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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 10. GOODWILL AND OTHER INTANGIBLE ASSETS There were no changes in the carrying amount of goodwill for continuing operations as of December 31, 2015 and 2014. The carrying value of goodwill for CTU and AIU were $45.9 million and $41.4 million, respectively, for the years ended December 31, 2015 and 2014. We performed our annual impairment testing of goodwill as of October 1, 2015 and determined that none of our reporting units were at risk of failing the first step of the goodwill impairment test as of October 1, 2015. In calculating the fair value for CTU and AIU, we performed extensive valuation analyses, utilizing both income and market approaches, in our goodwill assessment process. The following describes the valuation methodologies used to derive the fair value of our reporting units:
| · | Income Approach: To determine the estimated fair value of each reporting unit, we discount the expected cash flows which are developed by management. We estimate our future cash flows after considering current economic conditions and trends, estimated future operating results, our views of growth rates and anticipated future economic and regulatory conditions. The discount rate used represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in our future expected cash flows and the rate of return an outside investor would expect to earn. To estimate cash flows beyond the final year of our models, we use a terminal value approach and incorporate the present value of the resulting terminal value into our estimate of fair value.
| · | Market-Based Approach: To corroborate the results of the income approach described above, we estimate the fair value of our reporting units using several market-based approaches, including the guideline company method, which focuses on comparing our risk profile and growth prospects to select reasonably similar publicly traded companies.
The determination of estimated fair value of each reporting unit requires significant estimates and assumptions, and as such, these fair value measurements are categorized as Level 3 per ASC Topic 820. These estimates and assumptions primarily include, but are not limited to, the discount rate, terminal growth rates, operating cash flow projections and capital expenditure forecasts. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to determine the fair value of each reporting unit for reasonableness. As of December 31, 2015 and 2014, the cost basis, accumulated amortization and net book value of intangible assets for continuing operations are as follows (dollars in thousands):
|  | December 31, 2015 |  |  | December 31, 2014 |
|  |  |  |  |  |  |  |  |  | Net |  |  |  |  |  |  |  |  |  |  | Net |
|  |  |  |  |  | Accumulated |  |  | Book |  |  |  |  |  |  | Accumulated |  |  | Book |
|  | Cost |  |  | Amortization |  |  | Value |  |  | Cost |  |  | Amortization |  |  | Value |
Amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Courseware |  | $ | 7,782 |  |  | $ | (7,782 | ) |  | $ | - |  |  | $ | 9,671 |  |  | $ | (9,671 | ) |  | $ | - |
LCB trade name, net of impairment (1) |  |  | 1,400 |  |  |  | - |  |  |  | 1,400 |  |  |  | - |  |  |  | - |  |  |  | - |
Missouri College trade name, net of impairment |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 438 |  |  |  | (219 | ) |  |  | 219 |
Amortizable intangible assets, net |  | $ | 9,182 |  |  | $ | (7,782 | ) |  | $ | 1,400 |  |  | $ | 10,109 |  |  | $ | (9,890 | ) |  | $ | 219 |
Non-amortizable intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accreditation, licensing, and Title IV Program participation rights |  |  |  |  |  |  |  |  |  | $ | 1,000 |  |  |  |  |  |  |  |  |  |  | $ | 1,000 |
Trade names (1) |  |  |  |  |  |  |  |  |  |  | 6,900 |  |  |  |  |  |  |  |  |  |  |  | 27,000 |
Non-amortizable intangible assets |  |  |  |  |  |  |  |  |  |  | 7,900 |  |  |  |  |  |  |  |  |  |  |  | 28,000 |
Intangible assets, net |  |  |  |  |  |  |  |  |  | $ | 9,300 |  |  |  |  |  |  |  |  |  |  | $ | 28,219 |
___________________
(1) | The current year amount relates to our CTU trade name. The prior year amount relates to our CTU trade name as well as our LCB and Sanford-Brown trade names which were impaired during the current year and, for our LCB trade name, the remaining fair value of which was reclassified as definite-lived.
Amortizable intangible assets are fully amortized on a straight-line basis over their estimated useful lives as of December 31, 2015. Our definite-lived trade name of $1.4 million has a remaining useful life of 21 months. Amortization expense from continuing operations was $0.1 million, $0.8 million and $1.1 million, for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, net intangible assets include certain accreditation, licensing, and Title IV Program participation rights and trade names that are considered to have indefinite useful lives and, in accordance with FASB ASC Topic 350—Intangibles—Goodwill and Other, are not subject to amortization but rather reviewed for impairment on at least an annual basis by applying a fair-value-based test. During December 2015, the decision was made to teach out the Culinary Arts campuses. Prior to the teach-out announcement, these campuses had been reported as an asset held for sale within discontinued operations in accordance with ASC Topic 360. Upon the decision to teach-out these campuses, the results of operations and financial position for these campuses were reclassified to continuing operations to be held and used through their teach-out date. In accordance with ASC Topic 360, the fair value of the assets and liabilities for these campuses was determined at their reclassification date. As a result of the fair value calculation, we recorded an impairment charge of $17.0 million for the LCB trade name, resulting in a remaining fair value of $1.4 million. The remaining trade name fair value will be amortized over the teach-out period for these campuses, or approximately 21 months. During the first half of 2015, we identified indicators of asset impairment related to our Missouri College and Sanford Brown trade names as a result of the decisions made to sell or teach-out these campuses and as such recorded impairments of $1.8 million related to these trade names. Additionally, we performed our annual impairment testing of indefinite-lived intangible asset balances as of October 1, 2015 and concluded that no indicators existed that would suggest that it is more likely than not that the remaining assets would be impaired. Due to the inherent uncertainty involved in deriving those estimates, actual results could differ from those estimates. We evaluate the merits of each significant assumption used, both individually and in the aggregate, to test the fair value for reasonableness. Although we believe our projected future operating results and cash flows and related estimates regarding fair value are based on reasonable assumptions, historically projected operating results and cash flows have not always been achieved. We continue to monitor the operating results and revenue projections related to our CTU trade name and accreditation rights on a quarterly basis for signs of possible further declines in estimated fair value.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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