Goodwill and Intangibles

6 Months Ended

Feb. 28, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The following details changes in our goodwill by reportable segment during the six months ended February 28, 2015:



($ in thousands)	University of Phoenix		Apollo Global			Other		Total
Goodwill as of August 31, 2014	$	71,812	$	171,198		$	16,891	$	259,901
FAEL acquisition	—		14,538			—		14,538
Currency translation adjustment	—		(25,807		)	—		(25,807		)
Goodwill as of February 28, 2015	$	71,812	$	159,929		$	16,891	$	248,632

Intangibles consist of the following as of the respective periods:



	February 28, 2015										August 31, 2014
($ in thousands)	Gross Carrying Amount		Accumulated Amortization			Effect of Foreign Currency Translation			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Effect of Foreign Currency Translation			Net Carrying Amount
Accreditations and designations	$	21,628	$	(5,094	)	$	(1,910	)	$	14,624	$	21,628	$	(3,015	)	$	1,000		$	19,613
Trademarks	17,919		(2,093		)	(1,771		)	14,055		17,919		(1,238		)	907			17,588
Curriculum⁽¹⁾	18,205		(5,172		)	(1,398		)	11,635		16,993		(2,933		)	826			14,886
Student and customer relationships⁽²⁾	14,437		(10,365		)	(1,578		)	2,494		15,934		(9,780		)	(1,161		)	4,993
Software and technology⁽³⁾	—		—			—			—		42,389		(25,151		)	—			17,238
Other^{(1), (2)}	11,303		(5,919		)	(1,978		)	3,406		20,891		(19,909		)	(611		)	371
Total finite-lived intangibles	83,492		(28,643		)	(8,635		)	46,214		135,754		(62,026		)	961			74,689
Trademarks⁽¹⁾	115,737		—			(7,189		)	108,548		106,514		—			(68		)	106,446
Accreditations and designations⁽¹⁾	14,470		—			(1,464		)	13,006		8,530		—			(300		)	8,230
Total indefinite-lived intangibles	130,207		—			(8,653		)	121,554		115,044		—			(368		)	114,676
Total intangible assets, net	$	213,699	$	(28,643	)	$	(17,288	)	$	167,768	$	250,798	$	(62,026	)	$	593		$	189,365

⁽¹⁾We acquired intangibles during the second quarter of fiscal year 2015 as a result of our acquisition of FAEL. Refer to Note 4, Acquisitions.

⁽²⁾ The decrease in the gross carrying amount as of February 28, 2015 compared to August 31, 2014 was due to the removal of intangibles that were fully amortized during fiscal year 2015.

⁽³⁾ We recorded a $13.0 million impairment charge of technology intangibles during the second quarter of fiscal year 2015. Refer to Note 2, Restructuring and Impairment Charges.

The following is the estimated future amortization expense of our finite-lived intangibles as of February 28, 2015:



($ in thousands)	Remainder of 2015		2016		2017		2018		2019		2020		Thereafter		Total
Estimated future amortization expense⁽¹⁾	$	7,006	$	11,255	$	10,214	$	7,543	$	3,135	$	1,609	$	5,452	$	46,214

⁽¹⁾The estimated future amortization expense may vary as acquisitions and dispositions occur in the future and as a result of foreign currency translation adjustments.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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