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 the net tangible and intangible assets acquired.

	September 30, 2018
	Gross ‎ Carrying ‎ Amount		Accumulated ‎ Amortization			Weighted Average ‎ Amortization ‎ Period
Amortizable Intangible Assets:
Student Relationships	$	7,713	$	(6,799	)		5 Years
Customer Relationships		42,900		(10,756	)		10 Years
Curriculum/Software		6,755		(4,730	)		4 Years
Franchise Contracts		8,677		(1,768	)		18 Years
Clinical Agreements		321		(112	)		15 Years
Trade Names		936		(889	)		10 Years
Proprietary Technology		500		(281	)		4 Years
Total	$	67,802	$	(25,335	)
Indefinite-Lived Intangible Assets:
Trade Names	$	104,832
Ross Title IV Eligibility and Accreditations		14,100
Intellectual Property		13,940
Chamberlain Title IV Eligibility and Accreditations		1,200
AUC Title IV Eligibility and Accreditations		100,000
Adtalem Brazil Accreditation		79,056
Total	$	313,128

	June 30, 2018
	Gross ‎ Carrying ‎ Amount		Accumulated ‎ Amortization
Amortizable Intangible Assets:
Student Relationships	$	8,193	$	(6,972	)
Customer Relationships		42,900		(9,598	)
Non-compete Agreements		700		(700	)
Curriculum/Software		6,833		(4,265	)
Franchise Contracts		9,064		(1,720	)
Clinical Agreements		336		(112	)
Trade Names		976		(904	)
Proprietary Technology		500		(250	)
Total	$	69,502	$	(24,521	)
Indefinite-Lived Intangible Assets:
Trade Names	$	106,132
Ross Title IV Eligibility and Accreditations		14,100
Intellectual Property		13,940
Chamberlain Title IV Eligibility and Accreditations		1,200
AUC Title IV Eligibility and Accreditations		100,000
Adtalem Brazil Accreditation		82,578
Total	$	317,950

	September 30, 2017
	Gross ‎ Carrying ‎ Amount		Accumulated ‎ Amortization
Amortizable Intangible Assets:
Student Relationships	$	11,561	$	(8,860	)
Customer Relationships		42,900		(6,092	)
Non-compete Agreements		700		(674	)
Curriculum/Software		7,243		(2,887	)
Franchise Contracts		11,088		(1,643	)
Clinical Agreements		411		(116	)
Trade Names		1,196		(1,017	)
Proprietary Technology		500		(156	)
Total	$	75,599	$	(21,445	)
Indefinite-Lived Intangible Assets:
Trade Names	$	111,010
Ross Title IV Eligibility and Accreditations		14,100
Intellectual Property		13,940
Chamberlain Title IV Eligibility and Accreditations		1,200
AUC Title IV Eligibility and Accreditations		100,000
Adtalem Brazil Accreditation		101,512
Total	$	341,762

Amortization expense for amortized intangible assets was $2.1 million and $2.5 million for the three months ended September 30, 2018 and 2017, respectively. Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30 and in the aggregate, by reporting unit, is as follows (in thousands):

	Professional		Adtalem
Fiscal Year	Education		Brazil		Total
2019	$	6,422	$	1,654	$	8,076
2020		4,671		1,216		5,887
2021		4,440		742		5,182
2022		4,300		503		4,803
2023		4,119		503		4,622
Thereafter		11,268		4,727		15,995

All amortizable intangible assets except student relationships and customer relationships are being amortized on a straight-line basis. The amount being amortized for student relationships is based on the estimated progression of the students through the respective Damásio Educacional (“Damasio”) and Grupo Ibmec Educacional S.A. (“Grupo Ibmec”) programs, giving consideration to the revenue and cash flow associated with both existing students and new applicants. The amount being amortized for customer relationships related to ACAMS is based on the estimated retention of the customers, giving consideration to the revenue and cash flow associated with these existing customers.

Indefinite-lived intangible assets related to trade names, Title IV eligibility, accreditations and intellectual property are not amortized, as there are no legal, regulatory, contractual, economic or other factors that limit the useful life of these intangible assets to the reporting entity.

In accordance with GAAP, goodwill and indefinite-lived intangibles arising from a business combination are not amortized and charged to expense over time. Instead, these assets must be reviewed annually for impairment or more frequently if circumstances arise indicating potential impairment. Adtalem’s annual impairment review was most recently completed as of May 31, 2018, at which time, there was no impairment loss associated with recorded goodwill or indefinite-lived intangible assets for any reporting unit.

Adtalem has five reporting units that contained goodwill as of the first quarter of fiscal year 2019. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. If the carrying amount of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss to goodwill is recognized. In analyzing the results of operations and business conditions of all the reporting units, as of September 30, 2018, it was determined that no triggering event had occurred that would indicate the carrying value of a reporting unit had exceeded its fair value.

Adtalem has five reporting units that contained indefinite-lived intangible assets as of the first quarter of fiscal year 2019. For indefinite-lived intangible assets, management first analyzes qualitative factors including results of operations and business conditions of the five reporting units that contained indefinite-lived intangible assets, significant changes in cash flows at the individual indefinite-lived intangible asset level, if applicable, as well as how much previously calculated fair values exceed carrying values to determine if it is more likely than not that the intangible assets associated with these reporting units have been impaired.

Management does not believe the effects of Hurricanes Irma and Maria created a triggering event that would require an impairment analysis of AUC’s or RUSM’s indefinite-lived intangible assets and goodwill. Damage to physical property is being repaired with the majority of costs expected to be reimbursable by insurance proceeds. The September 2017 semesters at both institutions were completed with minimal lost students and revenue and commencement of future semesters was not impacted. Management believes it is probable that the response to the crisis and its ability to continue providing educational services demonstrates AUC’s and RUSM’s ability to generate future revenue and operating results sufficient to maintain fair values of these assets in excess of their carrying values.

These interim triggering event conclusions were based on the fact that the annual impairment review of Adtalem’s reporting units and indefinite-lived intangible assets resulted in no impairment indicators as of the end of fiscal year 2018, and that no interim events or deviations from planned operating results occurred as of September 30, 2018, that would cause management to reassess these conclusions.

On August 3, 2018, Adtalem announced plans to relocate RUSM to Barbados from its temporary location in Knoxville, Tennessee at facilities owned by Lincoln Memorial University (“LMU”) and a facility on St Kitts. Management believes the values of RUSM’s goodwill and indefinite-lived intangible assets will not be affected by this move. The Trade Name will continue to be used and we expect to receive the approval of the U.S. Department of Education (“ED”) to operate in Barbados prior to the move. No new accreditation is necessary, RUSM’s secondary accreditor the Caribbean Accreditation Authority for Education in Medicine and other Health Professions (“CAAM-HP”) will become its primary accreditor upon the start of the January 2019 semester, pending approval by ED. CAAM-HP is authorized by the government of Barbados to accredit medical programs.

Determining the fair value of a reporting unit or an intangible asset involves the use of significant estimates and assumptions. Management bases its fair value estimates on assumptions it believes to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Actual results may differ from those estimates, which could lead to additional impairments of intangible assets or goodwill.

As of September 30, 2018, intangible assets from business combinations totaled $355.6 million and goodwill totaled $805.3 million. Together, these assets equaled 49% of total assets as of such date, and any impairment could significantly affect future results of operations.

	September 30,		June 30,		September 30,
Reporting Unit	2018		2018		2017
Chamberlain	$	4,716	$	4,716	$	4,716
AUC		68,321		68,321		68,321
RUSM and RUSVM		237,173		237,173		237,173
Professional Education		317,029		317,699		306,776
Adtalem Brazil		178,046		185,978		221,683
Total	$	805,285	$	813,887	$	838,669

	September 30,		June 30,		September 30,
Reporting Segment	2018		2018		2017
Medical and Healthcare	$	310,210	$	310,210	$	310,210
Professional Education		317,029		317,699		306,776
Technology and Business		178,046		185,978		221,683
Total	$	805,285	$	813,887	$	838,669

	Medical and ‎ Healthcare		Professional ‎ Education			Technology ‎ and Business			Total
Balance at June 30, 2017		310,210		306,653			212,223			829,086
Foreign exchange rate changes		-		123			9,460			9,583
Balance at September 30, 2017		310,210		306,776			221,683			838,669
Acquisitions		-		11,527			5,636			17,163
Foreign exchange rate changes		-		(604	)		(41,341	)		(41,945	)
Balance at June 30, 2018		310,210		317,699			185,978			813,887
Foreign exchange rate changes		-		(670	)		(7,932	)		(8,602	)
Balance at September 30, 2018	$	310,210	$	317,029		$	178,046		$	805,285

The decrease in the goodwill balance from June 30, 2018 in the Professional Education segment is the result of a change in the value of the British Sterling Pound and Indian Rupee compared to the U.S. dollar. Since Becker’s European subsidiary’s and EduPristine’s goodwill is recorded in local currency, fluctuations in the values of the British Sterling Pound and Indian Rupee in relation to the U.S. dollar will cause changes in the balance of this asset. The decrease in the goodwill balance from June 30, 2018 in the Technology and Business segment is the result of a change in the value of the Brazilian Real compared to the U.S. dollar. Since Adtalem Brazil goodwill is recorded in local currency, fluctuations in the value of the Brazilian Real in relation to the U.S. dollar will cause changes in the balance of this asset.

	September 30,		June 30,		September 30,
Reporting Segment	2018		2018		2017
Medical and Healthcare	$	137,500	$	137,500	$	137,500
Professional Education		69,053		69,126		67,812
Technology and Business		106,575		111,324		136,450
Total	$	313,128	$	317,950	$	341,762

Total indefinite-lived intangible assets decreased by $4.8 million from June 30, 2018. The decrease is the result of a change in the value of the Brazilian Real as compared to the U.S. dollar. Since Adtalem Brazil intangible assets are recorded in local currency, fluctuations in the value of the Brazilian Real in relation to the U.S. dollar will cause changes in the balance of these assets.