Investment in Unconsolidated Affiliate

9 Months Ended

Jun. 30, 2020

Investment in Unconsolidated Affiliate [Abstract]

In 2012, we invested $4.0 million to acquire an equity interest of approximately 28% in a joint venture (“JV”) related to the lease of our Lisle, Illinois campus facility. In connection with this investment, we do not possess a controlling financial interest as we do not hold a majority of the equity interest, nor do we have the power to make major decisions without approval from the other equity member. Therefore, we do not qualify as the primary beneficiary. Accordingly, this investment is accounted for under the equity method of accounting. We recognize our proportionate share of the JV's net income or loss during each accounting period and any return of capital as a change in our investment.

Investment in unconsolidated affiliate consisted of the following and is included within “Other assets” on our condensed consolidated balance sheets:


	June 30, 2020						September 30, 2019
	Carrying Value		Ownership Percentage		Carrying Value		Ownership Percentage
Investment in JV	$	4,459	27.972	%	$	4,338	27.972	%

Investment in unconsolidated affiliate included the following activity during the period:


	Nine Months Ended June 30,
	2020		2019
Balance at beginning of period	$	4,338	$	4,206
Equity in earnings of unconsolidated affiliate	311		298
Return of capital contribution from unconsolidated affiliate	(190)		(200)
Balance at end of period	$	4,459	$	4,304

Through September 30, 2019, the activity from equity in earnings of the unconsolidated affiliate was included in “Other (expense) income, net” on the condensed consolidated statements of operations. In conjunction with the adoption of ASC 842, as previously described in Note 3, beginning October 1, 2019, the activity is included in “Educational services and facilities” on the condensed consolidated statements of operations.