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Goodwill and Intangible Assets | 9 Months Ended
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Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 12. Goodwill and Intangible Assets The table below summarizes goodwill balances by reporting unit (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, |  | June 30, |  | March 31,
Reporting Unit | ​ | 2020 | ​ | 2019 | ​ | 2019
Chamberlain | ​ | $ | 4,716 | ​ | $ | 4,716 | ​ | $ | 4,716
AUC | ​ |  | 68,321 | ​ |  | 68,321 | ​ |  | 68,321
RUSM and RUSVM | ​ |  | 237,173 | ​ |  | 237,173 | ​ |  | 237,173
Financial Services | ​ |  | 376,025 | ​ |  | 377,046 | ​ |  | 317,475
Total | ​ | $ | 686,235 | ​ | $ | 687,256 | ​ | $ | 627,685
The table below summarizes goodwill balances by reportable segment (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, |  | June 30, |  | March 31,
Reportable Segment | ​ | 2020 | ​ | 2019 | ​ | 2019
Medical and Healthcare | ​ | $ | 310,210 | ​ | $ | 310,210 | ​ | $ | 310,210
Financial Services | ​ |  | 376,025 | ​ |  | 377,046 | ​ |  | 317,475
Total | ​ | $ | 686,235 | ​ | $ | 687,256 | ​ | $ | 627,685
The table below summarizes the changes in goodwill balances by reportable segment (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Medical and |  | Financial |  | ​ | ​
​ | ​ | Healthcare | ​ | Services | ​ | Total
June 30, 2018 | ​ | $ | 310,210 | ​ | $ | 317,699 | ​ | $ | 627,909
Foreign exchange rate changes |  | ​ | — |  | ​ | (224) |  | ​ | (224)
March 31, 2019 | ​ | ​ | 310,210 | ​ | ​ | 317,475 | ​ | ​ | 627,685
Acquisitions | ​ | ​ | — | ​ | ​ | 59,519 | ​ | ​ | 59,519
Foreign exchange rate changes |  | ​ | — |  | ​ | 52 |  | ​ | 52
June 30, 2019 | ​ | ​ | 310,210 | ​ | ​ | 377,046 | ​ | ​ | 687,256
Purchase accounting adjustments |  | ​ | — |  | ​ | (92) |  | ​ | (92)
Foreign exchange rate changes |  | ​ | — |  | ​ | (929) |  | ​ | (929)
March 31, 2020 | ​ | $ | 310,210 | ​ | $ | 376,025 | ​ | $ | 686,235
​ The decrease in the goodwill balance from June 30, 2019 in the Financial Services segment is primarily the result of a change in the value of the Indian Rupee compared to the U.S. dollar. Since EduPristine’s goodwill is recorded in local currency, fluctuations in the values of the Indian Rupee in relation to the U.S. dollar will cause changes in the balance of this asset. Intangible assets consist of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2020 | ​ | ​
​ |  | Gross |  | ​ | ​ |  | Weighted-Average
​ | ​ | Carrying | ​ | Accumulated | ​ | Amortization
​ | ​ | Amount | ​ | Amortization | ​ | Period
Amortizable intangible assets: |  | ​ |  |  | ​ |  |  |
Customer relationships | ​ | $ | 68,900 | ​ | $ | (19,318) |  | 10 Years
Curriculum/software | ​ |  | 11,600 | ​ |  | (1,611) |  | 6 Years
Course delivery technology | ​ |  | 7,200 | ​ |  | (1,585) |  | 5 Years
Total | ​ | $ | 87,700 | ​ | $ | (22,514) |  |
Indefinite-lived intangible assets: | ​ |  |  | ​ |  |  |  |
Trade names | ​ | $ | 95,666 | ​ |  |  |  |
Chamberlain Title IV eligibility and accreditations | ​ |  | 1,200 | ​ |  |  |  |
AUC Title IV eligibility and accreditations | ​ |  | 100,000 | ​ |  |  |  |
Ross Title IV eligibility and accreditations | ​ |  | 14,100 | ​ |  |  |  |
Intellectual property | ​ |  | 13,940 | ​ |  |  |  |
Total | ​ | $ | 224,906 | ​ |  |  |  |
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2019
​ |  | Gross |  | ​ | ​
​ | ​ | Carrying | ​ | Accumulated
​ | ​ | Amount | ​ | Amortization
Amortizable intangible assets: | ​ |  | ​ | ​ |  | ​
Customer relationships |  | $ | 69,300 |  | $ | (14,448)
Curriculum/software |  | ​ | 16,600 |  | ​ | (5,193)
Course delivery technology |  | ​ | 7,200 |  | ​ | (487)
Total | ​ | $ | 93,100 | ​ | $ | (20,128)
Indefinite-lived intangible assets: | ​ |  |  | ​ |  |
Trade names | ​ | $ | 95,777 | ​ |  |
Chamberlain Title IV eligibility and accreditations | ​ |  | 1,200 | ​ |  |
AUC Title IV eligibility and accreditations | ​ |  | 100,000 | ​ |  |
Ross Title IV eligibility and accreditations | ​ |  | 14,100 | ​ |  |
Intellectual property | ​ |  | 13,940 | ​ |  |
Total | ​ | $ | 225,017 | ​ |  |
​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | March 31, 2019
​ |  | Gross | ​ | ​ | ​
​ |  | Carrying |  | Accumulated
​ |  | Amount |  | Amortization
Amortizable intangible assets: | ​ |  |  | ​ |  |
Customer relationships | ​ | $ | 42,900 | ​ | $ | (13,071)
Curriculum/software | ​ | ​ | 5,000 | ​ | ​ | (4,583)
Course delivery technology | ​ | ​ | 500 | ​ | ​ | (344)
Total |  | $ | 48,400 |  | $ | (17,998)
Indefinite-lived intangible assets: | ​ | ​ | ​ | ​ | ​ | ​
Trade names |  | $ | 77,371 | ​ | ​ | ​
Chamberlain Title IV eligibility and accreditations | ​ | ​ | 1,200 | ​ | ​ | ​
AUC Title IV eligibility and accreditations | ​ | ​ | 100,000 | ​ | ​ | ​
Ross Title IV eligibility and accreditations | ​ | ​ | 14,100 | ​ | ​ | ​
Intellectual property | ​ | ​ | 13,940 | ​ | ​ | ​
Total |  | $ | 206,611 | ​ | ​ | ​
​ The table below summarizes the indefinite-lived intangible asset balances by reportable segment (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, |  | June 30, |  | March 31,
Reportable Segment | ​ | 2020 | ​ | 2019 | ​ | 2019
Medical and Healthcare | ​ | $ | 137,500 | ​ | $ | 137,500 | ​ | $ | 137,500
Financial Services | ​ |  | 87,406 | ​ |  | 87,517 | ​ |  | 69,111
Total | ​ | $ | 224,906 | ​ | $ | 225,017 | ​ | $ | 206,611
​ Amortization expense for amortized intangible assets was $2.6 million and $7.7 million for the three and nine months ended March 31, 2020, respectively, and $1.6 million and $4.8 million for the three and nine months ended March 31, 2019, 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): ​
​ | ​ | ​ | ​ | ​
​ |  | Financial |
Fiscal Year | ​ | Services | ​
2020 (remaining) | ​ | $ | 2,576 | ​
2021 | ​ |  | 10,073 | ​
2022 | ​ |  | 9,944 | ​
2023 | ​ |  | 9,792 | ​
2024 | ​ |  | 9,509 | ​
Thereafter | ​ |  | 23,292 | ​
Total | ​ | $ | 65,186 | ​
​ All amortizable intangible assets except ACAMS customer relationships are amortized on a straight-line basis. The amount amortized for ACAMS customer relationships 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 and 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, 2019, at which time there was no impairment loss associated with recorded goodwill or indefinite-lived intangible assets for any reporting unit. Adtalem has four reporting units that contained goodwill as of the third quarter of fiscal year 2020. 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 March 31, 2020, 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 four reporting units that contained indefinite-lived intangible assets as of the third quarter of fiscal year 2020. For indefinite-lived intangible assets, management first analyzes qualitative factors including results of operations and business conditions of the four 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. In analyzing the results of operations and business conditions of all the reporting units, as of March 31, 2020, it was determined that no triggering event had occurred that would indicate the carrying value of any indefinite-lived intangible asset had exceeded its fair value. 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 2019, and that no interim events or deviations from planned operating results occurred as of March 31, 2020 that would cause management to reassess these conclusions. Although the COVID-19 pandemic is expected to have a negative effect on the operating results of all four reporting units that contain goodwill and indefinite-lived intangible assets, at this time none of the effects are considered significant enough to create a triggering event. The effects are currently projected to be short-term and would not significantly decrease long-term cash flow projections; however, should economic conditions continue to deteriorate into fiscal year 2021, the revenue and operating results of some reporting units could also deteriorate to the point where a triggering event would exist and require reassessment of the fair values of goodwill and intangible assets and potential impairments. 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 future impairments of intangible assets or goodwill.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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