ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS

9 Months Ended

Mar. 31, 2014

ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS

NOTE 3:  ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS

Assets and Liabilities of Divested Business

In December 2013, the assets of DeVry Group’s Advanced Academics Inc. (“AAI”) subsidiary, which had previously been disclosed as “held for sale” were divested. These assets were sold for $2.0 million, which approximated the recorded net book value of the assets on the date of sale. The assets and liabilities of AAI are separately disclosed in the Consolidated Balance Sheets as of June 30, 2013 and March 31, 2013. The following is a summary of balance sheet information of divested assets and liabilities at June 30, 2013 and March 31, 2013 (dollars in thousands).

	June 30,		March 31,
	2013		2013
ASSETS:
Current Assets:
Cash and Cash Equivalents	$	568	$	(16)
Accounts Receivable, Net		12,050		22,662
Deferred Income Taxes, Net		2,757		497
Prepaid Expenses and Other		844		7,808
Total Current Assets of Divested Business		16,219		30,951
Land, Building and Equipment of Divested Business, Net		-		5,146
Other Assets:
Deferred Income Taxes, Net		2,602		602
Other Assets		3,185		246
Total Other Assets of Divested Business		5,787		848
Total Assets of Divested Business	$	22,006	$	36,945
LIABILITIES:
Current Liabilities:
Accounts Payable	$	178	$	177
Accrued Salaries, Wages and Benefits		482		569
Accrued Expenses		47		34
Deferred and Advance Tuition		6		2,365
Total Current Liabilities of Divested Business		713		3,145
Other Liabilities:
Deferred Rent and Other		112		-
Total Other Liabilities of Divested Business		112		-
Liabilities of Divested Business	$	825	$	3,145

Discontinued Operations

The operating results of AAI are separately disclosed in the Consolidated Income Statements as “Discontinued Operations – Loss from Operations of Divested Component”. The following is a summary of operating results of the discontinued operations for the three and nine month periods ended March 31, 2014 and 2013 (dollars in thousands).

	For the Three Months Ended March 31,				For the Nine Months Ended March 31,
	2014		2013		2014		2013
DISCONTINUED OPERATIONS:
Loss from Operations of Divested Component	$	(904)	$	(2,045)	$	(4,463)	$	(6,993)
Asset Impairment Charge (Note 5)		-		-		(13,477)		-
Restructuring Expense		(30)		-		(705)		-
		(934)		(2,045)		(18,645)		(6,993)
Income Tax Benefit		327		513		1,790		2,449
Loss from Discontinued Operations, Net of Income Taxes	$	(607)	$	(1,532)	$	(16,855)	$	(4,544)