Intangible Assets And Goodwill

12 Months Ended

Aug. 31, 2012

Intangible Assets And Goodwill [Abstract]

4. INTANGIBLE ASSETS AND GOODWILL

Our intangible assets were comprised of the following (in thousands):



		Gross Carrying		Accumulated		Net Carrying
AUGUST 31, 2012		Amount		Amortization		Amount
Definite-lived intangible assets:
License rights	$	27,000	$	(13,041)	$	13,959
Acquired curriculum		58,284		(36,052)		22,232
Customer lists		15,111		(15,097)		14
Trade names		377		(377)		-
		100,772		(64,567)		36,205
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	123,772	$	(64,567)	$	59,205

AUGUST 31, 2011
Definite-lived intangible assets:
License rights	$	27,000	$	(12,103)	$	14,897
Acquired curriculum		58,285		(34,524)		23,761
Customer lists		15,111		(15,066)		45
Trade names		377		(377)		-
		100,773		(62,070)		38,703
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	123,773	$	(62,070)	$	61,703

Our intangible assets are amortized over the estimated useful life of the asset. The range of remaining estimated useful lives and weighted-average amortization period over which we are amortizing the major categories of definite-lived intangible assets at August 31, 2012 were as follows:


Category of Intangible Asset	Range of Remaining Estimated Useful Lives	Weighted Average Amortization Period

License rights	14 years	30 years
Curriculum	2 to 14 years	26 years
Customer lists	Less than one year	14 years

During fiscal 2009 we acquired the assets of CoveyLink Worldwide, LLC (CoveyLink). The previous owners of CoveyLink, which includes a son of a former member of our Board of Directors, are also entitled to earn annual contingent payments based upon earnings growth over the next five years. During the fiscal years ended August 31, 2011 and 2010, we paid $5.4 million and $3.3 million, respectively, in cash to the former owners of CoveyLink for the first two contingent payments. There was no payment required in fiscal 2012 for the third contingent payment. These contingent payments were classified as goodwill on our consolidated balance sheets. Our consolidated goodwill changed as follows during fiscal 2012 and 2011 (in thousands):



Balance at August 31, 2010	$	3,761
Contingent earnout payment from
CoveyLink acquisition		5,411
Impairments		-
Balance at August 31, 2011	$	9,172
Contingent earnout payment from
CoveyLink acquisition		-
Impairments		-
Balance at August 31, 2012	$	9,172

Our aggregate amortization expense from definite-lived intangible assets totaled $2.5 million, $3.5 million, and $3.8 million, for fiscal years 2012, 2011, and 2010. Amortization expense for our intangible assets over the next five years is expected to be as follows (in thousands):



YEAR ENDING
AUGUST 31,
2013	$	2,471
2014		2,446
2015		2,443
2016		2,443
2017		2,443

- 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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