SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Years Ended June 30, 2016, 2015 and 2014

			Charged
	Balance at		to Costs			Charged						Balance
	Beginning		and			to Other						at End of
Description of Allowances and Reserves	of Period		Expenses			Accounts			Deductions			Period

	(in thousands)
FY2016
Deducted from accounts receivable for refunds	$	5,766	$	46,525	(c)	$	-		$	50,504	(b)	$	1,787
Deducted from accounts receivable for uncollectible accounts		59,206		35,496			(217)	(a)(f)		31,771	(b)		62,714
Deducted from long-term notes receivable for uncollectible notes		2,368		(1,217)			(475)	(f)		-			676
Deducted from contributions to Perkins loan program for uncollectible loans		2,562		-			-			-			2,562
Deducted from deferred tax assets for valuation allowances		10,552		-			-			1,928	(h)		8,624
Restructuring expense reserve		26,992		67,495			-			46,264	(e)		48,223
FY2015
Deducted from accounts receivable for refunds	$	1,488	$	42,316	(c)	$	-		$	38,038	(b)	$	5,766
Deducted from accounts receivable for uncollectible accounts		60,996		47,587			673	(a)(f)		50,050	(b)		59,206
Deducted from long-term notes receivable for uncollectible notes		4,980		(19)			(2,562)	(f)		31	(b)		2,368
Deducted from contributions to Perkins loan program for uncollectible loans		2,562		-			-			-			2,562
Deducted from deferred tax assets for valuation allowances		9,002		1,550	(h)		-			-			10,552
Restructuring expense reserve		15,392		41,950			-			30,350	(e)		26,992
FY2014
Deducted from accounts receivable for refunds	$	1,240	$	36,070	(c)	$	559	(d)	$	36,381	(b)	$	1,488
Deducted from accounts receivable for uncollectible accounts (1)		54,103		50,600			2,696	(f)(g)		46,403	(b)		60,996
Deducted from long-term notes receivable for uncollectible notes (1)		10,759		1,781			(7,248)	(f)		312	(b)		4,980
Deducted from contributions to Perkins loan program for uncollectible loans		2,562		-			-			-			2,562
Deducted from deferred tax assets for valuation allowances		6,538		2,464	(h)		-			-			9,002
Restructuring expense reserve (1)		13,168		30,034			-			27,810	(e)		15,392

(1)

Fiscal year 2014 amounts for Deducted from accounts receivable for uncollectible accounts, Deducted from long-term notes receivable for uncollectible notes and Restructuring expense reserve have been changed from the fiscal year 2014 10-K presentation for correction of errors.

(a)

Effects of foreign currency translation charged to Accumulated Other Comprehensive Income (Loss).

(b)

Write-offs of uncollectable amounts and cash refunds.

(c)

Amounts recorded as a reduction of revenue, including adjustment for withdrawn students.

(d)

Charged to deferred revenue accounts.

(e)

Payments and/or adjustments of liabilities for restructuring reserve.

(f)

Reclassifications between accounts.

(g)

AAI's balance charged to discontinued operations.

(h)

Adjustments to valuation allowance include an increase of $2.9 million and a decrease of $4.9 million in fiscal year 2016, an increase of $1.6 million in fiscal year 2015, and an increase of $2.5 million in fiscal year 2014.