|
Summary of Significant Accounting Policies (Tables)
|
6 Months Ended |
|
Dec. 31, 2012
|
| Summary of Significant Accounting Policies |
|
| Schedule of useful lives of property and equipment |
Property and equipment are depreciated over the following useful lives:
|
|
|
Useful Life |
|
|
Student computers |
|
3 years |
|
|
Computer hardware |
|
3 years |
|
|
Computer software |
|
3-5 years |
|
|
Web site development costs |
|
3 years |
|
|
Office equipment |
|
5 years |
|
|
Furniture and fixtures |
|
7 years |
|
|
Leasehold improvements |
|
3-12 years |
|
|
| Schedule of goodwill additions |
The following table represents goodwill additions during the six months ended December 31, 2012:
|
Rollforward of Goodwill |
|
Amount |
|
|
|
|
($ in millions) |
|
|
Balance as of June 30, 2012 |
|
$ |
61.6 |
|
|
Adjustments due to KVE and other foreign exchange translations |
|
(0.1 |
) |
|
Balance as of December 31, 2012 |
|
$ |
61.5 |
|
|
| Schedule of intangible assets |
The following table represents the balance of intangible assets as of December 31 and June 30, 2012:
Intangible Assets
|
|
|
December 31, 2012 |
|
June 30, 2012 |
|
|
($ in millions) |
|
Gross
Carrying
Amount |
|
Accumulated
Amortization |
|
Net
Carrying
Value |
|
Gross
Carrying
Amount |
|
Accumulated
Amortization |
|
Net
Carrying
Value |
|
|
Trade names |
|
$ |
24.0 |
|
$ |
(3.8 |
) |
$ |
20.2 |
|
$ |
24.0 |
|
$ |
(3.1 |
) |
$ |
20.9 |
|
|
Customer and distributor relationships |
|
18.9 |
|
(5.4 |
) |
13.5 |
|
18.9 |
|
(4.0 |
) |
14.9 |
|
|
Developed technology |
|
1.5 |
|
(1.1 |
) |
0.4 |
|
1.5 |
|
(0.9 |
) |
0.6 |
|
|
Other |
|
0.5 |
|
(0.2 |
) |
0.3 |
|
0.5 |
|
(0.2 |
) |
0.3 |
|
|
|
|
$ |
44.9 |
|
$ |
(10.5 |
) |
$ |
34.4 |
|
$ |
44.9 |
|
$ |
(8.2 |
) |
$ |
36.7 |
|
|
| Schedule of assets and liabilities measured at fair value on a recurring basis |
The following table summarizes certain information at December 31, 2012 for assets and liabilities measured at fair value on a recurring basis:
|
|
|
Fair Value Measurements Using: |
|
|
|
|
|
|
Quoted Prices |
|
|
|
|
|
|
|
|
|
|
in Active |
|
Significant |
|
|
|
|
|
|
|
|
Markets for |
|
Other |
|
Significant |
|
|
|
|
|
|
Identical |
|
Observable |
|
Unobservable |
|
|
|
|
|
|
Assets |
|
Input |
|
Inputs |
|
|
Description |
|
Fair Value |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
|
|
|
(In thousands) |
|
|
Redeemable Noncontrolling Interest in Middlebury Joint Venture |
|
$ |
17,200 |
|
$ |
— |
|
$ |
— |
|
$ |
17,200 |
|
|
Investment in Web International Education Group, Ltd |
|
10,000 |
|
— |
|
— |
|
10,000 |
|
|
Total |
|
$ |
27,200 |
|
$ |
— |
|
$ |
— |
|
$ |
27,200 |
|
The following table summarizes certain information at June 30, 2012 for assets and liabilities measured at fair value on a recurring basis:
|
|
|
Fair Value Measurements Using: |
|
|
|
|
|
|
Quoted Prices |
|
|
|
|
|
|
|
|
|
|
in Active |
|
Significant |
|
|
|
|
|
|
|
|
Markets for |
|
Other |
|
Significant |
|
|
|
|
|
|
Identical |
|
Observable |
|
Unobservable |
|
|
|
|
|
|
Assets |
|
Input |
|
Inputs |
|
|
Description |
|
Fair Value |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
|
|
|
|
(In thousands) |
|
|
Redeemable Noncontrolling Interest in Middlebury Joint Venture |
|
$ |
17,200 |
|
$ |
— |
|
$ |
— |
|
$ |
17,200 |
|
|
Investment in Web International Education Group, Ltd |
|
10,000 |
|
— |
|
— |
|
10,000 |
|
|
Total |
|
$ |
27,200 |
|
$ |
— |
|
$ |
— |
|
$ |
27,200 |
|
|
| Schedule of activity related to fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis |
|
|
|
Six Months Ended December 31, 2012 |
|
|
|
|
|
|
Purchases, |
|
|
|
Fair Value |
|
|
|
|
Fair Value |
|
Issuances, |
|
Unrealized |
|
December 31, |
|
|
Description |
|
June 30, 2012 |
|
and Settlements |
|
Gains/(Losses) |
|
2012 |
|
|
|
|
(In thousands) |
|
|
Redeemable Noncontrolling Interest in Middlebury Joint Venture |
|
$ |
17,200 |
|
$ |
— |
|
$ |
— |
|
$ |
17,200 |
|
|
Investment in Web International Education Group, Ltd |
|
10,000 |
|
— |
|
— |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
27,200 |
|
$ |
— |
|
$ |
— |
|
$ |
27,200 |
|
|
| Schedule of calculation of basic and diluted net income per share |
|
|
|
Three Months Ended
December 31, |
|
Six Months Ended
December 31, |
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
(In thousands except shares and per share data) |
|
|
Basic earnings per share computation: |
|
|
|
|
|
|
|
|
|
|
Net income — K12 |
|
$ |
9,511 |
|
$ |
4,165 |
|
$ |
13,868 |
|
$ |
8,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount allocated to participating Series A stockholders |
|
$ |
(675 |
) |
$ |
(297 |
) |
$ |
(984 |
) |
$ |
(627 |
) |
|
Income available to common stockholders — basic |
|
$ |
8,836 |
|
$ |
3,868 |
|
$ |
12,884 |
|
$ |
8,139 |
|
|
Weighted average common shares — basic |
|
36,118,519 |
|
35,755,685 |
|
36,073,885 |
|
35,692,761 |
|
|
Basic net income per share |
|
$ |
0.24 |
|
$ |
0.11 |
|
$ |
0.36 |
|
$ |
0.23 |
|
|
Dilutive earnings per share computation: |
|
|
|
|
|
|
|
|
|
|
Net income — K12 |
|
$ |
9,511 |
|
$ |
4,165 |
|
$ |
13,868 |
|
$ |
8,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount allocated to participating Series A stockholders |
|
$ |
(675 |
) |
$ |
(297 |
) |
$ |
(984 |
) |
$ |
(627 |
) |
|
Income available to common stockholders — diluted |
|
$ |
8,836 |
|
$ |
3,868 |
|
$ |
12,884 |
|
$ |
8,139 |
|
|
Share computation: |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares — basic |
|
36,118,519 |
|
35,755,685 |
|
36,073,885 |
|
35,692,761 |
|
|
Effect of dilutive stock options and restricted stock awards |
|
— |
|
221,094 |
|
— |
|
317,117 |
|
|
Weighted average common shares outstanding — diluted |
|
36,118,519 |
|
35,976,779 |
|
36,073,885 |
|
36,009,878 |
|
|
Diluted net income per share |
|
$ |
0.24 |
|
$ |
0.11 |
|
$ |
0.36 |
|
$ |
0.23 |
|
|