Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Jan. 29, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'DV | ' |
Entity Common Stock, Shares Outstanding | ' | 63,349,000 |
Entity Registrant Name | 'DEVRY EDUCATION GROUP INC. | ' |
Entity Central Index Key | '0000730464 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Current Assets: | ' | ' | ' |
Cash and Cash Equivalents | $262,034 | $196,576 | $216,567 |
Marketable Securities and Investments | 3,263 | 2,975 | 2,752 |
Restricted Cash | 11,873 | 7,019 | 3,894 |
Accounts Receivable, Net | 117,812 | 139,778 | 118,322 |
Deferred Income Taxes, Net | 31,169 | 29,758 | 25,008 |
Refundable Income Taxes | 6,969 | 154 | 23,827 |
Prepaid Expenses and Other | 42,625 | 49,685 | 31,695 |
Current Assets of Divested Business | 0 | 16,219 | 28,706 |
Total Current Assets | 475,745 | 442,164 | 450,771 |
Land, Building and Equipment: | ' | ' | ' |
Land | 66,539 | 71,122 | 65,963 |
Building | 429,463 | 424,902 | 388,010 |
Equipment | 472,944 | 475,656 | 459,711 |
Construction in Progress | 44,115 | 33,724 | 48,143 |
Property, Plant and Equipment, Gross, Total | 1,013,061 | 1,005,404 | 961,827 |
Accumulated Depreciation | -455,018 | -433,747 | -407,991 |
Land, Building and Equipment of Divested Business, Net | 0 | 0 | 5,521 |
Land, Building and Equipment, Net | 558,043 | 571,657 | 559,357 |
Other Assets: | ' | ' | ' |
Intangible Assets, Net | 293,720 | 281,998 | 294,177 |
Goodwill | 514,757 | 508,937 | 566,199 |
Perkins Program Fund, Net | 13,450 | 13,450 | 13,450 |
Other Assets | 33,398 | 33,025 | 30,112 |
Other Assets of Divested Business | 0 | 5,787 | 718 |
Total Other Assets | 855,325 | 843,197 | 904,656 |
TOTAL ASSETS | 1,889,113 | 1,857,018 | 1,914,784 |
Current Liabilities: | ' | ' | ' |
Accounts Payable | 62,721 | 55,131 | 60,383 |
Accrued Salaries, Wages and Benefits | 77,447 | 88,444 | 63,607 |
Accrued Expenses | 69,259 | 74,451 | 71,432 |
Deferred and Advance Tuition | 97,725 | 97,478 | 140,576 |
Current Liabilities of Divested Business | 0 | 713 | 1,530 |
Total Current Liabilities | 307,152 | 316,217 | 337,528 |
Other Liabilities: | ' | ' | ' |
Deferred Income Taxes, Net | 59,941 | 60,103 | 64,444 |
Deferred Rent and Other | 91,054 | 82,576 | 107,553 |
Total Other Liabilities | 150,995 | 142,679 | 171,997 |
Other Liabilities of Divested Business | 0 | 112 | 0 |
TOTAL LIABILITIES | 458,147 | 459,008 | 509,525 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | ' | ' | ' |
NON-CONTROLLING INTEREST | 5,975 | 854 | 8,901 |
SHAREHOLDERS' EQUITY | ' | ' | ' |
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized: 63,332,000, 62,946,000 and 63,287,000 Shares Issued and Outstanding at December 31, 2013, June 30, 2013 and December 31, 2012, Respectively | 752 | 745 | 744 |
Additional Paid-in Capital | 304,807 | 291,269 | 280,901 |
Retained Earnings | 1,599,985 | 1,575,009 | 1,560,130 |
Accumulated Other Comprehensive Loss | -25,573 | -17,101 | -6,696 |
Treasury Stock, at Cost (11,661,000, 11,581,000 and 11,079,000 Shares, Respectively) | -454,980 | -452,766 | -438,721 |
TOTAL SHAREHOLDERS' EQUITY | 1,424,991 | 1,397,156 | 1,396,358 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,889,113 | $1,857,018 | $1,914,784 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Common Stock, Par Value | $0.01 | $0.01 | $0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common Stock, Shares Issued | 63,332,000 | 62,946,000 | 63,287,000 |
Common Stock, Shares Outstanding | 63,332,000 | 62,946,000 | 63,287,000 |
Treasury Stock, Shares | 11,661,000 | 11,581,000 | 11,079,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | ' | ' | ' | ' |
Tuition | $457,888 | $471,881 | $877,205 | $920,566 |
Other Educational | 33,381 | 28,785 | 64,976 | 60,020 |
Total Revenues | 491,269 | 500,666 | 942,181 | 980,586 |
OPERATING COSTS AND EXPENSES: | ' | ' | ' | ' |
Cost of Educational Services | 242,997 | 240,244 | 484,732 | 479,697 |
Student Services and Administrative Expense | 185,046 | 183,743 | 374,205 | 374,762 |
Gain on Sale of Assets | 0 | 0 | -1,918 | 0 |
Restructuring Expenses | 4,664 | 9,484 | 16,329 | 9,484 |
Total Operating Costs and Expenses | 432,707 | 433,471 | 873,348 | 863,943 |
Operating Income | 58,562 | 67,195 | 68,833 | 116,643 |
INTEREST (EXPENSE) INCOME: | ' | ' | ' | ' |
Interest Income | 310 | 230 | 893 | 791 |
Interest Expense | -1,052 | -759 | -2,052 | -2,250 |
Net Interest (Expense) Income | -742 | -529 | -1,159 | -1,459 |
Income from Continuing Operations Before Income Taxes | 57,820 | 66,666 | 67,674 | 115,184 |
Income Tax Provision | -8,492 | -14,604 | -10,195 | -29,126 |
Income from Continuing Operations | 49,328 | 52,062 | 57,479 | 86,058 |
DISCONTINUED OPERATIONS (NOTE 3): | ' | ' | ' | ' |
Loss from Operations of Divested Component | -1,387 | -1,290 | -17,711 | -4,948 |
Income Tax Benefit | 467 | 452 | 1,463 | 1,936 |
Loss on Discontinued Operations | -920 | -838 | -16,248 | -3,012 |
NET INCOME | 48,408 | 51,224 | 41,231 | 83,046 |
Net Income Attributable to Non-controlling Interest | -253 | -938 | -208 | -771 |
NET INCOME ATTRIBUTABLE TO DEVRY EDUCATION GROUP INC. | 48,155 | 50,286 | 41,023 | 82,275 |
AMOUNTS ATTRIBUTABLE TO DEVRY EDUCATION GROUP INC.: | ' | ' | ' | ' |
Income from Continuing Operations, Net of Income Taxes | 49,075 | 51,124 | 57,271 | 85,287 |
Loss from Discontinued Operations, Net of Income Taxes | -920 | -838 | -16,248 | -3,012 |
NET INCOME ATTRIBUTABLE TO DEVRY EDUCATION GROUP INC. | $48,155 | $50,286 | $41,023 | $82,275 |
Basic: | ' | ' | ' | ' |
Continuing Operations | $0.76 | $0.79 | $0.89 | $1.32 |
Discontinued Operations | ($0.01) | ($0.01) | ($0.25) | ($0.05) |
Earnings Per Share, Basic | $0.75 | $0.78 | $0.64 | $1.27 |
Diluted: | ' | ' | ' | ' |
Continuing Operations | $0.75 | $0.79 | $0.88 | $1.32 |
Discontinued Operations | ($0.01) | ($0.01) | ($0.25) | ($0.05) |
Earnings Per Share, Diluted | $0.74 | $0.78 | $0.63 | $1.27 |
Cash Dividends Declared per Common Share | $0.17 | $0.17 | $0.17 | $0.17 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
NET INCOME | $48,408 | $51,224 | $41,231 | $83,046 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ' | ' | ' | ' |
Currency Translation Loss | -8,030 | -1,279 | -8,654 | -869 |
Change in Fair Value of Available -For- Sale Securities | 62 | -5 | 182 | 62 |
COMPREHENSIVE INCOME | 40,440 | 49,940 | 32,759 | 82,239 |
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST | 60 | -717 | 153 | -638 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO DEVRY EDUCATION GROUP INC. | $40,500 | $49,223 | $32,912 | $81,601 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net Income | $41,231 | $83,046 |
Loss from Discontinued Operations | 16,248 | 3,012 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock Based Compensation Expense | 9,860 | 8,370 |
Depreciation | 40,719 | 40,842 |
Amortization | 3,590 | 5,019 |
Provision for Refunds and Uncollectible Accounts | 37,274 | 40,777 |
Deferred Income Taxes | 1,699 | 2,075 |
Loss on Disposal of Land, Building and Equipment | 1,333 | 2,237 |
Unrealized Loss on Assets Held for Sale | 244 | 6,250 |
Realized Gain on Sale of Assets | -1,918 | 0 |
Changes in Assets and Liabilities, Net of Effects from Acquisition of Businesses: | ' | ' |
Restricted Cash | -4,854 | -1,396 |
Accounts Receivable | -17,170 | -62,674 |
Prepaid Expenses and Other | 1,338 | 29,040 |
Accounts Payable | 7,592 | -1,449 |
Accrued Salaries, Wages, Benefits and Expenses | -23,279 | -11,590 |
Deferred and Advance Tuition | -589 | 42,332 |
Net Cash Provided by Operating Activities-Continuing Operations | 113,318 | 185,891 |
Net Cash Used by Operating Activities- Discontinued Operations | -197 | -5,686 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 113,121 | 180,205 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Capital Expenditures | -33,426 | -47,213 |
Payment for Purchase of Businesses, Net of Cash Acquired | -12,343 | -31,386 |
Marketable Securities Purchased | -106 | -82 |
Cash Received on Sale of Assets | 8,662 | 0 |
Net Cash Used in Investing Activities-Continuing Operations | -37,213 | -78,681 |
Net Cash Used in Investing Activities- Discontinued Operations | 0 | -972 |
NET CASH USED IN INVESTING ACTIVITIES | -37,213 | -79,653 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from Exercise of Stock Options | 3,576 | 1,139 |
Proceeds from Stock Issued Under Employee Stock Purchase Plan | 708 | 756 |
Repurchase of Common Stock for Treasury | 0 | -38,567 |
Cash Dividends Paid | -10,941 | -20,707 |
Excess Tax Benefit from Stock-Based Payments | 0 | 58 |
Payments of Seller Financed Debt | -2,138 | 0 |
NET CASH USED IN FINANCING ACTIVITIES | -8,795 | -57,321 |
Effects of Exchange Rate Differences | -2,223 | -1,048 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 64,890 | 42,183 |
Cash and Cash Equivalents at Beginning of Period | 197,144 | 174,076 |
Cash and Cash Equivalents at End of Period | 262,034 | 216,259 |
Less: Cash and Cash Equivalents of Discontinued Operations at End of Period | 0 | 308 |
Cash and Cash Equivalents at End of Period | 262,034 | 216,567 |
Cash Paid During the Period For: | ' | ' |
Interest | 698 | 527 |
Income Taxes, Net | 8,074 | 4,458 |
Non-cash Investing and Financing Activity: | ' | ' |
Accretion of Non-controlling Interest Put Option | $4,913 | ($112) |
INTERIM_FINANCIAL_STATEMENTS
INTERIM FINANCIAL STATEMENTS | 6 Months Ended |
Dec. 31, 2013 | |
INTERIM FINANCIAL STATEMENTS | ' |
NOTE 1: INTERIM FINANCIAL STATEMENTS | |
The interim consolidated financial statements include the accounts of DeVry Education Group Inc. (“DeVry Group”) and its wholly-owned and majority-owned subsidiaries. These financial statements are unaudited but, in the opinion of management, contain all adjustments, consisting only of normal, recurring adjustments, necessary to present fairly the financial condition and results of operations of DeVry Group. The June 30, 2013 data that is presented is derived from audited financial statements. | |
The interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in DeVry Group’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013, and DeVry Group’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, each as filed with the Securities and Exchange Commission. | |
The results of operations for the three and six months ended December 31, 2013, are not necessarily indicative of results to be expected for the entire fiscal year. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses reported during the period. Actual results could differ from those estimates. | ||||||||||||||
Revenue Recognition | ||||||||||||||
DeVry University tuition revenues are recognized ratably on a straight-line basis over the applicable academic term. Ross University School of Medicine, Ross University School of Veterinary Medicine (together “Ross University”) and American University of the Caribbean School of Medicine (“AUC”) basic science curriculum revenues are recognized ratably on a straight-line basis over the academic term. The clinical portion of the Ross University and AUC education programs are conducted under the supervision of U.S. teaching hospitals and veterinary schools. Ross University and AUC are responsible for the billing and collection of tuition from its students during the period of clinical education. Revenues are recognized on a weekly basis based on actual program attendance during the period of the clinical program. Fees paid to the hospitals and veterinary schools for supervision of Ross University and AUC students are charged to expense on the same basis. Carrington, Chamberlain and DeVry Brasil tuition and fee revenues are recognized ratably on a straight-line basis over the applicable academic term. The provision for refunds, which is reported as a reduction to Tuition Revenues in the Consolidated Statements of Income, and the provision for uncollectible accounts, which is included in the Cost of Educational Services in the Consolidated Statements of Income, also are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. | ||||||||||||||
Estimates of DeVry Group’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms, and monitored and adjusted as necessary within the term. If a student leaves school prior to completing a term, federal, state and/or Canadian provincial regulations and accreditation criteria permit DeVry Group to retain only a set percentage of the total tuition received from such student, which varies with, but generally equals or exceeds, the percentage of the term completed by such student. Payment amounts received by DeVry Group in excess of such set percentages of tuition are refunded to the student or the appropriate funding source. All refunds are netted against revenue during the applicable academic term. The allowance for uncollectible accounts is determined by analyzing the current aging of accounts receivable and historical loss rates on collections of accounts receivable. In addition, management considers projections of future receivable levels and collection loss rates. We monitor the inputs to this analysis periodically throughout the year. Provisions required to maintain the allowance at appropriate levels are charged to expense in each period as required. Related reserves with respect to uncollectible accounts and refunds totaled $44.4 million and $52.5 million at December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||
Sales of textbooks, electronic course materials, and other educational products, including training services and the Becker self-study products, are included in Other Educational Revenues in the Consolidated Statements of Income. Textbook, electronic course materials and other educational product revenues are recognized when the sale occurs. Revenues from training services, which are generally short-term in duration, are recognized when the training service is provided. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenues and recognized when confirmation of course delivery is received. | ||||||||||||||
Internal-Use Software Development Costs | ||||||||||||||
DeVry Group capitalizes certain internal-use software development costs that are amortized using the straight-line method over the estimated lives of the software, not to exceed five years. Capitalized costs include external direct costs of equipment, materials and services consumed in developing or obtaining internal-use software and payroll-related costs for employees directly associated with the internal-use software development project. Capitalization of such costs ceases at the point at which the project is substantially complete and ready for its intended purpose. Capitalized internal-use software development costs for projects not yet complete are included as construction in progress in the Land, Buildings and Equipment section of the Consolidated Balance Sheets. Costs capitalized during the three and six months ended December 31, 2013 were approximately $0.3 million and $0.5 million, respectively. Costs capitalized during the three and six months ended December 31, 2012, were approximately $0.3 million and $2.4 million, respectively. These costs were primarily related to new student information systems for DeVry University and Chamberlain College of Nursing and the Becker e-Commerce system. As of December 31, 2013 and 2012, the net balance of capitalized software development costs was $54.1 million and $69.3 million, respectively. | ||||||||||||||
Perkins Program Fund | ||||||||||||||
DeVry University is required under federal aid program regulations to make contributions to the Perkins Student Loan Fund, most recently at a rate equal to 33% of new contributions by the federal government. No new federal contributions were received during the three and six months ended December 31, 2013 or 2012. DeVry Group carries its investment in such contributions at original values, net of allowances for expected losses on loan collections, of $2.6 million at December 31, 2013 and 2012. The allowance for future loan losses is based upon an analysis of actual loan losses experienced since the inception of the program. As previous borrowers repay their Perkins loans, their payments are used to fund new loans, thus creating a revolving loan fund. The federal contributions to this revolving loan program do not belong to DeVry Group and are not recorded in its financial statements. Under current law, upon termination of the program by the federal government or withdrawal from future program participation by DeVry University, subsequent student loan repayments would be divided between the federal government and DeVry University to satisfy their respective cumulative contributions to the fund. | ||||||||||||||
Non-Controlling Interest | ||||||||||||||
DeVry Group maintains a 96.3 percent ownership interest in DeVry Brasil with the remaining 3.7 percent owned by some of the current DeVry Brasil senior management group. Prior to the June 2013 purchase of additional DeVry Brasil stock, DeVry Group’s ownership percentage was 93.5 percent. Beginning July 1, 2015, DeVry Group has the right to exercise a call option and purchase any remaining DeVry Brasil stock from DeVry Brasil management. Likewise, DeVry Brasil management has the right to exercise a put option and sell its remaining ownership interest in DeVry Brasil to DeVry Group. Since the put option is out of the control of DeVry Group, authoritative guidance requires the non-controlling interest, which includes the value of the put option, to be displayed outside of the equity section of the consolidated balance sheet. | ||||||||||||||
The DeVry Brasil management put option is being accreted to its redemption value in accordance with the stock purchase agreement. The adjustment to increase or decrease the put option to its expected redemption value each reporting period is recorded to retained earnings in accordance with United States Generally Accepted Accounting Principles. The adjustment to increase or decrease the DeVry Brasil non-controlling interest each reporting period for its proportionate share of DeVry Brasil’s profit/loss will continue to flow through the consolidated income statement based on DeVry Group’s historical non-controlling interest accounting policy. | ||||||||||||||
The following is a reconciliation of the non-controlling interest balance (in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at Beginning of period | $ | 5,890 | $ | 8,637 | $ | 854 | $ | 8,242 | ||||||
Net Income Attributable to Non-controlling Interest | 253 | 938 | 208 | 771 | ||||||||||
Accretion of Non-controlling Interest Put Option | -168 | -674 | 4,913 | -112 | ||||||||||
Balance at End of period | $ | 5,975 | $ | 8,901 | $ | 5,975 | $ | 8,901 | ||||||
Earnings per Common Share | ||||||||||||||
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period plus unvested participating restricted share units. Diluted earnings per share is computed by dividing net income attributable to DeVry Education Group Inc. by the weighted average number of shares assuming dilution. Dilutive shares are computed using the Treasury Stock Method and reflect the additional shares that would be outstanding if dilutive stock options were exercised during the period. Excluded from the computations of diluted earnings per share were options to purchase 2,298,000 and 2,158,000 shares of common stock for the three and six months ended December 31, 2013, respectively, and 3,000,000 and 2,743,000 shares of common stock for the three and six months ended December 31, 2012, respectively. These outstanding options were excluded because the option exercise prices were greater than the average market price of the common shares or the assumed proceeds upon exercise under the Treasury Stock Method resulted in the repurchase of more shares than would be issued; thus, their effect would be anti-dilutive. | ||||||||||||||
The following is a reconciliation of basic shares to diluted shares (amounts in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted Average Shares Outstanding | 63,282 | 63,456 | 63,170 | 63,851 | ||||||||||
Unvested Participating Restricted Shares | 914 | 846 | 896 | 712 | ||||||||||
Basic Shares | 64,196 | 64,302 | 64,066 | 64,563 | ||||||||||
Effect of Dilutive Stock Options | 523 | 234 | 550 | 225 | ||||||||||
Diluted Shares | 64,719 | 64,536 | 64,616 | 64,788 | ||||||||||
Treasury Stock | ||||||||||||||
DeVry Group’s Board of Directors has authorized stock repurchase programs on eight occasions. The eighth repurchase program was approved by the DeVry Group Board of Directors on August 29, 2012 and commenced in November 2012. Share repurchases under this plan were suspended as of May 2013. Shares that are repurchased by DeVry Group are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. | ||||||||||||||
From time to time, shares of its common stock are delivered back to DeVry Group under a swap arrangement resulting from employees’ exercise of incentive stock options pursuant to the terms of the DeVry Group Stock Incentive Plans (see “Note 4 – Stock-Based Compensation”). These shares are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. | ||||||||||||||
Treasury shares are reissued on a monthly basis at market value, to the DeVry Group Employee Stock Purchase Plan in exchange for employee payroll deductions. When treasury shares are reissued, DeVry Group uses an average cost method to reduce the Treasury Stock balance. Gains on the difference between the average cost and the reissuance price are credited to Additional Paid-in Capital. Losses on the difference are charged to Additional Paid-in Capital to the extent that previous net gains from reissuance are included therein; otherwise such losses are charged to Retained Earnings. | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment and unrealized gains and losses on available-for-sale marketable securities, net of the effects of income taxes. | ||||||||||||||
The Accumulated Other Comprehensive Loss balance at December 31, 2013, consists of $25.6 million of cumulative translation losses ($24.7 million attributable to DeVry Education Group Inc. and $0.9 million attributable to non-controlling interests) and $0.1 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to DeVry Education Group Inc. At December 31, 2012, this balance consisted of $6.5 million of cumulative translation losses ($5.7 million attributable to DeVry Education Group Inc. and $0.8 million attributable to non-controlling interests) and $0.2 million of unrealized losses on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to DeVry Education Group Inc. | ||||||||||||||
Advertising Expense | ||||||||||||||
Advertising costs are recognized as expense in the period in which materials are purchased or services are performed. Advertising expense, which is included in student services and administrative expense in the Consolidated Statements of Income, was $67.8 million and $140.8 million for the three and six months ended December 31, 2013, respectively, and $60.9 million and $127.6 million for the three and six months ended December 31, 2012, respectively. | ||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11: “Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This guidance requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The guidance is effective for the fiscal years and interim periods beginning after December 15, 2013 with early adoption permitted. Management is in the process of evaluating the effects of this guidance but does not believe it will have a significant impact on DeVry Group’s consolidated financial statements. | ||||||||||||||
Reclassifications | ||||||||||||||
The previously reported amounts in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for Advance Tuition Payments and Deferred Tuition Revenue have been combined as Deferred and Advance Tuition to conform to the current presentation format. | ||||||||||||||
ASSETS_AND_LIABILITIES_OF_DIVE
ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS | 6 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS | ' | ||||||||||||||
NOTE 3: ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS | |||||||||||||||
Assets and Liabilities of Divested Business | |||||||||||||||
In December 2013, the assets of DeVry Group’s Advanced Academics Inc. (“AAI”) subsidiary, which had previously been disclosed as “held for sale” were divested. These assets were sold for $2.0 million which approximated the recorded net book value of the assets on the date of sale. The assets and liabilities of AAI are separately disclosed in the Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012. The following is a summary of balance sheet information of divested assets and liabilities at June 30, 2013 and December 31, 2012 (dollars in thousands). | |||||||||||||||
June 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
ASSETS: | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and Cash Equivalents | $ | 568 | $ | -308 | |||||||||||
Accounts Receivable, Net | 12,050 | 21,336 | |||||||||||||
Deferred Income Taxes, Net | 2,757 | 168 | |||||||||||||
Prepaid Expenses and Other | 844 | 7,510 | |||||||||||||
Total Current Assets of Divested Business | 16,219 | 28,706 | |||||||||||||
Land, Building and Equipment of Divested Business, Net | - | 5,521 | |||||||||||||
Other Assets: | |||||||||||||||
Deferred Income Taxes, Net | 2,602 | 498 | |||||||||||||
Other Assets | 3,185 | 220 | |||||||||||||
Total Other Assets of Divested Business | 5,787 | 718 | |||||||||||||
Total Assets of Divested Business | $ | 22,006 | $ | 34,945 | |||||||||||
LIABILITIES: | |||||||||||||||
Current Liabilities: | |||||||||||||||
Accounts Payable | $ | 178 | $ | 286 | |||||||||||
Accrued Salaries, Wages and Benefits | 482 | 436 | |||||||||||||
Accrued Expenses | 47 | 34 | |||||||||||||
Deferred and Advance Tuition | 6 | 774 | |||||||||||||
Total Current Liabilities of Divested Business | 713 | 1,530 | |||||||||||||
Other Liabilities: | |||||||||||||||
Deferred Rent and Other | 112 | - | |||||||||||||
Total Other Liabilities of Divested Business | 112 | - | |||||||||||||
Liabilities of Divested Business | $ | 825 | $ | 1,530 | |||||||||||
Discontinued Operations | |||||||||||||||
The operating results of AAI are separately disclosed in the Consolidated Income Statements as “Discontinued Operations – Loss from Operations of Divested Component”. The following is a summary of operating results of the discontinued operations for the three and six month periods ended December 31, 2013 and 2012 (dollars in thousands). | |||||||||||||||
For the Three Months | For the Six Months Ended | ||||||||||||||
Ended December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
DISCONTINUED OPERATIONS: | |||||||||||||||
Loss from Operations of Divested Component | $ | -1,084 | $ | -1,290 | $ | -3,931 | $ | -4,948 | |||||||
Gain on Sale of Assets | 372 | - | 372 | - | |||||||||||
Asset Impairment Charge (Note 5) | - | - | -13,477 | - | |||||||||||
Restructuring Expense | -675 | - | -675 | - | |||||||||||
-1,387 | -1,290 | -17,711 | -4,948 | ||||||||||||
Income Tax Benefit | 467 | 452 | 1,463 | 1,936 | |||||||||||
Loss from Discontinued Operations, Net of Income Taxes | $ | -920 | $ | -838 | $ | -16,248 | $ | -3,012 | |||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
NOTE 4: STOCK-BASED COMPENSATION | ||||||||||||||
DeVry Group maintains five stock-based award plans: the 1994 Stock Incentive Plan, the 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan, the Second Amended and Restated Incentive Plan of 2005 and the Second Amended and Restated Incentive Plan of 2013. Under these plans, directors, key executives and managerial employees are eligible to receive incentive stock or nonqualified options to purchase shares of DeVry Group’s common stock. The Second Amended and Restated Incentive Plan of 2013 and Second Amended and Restated Incentive Plan of 2005 also permit the award of stock appreciation rights, restricted stock, performance stock and other stock and cash based compensation. Though options remain outstanding under the 1994, 1999, 2003 and 2005 incentive plans, no further stock based awards will be issued from these plans. The Second Amended and Restated Incentive Plan of 2005 and the Second Amended and Restated Incentive Plan of 2013 are administered by the Compensation Committee of the Board of Directors. Options are granted for terms of up to 10 years and can vest immediately or over periods of up to five years. The requisite service period is equal to the vesting period. The option price under the plans is the fair market value of the shares on the date of the grant. | ||||||||||||||
DeVry Group accounts for options granted to retirement eligible employees that fully vest upon an employees’ retirement under the non-substantive vesting period approach to these options. Under this approach, the entire compensation cost is recognized at the grant date for options issued to retirement eligible employees. | ||||||||||||||
At December 31, 2013, 11,088,024 authorized but unissued shares of common stock were reserved for issuance under DeVry Group’s stock incentive plans. | ||||||||||||||
Stock-based compensation cost is measured at grant date based on the fair value of the award, and is recognized as expense over the employee requisite service period, reduced by an estimated forfeiture rate. | ||||||||||||||
The following is a summary of options activity for the fiscal year ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||
Average | Contractual | Intrinsic | ||||||||||||
Options | Exercise | Life in | Value | |||||||||||
Outstanding | Price | Years | $0 | |||||||||||
Outstanding at July 1, 2013 | 3,327,668 | $ | 32.64 | |||||||||||
Options Granted | 556,050 | $ | 28.32 | |||||||||||
Options Exercised | -153,645 | $ | 22.67 | |||||||||||
Options Forfeited | -14,746 | $ | 24.48 | |||||||||||
Options Expired | -40,804 | $ | 40.21 | |||||||||||
Outstanding at December 31, 2013 | 3,674,523 | $ | 32.37 | 6.28 | $ | 25,465 | ||||||||
Exercisable at December 31, 2013 | 2,246,701 | $ | 35.82 | 4.71 | $ | 11,742 | ||||||||
The following is a summary of stock appreciation rights activity for the fiscal year ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Stock | Weighted | Remaining | Aggregate | |||||||||||
Appreciation | Average | Contractual | Intrinsic | |||||||||||
Rights | Exercise | Life in | Value | |||||||||||
Outstanding | Price | Years | $0 | |||||||||||
Outstanding at July 1, 2013 | 117,015 | $ | 42.87 | |||||||||||
Rights Granted | 1,050 | $ | 28.32 | |||||||||||
Rights Exercised | - | $ | - | |||||||||||
Rights Canceled | - | $ | - | |||||||||||
Outstanding at December 31, 2013 | 118,065 | $ | 42.74 | 6.2 | $ | 94 | ||||||||
Exercisable at December 31, 2013 | 85,855 | $ | 45.25 | 5.2 | $ | 22 | ||||||||
The total intrinsic value of options exercised for the six months ended December 31, 2013 and 2012 was $1.8 million and $0.4 million, respectively. | ||||||||||||||
The fair value of DeVry Group’s stock-based awards was estimated using a binomial model. This model uses historical cancellation and exercise experience of DeVry Group to determine the option value. It also takes into account the illiquid nature of employee options during the vesting period. | ||||||||||||||
The weighted average estimated grant date fair values for options granted at market price under DeVry Group’s stock option plans during first six months of fiscal years 2014 and 2013 were $11.68 and $7.62, per share, respectively. The fair value of DeVry Group’s stock option awards were estimated assuming the following weighted average assumptions: | ||||||||||||||
Fiscal Year | ||||||||||||||
2013 | 2012 | |||||||||||||
Expected Life (in Years) | 6.58 | 6.63 | ||||||||||||
Expected Volatility | 43.76 | % | 43.67 | % | ||||||||||
Risk-free Interest Rate | 2.16 | % | 1.03 | % | ||||||||||
Dividend Yield | 0.9 | % | 0.61 | % | ||||||||||
Pre-vesting Forfeiture Rate | 3 | % | 3 | % | ||||||||||
The expected life of the options granted is based on the weighted average exercise life with age and salary adjustment factors from historical exercise behavior. DeVry Group’s expected volatility is computed by combining and weighting the implied market volatility, the most recent volatility over the expected life of the option grant, and DeVry Group’s long-term historical volatility. The pre-vesting forfeiture rate is based on DeVry Group’s historical stock option forfeiture experience. | ||||||||||||||
If factors change and different assumptions are employed in the valuation of stock-based awards in future periods, the stock-based compensation expense that DeVry Group records may differ significantly from what was recorded in previous periods. | ||||||||||||||
During the first six months of fiscal year 2014, DeVry Group granted 433,970 shares of restricted stock to selected employees and non-employee directors. Of these, 73,010 are performance based shares which are earned by the recipients over a three year period based on achievement of specified academic and student outcome goals when a minimum level of DeVry Group return on invested capital is attained. The remaining 360,960 shares and all other previously granted shares of restricted stock are subject to restrictions which lapse ratably over three and four-year periods on the grant anniversary date based on the recipient’s continued service on the Board of Directors or employment with DeVry Group, or upon retirement. During the restriction period, the recipient of the non-performance based shares shall have the right to receive dividend equivalents. This right does not pertain to the performance based shares. The following is a summary of restricted stock activity for the six months ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Restricted | Average | |||||||||||||
Stock | Grant Date | |||||||||||||
Outstanding | Fair Value | |||||||||||||
Nonvested at July 1, 2013 | 1,058,443 | $ | 27.03 | |||||||||||
Shares Granted | 431,170 | $ | 28.85 | |||||||||||
Shares Vested | -307,935 | $ | 31.53 | |||||||||||
Shares Canceled | -29,364 | $ | 27.7 | |||||||||||
Nonvested at December 31, 2013 | 1,152,314 | $ | 26.49 | |||||||||||
The following table shows total stock-based compensation expense included in the Consolidated Statements of Income (dollars in thousands): | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of Educational Services | $ | 1,294 | $ | 849 | $ | 3,155 | $ | 2,679 | ||||||
Student Services and Administrative Expense | 2,750 | 1,805 | 6,705 | 5,691 | ||||||||||
Income Tax Benefit | -1,392 | -848 | -3,338 | -2,695 | ||||||||||
Net Stock-Based Compensation Expense | $ | 2,652 | $ | 1,806 | $ | 6,522 | $ | 5,675 | ||||||
As of December 31, 2013, $29.8 million of total pre-tax unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 2.4 years. The total fair value of options and shares vested during the six months ended December 31, 2013 and 2012 was approximately $6.3 million and $9.0 million, respectively. | ||||||||||||||
There were no capitalized stock-based compensation costs at December 31, 2013 and 2012. | ||||||||||||||
DeVry Group has an established practice of issuing new shares of common stock to satisfy share option exercises. However, DeVry Group also may issue treasury shares to satisfy option exercises under certain of its plans. | ||||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
NOTE 5: FAIR VALUE MEASUREMENTS | ||||||||||||||
DeVry Group has elected not to measure any assets or liabilities at fair value other than those required to be measured at fair value on a recurring basis, assets measured at fair value on a non-recurring basis such as goodwill and intangible assets and assets of businesses where the long-term value of the operations have been impaired. Management has fully considered all authoritative guidance when determining the fair value of DeVry Group’s financial assets as of December 31, 2013. | ||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The guidance specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The guidance establishes fair value measurement classifications under the following hierarchy: | ||||||||||||||
Level 1 – Quoted prices for identical instruments in active markets. | ||||||||||||||
Level 2– Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable in active markets. | ||||||||||||||
Level 3 – Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. | ||||||||||||||
When available, DeVry Group uses quoted market prices to determine fair value, and such measurements are classified within Level 1. In some cases where market prices are not available, DeVry Group makes use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates and yield curves. These measurements are classified within Level 3. | ||||||||||||||
Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. | ||||||||||||||
Assets measured at fair value on a non-recurring basis include goodwill and indefinite-lived intangibles arising from a business combination. These assets are not amortized and charged to expense over time. Instead, goodwill and indefinite-lived intangibles must be reviewed annually for impairment or more frequently if circumstances arise indicating potential impairment. This impairment review was most recently completed during the fourth quarter of fiscal year 2013. See “Note 8: Intangible Assets” for further discussion on the impairment review including valuation techniques and assumptions. | ||||||||||||||
During the first quarter of fiscal year 2014, it was determined that net assets of AAI reporting unit had been further impaired. This determination was made after review of the updated third party offers to purchase the assets of the business. Assets measured at fair value in circumstances where the long-term value of a business has been impaired include the assets of AAI. To determine the fair value of the AAI assets, management incorporated assumptions that a reasonable market participant would use regarding the impact of the current operating losses and the increased uncertainty impacting future operations. We used significant unobservable inputs (Level 3) in our analysis including third party offers received to acquire the assets of AAI along with estimated costs to dispose of the assets. Based on this analysis, the fair market value of the AAI assets less the costs to sell was determined to be approximately $2.0 million which was approximately $13.5 million less than the carrying value. As a result management recorded a pre-tax $13.5 million asset impairment charge in the first quarter of fiscal year 2014. The assets of this business were sold in December 2013 for $2.0 million. See “Note 3: Assets and Liabilities of Divested Business and Discontinued Operations” for further discussions on AAI. | ||||||||||||||
The following tables present DeVry Group’s assets and liabilities at December 31, 2013, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (dollars in thousands). | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Cash and Cash Equivalents | $ | 262,034 | $ | - | $ | - | ||||||||
Available for Sale Investments: | ||||||||||||||
Marketable Securities, short-term | 3,263 | - | - | |||||||||||
Favip Contingent Consideration | - | - | 2,371 | |||||||||||
Total Financial Assets at Fair Value | $ | 265,297 | $ | - | $ | 2,371 | ||||||||
Cash Equivalents and investments in short-term Marketable Securities are valued using a market approach based on the quoted market prices of identical instruments. The Favip Contingent Consideration is valued at management’s estimate of the percentage likelihood of the contingency being realized. Management assumes that there is a 70 percent likelihood that Favip will receive status of a university center and that the contingency will be payable. | ||||||||||||||
The fair value of the institutional loans receivable included in Accounts Receivable, Net and Other Assets on the Consolidated Balance Sheet as of December 31, 2013 is estimated by discounting the future cash flows using current rates for similar arrangements. As of December 31, 2013, the carrying value and the estimated fair value of these financial instruments was approximately $43.4 million. See “Note 6: Financing Receivables” for further discussion on these institutional loans receivable. | ||||||||||||||
Below is a roll-forward of liabilities measured at fair value using Level 3 inputs for the three and six months ended December 31, 2013 and 2012 (dollars in thousands). The amount recorded as interest expense in fiscal 2013 is classified in the Interest (Expense) Income section of the Consolidated Statements of Income. The amount recorded as foreign currency translation loss is classified as Student Services and Administrative Expense in the Consolidated Statements of Income. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at Beginning of Period | $ | 2,519 | $ | 7,344 | $ | 2,509 | $ | 4,361 | ||||||
Total Realized Losses Included in Income: | ||||||||||||||
Interest Expense-ATC Accretion | - | 71 | - | 140 | ||||||||||
Total Unrealized (Losses) Gains Included in AOCI: | ||||||||||||||
Foreign Currency Translation Changes | -148 | 4 | -138 | 185 | ||||||||||
Transfers into Level 3: | ||||||||||||||
Favip Contingent Consideration | - | - | - | 2,733 | ||||||||||
Balance at End of Period | $ | 2,371 | $ | 7,419 | $ | 2,371 | $ | 7,419 | ||||||
FINANCING_RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
FINANCING RECEIVABLES | ' | ||||||||||||||||||||||||||
NOTE 6: FINANCING RECEIVABLES | |||||||||||||||||||||||||||
DeVry Group’s institutional loan programs are available to students at its DeVry University, Chamberlain College of Nursing, Carrington College and Carrington College of California schools as well as selected students at Ross University School of Medicine and Ross University School of Veterinary Medicine. These loan programs are designed to assist students who are unable to completely cover educational costs by other means. These loans may be used for tuition, books, and fees, and are available only after all other student financial assistance has been applied toward those purposes. In addition, Ross University School of Medicine and Ross University School of Veterinary Medicine loans may be used for students’ living expenses. Repayment plans for institutional loan program balances are developed to address the financial circumstances of the particular student. Interest charges accrue each month on the unpaid balance. DeVry University, Chamberlain College of Nursing, Carrington College and Carrington College of California require that students begin repaying a small portion of the loans while they are still in school, and then payments increase upon completing or departing the program. After a student leaves school, the student typically will have a monthly installment repayment plan with all balances due within 12 to 60 months. In addition, the Becker CPA Review Course can be financed through Becker with a zero percent, 18-month term loan. | |||||||||||||||||||||||||||
Reserves for uncollectible loans are determined by analyzing the current aging of accounts receivable and historical loss rates of loans at each educational institution. Management performs this analysis periodically throughout the year. Since all of DeVry Group’s financing receivables are generated through the extension of credit to students to fund educational costs, all such receivables are considered part of the same loan portfolio. | |||||||||||||||||||||||||||
The following table details the institutional loan balances along with the related allowances for credit losses as of December 31, 2013 and 2012 (dollars in thousands). | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Gross Institutional Student Loans | $ | 62,187 | $ | 55,108 | |||||||||||||||||||||||
Allowance for Credit Losses | -18,735 | -18,665 | |||||||||||||||||||||||||
Net Institutional Student Loans | $ | 43,452 | $ | 36,443 | |||||||||||||||||||||||
Of the net balances above, $20.1 million and $18.6 million were classified as Accounts Receivable, Net in the Consolidated Balance Sheets at December 31, 2013 and 2012, respectively, and $23.3 million and $17.8 million, representing amounts due beyond one year, were classified in the Consolidated Balance Sheets as Other Assets at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||
The following tables detail the credit risk profiles of the institutional student loan balances based on payment activity and provide an aging analysis of past due institutional student loans as of December 31, 2013 and 2012. Loans are considered nonperforming if they are more than 120 days past due (dollars in thousands). | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Institutional Student Loans: | |||||||||||||||||||||||||||
Performing | $ | 46,108 | $ | 41,524 | |||||||||||||||||||||||
Nonperforming | 16,079 | 13,584 | |||||||||||||||||||||||||
Total Institutional Student Loans | $ | 62,187 | $ | 55,108 | |||||||||||||||||||||||
Greater | |||||||||||||||||||||||||||
Than | Total | ||||||||||||||||||||||||||
30-59 | 60-89 | 90-119 | 120 | Institutional | |||||||||||||||||||||||
Days | Days | Days | Days | Total | Student | ||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Current | Loans | |||||||||||||||||||||
Institutional Student Loans: | |||||||||||||||||||||||||||
31-Dec-13 | $ | 4,896 | $ | 1,737 | $ | 1,520 | $ | 16,079 | $ | 24,232 | $ | 37,955 | $ | 62,187 | |||||||||||||
31-Dec-12 | $ | 4,030 | $ | 1,773 | $ | 1,346 | $ | 13,584 | $ | 20,733 | $ | 34,375 | $ | 55,108 | |||||||||||||
BUSINESS_COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
BUSINESS COMBINATIONS | ' | |||||||
NOTE 7: BUSINESS COMBINATIONS | ||||||||
Faculdade Diferencial Integral | ||||||||
On July 1, 2013, DeVry Educacional do Brasil S/A (f/k/a Fanor-Faculdades Nordeste S/A) (DeVry Brasil), a subsidiary of DeVry Group, acquired the stock of Faculdade Diferencial Integral (“Facid”), located in the state of Piaui, Brazil, for approximately $16.1 million in cash. In addition, DeVry Brasil will be required to make additional payments of approximately $9.0 million over the next four years. Facid currently serves approximately 2,500 students at two campuses in the city of Teresina, and offers degree programs primarily in healthcare, including a Doctor of Medicine (M.D.) program. Facid also offers undergraduate degrees in other healthcare fields such as nursing, pharmacy, and dentistry, as well as a law program. Facid joined DeVry Brasil, which following the acquisition operates six institutions at 13 campuses in northeast Brazil. With the addition of Facid, these institutions provide education programs to nearly 30,000 students. | ||||||||
The operations of Facid are included in DeVry Group’s International and Professional Education segment. The results of Facid’s operations have been included in the Consolidated Financial Statements of DeVry Group since the date of acquisition. | ||||||||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition (dollars in thousands). | ||||||||
At July 1, 2013 | ||||||||
Current Assets | $ | 4,699 | ||||||
Property and Equipment | 2,037 | |||||||
Other Long-term Assets | 167 | |||||||
Intangible Assets | 17,723 | |||||||
Goodwill | 8,238 | |||||||
Total Assets Acquired | 32,864 | |||||||
Liabilities Assumed | 16,801 | |||||||
Net Assets Acquired | $ | 16,063 | ||||||
Goodwill, which represents the excess of cost over the fair value of the net tangible and intangible assets acquired, was all assigned to the DeVry Brasil reporting unit which is classified within the International and Professional Education segment. Factors that contributed to a purchase price resulting in the recognition of goodwill include Facid’s strategic fit into DeVry Group’s expanding presence in northeast Brazil, the reputation of the educational programs and the acquired assembled workforce. None of the goodwill acquired is expected to be deductible for income tax purposes. Of the $17.7 million of acquired intangible assets, $15.2 million was assigned to Accreditations and $1.9 million was assigned to Trade Names, both of which have been determined not to be subject to amortization. The remaining acquired intangible asset was determined to be subject to amortization with an average useful life of approximately 15 years. Their values and estimated useful lives by asset type are as follows (dollars in thousands): | ||||||||
At July 1, 2013 | ||||||||
Value | Estimated | |||||||
Assigned | Useful Life | |||||||
Clinical Agreement | $ | 583 | 15 years | |||||
There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. | ||||||||
Faculdade do Vale do Ipojuca | ||||||||
On September 3, 2012, DeVry Brasil acquired the business operations of Faculdade do Vale do Ipojuca (“Favip”), which is located in the state of Pernambuco, Brazil. Under the terms of the agreement, DeVry Brasil paid approximately $32.2 million in cash in exchange for the stock of Favip. In addition, DeVry Brasil will be required to make an additional payment of approximately $3.9 million over the next 12 months should Favip receive status of a university center. As of December 31, 2013, $2.4 million is accrued for this additional payment. | ||||||||
Favip currently serves about 5,000 students and offers more than 30 undergraduate and graduate programs at two campuses located in Caruaru, the state’s second largest city. The institution’s largest programs are in the areas of law, business, psychology and nutrition. The acquisition of Favip is consistent with DeVry Group's growth and diversification strategy, increasing its international presence in Brazil. | ||||||||
The operations of Favip are included in DeVry Group’s International and Professional Education segment. The results of Favip’s operations have been included in the Consolidated Financial Statements of DeVry Group since the date of acquisition. | ||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition (dollars in thousands). | ||||||||
At September 3, | ||||||||
2012 | ||||||||
Current Assets | $ | 4,414 | ||||||
Property and Equipment | 2,897 | |||||||
Other Long-term Assets | 844 | |||||||
Intangible Assets | 13,571 | |||||||
Goodwill | 16,120 | |||||||
Total Assets Acquired | 37,846 | |||||||
Liabilities Assumed | 5,677 | |||||||
Net Assets Acquired | $ | 32,169 | ||||||
Goodwill, which represents the excess of cost over the fair value of the net tangible and intangible assets acquired, was all assigned to the DeVry Brasil reporting unit which is classified within the International and Professional Education segment. Factors that contributed to a purchase price resulting in the recognition of goodwill include Favip’s strategic fit into DeVry Group’s expanding presence in northeast Brazil, the reputation of the educational programs and the acquired assembled workforce. None of the goodwill acquired is expected to be deductible for income tax purposes. Of the $13.6 million of acquired intangible assets, $10.2 million was assigned to Accreditations and $1.1 million was assigned to Trade Names, both of which have been determined not to be subject to amortization. The remaining acquired intangible assets were determined to be subject to amortization with an average useful life of approximately 4.9 years. Their values and estimated useful lives by asset type are as follows (dollars in thousands): | ||||||||
At September 3, 2012 | ||||||||
Value | Estimated | |||||||
Assigned | Useful Lives | |||||||
Student Relationships | $ | 2,257 | 5 years | |||||
Curriculum | 79 | 2 years | ||||||
There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. | ||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
INTANGIBLE ASSETS | ' | ||||||||||||||||
NOTE 8: INTANGIBLE ASSETS | |||||||||||||||||
Intangible assets relate mainly to acquired business operations. These assets consist of the acquisition fair value of certain identifiable intangible assets acquired and goodwill. Goodwill represents the excess of the purchase price over the fair value of assets acquired less liabilities assumed. | |||||||||||||||||
Intangible assets consist of the following (dollars in thousands): | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Weighted Avg. | |||||||||||||||
Carrying | Amortization | Amortization | |||||||||||||||
Amount | Period | ||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||
Student Relationships | $ | 80,971 | $ | -76,814 | (a) | ||||||||||||
Customer Relationships | 3,630 | -922 | 12 Years | ||||||||||||||
Non-compete Agreements | 2,521 | -1,910 | (b) | ||||||||||||||
Curriculum/Software | 5,648 | -4,545 | 5 Years | ||||||||||||||
Outplacement Relationships | 3,900 | -1,374 | 15 Years | ||||||||||||||
Clinical Agreements | 550 | -18 | 15 Years | ||||||||||||||
Trade Names | 5,699 | -4,823 | (c) | ||||||||||||||
Total | $ | 102,919 | $ | -90,406 | |||||||||||||
Indefinite-lived Intangible Assets: | |||||||||||||||||
Trade Names | $ | 40,617 | |||||||||||||||
Trademark | 1,645 | ||||||||||||||||
Ross Title IV Eligibility and Accreditations | 14,100 | ||||||||||||||||
Intellectual Property | 13,940 | ||||||||||||||||
Chamberlain Title IV Eligibility and Accreditations | 1,200 | ||||||||||||||||
Carrington Title IV Eligibility and Accreditations | 67,200 | ||||||||||||||||
AUC Title IV Eligibility and Accreditations | 100,000 | ||||||||||||||||
DeVry Brasil Accreditation | 42,505 | ||||||||||||||||
Total | $ | 281,207 | |||||||||||||||
(a) | The total weighted average estimated amortization period for Student Relationships is 5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1), 6 years for Faculdade Boa Viagem ("FBV"), 5 years for Favip and 4 years for AUC. All other Student Relationships are fully amortized at December 31, 2013. | ||||||||||||||||
(b) | The total weighted average estimated amortization period for Non-compete Agreements is 5 years for Becker Physician Review. All other Non-compete Agreements are fully amortized at December 31, 2013. | ||||||||||||||||
(c) | The total weighted average estimated amortization period for Trade Names is 8.5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1). All other Trade Names are fully amortized at December 31, 2013. | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | ||||||||||||||||
Amount | |||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||
Student Relationships | $ | 82,562 | $ | -71,803 | |||||||||||||
Customer Relationships | 3,569 | -549 | |||||||||||||||
Non-compete Agreements | 2,516 | -1,700 | |||||||||||||||
Curriculum/Software | 5,689 | -3,936 | |||||||||||||||
Outplacement Relationships | 3,900 | -1,114 | |||||||||||||||
Trade Names | 6,048 | -4,644 | |||||||||||||||
Total | 104,284 | -83,746 | |||||||||||||||
Indefinite-lived Intangible Assets: | |||||||||||||||||
Trade Names | $ | 39,198 | |||||||||||||||
Trademark | 1,645 | ||||||||||||||||
Ross Title IV Eligibility and Accreditations | 14,100 | ||||||||||||||||
Intellectual Property | 13,940 | ||||||||||||||||
Chamberlain Title IV Eligibility and Accreditations | 1,200 | ||||||||||||||||
Carrington Title IV Eligibility and Accreditations | 71,100 | ||||||||||||||||
AUC Title IV Eligibility and Accreditations | 100,000 | ||||||||||||||||
DeVry Brasil Accreditation | 32,456 | ||||||||||||||||
Total | $ | 273,639 | |||||||||||||||
Amortization expense for amortized intangible assets was $1.7 million and $3.3 million for the three and six months ended December 31, 2013, respectively, and $2.4 million and $4.7 million for the three and six months ended December 31, 2012, respectively. Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30, by reporting unit, is as follows (dollars in thousands): | |||||||||||||||||
Fiscal | AUC | Becker | DeVry | Carrington | Total | ||||||||||||
Year | Brasil | ||||||||||||||||
2014 | $ | 3,347 | $ | 947 | $ | 1,888 | $ | 295 | $ | 6,477 | |||||||
2015 | 387 | 939 | 1,074 | 260 | 2,660 | ||||||||||||
2016 | - | 931 | 681 | 260 | 1,872 | ||||||||||||
2017 | - | 635 | 331 | 260 | 1,226 | ||||||||||||
2018 | - | 363 | 190 | 260 | 813 | ||||||||||||
Thereafter | - | 1,142 | 482 | 1,356 | 2,980 | ||||||||||||
All amortizable intangible assets, except for the DeVry Brasil (Fanor, Ruy Barbosa and Area 1) Student Relationships, the FBV Student Relationships, the Favip Student Relationships and the AUC Student Relationships, are being amortized on a straight-line basis. | |||||||||||||||||
The amount being amortized for the AUC, DeVry Brasil, FBV and Favip Student Relationships is based on the estimated progression of the students through the respective programs, giving consideration to the revenue and cash flow associated with both existing students and new applicants. This results in the basis being amortized at an annual rate for each of the years of estimated economic life as follows: | |||||||||||||||||
Fiscal | |||||||||||||||||
Year | AUC | DeVry Brasil | FBV | Favip | |||||||||||||
2009 | - | 8.30% | - | - | |||||||||||||
2010 | - | 30.30% | - | - | |||||||||||||
2011 | - | 24.70% | - | - | |||||||||||||
2012 | 38.00% | 19.80% | 11.90% | - | |||||||||||||
2013 | 38.50% | 13.60% | 33.70% | 27.60% | |||||||||||||
2014 | 21.60% | 3.30% | 25.90% | 32.20% | |||||||||||||
2015 | 1.90% | - | 16.70% | 23.00% | |||||||||||||
2016 | - | - | 9.00% | 13.20% | |||||||||||||
2017 | - | - | 2.60% | 4.00% | |||||||||||||
2018 | - | - | 0.20% | - | |||||||||||||
Indefinite-lived intangible assets related to Trademarks, Trade Names, Title IV Eligibility, 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 U.S. generally accepted accounting principles, 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. This annual impairment review was most recently completed during the fourth quarter of fiscal year 2013. As a result, it was determined that the goodwill and the indefinite-lived intangible asset of the Carrington Colleges Group (“Carrington”) reporting unit had been impaired. As of the fourth quarter of fiscal year 2013 impairment review, there was no impairment loss associated with recorded goodwill or indefinite-lived intangible assets for any other reporting unit, as estimated fair values exceeded the carrying amounts. | |||||||||||||||||
Management considers certain triggering events when evaluating whether an interim impairment analysis is warranted. Among these would be a significant long-term decrease in the market capitalization of DeVry Group based on events specific to DeVry Group’s operations. As of December 31, 2013, DeVry Group’s market capitalization exceeded its book value by approximately 58%, which is higher than the 41% premium as of June 30, 2013. Other triggering events that could be cause for an interim impairment review would be changes in the accreditation, regulatory or legal environment; increased competition; innovation changes and changes in the market acceptance of our educational programs and the graduates of those programs. | |||||||||||||||||
The estimated fair values of DeVry Group’s reporting units exceeded their carrying values by at least 12% as of the end of fiscal year 2013, except that of Carrington. The estimated fair values of the indefinite-lived intangible assets exceeded their carrying values by at least 100% as of the end of fiscal year 2013, except those indefinite-lived intangible assets acquired with the acquisitions of AUC and FBV and where fair values exceeded carrying values by 4% to 67%. The smaller premiums for the FBV and AUC indefinite-lived intangible assets would be expected considering the assets were acquired within two years of the fourth quarter fiscal year 2013 valuation date and there has been less time for these assets to have appreciated in value from their fair market value purchase price. As for Carrington, during the fourth quarter of fiscal year 2013, management recorded an impairment loss of $57.0 million for the decline in fair value of this reporting unit and its associated indefinite-lived intangible assets. Therefore, no premiums existed with respect to either the reporting unit’s carrying value or the carrying value of the indefinite-lived intangible assets as of June 30, 2013. Accordingly, this situation also requires management to remain cognizant of the fact that if Carrington’s realized and projected operating results do not meet expectations, an interim review and possible further impairment would be necessary. | |||||||||||||||||
To improve Carrington’s financial results, management continues to execute a turn-around plan initiated in fiscal year 2012 which includes increasing its focus on building Carrington’s brand awareness, optimizing its marketing approach to emphasize the development of internally-generated inquiries, improving its recruiting process through its new student contact center and narrowing its focus geographically and programmatically around Carrington’s core strengths in healthcare. Carrington continues to make additional investments in its website interface and admissions processes to better serve prospective students. Despite a difficult economy, evidence of a recovery in enrollments was experienced at Carrington where total student enrollment increased for four consecutive terms through September 2013. Total student enrollment decreased for the term ended December 31, 2013 compared to the same period last fiscal year as a result of the decision to focus Carrington’s program offerings and suspend recruiting for certain non-core programs. | |||||||||||||||||
The improvements in enrollment resulted in increased revenues in the first six months of fiscal year 2014 compared to the same period last fiscal year and, along with cost control efforts, reduced the operating losses from levels of a year ago in the six months ended December 31, 2013. The revenue and operating results also exceeded internal plans for the first six months of fiscal year 2014. Management believes its planned business and operational strategies have reversed the negative trend in revenue and operating income declines experienced over the past several years. However, if operating improvements do not continue, all or some of the remaining goodwill could be impaired in the future. | |||||||||||||||||
Though certain reporting units experienced a decline in operating results in the first six months of fiscal year 2014 compared to the year-ago period, management did not believe business conditions had deteriorated in any of its reporting units such that it was more likely than not that the fair value was below carrying value for those reporting units or their associated indefinite-lived intangible assets at December 31, 2013. In this regard, revenues, operating results and cash flows grew for all reporting units in the first six months of fiscal year 2014 except at DeVry University and DeVry Brasil. The revenue and operating results of DeVry Brasil exceeded internal plans for the first six months of fiscal year 2014 and its revenues grew by more than 32% from the year-ago period. Operating earnings decreased from the year-ago period reflecting investments for expansion and growth. | |||||||||||||||||
At DeVry University, which carries a goodwill balance of $22.2 million, revenue declined by approximately 16% from the year-ago six month period. The revenue decline at DeVry University was primarily the result of a decline in undergraduate student enrollments and graduate coursetakers due to lower demand among the university’s target segment of students, believed to be driven by the challenging economic environment, persistent high levels of unemployment, perceptions of the value of a college degree, increased reluctance to take on debt and heightened competition. To improve performance, management continues to execute a turnaround plan at DeVry University which includes: | |||||||||||||||||
· | Sharpening DeVry University’s value proposition, which is educational quality, career outcomes and exceptional student support; | ||||||||||||||||
· | Aligning the cost structure with enrollment levels; and | ||||||||||||||||
· | Strategic use of scholarships to attract new students and improve student persistence. | ||||||||||||||||
In aligning the cost structure, management is focused on increasing efficiencies. Over the past year DeVry Group has reduced costs through staffing adjustments. Management has made the decision to close or consolidate certain DeVry University campuses while balancing the potential impact on enrollment and student satisfaction. Management is also focused on process redesign and restructuring in areas such as student finance. | |||||||||||||||||
The plan to increase enrollments includes communication of DeVry University’s value proposition, which is educational quality, career prospects and high levels of student service. This communication plan includes integrated university-wide efforts at key points in the year. A September 2013 “call to action event” included the new Career Catalyst Scholarship. Under the Career Catalyst Scholarship DeVry University has committed more than $15 million over the next three years to be awarded to qualifying students who enroll in the September 2013 session. The scholarships are valued at up to a total of $20,000 per student, depending on the degree and credits required to attain that degree. Students qualifying for DeVry University’s Career Catalyst Scholarship are eligible to receive scholarship awards of progressive amounts over a period of three years. For example, students in their first year of a bachelor’s degree program can be awarded up to $5,000. During the second year, the available award may increase up to $7,000. For the third year, the award can increase up to $8,000. To facilitate this new scholarship, management consolidated multiple, smaller scholarships into a larger program which was more clearly communicated to prospective students. The results of this program in attracting and retaining successful students convinced management to again offer this Career Catalyst Program to qualifying students that enroll in the March 2014 session. In addition, tuition rates for fiscal year 2014 at DeVry University remain unchanged from those of fiscal year 2013. Enhanced use of technology is also expected to increase the effectiveness of the student recruiting process. | |||||||||||||||||
Management continues to execute a program strategy which focuses resources on providing students of DeVry University with strong programs in high-growth fields. This program strategy is a priority designed to provide students with successful outcomes. | |||||||||||||||||
Management believes its planned business and operational strategies will reverse the negative trends over the next several years. However, if operating improvements are not realized, all or some of the goodwill could be impaired in the future. The impairment review completed in the fourth quarter of fiscal year 2013 indicated the fair value exceeded the carrying value of the DeVry University reporting unit by 100%. This excess margin has been rapidly declining in recent years. Should business conditions at DeVry University continue to deteriorate resulting in the carrying value of this reporting unit exceeding its fair value then goodwill and intangible assets could be impaired. This would require a possible write-off of up to $22.2 million. | |||||||||||||||||
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. | |||||||||||||||||
The table below summarizes goodwill balances by reporting unit as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Unit | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
DeVry University | $ | 22,196 | |||||||||||||||
Becker Professional Review | 33,056 | ||||||||||||||||
Ross University | 237,174 | ||||||||||||||||
Chamberlain College of Nursing | 4,716 | ||||||||||||||||
Carrington Colleges Group | 98,784 | ||||||||||||||||
American University of the Caribbean | 68,321 | ||||||||||||||||
DeVry Brasil | 50,510 | ||||||||||||||||
Total | $ | 514,757 | |||||||||||||||
The table below summarizes goodwill balances by reporting segment as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Segment: | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Business, Technology and Management | $ | 22,196 | |||||||||||||||
Medical and Healthcare | 408,994 | ||||||||||||||||
International and Professional Education | 83,567 | ||||||||||||||||
Total | $ | 514,757 | |||||||||||||||
The table below summarizes the changes in the carrying amount of goodwill, by segment as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Business, | Medical and | International | Total | ||||||||||||||
Technology and | Healthcare | and Professional | |||||||||||||||
Management | Education | ||||||||||||||||
Balance at June 30, 2013 | $ | 22,196 | $ | 408,994 | $ | 77,747 | $ | 508,937 | |||||||||
Acquisitions | - | - | 8,238 | 8,238 | |||||||||||||
Foreign currency exchange rate changes and other | - | - | -2,418 | -2,418 | |||||||||||||
Balance at December 31, 2013 | $ | 22,196 | $ | 408,994 | $ | 83,567 | $ | 514,757 | |||||||||
The increase in the goodwill balance from June 30, 2013 in the International and Professional Education segment is the result of the addition of goodwill of $8.2 million from the acquisition of Facid partially offset by changes in the value of the Brazilian Real and British Pound Sterling as compared to the U.S. dollar. See Note 7 for further explanation of the acquisition of Facid. Since DeVry Brasil and Becker Europe, (f/d/b/a ATC), goodwill is recorded in their respective local currencies, fluctuations in its value in relation to the U.S. dollar will cause changes in the balance of this asset. | |||||||||||||||||
The table below summarizes the indefinite-lived intangible asset balances by reporting unit as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Unit: | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
DeVry University | $ | 1,645 | |||||||||||||||
Becker Professional Review | 27,912 | ||||||||||||||||
Ross University | 19,200 | ||||||||||||||||
Chamberlain College of Nursing | 1,200 | ||||||||||||||||
Carrington Colleges Group | 67,200 | ||||||||||||||||
American University of the Caribbean | 117,100 | ||||||||||||||||
DeVry Brasil | 46,950 | ||||||||||||||||
Total | $ | 281,207 | |||||||||||||||
Total indefinite-lived intangible assets increased by $14.4 million from June 30, 2013. This increase is the result of the addition of $17.1 million of indefinite-lived intangibles associated with the acquisition of Facid partially offset by the effects of foreign currency translation on the DeVry Brasil assets. Since DeVry Brasil intangible assets are recorded in the local Brazilian currency, fluctuations in the value of the Brazilian Real in relation to the U.S. dollar will cause changes in the balance of these assets. | |||||||||||||||||
RESTRUCTURING_CHARGES
RESTRUCTURING CHARGES | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RESTRUCTURING CHARGES | ' | |||||||
NOTE 9: RESTRUCTURING CHARGES | ||||||||
During the first six months of fiscal year 2014, DeVry Group implemented a Voluntary Separation Plan (VSP) that reduced its workforce by 66 positions across DeVry University and the DeVry Group home office. This resulted in a pre-tax charge of $10.4 million in the six month period that represented severance pay and benefits for these employees. In addition, charges related to real estate consolidation of $6.0 million were recorded during the first six months of fiscal year 2014. These restructuring costs were allocated to the following DeVry Group segments: $8.0 million to Business Technology and Management, $5.5 million to Medical and Healthcare and $2.9 million to DeVry Group home office, which is classified as “Depreciation and Other” in “Note 13 - Segment Information”. | ||||||||
During fiscal year 2013, DeVry Group implemented an involuntary reduction in force (RIF), a Voluntary Separation Plan (VSP), and other staff reduction actions that reduced its workforce by approximately 475 positions across all reporting units. This resulted in a pre-tax charge of approximately $10.3 million in fiscal year 2013 that represented severance pay and benefits for those employees who separated from DeVry Group. Also during fiscal year 2013, DeVry Group made decisions to consolidate certain facilities at its Carrington and DeVry University educational institutions. This resulted in pre-tax charges of $6.3 million in fiscal year 2013. In addition, DeVry Group consolidated its administrative offices in the Chicagoland area. As a result, a DeVry Group-owned facility in Wood Dale, Illinois was closed in December 2012, and employees were re-located to other facilities in the area. The Wood Dale facility is held as available for sale. This resulted in a pre-tax charge of $7.9 million in fiscal year 2013 for a write-down of assets to fair market value and an expected loss on this asset sale. Other restructuring charges totaling $1.7 million were also expensed in fiscal year 2013. | ||||||||
The following table summarizes the separation and restructuring plan activity for the six months ended December 31, 2013 and 2012, for which cash payments are required (dollars in millions): | ||||||||
Six months ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Liability balance at Beginning of Period | $ | 13.2 | $ | 5.6 | ||||
Increase in liability (separation and other charges) | 15.3 | 0.7 | ||||||
Reduction in liability (payments and adjustments) | -10.6 | -5.8 | ||||||
Liability balance at End of Period | $ | 17.9 | $ | 0.5 | ||||
The remaining liability balances as of December 31, 2013 primarily represent costs for employees that have either not yet separated from DeVry Group or their full severance has not yet been paid. All of these remaining costs are expected to be paid over the next 12 months. | ||||||||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2013 | |
INCOME TAXES | ' |
NOTE 10: INCOME TAXES | |
DeVry Group’s effective income tax rate reflects benefits derived from significant operations outside the United States. Earnings of these international operations are not subject to U.S. federal or state income taxes, so long as such earnings are not repatriated, as discussed below. Four of DeVry Group’s subsidiaries, Ross University School of Medicine (Ross Medical School), incorporated under the laws of the Commonwealth of Dominica, Ross University School of Veterinary Medicine (Ross Veterinary School), incorporated under the laws of the Federation of St. Christopher, Nevis, St. Kitts in the West Indies, American University of the Caribbean Medical School (AUC), incorporated under the laws of St. Maarten, and DeVry Brasil incorporated under the laws of Brazil all benefit from local tax incentives. Ross Medical School and Ross Veterinary School each have agreements with their respective domestic governments that exempt them from local income taxation. Both of these agreements have been extended to provide, in the case of Ross Medical School, an indefinite period of exemption and, in the case of Ross Veterinary School, exemption until 2037. DeVry Brasil’s effective tax rate reflects benefits derived from its participation in PROUNI, a Brazilian program for providing scholarships to a portion of its undergraduate students. AUC’s effective tax rate reflects benefits derived from investment incentives. | |
DeVry Group has not recorded a U.S. federal or state tax provision for the undistributed earnings of its international subsidiaries. It is DeVry Group’s intention to indefinitely reinvest accumulated cash balances, future cash flows and post-acquisition undistributed earnings and profits to improve the facilities and operations of its international schools and pursue future opportunities outside the United States. In accordance with this plan, cash held by the international subsidiaries will not be available for general company purposes and under current laws will not be subject to U.S. taxation. As of December 31, 2013 and 2012, cumulative undistributed earnings attributable to international operations were approximately $578.8 million and $464.3 million, respectively. | |
Taxes on income from continuing operations were 14.7% of pretax income for the second quarter and 15.1% for the first six months of fiscal year 2014, compared to 21.9% for the second quarter and 25.3% for the first six months of fiscal year 2013. The lower effective tax rate in the second quarter and first six months of fiscal year 2014 resulted primarily from the jurisdictional mix of pre-tax earnings from U.S. operations versus the offshore operations of Ross Medical School, Ross Veterinary School, AUC and DeVry Brasil as well as the favorable impacts of the American Tax Relief Act of 2012 signed into law on January 2, 2013, in which Congress enacted legislation extending the benefits of Internal Revenue Code Section 954(c)(6) (”CFC Look-through”) for a two year period for tax years beginning after January 1, 2012 through December 31, 2013. | |
As of December 31, 2013, the total amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, was $9.1 million, and, if recognized, the total amount would impact the effective tax rate. As of December 31, 2012, gross unrecognized tax benefits, including positions impacting only the timing of benefits, was $23.6 million, and, if recognized, the total amount would impact the effective tax rate. In March 2013, DeVry Group completed an examination by the Internal Revenue Service (IRS). As a result, DeVry Group reduced its unrecognized tax benefits by $13 million to reflect settlements with the IRS. We expect that our unrecognized tax benefits will increase by an insignificant amount during the next twelve months. DeVry Group classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. The total amount of interest and penalties accrued at June 30, 2013 was $1.2 million. The corresponding amount at December 31, 2013 was $1.4 million. | |
DEBT
DEBT | 6 Months Ended |
Dec. 31, 2013 | |
DEBT | ' |
NOTE 11: DEBT | |
DeVry Group had no outstanding borrowings under its credit facility at December 31, 2013 and December 31, 2012. DeVry Group does have liabilities recorded for deferred purchase price agreements with sellers related to the purchases of FBV, Favip and Facid (see “Note 7: Business Combinations” for discussion of Favip and Facid acquisitions). This financing is in the form of hold backs of a portion of the purchase price of these acquisitions or installment payments. Payments are made under these agreements as various conditions of the purchase are met. | |
Revolving Credit Facility | |
DeVry Group maintains a revolving credit facility which expires on May 5, 2016. The facility provides aggregate commitments including borrowings and letters of credit up to $400 million and at the request of DeVry Group, the maximum borrowings and letters of credit can be increased to $550 million. There are no required principal payments under this revolving credit agreement and all borrowings and letters of credit mature in May 2016. As a result of the agreement extending beyond one year, any borrowings would be classified as long-term with the exception of amounts expected to be repaid in the 12 months subsequent to the balance sheet date. DeVry Group letters of credit outstanding under this agreement were $13.2 million as of December 31, 2013, and were $2.4 million as of December 31, 2012. As of December 31, 2013, if there were outstanding borrowings under this agreement they would bear interest, payable quarterly or upon expiration of the interest rate period, at prime rate plus 0.75% or at LIBOR plus 1.75%, at the option of DeVry Group. As of December 31, 2013, DeVry Group is charged an annual fee equal to 0.125% of the undrawn face amount of the outstanding letters of credit under the agreement, payable quarterly. The agreement also requires payment of a commitment fee equal to 0.2% of the undrawn portion of the credit facility as of December 31, 2013. The interest rate, letter of credit fees and commitment fees are adjustable quarterly, based upon DeVry Group’s achievement of certain financial ratios. Interest rate margins can be raised as high as 1.5% on prime rate loans and 2.5% on LIBOR rate loans. | |
The revolving credit agreement contains covenants that, among other things, require maintenance of certain financial ratios, as defined in the agreement. These financial ratios include a consolidated fixed charge coverage ratio, a consolidated leverage ratio and a composite Equity, Primary Reserve and Net Income Department of Education financial responsibility ratio. Failure to maintain any of these ratios or to comply with other covenants contained in the agreement will constitute an event of default and could result in termination of the agreement and require payment of all outstanding borrowings and letters of credit. DeVry Group was in compliance with the debt covenants as of December 31, 2013. | |
The stock of most subsidiaries of DeVry Group is pledged as collateral for the borrowings under the revolving credit facility. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 12: COMMITMENTS AND CONTINGENCIES | |
DeVry Group is subject to lawsuits, administrative proceedings, regulatory reviews and investigations associated with financial assistance programs and other matters arising in the normal conduct of its business. The following is a description of pending legal matters that may be considered other than ordinary, routine and incidental to the business. | |
The Boca Raton Firefighters’ and Police Pension Fund filed an initial complaint (the “Shareholder Case”) in the United States District Court for the Northern District of Illinois on November 1, 2010 (Case No. 1:10-cv-07031). The initial complaint was filed on behalf of a putative class of persons who purchased DeVry Group common stock between October 25, 2007, and August 13, 2010. Plaintiff filed an amended complaint (the “First Amended Complaint”) on March 7, 2011 alleging the same categories of claims in the initial complaint. The plaintiff claimed in the First Amended Complaint that DeVry Group, Daniel Hamburger and Richard M. Gunst violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by failing to disclose abusive and fraudulent recruiting and financial aid lending practices, thereby increasing DeVry Group’s student enrollment and revenues and artificially inflating DeVry Group’s stock price during the class period. On March 27, 2012, Judge John F. Grady dismissed the First Amended Complaint without prejudice, granting plaintiff leave to file a second amended complaint by May 4, 2012. | |
On May 4, 2012, the plaintiff again amended its allegations in the Shareholder Case (the “Second Amended Complaint”). The Second Amended Complaint alleged a longer putative class period of October 27, 2007 to August 11, 2011, but narrowed the scope of the alleged fraud significantly as compared to the previous two complaints. Plaintiff focused exclusively on DeVry Group’s practices for compensating student Admissions Advisors, alleging DeVry Group misled the market by failing to disclose that its compensation practices violated federal law and by making affirmative misrepresentations that DeVry Group complied with compensation regulations. The Second Amended Complaint was subsequently corrected to add an additional plaintiff, West Palm Beach Firefighters’ Pension Fund, in response to DeVry Group’s challenge of plaintiff’s standing to complain about statements DeVry Group made after plaintiff had purchased its stock. | |
On July 10, 2012, DeVry Group filed a Motion to Dismiss the corrected Second Amended Complaint. On March 27, 2013, Judge Grady granted DeVry Group’s Motion to Dismiss and entered judgment in favor of DeVry Group and against plaintiffs. Judge Grady thereby dismissed the case with prejudice; however, he reserved jurisdiction to examine the question of whether sanctions should be imposed against plaintiffs and/or their counsel. On April 26, 2013, the plaintiffs filed a notice of appeal of Judge Grady’s order of dismissal; however, the appeal has been stayed pending Judge Grady’s resolution of the sanctions issue. The issue of sanctions was fully briefed by the parties as of May 17, 2013, and remains under consideration by Judge Grady. | |
DeVry Group was served on October 11, 2013, with a complaint in a qui tam action filed under the federal False Claims Act and the Minnesota False Claims Act by two former employees of a customer of DeVry Group’s subsidiary, Advanced Academics, Inc. (“AAI”). The lawsuit, United States and the State of Minnesota ex rel. Jill Bachmann and Shelley Madore v. Minnesota Transitions Charter Schools, Advanced Academics, Inc., DeVry Education Group Inc., and MN Virtual High School, CA No. 12-cv-01359-DWF-JSM, was filed in the United States District Court for the District of Minnesota. The complaint was filed on June 6, 2012 but kept under seal in order for the federal and Minnesota state governments to investigate the allegations and determine if they wished to intervene in the action and pursue the alleged claims. Both the federal and Minnesota state governments declined to intervene, thereby giving the plaintiffs the choice to pursue the alleged claims on behalf of the state and federal governments. The complaint was unsealed and made public on June 6, 2013. The complaint relates to certain federal and state funding received by Minnesota Transitions Charter Schools and MN Virtual High School. The complaint alleges that Minnesota Transitions Charter Schools and MN Virtual High School received certain state and federal funding, which depended on the accurate reporting of student enrollment data. The complaint alleges that Minnesota Transitions Charter Schools and MN Virtual High School received more funding from the federal and state governments for special education and other services than they should have received in 2008, 2009 and 2010 as a result of allegedly non-compliant practices arising from the reporting of student enrollment data. The complaint further alleges that all schools of defendant Minnesota Transitions Charter Schools received over $75 million in total state and federal funding during fiscal years 2008 to 2010, a portion of which related to the school for which AAI provided services; plaintiff does not quantify what portion of the $75 million was obtained as a result of the allegedly fraudulent practices. The complaint alleges that AAI provided certain curriculum and other services to MN Virtual High School and operated the school. The only reference to DeVry Group in the complaint pertains to its status as the parent corporation to AAI. An agreement in principle was reached in January of 2014 that fully and finally resolves all claims asserted in this matter against DeVry Group and AAI. The settlement is expected to be concluded and the litigation dismissed by stipulation sometime in DeVry Group’s third quarter of fiscal year 2014. | |
Although DeVry Group believes that the appeal of the dismissed Shareholder Case is without merit, the ultimate outcome of pending litigation is difficult to predict. DeVry Group will vigorously defend any appellate proceedings which may proceed in the Shareholder Case. At this time, DeVry Group does not expect that the outcome of the appeal of the dismissal of the Shareholder Case or any other pending lawsuits will have a material effect on its cash flows, results of operations or financial position. | |
In April 2013, DeVry Group received a subpoena from the Office of the Attorney General of the State of Illinois and a Civil Investigative Demand issued by the Office of the Attorney General of the Commonwealth of Massachusetts. The Illinois subpoena concerns potential state law implications in the event violations of federal law took place. It was issued pursuant to the Illinois False Claims Act in connection with an investigation concerning whether the compensation practices of DeVry Group and certain of its affiliates are in compliance with the Incentive Compensation Ban of the Higher Education Act and requires DeVry Group to provide documents relating to these matters for periods on or after January 1, 2002. The Massachusetts demand was issued in connection with an investigation into whether DeVry Group caused false claims and/or false statements to be submitted to the Commonwealth of Massachusetts relating to student loans, guarantees, and grants provided to DeVry Group’s Massachusetts students and requires DeVry Group to answer interrogatories and to provide documents relating to periods on or after January 1, 2007. The timing or outcome of the investigations, or their possible impact on DeVry Group’s business, financial condition or results of operations, cannot be predicted at this time. | |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
NOTE 13: SEGMENT INFORMATION | ||||||||||||||
DeVry Group’s principal business is providing post-secondary education. Our operations are described in more detail in “Note 1- Nature of Operations” to the consolidated financial statements contained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2013. DeVry Group presents three reportable segments: “Business, Technology and Management”, which includes DeVry University undergraduate and graduate operations; “Medical and Healthcare” which includes the operations of Ross University School of Medicine, Ross University School of Veterinary Medicine, American University of the Caribbean, Chamberlain College of Nursing and Carrington Colleges Group; and “International and Professional Education”, which includes the operations of DeVry Brasil and Becker Professional Education. | ||||||||||||||
These segments are consistent with the method by which the Chief Operating Decision Maker (DeVry Group’s President and CEO) evaluates performance and allocates resources. Performance evaluations are based, in part, on each segment’s operating income, which is defined as income before non-controlling interest, income taxes, interest income and expense, amortization, and certain corporate-related depreciation and expenses. Income taxes, interest income and expense, amortization, and certain corporate-related depreciation and expenses are reconciling items in arriving at income before income taxes for each segment. Intersegment sales are accounted for at amounts comparable to sales to nonaffiliated customers and are eliminated in consolidation. The consistent measure of segment assets excludes deferred income tax assets and certain depreciable corporate assets. Additions to long-lived assets have been measured in this same manner. Reconciling items are included as corporate assets. The accounting policies of the segments are the same as those described in “Note 3 — Summary of Significant Accounting Policies” to the consolidated financial statements contained in its Annual Report on Form 10-K for the fiscal year ended June 30, 2013. | ||||||||||||||
Following is a tabulation of business segment information based on the segmentation for each of the three and six months ended December 31, 2013 and 2012. Corporate information is included where it is needed to reconcile segment data to the consolidated financial statements (dollars in thousands). | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
Revenues: | 2013 | 2012 | 2013 | 2012 | ||||||||||
Business, Technology and Management | $ | 239,913 | $ | 280,239 | $ | 472,222 | $ | 564,853 | ||||||
Medical and Healthcare | 190,447 | 167,746 | 366,303 | 326,103 | ||||||||||
International and Professional Education | 61,430 | 52,681 | 105,151 | 89,630 | ||||||||||
Intersegment Revenues | -521 | - | -1,495 | - | ||||||||||
Total Consolidated Revenues | $ | 491,269 | $ | 500,666 | $ | 942,181 | $ | 980,586 | ||||||
Operating Income: | ||||||||||||||
Business, Technology and Management | $ | 9,947 | $ | 38,835 | $ | -1,114 | $ | 64,405 | ||||||
Medical and Healthcare | 35,311 | 26,705 | 60,827 | 51,887 | ||||||||||
International and Professional Education | 16,409 | 15,226 | 17,489 | 18,576 | ||||||||||
Reconciling Items: | ||||||||||||||
Amortization Expense | -1,612 | -2,412 | -3,261 | -4,690 | ||||||||||
Depreciation and Other | -1,493 | -11,159 | -5,108 | -13,535 | ||||||||||
Total Consolidated Operating Income | $ | 58,562 | $ | 67,195 | $ | 68,833 | $ | 116,643 | ||||||
Interest Income (Expense): | ||||||||||||||
Interest Income | $ | 310 | $ | 230 | $ | 893 | $ | 791 | ||||||
Interest Expense | -1,052 | -759 | -2,052 | -2,250 | ||||||||||
Net Interest Income (Expense) | -742 | -529 | -1,159 | -1,459 | ||||||||||
Total Consolidated Income from Continuing | $ | 57,820 | $ | 66,666 | $ | 67,674 | $ | 115,184 | ||||||
Operations Before Income Taxes | ||||||||||||||
Segment Assets: | ||||||||||||||
Business, Technology and Management | $ | 341,167 | $ | 380,295 | $ | 341,167 | $ | 380,295 | ||||||
Medical and Healthcare | 1,100,815 | 1,098,022 | 1,100,815 | 1,098,022 | ||||||||||
International and Professional Education | 282,102 | 249,863 | 282,102 | 249,863 | ||||||||||
Corporate | 165,029 | 151,827 | 165,029 | 151,827 | ||||||||||
Assets of Divested Business | - | 34,777 | - | 34,777 | ||||||||||
Total Consolidated Assets | $ | 1,889,113 | $ | 1,914,784 | $ | 1,889,113 | $ | 1,914,784 | ||||||
Additions to Long-lived Assets: | ||||||||||||||
Business, Technology and Management | $ | 3,904 | $ | 11,575 | $ | 7,854 | $ | 24,219 | ||||||
Medical and Healthcare | 4,632 | 6,889 | 18,928 | 12,456 | ||||||||||
International and Professional Education | 1,684 | 3,347 | 31,541 | 36,575 | ||||||||||
Corporate | 1,025 | 1,629 | 3,100 | 6,557 | ||||||||||
Total Consolidated Additions to Long-lived Assets | $ | 11,245 | $ | 23,440 | $ | 61,423 | $ | 79,807 | ||||||
Reconciliation to Consolidated Financial Statements | ||||||||||||||
Capital Expenditures | 11,245 | $ | 21,592 | $ | 33,426 | $ | 47,214 | |||||||
Increase in Capital Assets from Acquisitions | - | - | 2,037 | 2,897 | ||||||||||
Increase in Intangible Assets and Goodwill | - | 1,848 | 25,960 | 29,696 | ||||||||||
Total Increase in Consolidated Long-lived Assets | $ | 11,245 | $ | 23,440 | $ | 61,423 | $ | 79,807 | ||||||
Depreciation Expense: | ||||||||||||||
Business, Technology and Management | $ | 11,076 | $ | 11,052 | $ | 21,911 | $ | 21,892 | ||||||
Medical and Healthcare | 6,474 | 6,350 | 12,621 | 12,090 | ||||||||||
International and Professional Education | 566 | 1,275 | 1,114 | 2,379 | ||||||||||
Corporate | 2,623 | 2,339 | 5,073 | 4,481 | ||||||||||
Total Consolidated Depreciation | $ | 20,739 | $ | 21,016 | $ | 40,719 | $ | 40,842 | ||||||
Intangible Asset Amortization Expense: | ||||||||||||||
Medical and Healthcare | $ | 902 | $ | 1,347 | $ | 1,844 | $ | 2,695 | ||||||
International and Professional Education | 710 | 1,065 | 1,417 | 1,995 | ||||||||||
Total Consolidated Amortization | $ | 1,612 | $ | 2,412 | $ | 3,261 | $ | 4,690 | ||||||
DeVry Group conducts its educational operations in the United States, the Caribbean Islands (countries of Dominica, St. Kitts and St. Maarten), Brazil, Canada, Europe, the Middle East and the Pacific Rim. Other international revenues, which are derived principally from Canada and Europe, were less than 5% of total revenues for the three and six month periods ended December 31, 2013 and 2012. Revenues and long-lived assets by geographic area are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenue from Unaffiliated Customers: | ||||||||||||||
Domestic Operations | $ | 368,271 | $ | 391,406 | $ | 718,388 | $ | 781,545 | ||||||
International Operations: | ||||||||||||||
Dominica, St. Kitts and St. Maarten | 86,388 | 78,766 | 161,895 | 148,583 | ||||||||||
Brazil | 32,905 | 25,584 | 56,426 | 42,900 | ||||||||||
Other | 3,705 | 4,910 | 5,472 | 7,558 | ||||||||||
Total International | 122,998 | 109,260 | 223,793 | 199,041 | ||||||||||
Consolidated | $ | 491,269 | $ | 500,666 | $ | 942,181 | $ | 980,586 | ||||||
Long-lived Assets: | ||||||||||||||
Domestic Operations | $ | 391,922 | $ | 417,041 | $ | 391,922 | $ | 417,041 | ||||||
International Operations: | ||||||||||||||
Dominica, St. Kitts and St. Maarten | 168,249 | 137,146 | 168,249 | 137,146 | ||||||||||
Brazil | 44,485 | 41,627 | 44,485 | 41,627 | ||||||||||
Other | 235 | 1,584 | 235 | 1,584 | ||||||||||
Total International | 212,968 | 180,357 | 212,968 | 180,357 | ||||||||||
Long-lived Assets of Business Held for Sale | - | 6,239 | - | 6,239 | ||||||||||
Consolidated | $ | 604,891 | $ | 603,637 | $ | 604,891 | $ | 603,637 | ||||||
No one customer accounted for more than 10% of DeVry Group’s consolidated revenues. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Use of Estimates | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenues and expenses reported during the period. Actual results could differ from those estimates. | ||||||||||||||
Revenue Recognition | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
DeVry University tuition revenues are recognized ratably on a straight-line basis over the applicable academic term. Ross University School of Medicine, Ross University School of Veterinary Medicine (together “Ross University”) and American University of the Caribbean School of Medicine (“AUC”) basic science curriculum revenues are recognized ratably on a straight-line basis over the academic term. The clinical portion of the Ross University and AUC education programs are conducted under the supervision of U.S. teaching hospitals and veterinary schools. Ross University and AUC are responsible for the billing and collection of tuition from its students during the period of clinical education. Revenues are recognized on a weekly basis based on actual program attendance during the period of the clinical program. Fees paid to the hospitals and veterinary schools for supervision of Ross University and AUC students are charged to expense on the same basis. Carrington, Chamberlain and DeVry Brasil tuition and fee revenues are recognized ratably on a straight-line basis over the applicable academic term. The provision for refunds, which is reported as a reduction to Tuition Revenues in the Consolidated Statements of Income, and the provision for uncollectible accounts, which is included in the Cost of Educational Services in the Consolidated Statements of Income, also are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. | ||||||||||||||
Estimates of DeVry Group’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms, and monitored and adjusted as necessary within the term. If a student leaves school prior to completing a term, federal, state and/or Canadian provincial regulations and accreditation criteria permit DeVry Group to retain only a set percentage of the total tuition received from such student, which varies with, but generally equals or exceeds, the percentage of the term completed by such student. Payment amounts received by DeVry Group in excess of such set percentages of tuition are refunded to the student or the appropriate funding source. All refunds are netted against revenue during the applicable academic term. The allowance for uncollectible accounts is determined by analyzing the current aging of accounts receivable and historical loss rates on collections of accounts receivable. In addition, management considers projections of future receivable levels and collection loss rates. We monitor the inputs to this analysis periodically throughout the year. Provisions required to maintain the allowance at appropriate levels are charged to expense in each period as required. Related reserves with respect to uncollectible accounts and refunds totaled $44.4 million and $52.5 million at December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||
Sales of textbooks, electronic course materials, and other educational products, including training services and the Becker self-study products, are included in Other Educational Revenues in the Consolidated Statements of Income. Textbook, electronic course materials and other educational product revenues are recognized when the sale occurs. Revenues from training services, which are generally short-term in duration, are recognized when the training service is provided. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenues and recognized when confirmation of course delivery is received. | ||||||||||||||
Internal-Use Software Development Costs | ' | |||||||||||||
Internal-Use Software Development Costs | ||||||||||||||
DeVry Group capitalizes certain internal-use software development costs that are amortized using the straight-line method over the estimated lives of the software, not to exceed five years. Capitalized costs include external direct costs of equipment, materials and services consumed in developing or obtaining internal-use software and payroll-related costs for employees directly associated with the internal-use software development project. Capitalization of such costs ceases at the point at which the project is substantially complete and ready for its intended purpose. Capitalized internal-use software development costs for projects not yet complete are included as construction in progress in the Land, Buildings and Equipment section of the Consolidated Balance Sheets. Costs capitalized during the three and six months ended December 31, 2013 were approximately $0.3 million and $0.5 million, respectively. Costs capitalized during the three and six months ended December 31, 2012, were approximately $0.3 million and $2.4 million, respectively. These costs were primarily related to new student information systems for DeVry University and Chamberlain College of Nursing and the Becker e-Commerce system. As of December 31, 2013 and 2012, the net balance of capitalized software development costs was $54.1 million and $69.3 million, respectively. | ||||||||||||||
Perkins Program Fund | ' | |||||||||||||
Perkins Program Fund | ||||||||||||||
DeVry University is required under federal aid program regulations to make contributions to the Perkins Student Loan Fund, most recently at a rate equal to 33% of new contributions by the federal government. No new federal contributions were received during the three and six months ended December 31, 2013 or 2012. DeVry Group carries its investment in such contributions at original values, net of allowances for expected losses on loan collections, of $2.6 million at December 31, 2013 and 2012. The allowance for future loan losses is based upon an analysis of actual loan losses experienced since the inception of the program. As previous borrowers repay their Perkins loans, their payments are used to fund new loans, thus creating a revolving loan fund. The federal contributions to this revolving loan program do not belong to DeVry Group and are not recorded in its financial statements. Under current law, upon termination of the program by the federal government or withdrawal from future program participation by DeVry University, subsequent student loan repayments would be divided between the federal government and DeVry University to satisfy their respective cumulative contributions to the fund. | ||||||||||||||
Non-Controlling Interest | ' | |||||||||||||
Non-Controlling Interest | ||||||||||||||
DeVry Group maintains a 96.3 percent ownership interest in DeVry Brasil with the remaining 3.7 percent owned by some of the current DeVry Brasil senior management group. Prior to the June 2013 purchase of additional DeVry Brasil stock, DeVry Group’s ownership percentage was 93.5 percent. Beginning July 1, 2015, DeVry Group has the right to exercise a call option and purchase any remaining DeVry Brasil stock from DeVry Brasil management. Likewise, DeVry Brasil management has the right to exercise a put option and sell its remaining ownership interest in DeVry Brasil to DeVry Group. Since the put option is out of the control of DeVry Group, authoritative guidance requires the non-controlling interest, which includes the value of the put option, to be displayed outside of the equity section of the consolidated balance sheet. | ||||||||||||||
The DeVry Brasil management put option is being accreted to its redemption value in accordance with the stock purchase agreement. The adjustment to increase or decrease the put option to its expected redemption value each reporting period is recorded to retained earnings in accordance with United States Generally Accepted Accounting Principles. The adjustment to increase or decrease the DeVry Brasil non-controlling interest each reporting period for its proportionate share of DeVry Brasil’s profit/loss will continue to flow through the consolidated income statement based on DeVry Group’s historical non-controlling interest accounting policy. | ||||||||||||||
The following is a reconciliation of the non-controlling interest balance (in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at Beginning of period | $ | 5,890 | $ | 8,637 | $ | 854 | $ | 8,242 | ||||||
Net Income Attributable to Non-controlling Interest | 253 | 938 | 208 | 771 | ||||||||||
Accretion of Non-controlling Interest Put Option | -168 | -674 | 4,913 | -112 | ||||||||||
Balance at End of period | $ | 5,975 | $ | 8,901 | $ | 5,975 | $ | 8,901 | ||||||
Earnings per Common Share | ' | |||||||||||||
Earnings per Common Share | ||||||||||||||
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period plus unvested participating restricted share units. Diluted earnings per share is computed by dividing net income attributable to DeVry Education Group Inc. by the weighted average number of shares assuming dilution. Dilutive shares are computed using the Treasury Stock Method and reflect the additional shares that would be outstanding if dilutive stock options were exercised during the period. Excluded from the computations of diluted earnings per share were options to purchase 2,298,000 and 2,158,000 shares of common stock for the three and six months ended December 31, 2013, respectively, and 3,000,000 and 2,743,000 shares of common stock for the three and six months ended December 31, 2012, respectively. These outstanding options were excluded because the option exercise prices were greater than the average market price of the common shares or the assumed proceeds upon exercise under the Treasury Stock Method resulted in the repurchase of more shares than would be issued; thus, their effect would be anti-dilutive. | ||||||||||||||
The following is a reconciliation of basic shares to diluted shares (amounts in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted Average Shares Outstanding | 63,282 | 63,456 | 63,170 | 63,851 | ||||||||||
Unvested Participating Restricted Shares | 914 | 846 | 896 | 712 | ||||||||||
Basic Shares | 64,196 | 64,302 | 64,066 | 64,563 | ||||||||||
Effect of Dilutive Stock Options | 523 | 234 | 550 | 225 | ||||||||||
Diluted Shares | 64,719 | 64,536 | 64,616 | 64,788 | ||||||||||
Treasury Stock | ' | |||||||||||||
Treasury Stock | ||||||||||||||
DeVry Group’s Board of Directors has authorized stock repurchase programs on eight occasions. The eighth repurchase program was approved by the DeVry Group Board of Directors on August 29, 2012 and commenced in November 2012. Share repurchases under this plan were suspended as of May 2013. Shares that are repurchased by DeVry Group are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. | ||||||||||||||
From time to time, shares of its common stock are delivered back to DeVry Group under a swap arrangement resulting from employees’ exercise of incentive stock options pursuant to the terms of the DeVry Group Stock Incentive Plans (see “Note 4 – Stock-Based Compensation”). These shares are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. | ||||||||||||||
Treasury shares are reissued on a monthly basis at market value, to the DeVry Group Employee Stock Purchase Plan in exchange for employee payroll deductions. When treasury shares are reissued, DeVry Group uses an average cost method to reduce the Treasury Stock balance. Gains on the difference between the average cost and the reissuance price are credited to Additional Paid-in Capital. Losses on the difference are charged to Additional Paid-in Capital to the extent that previous net gains from reissuance are included therein; otherwise such losses are charged to Retained Earnings. | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment and unrealized gains and losses on available-for-sale marketable securities, net of the effects of income taxes. | ||||||||||||||
The Accumulated Other Comprehensive Loss balance at December 31, 2013, consists of $25.6 million of cumulative translation losses ($24.7 million attributable to DeVry Education Group Inc. and $0.9 million attributable to non-controlling interests) and $0.1 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to DeVry Education Group Inc. At December 31, 2012, this balance consisted of $6.5 million of cumulative translation losses ($5.7 million attributable to DeVry Education Group Inc. and $0.8 million attributable to non-controlling interests) and $0.2 million of unrealized losses on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to DeVry Education Group Inc. | ||||||||||||||
Advertising Expense | ' | |||||||||||||
Advertising Expense | ||||||||||||||
Advertising costs are recognized as expense in the period in which materials are purchased or services are performed. Advertising expense, which is included in student services and administrative expense in the Consolidated Statements of Income, was $67.8 million and $140.8 million for the three and six months ended December 31, 2013, respectively, and $60.9 million and $127.6 million for the three and six months ended December 31, 2012, respectively. | ||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||
Recent Accounting Pronouncements | ||||||||||||||
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11: “Income Taxes (Topic 740): Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. This guidance requires an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss or a tax credit carryforward to be presented as a reduction to a deferred tax asset, unless the tax benefit is not available at the reporting date to settle any additional income taxes under the tax law of the applicable tax jurisdiction. The guidance is effective for the fiscal years and interim periods beginning after December 15, 2013 with early adoption permitted. Management is in the process of evaluating the effects of this guidance but does not believe it will have a significant impact on DeVry Group’s consolidated financial statements. | ||||||||||||||
Reclassifications | ' | |||||||||||||
Reclassifications | ||||||||||||||
The previously reported amounts in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for Advance Tuition Payments and Deferred Tuition Revenue have been combined as Deferred and Advance Tuition to conform to the current presentation format. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Reconciliation of Non-Controlling Interest Balance | ' | |||||||||||||
The following is a reconciliation of the non-controlling interest balance (in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at Beginning of period | $ | 5,890 | $ | 8,637 | $ | 854 | $ | 8,242 | ||||||
Net Income Attributable to Non-controlling Interest | 253 | 938 | 208 | 771 | ||||||||||
Accretion of Non-controlling Interest Put Option | -168 | -674 | 4,913 | -112 | ||||||||||
Balance at End of period | $ | 5,975 | $ | 8,901 | $ | 5,975 | $ | 8,901 | ||||||
Reconciliation of Basic Shares to Diluted Shares | ' | |||||||||||||
The following is a reconciliation of basic shares to diluted shares (amounts in thousands): | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Weighted Average Shares Outstanding | 63,282 | 63,456 | 63,170 | 63,851 | ||||||||||
Unvested Participating Restricted Shares | 914 | 846 | 896 | 712 | ||||||||||
Basic Shares | 64,196 | 64,302 | 64,066 | 64,563 | ||||||||||
Effect of Dilutive Stock Options | 523 | 234 | 550 | 225 | ||||||||||
Diluted Shares | 64,719 | 64,536 | 64,616 | 64,788 | ||||||||||
ASSETS_AND_LIABILITIES_OF_DIVE1
ASSETS AND LIABILITIES OF DIVESTED BUSINESS AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Assets and Liabilities of Business Held for Sale | ' | ||||||||||||||
The following is a summary of balance sheet information of divested assets and liabilities at June 30, 2013 and December 31, 2012 (dollars in thousands). | |||||||||||||||
June 30, | December 31, | ||||||||||||||
2013 | 2012 | ||||||||||||||
ASSETS: | |||||||||||||||
Current Assets: | |||||||||||||||
Cash and Cash Equivalents | $ | 568 | $ | -308 | |||||||||||
Accounts Receivable, Net | 12,050 | 21,336 | |||||||||||||
Deferred Income Taxes, Net | 2,757 | 168 | |||||||||||||
Prepaid Expenses and Other | 844 | 7,510 | |||||||||||||
Total Current Assets of Divested Business | 16,219 | 28,706 | |||||||||||||
Land, Building and Equipment of Divested Business, Net | - | 5,521 | |||||||||||||
Other Assets: | |||||||||||||||
Deferred Income Taxes, Net | 2,602 | 498 | |||||||||||||
Other Assets | 3,185 | 220 | |||||||||||||
Total Other Assets of Divested Business | 5,787 | 718 | |||||||||||||
Total Assets of Divested Business | $ | 22,006 | $ | 34,945 | |||||||||||
LIABILITIES: | |||||||||||||||
Current Liabilities: | |||||||||||||||
Accounts Payable | $ | 178 | $ | 286 | |||||||||||
Accrued Salaries, Wages and Benefits | 482 | 436 | |||||||||||||
Accrued Expenses | 47 | 34 | |||||||||||||
Deferred and Advance Tuition | 6 | 774 | |||||||||||||
Total Current Liabilities of Divested Business | 713 | 1,530 | |||||||||||||
Other Liabilities: | |||||||||||||||
Deferred Rent and Other | 112 | - | |||||||||||||
Total Other Liabilities of Divested Business | 112 | - | |||||||||||||
Liabilities of Divested Business | $ | 825 | $ | 1,530 | |||||||||||
Operating Results of the Discontinued Operations | ' | ||||||||||||||
The following is a summary of operating results of the discontinued operations for the three and six month periods ended December 31, 2013 and 2012 (dollars in thousands). | |||||||||||||||
For the Three Months | For the Six Months Ended | ||||||||||||||
Ended December 31, | December 31, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
DISCONTINUED OPERATIONS: | |||||||||||||||
Loss from Operations of Divested Component | $ | -1,084 | $ | -1,290 | $ | -3,931 | $ | -4,948 | |||||||
Gain on Sale of Assets | 372 | - | 372 | - | |||||||||||
Asset Impairment Charge (Note 5) | - | - | -13,477 | - | |||||||||||
Restructuring Expense | -675 | - | -675 | - | |||||||||||
-1,387 | -1,290 | -17,711 | -4,948 | ||||||||||||
Income Tax Benefit | 467 | 452 | 1,463 | 1,936 | |||||||||||
Loss from Discontinued Operations, Net of Income Taxes | $ | -920 | $ | -838 | $ | -16,248 | $ | -3,012 | |||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Summary of options Activity | ' | |||||||||||||
The following is a summary of options activity for the fiscal year ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||
Average | Contractual | Intrinsic | ||||||||||||
Options | Exercise | Life in | Value | |||||||||||
Outstanding | Price | Years | $0 | |||||||||||
Outstanding at July 1, 2013 | 3,327,668 | $ | 32.64 | |||||||||||
Options Granted | 556,050 | $ | 28.32 | |||||||||||
Options Exercised | -153,645 | $ | 22.67 | |||||||||||
Options Forfeited | -14,746 | $ | 24.48 | |||||||||||
Options Expired | -40,804 | $ | 40.21 | |||||||||||
Outstanding at December 31, 2013 | 3,674,523 | $ | 32.37 | 6.28 | $ | 25,465 | ||||||||
Exercisable at December 31, 2013 | 2,246,701 | $ | 35.82 | 4.71 | $ | 11,742 | ||||||||
Summary of stock appreciation rights activity | ' | |||||||||||||
The following is a summary of stock appreciation rights activity for the fiscal year ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Average | ||||||||||||||
Stock | Weighted | Remaining | Aggregate | |||||||||||
Appreciation | Average | Contractual | Intrinsic | |||||||||||
Rights | Exercise | Life in | Value | |||||||||||
Outstanding | Price | Years | $0 | |||||||||||
Outstanding at July 1, 2013 | 117,015 | $ | 42.87 | |||||||||||
Rights Granted | 1,050 | $ | 28.32 | |||||||||||
Rights Exercised | - | $ | - | |||||||||||
Rights Canceled | - | $ | - | |||||||||||
Outstanding at December 31, 2013 | 118,065 | $ | 42.74 | 6.2 | $ | 94 | ||||||||
Exercisable at December 31, 2013 | 85,855 | $ | 45.25 | 5.2 | $ | 22 | ||||||||
Fair Values of Stock Option Awards Estimated Weighted Average Assumptions | ' | |||||||||||||
The fair value of DeVry Group’s stock option awards were estimated assuming the following weighted average assumptions: | ||||||||||||||
Fiscal Year | ||||||||||||||
2013 | 2012 | |||||||||||||
Expected Life (in Years) | 6.58 | 6.63 | ||||||||||||
Expected Volatility | 43.76 | % | 43.67 | % | ||||||||||
Risk-free Interest Rate | 2.16 | % | 1.03 | % | ||||||||||
Dividend Yield | 0.9 | % | 0.61 | % | ||||||||||
Pre-vesting Forfeiture Rate | 3 | % | 3 | % | ||||||||||
Summary of Restricted Stock Activity | ' | |||||||||||||
The following is a summary of restricted stock activity for the six months ended December 31, 2013: | ||||||||||||||
Weighted | ||||||||||||||
Restricted | Average | |||||||||||||
Stock | Grant Date | |||||||||||||
Outstanding | Fair Value | |||||||||||||
Nonvested at July 1, 2013 | 1,058,443 | $ | 27.03 | |||||||||||
Shares Granted | 431,170 | $ | 28.85 | |||||||||||
Shares Vested | -307,935 | $ | 31.53 | |||||||||||
Shares Canceled | -29,364 | $ | 27.7 | |||||||||||
Nonvested at December 31, 2013 | 1,152,314 | $ | 26.49 | |||||||||||
Total Stock-Based Compensation Expense Included in Consolidated Statement of Earnings | ' | |||||||||||||
The following table shows total stock-based compensation expense included in the Consolidated Statements of Income (dollars in thousands): | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Cost of Educational Services | $ | 1,294 | $ | 849 | $ | 3,155 | $ | 2,679 | ||||||
Student Services and Administrative Expense | 2,750 | 1,805 | 6,705 | 5,691 | ||||||||||
Income Tax Benefit | -1,392 | -848 | -3,338 | -2,695 | ||||||||||
Net Stock-Based Compensation Expense | $ | 2,652 | $ | 1,806 | $ | 6,522 | $ | 5,675 | ||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Assets Measured at Fair Value on Recurring Basis | ' | |||||||||||||
The following tables present DeVry Group’s assets and liabilities at December 31, 2013, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (dollars in thousands). | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Cash and Cash Equivalents | $ | 262,034 | $ | - | $ | - | ||||||||
Available for Sale Investments: | ||||||||||||||
Marketable Securities, short-term | 3,263 | - | - | |||||||||||
Favip Contingent Consideration | - | - | 2,371 | |||||||||||
Total Financial Assets at Fair Value | $ | 265,297 | $ | - | $ | 2,371 | ||||||||
Roll-Forward of Assets Measured at Fair Value using Level Three Inputs | ' | |||||||||||||
Below is a roll-forward of liabilities measured at fair value using Level 3 inputs for the three and six months ended December 31, 2013 and 2012 (dollars in thousands). The amount recorded as interest expense in fiscal 2013 is classified in the Interest (Expense) Income section of the Consolidated Statements of Income. The amount recorded as foreign currency translation loss is classified as Student Services and Administrative Expense in the Consolidated Statements of Income. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at Beginning of Period | $ | 2,519 | $ | 7,344 | $ | 2,509 | $ | 4,361 | ||||||
Total Realized Losses Included in Income: | ||||||||||||||
Interest Expense-ATC Accretion | - | 71 | - | 140 | ||||||||||
Total Unrealized (Losses) Gains Included in AOCI: | ||||||||||||||
Foreign Currency Translation Changes | -148 | 4 | -138 | 185 | ||||||||||
Transfers into Level 3: | ||||||||||||||
Favip Contingent Consideration | - | - | - | 2,733 | ||||||||||
Balance at End of Period | $ | 2,371 | $ | 7,419 | $ | 2,371 | $ | 7,419 | ||||||
FINANCING_RECEIVABLES_Tables
FINANCING RECEIVABLES (Tables) | 6 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Institutional Loan Balances and Related Allowances for Credit Losses | ' | ||||||||||||||||||||||||||
The following table details the institutional loan balances along with the related allowances for credit losses as of December 31, 2013 and 2012 (dollars in thousands). | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Gross Institutional Student Loans | $ | 62,187 | $ | 55,108 | |||||||||||||||||||||||
Allowance for Credit Losses | -18,735 | -18,665 | |||||||||||||||||||||||||
Net Institutional Student Loans | $ | 43,452 | $ | 36,443 | |||||||||||||||||||||||
Credit Risk Profiles of Institutional Student Loan Balances | ' | ||||||||||||||||||||||||||
The following tables detail the credit risk profiles of the institutional student loan balances based on payment activity and provide an aging analysis of past due institutional student loans as of December 31, 2013 and 2012. Loans are considered nonperforming if they are more than 120 days past due (dollars in thousands). | |||||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Institutional Student Loans: | |||||||||||||||||||||||||||
Performing | $ | 46,108 | $ | 41,524 | |||||||||||||||||||||||
Nonperforming | 16,079 | 13,584 | |||||||||||||||||||||||||
Total Institutional Student Loans | $ | 62,187 | $ | 55,108 | |||||||||||||||||||||||
Institutional Student Loans Past Due | ' | ||||||||||||||||||||||||||
Greater | |||||||||||||||||||||||||||
Than | Total | ||||||||||||||||||||||||||
30-59 | 60-89 | 90-119 | 120 | Institutional | |||||||||||||||||||||||
Days | Days | Days | Days | Total | Student | ||||||||||||||||||||||
Past Due | Past Due | Past Due | Past Due | Past Due | Current | Loans | |||||||||||||||||||||
Institutional Student Loans: | |||||||||||||||||||||||||||
31-Dec-13 | $ | 4,896 | $ | 1,737 | $ | 1,520 | $ | 16,079 | $ | 24,232 | $ | 37,955 | $ | 62,187 | |||||||||||||
31-Dec-12 | $ | 4,030 | $ | 1,773 | $ | 1,346 | $ | 13,584 | $ | 20,733 | $ | 34,375 | $ | 55,108 | |||||||||||||
BUSINESS_COMBINATIONS_Tables
BUSINESS COMBINATIONS (Tables) | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Faculdade Do Vale Do Ipojuca | ' | |||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition | ' | |||||||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition (dollars in thousands). | ||||||||
At July 1, 2013 | ||||||||
Current Assets | $ | 4,699 | ||||||
Property and Equipment | 2,037 | |||||||
Other Long-term Assets | 167 | |||||||
Intangible Assets | 17,723 | |||||||
Goodwill | 8,238 | |||||||
Total Assets Acquired | 32,864 | |||||||
Liabilities Assumed | 16,801 | |||||||
Net Assets Acquired | $ | 16,063 | ||||||
Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Lives | ' | |||||||
Their values and estimated useful lives by asset type are as follows (dollars in thousands): | ||||||||
At July 1, 2013 | ||||||||
Value | Estimated | |||||||
Assigned | Useful Life | |||||||
Clinical Agreement | $ | 583 | 15 years | |||||
Faculdade Diferencial Integral | ' | |||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed at Date of Acquisition | ' | |||||||
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition (dollars in thousands). | ||||||||
At September 3, | ||||||||
2012 | ||||||||
Current Assets | $ | 4,414 | ||||||
Property and Equipment | 2,897 | |||||||
Other Long-term Assets | 844 | |||||||
Intangible Assets | 13,571 | |||||||
Goodwill | 16,120 | |||||||
Total Assets Acquired | 37,846 | |||||||
Liabilities Assumed | 5,677 | |||||||
Net Assets Acquired | $ | 32,169 | ||||||
Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Lives | ' | |||||||
Their values and estimated useful lives by asset type are as follows (dollars in thousands): | ||||||||
At September 3, 2012 | ||||||||
Value | Estimated | |||||||
Assigned | Useful Lives | |||||||
Student Relationships | $ | 2,257 | 5 years | |||||
Curriculum | 79 | 2 years | ||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible assets consist of the following (dollars in thousands): | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Gross | Accumulated | Weighted Avg. | |||||||||||||||
Carrying | Amortization | Amortization | |||||||||||||||
Amount | Period | ||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||
Student Relationships | $ | 80,971 | $ | -76,814 | (a) | ||||||||||||
Customer Relationships | 3,630 | -922 | 12 Years | ||||||||||||||
Non-compete Agreements | 2,521 | -1,910 | (b) | ||||||||||||||
Curriculum/Software | 5,648 | -4,545 | 5 Years | ||||||||||||||
Outplacement Relationships | 3,900 | -1,374 | 15 Years | ||||||||||||||
Clinical Agreements | 550 | -18 | 15 Years | ||||||||||||||
Trade Names | 5,699 | -4,823 | (c) | ||||||||||||||
Total | $ | 102,919 | $ | -90,406 | |||||||||||||
Indefinite-lived Intangible Assets: | |||||||||||||||||
Trade Names | $ | 40,617 | |||||||||||||||
Trademark | 1,645 | ||||||||||||||||
Ross Title IV Eligibility and Accreditations | 14,100 | ||||||||||||||||
Intellectual Property | 13,940 | ||||||||||||||||
Chamberlain Title IV Eligibility and Accreditations | 1,200 | ||||||||||||||||
Carrington Title IV Eligibility and Accreditations | 67,200 | ||||||||||||||||
AUC Title IV Eligibility and Accreditations | 100,000 | ||||||||||||||||
DeVry Brasil Accreditation | 42,505 | ||||||||||||||||
Total | $ | 281,207 | |||||||||||||||
(a) | The total weighted average estimated amortization period for Student Relationships is 5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1), 6 years for Faculdade Boa Viagem ("FBV"), 5 years for Favip and 4 years for AUC. All other Student Relationships are fully amortized at December 31, 2013. | ||||||||||||||||
(b) | The total weighted average estimated amortization period for Non-compete Agreements is 5 years for Becker Physician Review. All other Non-compete Agreements are fully amortized at December 31, 2013. | ||||||||||||||||
(c) | The total weighted average estimated amortization period for Trade Names is 8.5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1). All other Trade Names are fully amortized at December 31, 2013. | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Gross | Accumulated | ||||||||||||||||
Carrying | Amortization | ||||||||||||||||
Amount | |||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||
Student Relationships | $ | 82,562 | $ | -71,803 | |||||||||||||
Customer Relationships | 3,569 | -549 | |||||||||||||||
Non-compete Agreements | 2,516 | -1,700 | |||||||||||||||
Curriculum/Software | 5,689 | -3,936 | |||||||||||||||
Outplacement Relationships | 3,900 | -1,114 | |||||||||||||||
Trade Names | 6,048 | -4,644 | |||||||||||||||
Total | 104,284 | -83,746 | |||||||||||||||
Indefinite-lived Intangible Assets: | |||||||||||||||||
Trade Names | $ | 39,198 | |||||||||||||||
Trademark | 1,645 | ||||||||||||||||
Ross Title IV Eligibility and Accreditations | 14,100 | ||||||||||||||||
Intellectual Property | 13,940 | ||||||||||||||||
Chamberlain Title IV Eligibility and Accreditations | 1,200 | ||||||||||||||||
Carrington Title IV Eligibility and Accreditations | 71,100 | ||||||||||||||||
AUC Title IV Eligibility and Accreditations | 100,000 | ||||||||||||||||
DeVry Brasil Accreditation | 32,456 | ||||||||||||||||
Total | $ | 273,639 | |||||||||||||||
Estimated Amortization Expense for Amortized Intangible Assets | ' | ||||||||||||||||
Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30, by reporting unit, is as follows (dollars in thousands): | |||||||||||||||||
Fiscal | AUC | Becker | DeVry | Carrington | Total | ||||||||||||
Year | Brasil | ||||||||||||||||
2014 | $ | 3,347 | $ | 947 | $ | 1,888 | $ | 295 | $ | 6,477 | |||||||
2015 | 387 | 939 | 1,074 | 260 | 2,660 | ||||||||||||
2016 | - | 931 | 681 | 260 | 1,872 | ||||||||||||
2017 | - | 635 | 331 | 260 | 1,226 | ||||||||||||
2018 | - | 363 | 190 | 260 | 813 | ||||||||||||
Thereafter | - | 1,142 | 482 | 1,356 | 2,980 | ||||||||||||
Amortizable Intangible Assets Amortized at Annual Rate | ' | ||||||||||||||||
This results in the basis being amortized at an annual rate for each of the years of estimated economic life as follows: | |||||||||||||||||
Fiscal | |||||||||||||||||
Year | AUC | DeVry Brasil | FBV | Favip | |||||||||||||
2009 | - | 8.30% | - | - | |||||||||||||
2010 | - | 30.30% | - | - | |||||||||||||
2011 | - | 24.70% | - | - | |||||||||||||
2012 | 38.00% | 19.80% | 11.90% | - | |||||||||||||
2013 | 38.50% | 13.60% | 33.70% | 27.60% | |||||||||||||
2014 | 21.60% | 3.30% | 25.90% | 32.20% | |||||||||||||
2015 | 1.90% | - | 16.70% | 23.00% | |||||||||||||
2016 | - | - | 9.00% | 13.20% | |||||||||||||
2017 | - | - | 2.60% | 4.00% | |||||||||||||
2018 | - | - | 0.20% | - | |||||||||||||
Summary of Goodwill Balances by Reporting Unit | ' | ||||||||||||||||
The table below summarizes goodwill balances by reporting unit as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Unit | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
DeVry University | $ | 22,196 | |||||||||||||||
Becker Professional Review | 33,056 | ||||||||||||||||
Ross University | 237,174 | ||||||||||||||||
Chamberlain College of Nursing | 4,716 | ||||||||||||||||
Carrington Colleges Group | 98,784 | ||||||||||||||||
American University of the Caribbean | 68,321 | ||||||||||||||||
DeVry Brasil | 50,510 | ||||||||||||||||
Total | $ | 514,757 | |||||||||||||||
Summary of Goodwill Balances by Reporting Segment | ' | ||||||||||||||||
The table below summarizes goodwill balances by reporting segment as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Segment: | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Business, Technology and Management | $ | 22,196 | |||||||||||||||
Medical and Healthcare | 408,994 | ||||||||||||||||
International and Professional Education | 83,567 | ||||||||||||||||
Total | $ | 514,757 | |||||||||||||||
Changes in Carrying Amount of Goodwill, by Segment | ' | ||||||||||||||||
The table below summarizes the changes in the carrying amount of goodwill, by segment as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Business, | Medical and | International | Total | ||||||||||||||
Technology and | Healthcare | and Professional | |||||||||||||||
Management | Education | ||||||||||||||||
Balance at June 30, 2013 | $ | 22,196 | $ | 408,994 | $ | 77,747 | $ | 508,937 | |||||||||
Acquisitions | - | - | 8,238 | 8,238 | |||||||||||||
Foreign currency exchange rate changes and other | - | - | -2,418 | -2,418 | |||||||||||||
Balance at December 31, 2013 | $ | 22,196 | $ | 408,994 | $ | 83,567 | $ | 514,757 | |||||||||
Summary of Indefinite-Lived Intangible Assets Balances by Reporting Unit | ' | ||||||||||||||||
The table below summarizes the indefinite-lived intangible asset balances by reporting unit as of December 31, 2013 (dollars in thousands): | |||||||||||||||||
Reporting Unit: | As of | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
DeVry University | $ | 1,645 | |||||||||||||||
Becker Professional Review | 27,912 | ||||||||||||||||
Ross University | 19,200 | ||||||||||||||||
Chamberlain College of Nursing | 1,200 | ||||||||||||||||
Carrington Colleges Group | 67,200 | ||||||||||||||||
American University of the Caribbean | 117,100 | ||||||||||||||||
DeVry Brasil | 46,950 | ||||||||||||||||
Total | $ | 281,207 | |||||||||||||||
RESTRUCTURING_CHARGES_Tables
RESTRUCTURING CHARGES (Tables) | 6 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||
The following table summarizes the separation and restructuring plan activity for the six months ended December 31, 2013 and 2012, for which cash payments are required (dollars in millions): | ||||||||
Six months ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Liability balance at Beginning of Period | $ | 13.2 | $ | 5.6 | ||||
Increase in liability (separation and other charges) | 15.3 | 0.7 | ||||||
Reduction in liability (payments and adjustments) | -10.6 | -5.8 | ||||||
Liability balance at End of Period | $ | 17.9 | $ | 0.5 | ||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 6 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Tabulation of Business Segment Information Based on Current Segmentation | ' | |||||||||||||
Following is a tabulation of business segment information based on the segmentation for each of the three and six months ended December 31, 2013 and 2012. Corporate information is included where it is needed to reconcile segment data to the consolidated financial statements (dollars in thousands). | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
Revenues: | 2013 | 2012 | 2013 | 2012 | ||||||||||
Business, Technology and Management | $ | 239,913 | $ | 280,239 | $ | 472,222 | $ | 564,853 | ||||||
Medical and Healthcare | 190,447 | 167,746 | 366,303 | 326,103 | ||||||||||
International and Professional Education | 61,430 | 52,681 | 105,151 | 89,630 | ||||||||||
Intersegment Revenues | -521 | - | -1,495 | - | ||||||||||
Total Consolidated Revenues | $ | 491,269 | $ | 500,666 | $ | 942,181 | $ | 980,586 | ||||||
Operating Income: | ||||||||||||||
Business, Technology and Management | $ | 9,947 | $ | 38,835 | $ | -1,114 | $ | 64,405 | ||||||
Medical and Healthcare | 35,311 | 26,705 | 60,827 | 51,887 | ||||||||||
International and Professional Education | 16,409 | 15,226 | 17,489 | 18,576 | ||||||||||
Reconciling Items: | ||||||||||||||
Amortization Expense | -1,612 | -2,412 | -3,261 | -4,690 | ||||||||||
Depreciation and Other | -1,493 | -11,159 | -5,108 | -13,535 | ||||||||||
Total Consolidated Operating Income | $ | 58,562 | $ | 67,195 | $ | 68,833 | $ | 116,643 | ||||||
Interest Income (Expense): | ||||||||||||||
Interest Income | $ | 310 | $ | 230 | $ | 893 | $ | 791 | ||||||
Interest Expense | -1,052 | -759 | -2,052 | -2,250 | ||||||||||
Net Interest Income (Expense) | -742 | -529 | -1,159 | -1,459 | ||||||||||
Total Consolidated Income from Continuing | $ | 57,820 | $ | 66,666 | $ | 67,674 | $ | 115,184 | ||||||
Operations Before Income Taxes | ||||||||||||||
Segment Assets: | ||||||||||||||
Business, Technology and Management | $ | 341,167 | $ | 380,295 | $ | 341,167 | $ | 380,295 | ||||||
Medical and Healthcare | 1,100,815 | 1,098,022 | 1,100,815 | 1,098,022 | ||||||||||
International and Professional Education | 282,102 | 249,863 | 282,102 | 249,863 | ||||||||||
Corporate | 165,029 | 151,827 | 165,029 | 151,827 | ||||||||||
Assets of Divested Business | - | 34,777 | - | 34,777 | ||||||||||
Total Consolidated Assets | $ | 1,889,113 | $ | 1,914,784 | $ | 1,889,113 | $ | 1,914,784 | ||||||
Additions to Long-lived Assets: | ||||||||||||||
Business, Technology and Management | $ | 3,904 | $ | 11,575 | $ | 7,854 | $ | 24,219 | ||||||
Medical and Healthcare | 4,632 | 6,889 | 18,928 | 12,456 | ||||||||||
International and Professional Education | 1,684 | 3,347 | 31,541 | 36,575 | ||||||||||
Corporate | 1,025 | 1,629 | 3,100 | 6,557 | ||||||||||
Total Consolidated Additions to Long-lived Assets | $ | 11,245 | $ | 23,440 | $ | 61,423 | $ | 79,807 | ||||||
Reconciliation to Consolidated Financial Statements | ||||||||||||||
Capital Expenditures | 11,245 | $ | 21,592 | $ | 33,426 | $ | 47,214 | |||||||
Increase in Capital Assets from Acquisitions | - | - | 2,037 | 2,897 | ||||||||||
Increase in Intangible Assets and Goodwill | - | 1,848 | 25,960 | 29,696 | ||||||||||
Total Increase in Consolidated Long-lived Assets | $ | 11,245 | $ | 23,440 | $ | 61,423 | $ | 79,807 | ||||||
Depreciation Expense: | ||||||||||||||
Business, Technology and Management | $ | 11,076 | $ | 11,052 | $ | 21,911 | $ | 21,892 | ||||||
Medical and Healthcare | 6,474 | 6,350 | 12,621 | 12,090 | ||||||||||
International and Professional Education | 566 | 1,275 | 1,114 | 2,379 | ||||||||||
Corporate | 2,623 | 2,339 | 5,073 | 4,481 | ||||||||||
Total Consolidated Depreciation | $ | 20,739 | $ | 21,016 | $ | 40,719 | $ | 40,842 | ||||||
Intangible Asset Amortization Expense: | ||||||||||||||
Medical and Healthcare | $ | 902 | $ | 1,347 | $ | 1,844 | $ | 2,695 | ||||||
International and Professional Education | 710 | 1,065 | 1,417 | 1,995 | ||||||||||
Total Consolidated Amortization | $ | 1,612 | $ | 2,412 | $ | 3,261 | $ | 4,690 | ||||||
Revenues and Long-Lived Assets by Geographic Area | ' | |||||||||||||
Revenues and long-lived assets by geographic area are as follows: | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Revenue from Unaffiliated Customers: | ||||||||||||||
Domestic Operations | $ | 368,271 | $ | 391,406 | $ | 718,388 | $ | 781,545 | ||||||
International Operations: | ||||||||||||||
Dominica, St. Kitts and St. Maarten | 86,388 | 78,766 | 161,895 | 148,583 | ||||||||||
Brazil | 32,905 | 25,584 | 56,426 | 42,900 | ||||||||||
Other | 3,705 | 4,910 | 5,472 | 7,558 | ||||||||||
Total International | 122,998 | 109,260 | 223,793 | 199,041 | ||||||||||
Consolidated | $ | 491,269 | $ | 500,666 | $ | 942,181 | $ | 980,586 | ||||||
Long-lived Assets: | ||||||||||||||
Domestic Operations | $ | 391,922 | $ | 417,041 | $ | 391,922 | $ | 417,041 | ||||||
International Operations: | ||||||||||||||
Dominica, St. Kitts and St. Maarten | 168,249 | 137,146 | 168,249 | 137,146 | ||||||||||
Brazil | 44,485 | 41,627 | 44,485 | 41,627 | ||||||||||
Other | 235 | 1,584 | 235 | 1,584 | ||||||||||
Total International | 212,968 | 180,357 | 212,968 | 180,357 | ||||||||||
Long-lived Assets of Business Held for Sale | - | 6,239 | - | 6,239 | ||||||||||
Consolidated | $ | 604,891 | $ | 603,637 | $ | 604,891 | $ | 603,637 | ||||||
Reconciliation_of_NonControlli
Reconciliation of Non-Controlling Interest Balance (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' |
Balance at Beginning of Period | $5,890 | $8,637 | $854 | $8,242 |
Net Income Attributable to Non-controlling Interest | 253 | 938 | 208 | 771 |
Accretion of Non-controlling Interest Put Option | -168 | -674 | 4,913 | -112 |
Balance at End of Period | $5,975 | $8,901 | $5,975 | $8,901 |
Reconciliation_of_Basic_Shares
Reconciliation of Basic Shares to Diluted Shares (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Weighted Average Shares Outstanding | 63,282 | 63,456 | 63,170 | 63,851 |
Unvested Participating Restricted Shares | 914 | 846 | 896 | 712 |
Basic Shares | 64,196 | 64,302 | 64,066 | 64,563 |
Effect of Dilutive Stock Options | 523 | 234 | 550 | 225 |
Diluted Shares | 64,719 | 64,536 | 64,616 | 64,788 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Reserves related to uncollectible accounts and refunds | $44.40 | $52.50 | $44.40 | $52.50 | ' |
Net balance of capitalized software development costs | 54.1 | 69.3 | 54.1 | 69.3 | ' |
Ownership interest of parent in subsidiary | ' | ' | ' | ' | 93.50% |
Anti-dilutive shares excluded from computations of earnings per share | 2,298,000 | 3,000,000 | 2,158,000 | 2,743,000 | ' |
Cumulative translation gains (losses) | 25.6 | 6.5 | 25.6 | 6.5 | ' |
Advertising expense | 67.8 | 60.9 | 140.8 | 127.6 | ' |
Perkins Student Loan Fund | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Percentage of Contributions by DeVry Inc. | 33.00% | ' | 33.00% | ' | ' |
Investment at original values, net of allowances for expected losses on loan collections | 2.6 | 2.6 | 2.6 | 2.6 | ' |
Internal Use Software | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Finite Lived Intangible Asset Useful Life | ' | ' | '5 years | ' | ' |
Project DELTA | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Cost capitalized | 0.3 | 0.3 | 0.5 | 2.4 | ' |
DeVry Inc. | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Ownership interest of parent in subsidiary | 96.30% | ' | 96.30% | ' | ' |
Cumulative translation gains (losses) | 24.7 | 5.7 | 24.7 | 5.7 | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | ' | ' | 0.2 | 0.1 | ' |
Tax effect on unrealized losses on available-for-sale securities | ' | ' | 0.1 | 0.1 | ' |
Noncontrolling Interest | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Cumulative translation gains (losses) | $0.90 | $0.80 | $0.90 | $0.80 | ' |
Devry Brasil Senior Management Group [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Minority Interest Ownership Percentage | 3.70% | ' | 3.70% | ' | ' |
Balance_Sheet_Information_of_H
Balance Sheet Information of Held for Sale Assets and Liabilities (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and Cash Equivalents | $568 | ($308) |
Accounts Receivable, Net | 12,050 | 21,336 |
Deferred Income Taxes, Net | 2,757 | 168 |
Prepaid Expenses and Other | 844 | 7,510 |
Total Current Assets of Divested Business | 16,219 | 28,706 |
Land, Building and Equipment of Divested Business, Net | 0 | 5,521 |
Other Assets: | ' | ' |
Deferred Income Taxes, Net | 2,602 | 498 |
Other Assets | 3,185 | 220 |
Total Other Assets of Divested Business | 5,787 | 718 |
Total Assets of Divested Business | 22,006 | 34,945 |
Current Liabilities: | ' | ' |
Accounts Payable | 178 | 286 |
Accrued Salaries, Wages and Benefits | 482 | 436 |
Accrued Expenses | 47 | 34 |
Deferred and Advance Tuition | 6 | 774 |
Total Current Liabilities of Divested Business | 713 | 1,530 |
Other Liabilities: | ' | ' |
Deferred Rent and Other | 112 | 0 |
Total Other Liabilities of Divested Business | 112 | 0 |
Liabilities of Divested Business | $825 | $1,530 |
Operating_Results_of_the_Disco
Operating Results of the Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
DISCONTINUED OPERATIONS: | ' | ' | ' | ' |
Loss from Operations of Divested Component | ($1,084) | ($1,290) | ($3,931) | ($4,948) |
Gain on Sale of Assets | 372 | 0 | 372 | 0 |
Asset Impairment Charge (Note 5) | 0 | 0 | -13,477 | 0 |
Restructuring Expense | -675 | 0 | -675 | 0 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | -1,387 | -1,290 | -17,711 | -4,948 |
Income Tax Benefit | 467 | 452 | 1,463 | 1,936 |
Loss on Discontinued Operations | ($920) | ($838) | ($16,248) | ($3,012) |
Assests_And_Liabilities_of_Div
Assests And Liabilities of Divested Business And Discontinued Operations - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $2 |
Summary_of_Options_Activity_De
Summary of Options Activity (Detail) (Stock Option [Member], USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Option [Member] | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' |
Options, Outstanding at beginning of period | 3,327,668 |
Options Granted | 556,050 |
Options Exercised | -153,645 |
Options Forfeited | -14,746 |
Options Expired | -40,804 |
Options, Outstanding at end of period | 3,674,523 |
Options Outstanding, Exercisable | 2,246,701 |
Weighted Average Exercise Price at beginning of period | $32.64 |
Weighted Average Exercise Price, Options Granted | $28.32 |
Weighted Average Exercise Price, Options Exercised | $22.67 |
Weighted Average Exercise Price, Options Forfeited | $24.48 |
Weighted Average Exercise Price, Options Expired | $40.21 |
Weighted Average Exercise Price at end of period | $32.37 |
Weighted Average Exercise Price, Exercisable | $35.82 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | '6 years 3 months 11 days |
Weighted Average Remaining Contractual Life, Exercisable | '4 years 8 months 16 days |
Aggregate Intrinsic Value, Outstanding at end of period | $25,465 |
Aggregate Intrinsic Value, Exercisable | $11,742 |
Summary_of_Stock_Appreciation_
Summary of Stock Appreciation Rights Activity (Detail) (Stock Appreciation Rights (SARs) [Member], USD $) | 6 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Stock Appreciation Rights (SARs) [Member] | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' |
Options, Outstanding at beginning of period | 117,015 |
Stock Appreciation Rights Outstanding, Rights Granted | 1,050 |
Stock Appreciation Rights Outstanding, Rights Exercised | 0 |
Stock Appreciation Rights Outstanding, Rights Canceled | 0 |
Options, Outstanding at end of period | 118,065 |
Stock Appreciation Rights Outstanding, Exercisable | 85,855 |
Weighted Average Exercise Price at beginning of period | $42.87 |
Weighted Average Outstanding Price, Rights Granted | $28.32 |
Weighted Average Outstanding Price, Rights Exercised | $0 |
Weighted Average Outstanding Price, Rights Canceled | $0 |
Weighted Average Exercise Price at end of period | $42.74 |
Weighted Average Exercise Price, Exercisable | $45.25 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | '6 years 2 months 12 days |
Weighted Average Remaining Contractual Life, Exercisable | '5 years 2 months 12 days |
Aggregate Intrinsic Value, Outstanding at end of period | $94 |
Aggregate Intrinsic Value, Exercisable | $22 |
Fair_Values_of_Stock_Option_Aw
Fair Values of Stock Option Awards Weighted Average Assumptions (Detail) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected Life (in Years) | '6 years 6 months 29 days | '6 years 7 months 17 days |
Expected Volatility | 43.76% | 43.67% |
Risk-free Interest Rate | 2.16% | 1.03% |
Dividend Yield | 0.90% | 0.61% |
Pre-vesting Forfeiture Rate | 3.00% | 3.00% |
Summary_of_Restricted_Stock_Ac
Summary of Restricted Stock Activity (Detail) (Restricted Stock, USD $) | 6 Months Ended |
Dec. 31, 2013 | |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Restricted Stock Outstanding, Nonvested beginning balance | 1,058,443 |
Restricted Stock Outstanding, Shares Granted | 431,170 |
Restricted Stock Outstanding, Shares Vested | -307,935 |
Restricted Stock Outstanding, Shares Cancelled | -29,364 |
Restricted Stock Outstanding, Nonvested ending balance | 1,152,314 |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $27.03 |
Weighted Average Grant Date Fair Value, Shares Granted | $28.85 |
Weighted Average Grant Date Fair Value, Shares Vested | $31.53 |
Weighted Average Grant Date Fair Value, Shares Cancelled | $27.70 |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $26.49 |
Total_StockBased_Compensation_
Total Stock-Based Compensation Expense Included in Consolidated Statement of Earnings (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Income Tax Benefit | ($1,392) | ($848) | ($3,338) | ($2,695) |
Net Stock-Based Compensation Expense | 2,652 | 1,806 | 6,522 | 5,675 |
Cost Of Educational Services | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-Based Compensation Expense | 1,294 | 849 | 3,155 | 2,679 |
Student Services And Administrative Expense | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock-Based Compensation Expense | $2,750 | $1,805 | $6,705 | $5,691 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Total intrinsic value of options exercised | $1.80 | $0.40 |
Total pre-tax unrecognized compensation costs related to non-vested awards | 29.8 | ' |
Total pre-tax unrecognized compensation costs related to non-vested awards expected to be recognized, years | '2 years 4 months 24 days | ' |
Total fair value of options vested | $6.30 | $9 |
Subsequent Event [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average estimated grant date fair values, for options granted at market price, per share | $11.68 | $7.62 |
Employee Stock Option | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock Incentive Plan term | '10 years | ' |
Employee Stock Option | Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock incentives granted, vesting period, in years | '5 years | ' |
Stock Incentive Plans | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Common stock, authorized and unissued, reserved for future issuance | 11,088,024 | ' |
Restricted Stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Grant of restricted stock to selected employees and non-employee directors | 433,970 | ' |
Restricted Stock | Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock incentives granted, vesting period, in years | '4 years | ' |
Restricted Stock | Minimum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock incentives granted, vesting period, in years | '3 years | ' |
Performance Based Shares | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock incentives granted, vesting period, in years | '3 years | ' |
Grant of restricted stock to selected employees and non-employee directors | 73,010 | ' |
Non-Performance Based Shares | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Grant of restricted stock to selected employees and non-employee directors | 360,960 | ' |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Level 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash and Cash Equivalents | $262,034 |
Marketable Securities, short-term | 3,263 |
Favip Contingent Consideration | 0 |
Total Financial Assets at Fair Value | 265,297 |
Level 2 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash and Cash Equivalents | 0 |
Marketable Securities, short-term | 0 |
Favip Contingent Consideration | 0 |
Total Financial Assets at Fair Value | 0 |
Level 3 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cash and Cash Equivalents | 0 |
Marketable Securities, short-term | 0 |
Favip Contingent Consideration | 2,371 |
Total Financial Assets at Fair Value | $2,371 |
RollForward_of_Assets_and_Liab
Roll-Forward of Assets and Liabilities Measured at Fair Value using Level Three Inputs (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Balance at Beginning of Period | $2,519 | $7,344 | $2,509 | $4,361 |
Total Realized Gains (Losses) Included in Income: | ' | ' | ' | ' |
Interest Expense-ATC Accretion | 0 | 71 | 0 | 140 |
Total Unrealized Gains (Losses) Included in AOCI: | ' | ' | ' | ' |
Foreign Currency Translation Changes | -148 | 4 | -138 | 185 |
Transfer into Level 3: | ' | ' | ' | ' |
Favip Contingent Consideration | 0 | 0 | 0 | 2,733 |
Balance at End of Period | $2,371 | $7,419 | $2,371 | $7,419 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 6 Months Ended |
Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Fair value of institutional loans receivables | $43,400,000 |
Impairment gain | 2,000,000 |
Business Combination Contingent Consideration Expected To be Payable Percentage | 70.00% |
Proceeds from Sale of Property, Plant, and Equipment, Total | 2,000,000 |
Advanced Academics Inc [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Impairment gain | 13,500,000 |
Assets, Fair Value Disclosure, Total | $2,000,000 |
Institutional_Loan_Balances_an
Institutional Loan Balances and Related Allowances for Credit Losses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivables [Line Items] | ' | ' |
Gross Institutional Student Loans | $62,187 | $55,108 |
Allowance for Credi Losses | -18,735 | -18,665 |
Net Institutional Student Loans | $43,452 | $36,443 |
Credit_Risk_Profiles_of_Instit
Credit Risk Profiles of Institutional Student Loan Balance (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivables [Line Items] | ' | ' |
Institutional Student Loans | $62,187 | $55,108 |
Performing | ' | ' |
Financing Receivables [Line Items] | ' | ' |
Institutional Student Loans | 46,108 | 41,524 |
Nonperforming | ' | ' |
Financing Receivables [Line Items] | ' | ' |
Institutional Student Loans | $16,079 | $13,584 |
Institutional_Student_Loans_Pa
Institutional Student Loans Past Due (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Institutional Student Loans, 30-59 Days Past Due | $4,896 | $4,030 |
Institutional Student Loans, 60-89 Days Past Due | 1,737 | 1,773 |
Institutional Student Loans, 90-119 Days Past Due | 1,520 | 1,346 |
Institutional Student Loans, Greater Than 120 Days Past Due | 16,079 | 13,584 |
Institutional Student Loans, Total Past Due | 24,232 | 20,733 |
Institutional Student Loans, Current | 37,955 | 34,375 |
Total Institutional Student Loans | $62,187 | $55,108 |
Financing_Receivables_Addition
Financing Receivables - Additional Information (Detail) (USD $) | 6 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Accounts Receivable | Accounts Receivable | Other Assets | Other Assets | Minimum | Maximum | Becker | ||
Financing Receivables [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment plan, number of monthly installments | ' | ' | ' | ' | ' | '12 months | '60 months | ' |
Term of loan, in months | ' | ' | ' | ' | ' | ' | ' | '18 months |
Net Institutional Student Loans, classified as Accounts Receivable | ' | $20.10 | $18.60 | ' | ' | ' | ' | ' |
Net Institutional Student Loans, classified as Other Assets | ' | ' | ' | $23.30 | $17.80 | ' | ' | ' |
Number of days past due, to consider loans as nonperforming | '120 days | ' | ' | ' | ' | ' | ' | ' |
Estimated_Fair_Values_of_Asset
Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2012 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Faculdade Do Vale DoI Ipojuca | Faculdade Diferencial Integral |
3-Sep-12 | 1-Jul-13 | |
Business Acquisition [Line Items] | ' | ' |
Current Assets | $4,414 | $4,699 |
Property and Equipment | 2,897 | 2,037 |
Other Long-term Assets | 844 | 167 |
Intangible Assets | 13,571 | 17,723 |
Goodwill | 16,120 | 8,238 |
Total Assets Acquired | 37,846 | 32,864 |
Liabilities Assumed | 5,677 | 16,801 |
Net Assets Acquired | $32,169 | $16,063 |
Acquired_Intangible_Assets_Sub
Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Life (Detail) (USD $) | 0 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 03, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 |
Student Relationships | Clinical Agreement | Faculdade Diferencial Integral | ||
3-Sep-12 | 3-Sep-12 | Clinical Agreement | ||
1-Jul-13 | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Amortizable intangible assets | ' | $2,257 | $79 | $583 |
Amortizable intangible assets, estimated useful life | '4 years 10 months 24 days | '5 years | '2 years | '15 years |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 0 Months Ended | 0 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 03, 2012 | Dec. 31, 2013 | Sep. 03, 2012 | Sep. 03, 2012 | Sep. 03, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Number | Faculdade Do Vale DoI Ipojuca | Faculdade Do Vale DoI Ipojuca | Faculdade Do Vale DoI Ipojuca | Faculadadde Diferencial Integral [Member] | Faculadadde Diferencial Integral [Member] | ||
Title Four Eligibility And Accreditations | Trade Name | Number | Trade Name | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets, estimated useful lives | '4 years 10 months 24 days | ' | ' | ' | ' | '15 years | ' |
Number of students in Degree program | 5,000 | ' | ' | ' | ' | 2,500 | ' |
Intangible Assets | ' | ' | $13.60 | ' | ' | $17.70 | ' |
Intangible assets not subject to amortization | ' | ' | ' | 10.2 | 1.1 | 15.2 | 1.9 |
Expected additional installment payment for acquisition over the next four years | ' | 2.4 | 3.9 | ' | ' | 9 | ' |
Payments to Acquire Businesses | ' | ' | $32.20 | ' | ' | $16.10 | ' |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | $102,919 | $104,284 | |
Amortizable Intangible Assets, Accumulated Amortization | -90,406 | -83,746 | |
Indefinite-lived Intangible Assets | 281,207 | 273,639 | |
Student Relationships | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 80,971 | [1] | 82,562 |
Amortizable Intangible Assets, Accumulated Amortization | -76,814 | [1] | -71,803 |
Student Relationships | American University Of Caribbean | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Weighted Avg. Amortization Period (in years) | '4 years | ' | |
Customer Relationships | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 3,630 | 3,569 | |
Amortizable Intangible Assets, Accumulated Amortization | -922 | -549 | |
Amortizable Intangible Assets, Weighted Avg. Amortization Period (in years) | '12 years | ' | |
Non-compete Agreements | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 2,521 | [2] | 2,516 |
Amortizable Intangible Assets, Accumulated Amortization | -1,910 | [2] | -1,700 |
Curriculum/Software | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 5,648 | 5,689 | |
Amortizable Intangible Assets, Accumulated Amortization | -4,545 | -3,936 | |
Amortizable Intangible Assets, Weighted Avg. Amortization Period (in years) | '5 years | ' | |
Outplacement Relationships | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 3,900 | 3,900 | |
Amortizable Intangible Assets, Accumulated Amortization | -1,374 | -1,114 | |
Amortizable Intangible Assets, Weighted Avg. Amortization Period (in years) | '15 years | ' | |
Clinical Agreements | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 550 | ' | |
Amortizable Intangible Assets, Accumulated Amortization | -18 | ' | |
Amortizable Intangible Assets, Weighted Avg. Amortization Period (in years) | '15 years | ' | |
Trade Names | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Amortizable Intangible Assets, Gross Carrying Amount | 5,699 | [3] | 6,048 |
Amortizable Intangible Assets, Accumulated Amortization | -4,823 | [3] | -4,644 |
Indefinite-lived Intangible Assets | 40,617 | 39,198 | |
Trademark | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 1,645 | 1,645 | |
Ross Title IV Eligibility and Accreditations | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 14,100 | 14,100 | |
Intellectual Property | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 13,940 | 13,940 | |
Chamberlain Title IV Eligibility and Accreditations | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 1,200 | 1,200 | |
Carrington Title IV Eligibility and Accreditations | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 67,200 | 71,100 | |
Devry Brasil Accreditations | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | 42,505 | 32,456 | |
Title Four Eligibility And Accreditations | American University Of Caribbean | ' | ' | |
Intangible Assets [Line Items] | ' | ' | |
Indefinite-lived Intangible Assets | $100,000 | $100,000 | |
[1] | The total weighted average estimated amortization period for Student Relationships is 5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1), 6 years for Faculdade Boa Viagem ("FBV"), 5 years for Favip and 4 years for AUC. All other Student Relationships are fully amortized at December 31, 2013. | ||
[2] | The total weighted average estimated amortization period for Non-compete Agreements is 5 years for Becker Physician Review. All other Non-compete Agreements are fully amortized at December 31, 2013. | ||
[3] | The total weighted average estimated amortization period for Trade Names is 8.5 years for DeVry Brasil (Fanor, Ruy Barbosa and Area 1). All other Trade Names are fully amortized at December 31, 2013. |
Intangible_Assets_Parenthetica
Intangible Assets (Parenthetical) (Detail) | 6 Months Ended |
Dec. 31, 2013 | |
Clinical Agreements [Member] | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '15 years |
DeVry Brasil | Student Relationships | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '5 years |
DeVry Brasil | Trade Names | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '8 years 6 months |
Faculdade Boa Viagem | Student Relationships | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '6 years |
American University Of Caribbean | Student Relationships | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '4 years |
Becker Physician Reviews | Non-compete Agreements | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '5 years |
Favip | Student Relationships | ' |
Intangible Assets [Line Items] | ' |
Intangible assets, weighted average amortization period (in years) | '5 years |
Estimated_Amortization_Expense
Estimated Amortization Expense for Amortized Intangible Assets (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Intangible Assets [Line Items] | ' |
2014 | $6,477 |
2015 | 2,660 |
2016 | 1,872 |
2017 | 1,226 |
2018 | 813 |
Thereafter | 2,980 |
American University Of Caribbean | ' |
Intangible Assets [Line Items] | ' |
2014 | 3,347 |
2015 | 387 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Becker | ' |
Intangible Assets [Line Items] | ' |
2014 | 947 |
2015 | 939 |
2016 | 931 |
2017 | 635 |
2018 | 363 |
Thereafter | 1,142 |
DeVry Brasil | ' |
Intangible Assets [Line Items] | ' |
2014 | 1,888 |
2015 | 1,074 |
2016 | 681 |
2017 | 331 |
2018 | 190 |
Thereafter | 482 |
Carrington Colleges Group | ' |
Intangible Assets [Line Items] | ' |
2014 | 295 |
2015 | 260 |
2016 | 260 |
2017 | 260 |
2018 | 260 |
Thereafter | $1,356 |
Amortizable_Intangible_Assets_
Amortizable Intangible Assets Amortized at Annual Rate (Detail) | 6 Months Ended |
Dec. 31, 2013 | |
American University Of Caribbean | Fiscal Year 2009 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
American University Of Caribbean | Fiscal Year 2010 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
American University Of Caribbean | Fiscal Year 2011 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
American University Of Caribbean | Fiscal Year 2012 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 38.00% |
American University Of Caribbean | Fiscal Year 2013 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 38.50% |
American University Of Caribbean | Fiscal Year 2014 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 21.60% |
American University Of Caribbean | Fiscal Year 2015 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 1.90% |
American University Of Caribbean | Fiscal Year 2016 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
American University Of Caribbean | Fiscal Year 2017 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
American University Of Caribbean | Fiscal Year 2018 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
DeVry Brasil | Fiscal Year 2009 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 8.30% |
DeVry Brasil | Fiscal Year 2010 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 30.30% |
DeVry Brasil | Fiscal Year 2011 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 24.70% |
DeVry Brasil | Fiscal Year 2012 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 19.80% |
DeVry Brasil | Fiscal Year 2013 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 13.60% |
DeVry Brasil | Fiscal Year 2014 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 3.30% |
DeVry Brasil | Fiscal Year 2015 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
DeVry Brasil | Fiscal Year 2016 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
DeVry Brasil | Fiscal Year 2017 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
DeVry Brasil | Fiscal Year 2018 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Boa Viagem | Fiscal Year 2009 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Boa Viagem | Fiscal Year 2010 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Boa Viagem | Fiscal Year 2011 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Boa Viagem | Fiscal Year 2012 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 11.90% |
Faculdade Boa Viagem | Fiscal Year 2013 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 33.70% |
Faculdade Boa Viagem | Fiscal Year 2014 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 25.90% |
Faculdade Boa Viagem | Fiscal Year 2015 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 16.70% |
Faculdade Boa Viagem | Fiscal Year 2016 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 9.00% |
Faculdade Boa Viagem | Fiscal Year 2017 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 2.60% |
Faculdade Boa Viagem | Fiscal Year 2018 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.20% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2009 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2010 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2011 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2012 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2013 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 27.60% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2014 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 32.20% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2015 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 23.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2016 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 13.20% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2017 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 4.00% |
Faculdade Do Vale Do Ipojuca | Fiscal Year 2018 | ' |
Intangible Assets [Line Items] | ' |
Annual rate of amortization | 0.00% |
Summary_of_Goodwill_Balances_b
Summary of Goodwill Balances by Reporting Unit (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $514,757 | $508,937 | $566,199 |
Devry University | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 22,196 | ' | ' |
Becker Professional Review | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 33,056 | ' | ' |
Ross University | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 237,174 | ' | ' |
Chamberlain College of Nursing | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 4,716 | ' | ' |
Carrington Colleges Group | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 98,784 | ' | ' |
American University Of Caribbean | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 68,321 | ' | ' |
DeVry Brasil | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $50,510 | ' | ' |
Summary_of_Goodwill_Balances_b1
Summary of Goodwill Balances by Reporting Segment (Detail) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $514,757 | $508,937 | $566,199 |
Business, Technology and Management | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 22,196 | 22,196 | ' |
Medical and Healthcare | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | 408,994 | 408,994 | ' |
International and Professional Education | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' |
Goodwill | $83,567 | $77,747 | ' |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill, by Segment (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | $508,937 | ' |
Acquisitions | 8,238 | 8,200 |
Foreign currency exchange rate changes and other | -2,418 | ' |
Goodwill ending balance | 514,757 | 566,199 |
Business, Technology and Management | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | 22,196 | ' |
Acquisitions | 0 | ' |
Foreign currency exchange rate changes and other | 0 | ' |
Goodwill ending balance | 22,196 | ' |
Medical and Healthcare | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | 408,994 | ' |
Acquisitions | 0 | ' |
Foreign currency exchange rate changes and other | 0 | ' |
Goodwill ending balance | 408,994 | ' |
International and Professional Education | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill beginning balance | 77,747 | ' |
Acquisitions | 8,238 | ' |
Foreign currency exchange rate changes and other | -2,418 | ' |
Goodwill ending balance | $83,567 | ' |
Summary_of_IndefiniteLived_Int
Summary of Indefinite-Lived Intangible Assets Balances by Reporting Unit (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | $281,207 | $273,639 |
Devry University | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 1,645 | ' |
Becker Professional Review | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 27,912 | ' |
Ross University | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 19,200 | ' |
Chamberlain College of Nursing | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 1,200 | ' |
Carrington Colleges Group | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 67,200 | ' |
American University Of Caribbean | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | 117,100 | ' |
DeVry Brasil | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Indefinite-lived intangible assets balances | $46,950 | ' |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Amortization Expenses For Amortized Intangible Assets | $1,700,000 | $2,400,000 | $3,300,000 | $4,700,000 | ' |
Percentage of estimated fair values exceeded carrying values | ' | ' | 58.00% | ' | 41.00% |
Increase in indefinite-lived intangible assets | ' | ' | 14,400,000 | ' | ' |
Addition in indefinite-lived Intangible Assets | ' | ' | 17,100,000 | ' | ' |
Goodwill, Acquired During Period | ' | ' | 8,238,000 | 8,200,000 | ' |
Minimum Amount Committed Over Next Three Years To Be Awarded To Qualifying Students | 15,000,000 | ' | 15,000,000 | ' | ' |
Maximum Amount Of Scholarships Per Student | 20,000 | ' | 20,000 | ' | ' |
Description Of Students Award | ' | ' | 'For example, students in their first year of a bachelors degree program can be awarded up to $5,000. During the second year, the available award may increase up to $7,000. For the third year, the award can increase up to $8,000. | ' | ' |
All other except for Carrington | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Percentage of estimated fair values exceeded carrying values | ' | ' | 12.00% | ' | ' |
American University of the Caribbean | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Impairment charges on Intangible Assets, Indefinite-lived | ' | ' | 57,000,000 | ' | ' |
Faculdade Boa Viagem | Maximum | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Percentage of estimated fair values exceeded carrying values | ' | ' | 67.00% | ' | ' |
Faculdade Boa Viagem | Minimum | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Percentage of estimated fair values exceeded carrying values | ' | ' | 4.00% | ' | ' |
Devry University | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Percentage decline in revenue compared to prior periods | ' | ' | 16.00% | ' | ' |
Impairment of goodwill | ' | ' | 22,200,000 | ' | ' |
Percentage of estimated fair values exceeded carrying values | ' | ' | 100.00% | ' | ' |
Favip | ' | ' | ' | ' | ' |
Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Goodwill, Acquired During Period | ' | ' | ' | $16,100,000 | ' |
Restructuring_Charges_Separati
Restructuring Charges - Separation and Restructuring Plan Activity (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Liability balance at Beginning of Period | $13.20 | $5.60 |
Increase in liability (separation and other charges) | 15.3 | 0.7 |
Reduction in liability (payments and adjustments) | -10.6 | -5.8 |
Liability balance at End of Period | $17.90 | $0.50 |
Restructuring_Charges_Addition
Restructuring Charges - Additional information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Voluntary Separation Plan [Member] | Wood Dale Facility [Member] | DeVry's Carrington and DeVry University [Member] | DeVry University and DeVry Inc. Home Office [Member] | Business, Technology and Management | Medical and Healthcare | DeVry Home Office | Real Estate [Member] | |||||
DeVry University and DeVry Inc. Home Office [Member] | ||||||||||||
Restructuring And Other [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Expenses | $4,664,000 | $9,484,000 | $16,329,000 | $9,484,000 | $10,300,000 | $7,900,000 | $6,300,000 | $10,400,000 | $8,000,000 | $5,500,000 | $2,900,000 | $6,000,000 |
Other Restructuring Costs | ' | ' | $1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Cumulative undistributed earnings attributable to international operations | ' | $578.80 | ' | $578.80 | ' | $464.30 |
Effective tax rate | 14.70% | 21.90% | 15.10% | 25.30% | ' | ' |
Total amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting timing of tax benefits | ' | 9.1 | ' | 9.1 | ' | ' |
Amount of unrecognized tax benefits that, if recognized, would impact effective tax rate | ' | ' | ' | ' | ' | 23.6 |
Total amount of interest and penalties accrued | ' | 1.4 | ' | 1.4 | 1.2 | ' |
Unrecognized Tax Benefits, Period Increase (Decrease) | ' | ' | $13 | ' | ' | ' |
Medical and Healthcare | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Income Tax Holiday Termination Year | ' | ' | '2043 | ' | ' | ' |
Veterinary school | ' | ' | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' | ' |
Income Tax Holiday Termination Year | ' | ' | '2023 | ' | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Line Items] | ' | ' |
Aggregate commitments including borrowings and letters of credit | $400 | ' |
Line Of Credit Facility Potential Maximum Borrowing Capacity | 550 | ' |
Borrowings and letters of credit, maturity date | '2016-05 | ' |
Annual fee percentage | 0.13% | ' |
Commitment fee percentage | 0.20% | ' |
Prime Rate | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Addition to LIBOR to determine interest rate | 0.75% | ' |
Percentage of maximum raise in interest rate over base rate | 1.50% | ' |
LIBOR | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Percentage of maximum raise in interest rate over base rate | 2.50% | ' |
Revolving Credit Facility | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Letter of credit, outstanding | $13.20 | $2.40 |
Addition to LIBOR to determine interest rate | 1.75% | ' |
Commitment_and_Contingencies_A
Commitment and Contingencies - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies [Line Items] | ' |
Federal And State Fund Received | $75 |
Tabulation_of_Business_Segment
Tabulation of Business Segment Information Based on Current Segmentation (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Revenues | $491,269 | $500,666 | $942,181 | $980,586 | ' |
Amortization Expense | -1,612 | -2,412 | -3,261 | -4,690 | ' |
Depreciation and Other | -1,493 | -11,159 | -5,108 | -13,535 | ' |
Total Consolidated Operating Income | 58,562 | 67,195 | 68,833 | 116,643 | ' |
Interest Income | 310 | 230 | 893 | 791 | ' |
Interest Expense | -1,052 | -759 | -2,052 | -2,250 | ' |
Net Interest Income (Expense) | -742 | -529 | -1,159 | -1,459 | ' |
Total Consolidated Income from Continuing Operations Before Income Taxes | 57,820 | 66,666 | 67,674 | 115,184 | ' |
Total Consolidated Assets | 1,889,113 | 1,914,784 | 1,889,113 | 1,914,784 | 1,857,018 |
Total Consolidated Additions to Long-lived Assets | 11,245 | 23,440 | 61,423 | 79,807 | ' |
Increase in Capital Assets from Acquisitions | 0 | 0 | 2,037 | 2,897 | ' |
Increase in Intangible Assets and Goodwill | 0 | 1,848 | 25,960 | 29,696 | ' |
Total Consolidated Depreciation | 20,739 | 21,016 | 40,719 | 40,842 | ' |
Total Consolidated Amortization | 1,612 | 2,412 | 3,590 | 5,019 | ' |
Total Increase in Consolidated Long-lived Assets | 11,245 | 23,440 | 61,423 | 79,807 | ' |
Capital Expenditures | 11,245 | 21,592 | 33,426 | 47,214 | ' |
Business, Technology and Management | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Revenues | 239,913 | 280,239 | 472,222 | 564,853 | ' |
Total Consolidated Operating Income | 9,947 | 38,835 | -1,114 | 64,405 | ' |
Total Consolidated Assets | 341,167 | 380,295 | 341,167 | 380,295 | ' |
Total Consolidated Additions to Long-lived Assets | 3,904 | 11,575 | 7,854 | 24,219 | ' |
Total Consolidated Depreciation | 11,076 | 11,052 | 21,911 | 21,892 | ' |
Medical and Healthcare | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Revenues | 190,447 | 167,746 | 366,303 | 326,103 | ' |
Total Consolidated Operating Income | 35,311 | 26,705 | 60,827 | 51,887 | ' |
Total Consolidated Assets | 1,100,815 | 1,098,022 | 1,100,815 | 1,098,022 | ' |
Total Consolidated Additions to Long-lived Assets | 4,632 | 6,889 | 18,928 | 12,456 | ' |
Total Consolidated Depreciation | 6,474 | 6,350 | 12,621 | 12,090 | ' |
Total Consolidated Amortization | 902 | 1,347 | 1,844 | 2,695 | ' |
International and Professional Education | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Revenues | 61,430 | 52,681 | 105,151 | 89,630 | ' |
Total Consolidated Operating Income | 16,409 | 15,226 | 17,489 | 18,576 | ' |
Total Consolidated Assets | 282,102 | 249,863 | 282,102 | 249,863 | ' |
Total Consolidated Additions to Long-lived Assets | 1,684 | 3,347 | 31,541 | 36,575 | ' |
Total Consolidated Depreciation | 566 | 1,275 | 1,114 | 2,379 | ' |
Total Consolidated Amortization | 710 | 1,065 | 1,417 | 1,995 | ' |
Corporate | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Assets | 165,029 | 151,827 | 165,029 | 151,827 | ' |
Total Consolidated Additions to Long-lived Assets | 1,025 | 1,629 | 3,100 | 6,557 | ' |
Total Consolidated Depreciation | 2,623 | 2,339 | 5,073 | 4,481 | ' |
Intersegment Revenues | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Revenues | -521 | 0 | -1,495 | 0 | ' |
Assets of Divested Business | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' |
Total Consolidated Assets | $0 | $34,777 | $0 | $34,777 | ' |
Revenues_and_LongLived_Assets_
Revenues and Long-Lived Assets by Geographic Area (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Consolidated Revenue from Unaffiliated Customers | $491,269 | $500,666 | $942,181 | $980,586 |
Long Lived Assets International Operations | 212,968 | 180,357 | 212,968 | 180,357 |
Consolidated Long-lived Assets | 604,891 | 603,637 | 604,891 | 603,637 |
Revenue from Unaffiliated Customers | 122,998 | 109,260 | 223,793 | 199,041 |
Long-lived Assets of Business Held for Sale | 0 | 6,239 | 0 | 6,239 |
Domestic Operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Long Lived Assets Domestic Operations | 391,922 | 417,041 | 391,922 | 417,041 |
Revenue from Unaffiliated Customers | 368,271 | 391,406 | 718,388 | 781,545 |
Dominica, St. Kitts and St. Maarten | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Long Lived Assets International Operations | 168,249 | 137,146 | 168,249 | 137,146 |
Revenue from Unaffiliated Customers | 86,388 | 78,766 | 161,895 | 148,583 |
Other International Operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Long Lived Assets International Operations | 235 | 1,584 | 235 | 1,584 |
Revenue from Unaffiliated Customers | 3,705 | 4,910 | 5,472 | 7,558 |
Brazil | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Long Lived Assets International Operations | 44,485 | 41,627 | 44,485 | 41,627 |
Revenue from Unaffiliated Customers | $32,905 | $25,584 | $56,426 | $42,900 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | ' | ' |
Percentage of other international revenues generated from Europe and Canada | 5.00% | 5.00% |
Maximum | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' |
Percentage of other international revenues generated from Europe and Canada | 1.00% | ' |
Percentage of other international revenues generated from Europe and Canada | 10.00% | ' |