class B common stock, par value $0.01 per share. Class A common stock and Class B common stock entitle the holders to the same rights and privileges and are identical in all respects as to all matters, except the holders of Class B common stock are entitled to elect one more director than the number of directors elected by holders of all other classes of stock combined. Additionally, a holder of Class B common stock may, at the holder's option, elect to convert the Class B common stock into an equal number of fully paid and non-assessable shares of Class A common stock.

Accumulated Other Comprehensive Income (loss)

The components of accumulated other comprehensive income (loss) at April 30, 2015 and 2014 are as follows.



	2015			2014
	(In thousands)
Foreign currency adjustment	$	(697	)	$	66
Total accumulated other comprehensive income (loss)	$	(697	)	$	66

Net Income per Share

Net income per share of Class A and Class B common stock is computed using the two-class method. Basic net income per share is computed by allocating undistributed earnings to common shares and participating securities (Class A preferred stock and exchangeable shares) and using the weighted-average number of common shares outstanding during the period. Undistributed losses are not allocated to participating securities because they do not meet the required criteria for such allocation.

Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, the potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options and restricted stock units is reflected in dilutive earnings per share by application of the treasury stock method. Additionally, the computation of diluted net income per share of Class A common stock assumes the conversion of Class B common stock and exchangeable shares, if dilutive, while the diluted net income per share of Class B common stock does not assume conversion of those shares.

The rights, including liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, with the exception of the election of directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year had been distributed. Participating securities have dividend rights that are identical to Class A and Class B common stock.

The computation of basic and diluted net income per share for the years ended April 30, 2015, 2014, and 2013 is as follows.



	2015
	Class A common stock			Class B common stock
	(In thousands, except for share and per share amounts)
Basic net income per share:
Numerator:
Allocation of undistributed earnings	$	8,076		$	614
Amounts allocated to participating securities:
Exchangeable shares	(588		)	(45		)
Net income attributable to common stockholders	$	7,488	<