Investment in Unconsolidated Affiliate (Notes)

6 Months Ended

Mar. 31, 2016

Investment in Unconsolidated Affiliate [Abstract]

Equity Method Investments Disclosure [Text Block]

Investment in Unconsolidated Affiliates

We have an equity interest of approximately 28% in a joint venture related to the lease of our Lisle, Illinois campus facility (JV). In connection with this investment, we do not possess a controlling financial interest as we do not hold a majority of the equity interest, nor do we have the power to make major decisions without approval from the other equity member. Therefore, we do not qualify as the primary beneficiary. Accordingly, this investment is accounted for under the equity method of accounting and is included in other assets in our condensed consolidated balance sheets. We recognize our proportionate share of the net income or loss during each accounting period and any return of capital as a change in our investment.

Currently, the JV uses an interest rate cap to manage interest rate risk associated with its floating rate debt. This derivative instrument is designated as a cash flow hedge based on the nature of the risk being hedged. As such, the effective portion of the gain or loss on the derivative is initially reported as a component of the JV’s accumulated other comprehensive income or loss, net of tax, and is subsequently reclassified into earnings when the hedged transaction affects earnings. Any ineffective portion of the gain or loss is recognized in the JV’s current earnings. Due to our equity method investment in the JV, when the JV reports a current year component of other comprehensive income (OCI), we, as an investor, likewise adjust our investment account for the change in investee equity. In addition, we adjust our OCI for our share of the JV’s currently reported OCI item.

Additionally, in February 2016, we made an investment in and entered into a licensing agreement with Pro-MECH Learning Systems, LLC (Pro-MECH), a company that provides comprehensive technician development programs and shop operations services. This investment, which included $0.7 million in cash as well as the conversion of a $0.3 million note receivable extended during the first quarter of 2016, resulted in our ownership of 25% of the outstanding equity interests of Pro-MECH. The $1.0 million investment is accounted for under the equity method of accounting and is included in other assets in our condensed consolidated balance sheets. We recognize our proportionate share of the net income or loss during each accounting period and any return of capital as a change in our investment.

Investment in unconsolidated affiliates consisted of the following:



	March 31, 2016				September 30, 2015
	Carrying Value		Ownership Percentage		Carrying Value		Ownership Percentage
Investment in JV	$	4,010	27.972	%	$	3,986	27.972	%

Investment in Pro-MECH	$	974	25.000	%	$	—	—

Investment in unconsolidated affiliates included the following activity during the period:



	Six Months Ended March 31,
	2016			2015
Balance at beginning of period	$	3,986		$	3,903
Investment in unconsolidated affiliate	1,000			—
Equity in earnings of unconsolidated affiliates	239			254
Return of capital contribution from unconsolidated affiliates	(240		)	(228		)
Equity interest in investee's unrealized gains (losses) on hedging derivatives, net of taxes	(1		)	17
Balance at end of period	$	4,984		$	3,946