INTANGIBLE ASSETS (Tables)

3 Months Ended

Sep. 30, 2013

NOTE 8: INTANGIBLE ASSETS

Intangible assets relate mainly to acquired business operations. These assets consist of the acquisition fair value of certain identifiable intangible assets acquired and goodwill. Goodwill represents the excess of the purchase price over the fair value of assets acquired less liabilities assumed.

Intangible assets consist of the following (dollars in thousands):

	September 30, 2013
	Gross Carrying Amount		Accumulated Amortization		Weighted Avg. Amortization Period
Amortizable Intangible Assets:
Student Relationships	$	81,619	$	(76,130)	(a)
Customer Relationships		3,554		(813)	12 years
Non-compete Agreements		2,517		(1,859)	(b)
Curriculum/Software		5,648		(4,424)	5 years
Outplacement Relationships		3,900		(1,309)	15 years
Trade Names		5,838		(4,828)	(c)
Clinical Agreement		585		(10)	15 years
Total	$	103,661	$	(89,373)
Indefinite-lived Intangible Assets:
Trade Names	$	40,894
Trademark		1,645
Ross Title IV Eligibility and Accreditations		14,100
Intellectual Property		13,940
Chamberlain Title IV Eligibility and Accreditations		1,200
Carrington Title IV Eligibility and Accreditations		67,200
AUC Title IV Eligibility and Accreditations		100,000
DeVry Brasil Accreditations		45,152
Total	$	284,131

(a) The total weighted average estimated amortization period for Student Relationships is 5 years for DeVry Brasil (Fanor, Ruy Barbosa and AREA 1), 6 years for FBV, 5 years for Favip and 4 years for AUC. All other student student relationships are fully amortized as of September 30, 2013.

(b) The total weighted average estimated amortization period for Non-compete Agreements is 1.5 years for ATC and 5 years for Falcon. All other and Non-compete agreements are fully amortized as of September 30, 2013.

(c) The total weighted average estimated amortization period for Trade Names is 2 years for ATC, 8.5 years for DeVry Brasil (Fanor, Ruy Barbosa and AREA1) and 1.5 years for Falcon. All other trade names are fully amortized at September 30, 2013.

	As of September 30, 2012
	Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Student Relationships	$	82,700	$	(69,975)
Customer Relationships		3,550		(458)
License and Non-compete Agreements		3,716		(2,837)
Curriculum/Software		5,689		(3,763)
Outplacement Relationships		3,900		(1,049)
Trade Names		6,078		(4,546)
Total	$	105,633	$	(82,628)
Indefinite-lived Intangible Assets:
Trade Names	$	39,233
Trademark		1,645
Ross Title IV Eligibility and Accreditations		14,100
Intellectual Property		13,940
Chamberlain Title IV Eligibility and Accreditations		1,200
Carrington Title IV Eligibility and Accreditations		71,100
AUC Title IV Eligibility and Accreditations		100,000
DeVry Brasil Accreditations		32,831
Total	$	274,049

Estimated Amortization Expense for Amortized Intangible Assets

Estimated amortization expense for amortized intangible assets for the next five fiscal years ending June 30, by reporting unit, is as follows (dollars in thousands):

Fiscal Year	AUC		Becker		DeVry Brasil		Carrington		Total
2014	$	3,347	$	935	$	1,882	$	295	$	6,459
2015		387		926		1,093		260		2,666
2016		-		892		701		260		1,853
2017		-		627		333		260		1,220
2018		-		355		210		260		825
Thereafter		-		1,140		565		1,356		3,061

Amortizable Intangible Assets Amortized at Annual Rate

This results in the basis being amortized at an annual rate for each of the years of estimated economic life as follows:

Fiscal Year	AUC		DeVry Brasil		FBV		FAVIP
2009	-		8.3	%	-		-
2010	-		30.3	%	-		-
2011	-		24.7	%	-		-
2012	38.0	%	19.8	%	11.9	%	-
2013	38.5	%	13.6	%	33.7	%	27.6	%
2014	21.6	%	3.3	%	25.9	%	32.2	%
2015	1.9	%	-		16.7	%	23.0	%
2016	-		-		9.0	%	13.2	%
2017	-		-		2.6	%	4.0	%
2018	-		-		0.2	%	-

Summary of Goodwill Balances by Reporting Unit

The table below summarizes the goodwill balances by reporting unit as of September 30, 2013 (dollars in thousands):

	As of September 30,
Reporting Unit	2013
DeVry University	$	22,196
Becker Professional Review		32,936
Ross University		237,174
Chamberlain College of Nursing		4,716
Carrington Colleges Group		98,784
American University of the Caribbean		68,321
DeVry Brasil		53,528
Total	$	517,655

Summary of Goodwill Balances by Reporting Segment

The table below summarizes goodwill balances by reporting segment as of September 30, 2013 (dollars in thousands):

	As of September 30,
	2013
Reporting Segment:
Business, Technology and Management	$	22,196
Medical and Healthcare		408,995
International and Professional Education		86,464
Total	$	517,655

Changes in Carrying Amount of Goodwill, by Segment

The table below summarizes the changes in the carrying amount of goodwill, by segment, for the quarter ended September 30, 2013 (dollars in thousands):

		Goodwill Changes by Segment
	Business, Technology and Management		Medical and Healthcare		International and Professional Education		Total
Balance at June 30, 2013	$	22,196	$	408,994	$	77,747	$	508,937
Acquisitions		-		-		8,238		8,238
Dispositions		-		-		-		-
Impairments		-		-		-		-
Foreign currency exchange rate changes and other		-		-		480		480
Balance at September 30, 2013	$	22,196	$	408,994	$	86,465	$	517,655

Summary of Indefinite-Lived Intangible Assets Balances by Reporting Unit

The table below summarizes the indefinite-lived intangible assets balances by reporting unit as of September 30, 2013 (dollars in thousands):

Reporting Unit:	Indefinite- lived Intangible Assets
DeVry University	$	1,645
Becker Professional Review		27,912
Ross University		19,200
Chamberlain College of Nursing		1,200
Carrington Colleges Group		67,200
American University of the Caribbean		117,100
DeVry Brasil		49,874
Total	$	284,131