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Intangible Assets And Goodwill | 12 Months Ended
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Aug. 31, 2013
Intangible Assets And Goodwill [Abstract] |
Intangible Assets And Goodwill | 5. INTANGIBLE ASSETS AND GOODWILL Our intangible assets were comprised of the following (in thousands):
|  | Gross Carrying |  | Accumulated |  | Net Carrying
AUGUST 31, 2013 |  | Amount |  | Amortization |  | Amount
Definite-lived intangible assets: |  |  |  |  |  |
License rights | $ | 27,000 | $ | (13,978) | $ | 13,022
Acquired curriculum |  | 58,427 |  | (37,550) |  | 20,877
Customer lists |  | 16,685 |  | (15,426) |  | 1,259
Internally developed software |  | 2,049 |  | (341) |  | 1,708
Trade names |  | 1,219 |  | (431) |  | 788
|  | 105,380 |  | (67,726) |  | 37,654
Indefinite-lived intangible asset: |  |  |  |  |  |
Covey trade name |  | 23,000 |  | - |  | 23,000
| $ | 128,380 | $ | (67,726) | $ | 60,654
AUGUST 31, 2012 |  |  |  |  |  |
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
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, 2013 were as follows:
Category of Intangible Asset |  | Range of Remaining Estimated Useful Lives |  | Weighted Average Amortization Period
License rights |  | 13 years |  | 30 years
Curriculum |  | 6 to 13 years |  | 26 years
Customer lists |  | 4 years |  | 14 years
Internally developed software |  | 3 years |  | 3 years
Trade names |  | 5 years |  | 5 years
During March 2013 we acquired the assets of NinetyFive 5 (Note 2). Based on the estimated fair value of assets purchased, the acquired intangible assets are being amortized over a weighted average life of four years and are comprised of the following (in thousands):
Category of |  |  |  |  | Estimated Useful
Intangible Asset |  | Amount |  | Life
Internally developed software |  | $ | 2,049 |  | 3 years
Customer list |  |  | 1,574 |  | 5 years
Trade name |  |  | 242 |  | 5 years
Non-compete agreements |  |  | 124 |  | 5 years
|  | $ | 3,989 |  |
Our goodwill balance at August 31, 2013 was generated from the fiscal 2009 acquisition of CoveyLink Worldwide, LLC (CoveyLink) and the fiscal 2013 acquisition of NinetyFive 5. The previous owners of CoveyLink, which includes a brother of one of our executive officers, are entitled to earn annual contingent payments based upon earnings growth over the subsequent five years. During fiscal 2013 we paid $2.2 million in cash to the former owners of CoveyLink for the fourth contingent payment. 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 according to previously existing business combination guidance. Our consolidated goodwill changed as follows during fiscal 2013 and 2012 (in thousands):
Balance at August 31, 2011 | $ | 9,172
Accumulated impairments |  | -
Balance at August 31, 2012 |  | 9,172
Contingent earnout payment from |  |
CoveyLink acquisition |  | 2,235
Acquisition of NinetyFive 5 |  | 4,728
Accumulated impairments |  | -
Balance at August 31, 2013 | $ | 16,135
The goodwill generated by the NinetyFive 5 acquisition is primarily attributable to the organization, methodologies, and related processes developed by NinetyFive 5 that complement our existing sales performance content. All of the goodwill generated from the acquisition of NinetyFive 5 is expected to be deductible for income tax purposes. Our aggregate amortization expense from definite-lived intangible assets totaled $3.2 million, $2.5 million, and $3.5 million for fiscal years 2013, 2012, and 2011. Amortization expense for our intangible assets over the next five years is expected to be as follows (in thousands):
YEAR ENDING |  |
AUGUST 31, |  |
2014 | $ | 3,834
2015 |  | 3,633
2016 |  | 3,187
2017 |  | 2,817
2018 |  | 2,665

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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 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 2: 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=14024403&loc=d3e13854-109267 Reference 3: 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=14024403&loc=d3e13816-109267 Reference 4: 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=7658586&loc=d3e16373-109275 Reference 5: 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=7658586&loc=d3e16265-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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