Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | DEVRY EDUCATION GROUP INC. | |
Entity Central Index Key | 730,464 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | DV | |
Entity Common Stock, Shares Outstanding | 62,623,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Current Assets: | |||
Cash and Cash Equivalents | $ 189,017 | $ 308,164 | $ 436,453 |
Marketable Securities and Investments | 3,738 | 3,609 | 3,398 |
Restricted Cash | 5,795 | 7,183 | 7,917 |
Accounts Receivable, Net | 184,294 | 162,389 | 185,956 |
Prepaid Expenses and Other | 40,814 | 36,760 | 47,939 |
Total Current Assets | 423,658 | 518,105 | 681,663 |
Land, Building and Equipment: | |||
Land | 54,967 | 55,690 | 59,091 |
Building | 484,104 | 488,347 | 490,022 |
Equipment | 523,492 | 521,209 | 522,735 |
Construction in Progress | 24,201 | 22,560 | 16,716 |
Land, Building and Equipment, Gross | 1,086,764 | 1,087,806 | 1,088,564 |
Accumulated Depreciation | (572,320) | (566,043) | (558,228) |
Land, Building and Equipment, Net | 514,444 | 521,763 | 530,336 |
Other Assets: | |||
Deferred Income Taxes, Net | 32,037 | 52,608 | 6,318 |
Intangible Assets, Net | 426,089 | 342,856 | 304,141 |
Goodwill | 854,188 | 588,007 | 533,179 |
Perkins Program Fund, Net | 13,450 | 13,450 | 13,450 |
Other Assets | 60,490 | 60,207 | 37,522 |
Total Other Assets | 1,386,254 | 1,057,128 | 894,610 |
TOTAL ASSETS | 2,324,356 | 2,096,996 | 2,106,609 |
Current Liabilities: | |||
Accounts Payable | 57,423 | 64,687 | 59,777 |
Accrued Salaries, Wages and Benefits | 65,841 | 93,328 | 74,214 |
Accrued Expenses | 96,863 | 103,379 | 82,066 |
Deferred Revenue | 224,713 | 100,442 | 223,343 |
Total Current Liabilities | 444,840 | 361,836 | 439,400 |
Other Liabilities: | |||
Revolving Loan | 130,000 | 0 | 0 |
Deferred Income Taxes, Net | 30,769 | 29,936 | 21,103 |
Deferred Rent and Other | 112,026 | 118,025 | 99,085 |
Total Other Liabilities | 272,795 | 147,961 | 120,188 |
TOTAL LIABILITIES | 717,635 | 509,797 | 559,588 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||
NONCONTROLLING INTEREST | 5,043 | 5,112 | 3,652 |
SHAREHOLDERS' EQUITY: | |||
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized; 62,728,000, 62,549,000 and 63,573,000 Shares Outstanding at September 30, 2016, June 30, 2016 and September 30, 2015, respectively | 772 | 765 | 766 |
Additional Paid-in Capital | 383,815 | 372,175 | 356,487 |
Retained Earnings | 1,796,099 | 1,771,068 | 1,804,482 |
Accumulated Other Comprehensive Loss | (49,223) | (42,467) | (122,154) |
Treasury Stock, at Cost, 14,454,000, 13,990,000 and 12,803,000 Shares at September 30, 2016, June 30, 2016 and September 30, 2015, respectively | (529,785) | (519,454) | (496,212) |
TOTAL SHAREHOLDERS' EQUITY | 1,601,678 | 1,582,087 | 1,543,369 |
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | $ 2,324,356 | $ 2,096,996 | $ 2,106,609 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
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 Outstanding | 62,728,000 | 62,549,000 | 63,573,000 |
Treasury Stock, Shares | 14,454,000 | 13,990,000 | 12,803,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUE: | ||
Tuition | $ 399,027 | $ 396,056 |
Other Educational | 50,865 | 45,357 |
Total Revenue | 449,892 | 441,413 |
OPERATING COST AND EXPENSE: | ||
Cost of Educational Services | 250,673 | 245,077 |
Student Services and Administrative Expense | 161,065 | 164,016 |
Restructuring Expense | 5,047 | 24,073 |
Total Operating Cost and Expense | 416,785 | 433,166 |
Operating Income | 33,107 | 8,247 |
INTEREST: | ||
Interest Income | 1,058 | 127 |
Interest Expense | (2,115) | (2,326) |
Net Interest Expense | (1,057) | (2,199) |
Income Before Income Taxes | 32,050 | 6,048 |
Income Tax Provision | (6,901) | (662) |
NET INCOME | 25,149 | 5,386 |
Net Loss Attributable to Noncontrolling Interest | 3 | 79 |
NET INCOME ATTRIBUTABLE TO DEVRY EDUCATION GROUP | $ 25,152 | $ 5,465 |
Diluted: | ||
Basic | $ 0.40 | $ 0.08 |
Diluted | $ 0.39 | $ 0.08 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
NET INCOME | $ 25,149 | $ 5,386 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ||
Currency Translation Loss | (6,830) | (44,920) |
Change in Fair Value of Available-For-Sale Securities | 74 | (120) |
COMPREHENSIVE INCOME (LOSS) | 18,393 | (39,654) |
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 148 | 1,050 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO DEVRY EDUCATION GROUP | $ 18,541 | $ (38,604) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net Income | $ 25,149 | $ 5,386 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Stock-Based Compensation Expense | 5,750 | 6,238 |
Depreciation | 17,476 | 19,677 |
Amortization | 3,439 | 1,348 |
Provision for Refunds and Uncollectible Accounts | 22,481 | 20,594 |
Deferred Income Taxes | 3,328 | (16) |
Loss on Disposals, Accelerated Depreciation and Adjustments to Land, Building and Equipment | 418 | 7,952 |
Changes in Assets and Liabilities, Net of Effects from Acquisition Components: | ||
Restricted Cash | 1,388 | 2,826 |
Accounts Receivable | (45,280) | (76,472) |
Prepaid Expenses and Other | (6,017) | 8,894 |
Accounts Payable | (3,717) | (3,303) |
Accrued Salaries, Wages, Benefits and Expenses | (35,995) | (10,363) |
Deferred Revenue | 109,348 | 133,820 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 97,768 | 116,581 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Expenditures | (11,318) | (22,753) |
Payment for Purchase of Businesses, Net of Cash Acquired | (331,070) | 0 |
Marketable Securities Purchased | (10) | (13) |
Purchase of Noncontrolling Interest of Subsidiary | 0 | (3,114) |
NET CASH USED IN INVESTING ACTIVITIES | (342,398) | (25,880) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from Exercise of Stock Options | 6,350 | 240 |
Proceeds from Stock Issued Under Colleague Stock Purchase Plan | 211 | 279 |
Repurchase of Common Stock for Treasury | (8,255) | (8,255) |
Payments of Seller Financed Obligations | (3,518) | (2,931) |
Borrowings Under Revolving Credit Facility | 240,000 | 0 |
Repayments Under Revolving Credit Facility | (110,000) | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 124,788 | (10,667) |
Effects of Exchange Rate Differences | 695 | 3,397 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (119,147) | 83,431 |
Cash and Cash Equivalents at Beginning of Period | 308,164 | 353,022 |
Cash and Cash Equivalents at End of Period | 189,017 | 436,453 |
Non-cash Investing and Financing Activity: | ||
Decrease in Redemption Value of Noncontrolling Interest Put Option | $ (66) | $ (2,775) |
INTERIM FINANCIAL STATEMENTS
INTERIM FINANCIAL STATEMENTS | 3 Months Ended |
Sep. 30, 2016 | |
Interim Financial Statements [Abstract] | |
INTERIM FINANCIAL STATEMENTS | NOTE 1: INTERIM FINANCIAL STATEMENTS The interim Consolidated Financial Statements include 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 of normal recurring adjustments, necessary to present fairly the financial condition and results of operations of DeVry Group. The June 30, 2016 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, 2016, as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three months ended September 30, 2016, are not necessarily indicative of results to be expected for the entire fiscal year. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Consolidated Financial Statements include the accounts of DeVry Group and its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported on our Consolidated Balance Sheets. The noncontrolling ownership interest in our earnings is classified as “Net Loss Attributable to Noncontrolling Interest” in our Consolidated Statements of Income. Unless indicated, or the context requires otherwise, references to years refer to DeVry Group’s fiscal years. Cash and cash equivalents can include time deposits, high-grade commercial paper, money market funds and bankers acceptances with original maturities of three months or less. Short-term investment objectives are to minimize risk and maintain liquidity. These investments are stated at cost (which approximates fair value) because of their short duration or liquid nature. DeVry Group places its cash and temporary cash investments with high credit quality institutions. Cash and cash equivalent balances in U.S. bank accounts are generally in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Cash and cash equivalent balances in Brazilian bank accounts are generally in excess of the deposit insurance limits for Brazilian banks. DeVry Group has not experienced any losses on its cash and cash equivalents. Management periodically evaluates the creditworthiness of the security issuers and financial institutions with which it invests and maintains deposit accounts. Financial Aid and Restricted Cash A significant portion of revenue is received from students who participate in government financial aid and assistance programs which are subject to political and governmental budgetary considerations. There is no assurance that such funding will be maintained at current levels. Extensive and complex regulations in the U.S. and Brazil govern all of the government financial assistance programs in which students participate. Administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for disciplinary action, which could include the suspension, limitation or termination from such financial aid programs. Restricted cash represents amounts received from the federal and state governments under various student aid grant and loan programs and such restricted funds are held in separate bank accounts. Once the financial aid authorization and disbursement process for the student has been completed, the funds are transferred to unrestricted accounts, and these funds then become available for use in DeVry Group’s operations. This authorization and disbursement process that precedes the transfer of funds generally occurs within the period of the academic term for which such funds were authorized. As a requirement of continuing operations in Pennsylvania, DeVry Group is required to maintain a “minimum protective endowment” of at least $ 500,000 Tuition Chamberlain College of Nursing (“Chamberlain”), Carrington College (“Carrington”), DeVry Educacional do Brasil (“DeVry Brasil”) higher education and DeVry University tuition revenue is recognized on a straight-line basis over their respective applicable academic terms. In addition, American University of the Caribbean School of Medicine (“AUC”), Ross University School of Medicine (“RUSM”) and Ross University School of Veterinary Medicine (“RUSVM”) basic science curriculum revenue is recognized on a straight-line basis over the academic term. The clinical portion of the AUC, RUSM and RUSVM education programs are conducted under the supervision of primarily U.S. teaching hospitals and veterinary schools. AUC, RUSM and RUSVM are responsible for the billing and collection of tuition from their students during the period of clinical education. Revenue is 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 AUC, RUSM and RUSVM students are charged to expense on the same basis. Becker Professional Education (“Becker”) and DeVry Brasil’s test preparation live classroom and DeVry Brasil’s online tuition revenue is recognized on a straight-line basis over the applicable delivery period. Revenue from Becker conferences and training services, which are generally short-term in duration, is recognized when the conference or training service is provided. Other Educational Sales of Becker subscriptions, membership dues and certifications, along with sales of textbooks, electronic books, other educational products, including Becker self-study sales, are included in Other Educational Revenue in the Consolidated Statements of Income. Revenue from Becker subscriptions and membership dues is recognized on a straight-line basis over the applicable subscription or membership period. Revenue from Becker certifications is recognized when the certification process is complete. Textbook, electronic book and other educational product revenue is recognized when the sale occurs. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenue and recognized when confirmation of course delivery is received. Refunds and Provisions Estimates of DeVry Group’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms. Inputs to this analysis include refunds issued, withdrawal rates and historical amounts owed by students for that portion of a term that was completed. Management reassesses collectability throughout the period revenue is recognized by the DeVry Group institutions, on a student-by-student basis. This reassessment is based upon new information and changes in facts and circumstances relevant to a student's ability to pay. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue on a cash basis. The provisions for refunds, which are reported as a reduction to Tuition Revenue in the Consolidated Statements of Income, are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. Provisions for refunds were $ 12.3 11.1 Provisions for refunds are monitored and adjusted as necessary within the academic term and adjusted for actual refunds issued and withdrawn student accounts receivable balances at the completion of an academic term. If a student leaves school prior to completing an academic term, federal and/or state 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 academic 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. Reserves related to refunds and uncollectible accounts totaled $ 69.1 63.5 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. Provisions for uncollectible accounts, which are included in the Cost of Educational Services in the Consolidated Statements of Income, were $ 10.1 9.4 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 seven 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, Building and Equipment section of the Consolidated Balance Sheets. As of September 30, 2016 and 2015, the net balance of capitalized internal-use software development costs was $ 16.6 28.7 DeVry Group evaluates the carrying amount of its significant long-lived assets whenever changes in circumstances or events indicate that the value of such assets may not be fully recoverable. Events that may trigger an impairment analysis could include a decision by management to exit a market or a line of business or to consolidate operating locations. In the first three months of fiscal year 2017 and in fiscal year 2016, management consolidated operations at DeVry University, Carrington and DeVry Group’s home office. These decisions resulted in pre-tax accelerated depreciation and write-offs of $ 1.3 7.4 DeVry University is required under U.S. federal aid program regulations to make contributions to the Federal Perkins Student Loan Fund, most recently at a rate equal to 33 2.6 The financial position and results of operations of the AUC, RUSM and RUSVM Caribbean operations are measured using the U.S. dollar as the functional currency. As such, there is no translation gain or loss associated with these operations. DeVry Brasil’s operations and Becker’s international operations are measured using the local currency as the functional currency. Assets and liabilities of these entities are translated to U.S. dollars using exchange rates in effect at the balance sheet dates. Income and expense items are translated at monthly average rates of exchange. The resultant translation adjustments are included in the component of Shareholders’ Equity designated as Accumulated Other Comprehensive Loss. Transaction gains or losses during each of the three month periods ended September 30, 2016 and 2015 were not material. DeVry Group currently maintains a 97.9 2.1 96.3 The DeVry Brasil management put option is being accreted to its redemption value in accordance with the terms of the stock purchase agreement. The adjustment to increase or decrease the put option to its expected redemption value each reporting period is recorded in retained earnings in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The adjustment to increase or decrease the DeVry Brasil noncontrolling interest each reporting period for its proportionate share of DeVry Brasil’s profit/loss will continue to flow through the Consolidated Statements of Income based on DeVry Group's noncontrolling interest accounting policy. Three Months Ended 2016 2015 Balance at Beginning of Period $ 5,112 $ 9,620 Net Loss Attributable to Noncontrolling Interest (3) (79) Payment for Purchase of Noncontrolling Interest of Subsidiary - (3,114) Decrease in Redemption Value of Noncontrolling Interest Put Option (66) (2,775) Balance at End of Period $ 5,043 $ 3,652 Basic earnings per share is computed by dividing net income attributable to DeVry Group by the weighted average number of common shares outstanding during the period plus unvested participating restricted stock units (“RSUs”). Diluted earnings per share is computed by dividing net income attributable to DeVry Group by the weighted average number of shares assuming dilution. Diluted shares are computed using the Treasury Stock Method and reflect the additional shares that would be outstanding if dilutive stock-based grants were exercised during the period. Excluded from the computations of diluted earnings per share were options to purchase 2,755,000 2,644,000 Three Months Ended 2016 2015 Weighted Average Shares Outstanding 62,592 63,583 Unvested Participating RSUs 827 763 Basic Shares 63,419 64,346 Effect of Dilutive Stock Options 477 383 Diluted Shares 63,896 64,729 DeVry Group’s Board of Directors (the “Board”) has authorized share repurchase programs on nine occasions (see “Note 6: Share Repurchase Programs”). The ninth share repurchase program was approved on December 15, 2015 and commenced in January 2016. 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 3: 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 Colleague 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. The preparation of financial statements in conformity with GAAP 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 revenue and expense reported during the period. Actual results could differ from those estimates. Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment, primarily at DeVry Brasil, and unrealized gains on available-for-sale marketable securities, net of the effects of income taxes. The Accumulated Other Comprehensive Loss balance at September 30, 2016 consists of $ 49.4 48.3 1.1 0.2 0.1 122.3 119.7 2.6 0.1 0.2 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 $ 57.6 59.3 DeVry Group’s financial statements include charges related to severance and related benefits for reductions in staff. These charges also include early lease termination or cease-of-use costs and accelerated depreciation and gains and losses on disposals of property and equipment related to campus consolidations (see “Note 9: Restructuring Charges”). In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15: “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This guidance was issued to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for the financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Management has determined that our current accounting policies align with this guidance. Therefore, this guidance will have no impact on the Consolidated Financial Statements. In March 2016, FASB issued ASU No. 2016-09: “CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance was issued to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements. In February 2016, FASB issued ASU No. 2016-02: “Leases (Topic 842).” This guidance was issued to increase transparency and comparability among organizations by recognizing right-to-use assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements. In January 2016, FASB issued ASU No. 2016-01: “Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The guidance eliminates the classification of equity securities into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. This guidance will require DeVry Group to record the changes in the fair value of its available-for-sale equity investments through net income. Management anticipates the adoption will not have a significant impact on DeVry Group’s Consolidated Financial Statements. In September 2015, FASB issued ASU No. 2015-16: “Business Combinations (Topic 805): Simplifying Accounting for Measurement-Period Adjustments.” This guidance was issued to simplify the accounting for provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and where the provisional amounts have been adjusted during the measurement period. The amendments in this guidance require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2015 and is applicable to DeVry Group’s current fiscal year. This guidance requires DeVry Group to record and disclose measurement-period adjustments for future business combinations as a period adjustment as opposed to a retroactive adjustment to the opening balance sheet of the acquired entity. In April 2015, FASB issued ASU No. 2015-03: “InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This guidance was issued to simplify the presentation of debt issuance costs. The amendments in this guidance require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments. The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2015. DeVry Group’s debt includes a revolving credit facility (see “Note 11: Debt”). This update did not provide guidance specifically addressing debt issuance costs involving revolving credit facilities. As a result, it was announced that the SEC staff would not object to an entity deferring and presenting such costs as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. This is DeVry Group’s current accounting policy for debt issuance costs. In May 2014, FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606).” This guidance was issued to clarify the principles for recognizing revenue and develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2017. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements as well as the transition methodology. In the fourth quarter of fiscal year 2016, we retrospectively adopted ASU No. 2015-17: “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” This guidance was issued to simplify the accounting for classification of deferred taxes on the balance sheet. The guidance eliminates the previous requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. As a result, we decreased current deferred income tax assets by $ 36.5 6.3 30.1 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 3: STOCK-BASED COMPENSATION DeVry Group maintains four stock-based incentive plans: the 1999 Stock Incentive Plan, the 2003 Stock Incentive Plan, the 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 the Amended and Restated Incentive Plan of 2005 also permit the granting of stock appreciation rights, RSUs, performance stock and other stock and cash-based compensation. Although options remain outstanding under the 1999, 2003 and 2005 incentive plans, no further stock-based grants will be issued from these plans. The Second Amended and Restated Incentive Plan of 2013 and the Amended and Restated Incentive Plan of 2005 are administered by the Compensation Committee of the Board. Options are granted for terms of up to ten 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. Stock-based compensation expense is measured at the grant date based on the fair value of the award. DeVry Group accounts for stock-based compensation granted to retirement eligible employees that fully vests upon an employee’s retirement under the non-substantive vesting period approach. Under this approach, the entire stock-based compensation expense is recognized at the grant date for stock-based grants issued to retirement eligible employees. For non-retirement eligible employees, stock-based compensation expense is recognized over the employee requisite service period, reduced by an estimated forfeiture rate. At September 30, 2016, 7,172,419 Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Life (in Years) (in thousands) Outstanding at July 1, 2016 3,574,336 $ 32.79 Options Granted 397,700 23.78 Options Exercised (331,493) 20.11 Options Forfeited (10,407) 30.07 Options Expired (15,223) 34.60 Outstanding at September 30, 2016 3,614,913 32.97 5.91 $ 3,358 Exercisable at September 30, 2016 2,615,391 $ 36.37 4.52 $ 1,884 Weighted Number of Weighted Average Aggregate Stock Average Remaining Intrinsic Appreciation Exercise Contractual Value Rights Price Life (in Years) (in thousands) Outstanding at July 1, 2016 118,065 $ 42.74 Rights Granted - - Rights Exercised - - Rights Canceled - - Outstanding at September 30, 2016 118,065 42.74 1.17 $ - Exercisable at September 30, 2016 118,065 $ 42.74 1.17 $ - The total intrinsic value of options exercised for the three months ended September 30, 2016 and 2015 was $ 1.3 0.1 The fair value of DeVry Group’s stock option awards was estimated using a binomial model. This model uses historical cancelation 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 value of options granted at market price under DeVry Group’s stock-based incentive plans during the first three months of fiscal years 2017 and 2016 was $ 9.09 10.17 Fiscal Year 2017 2016 Expected Life (in Years) 6.88 6.78 Expected Volatility 42.41 % 41.35 % Risk-free Interest Rate 1.41 % 1.85 % Dividend Yield 1.19 % 1.01 % Pre-vesting Forfeiture Rate 10.00 % 3.00 % 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 stock option forfeiture rate is based on DeVry Group’s historical stock option forfeiture experience. The main driver for the increased pre-vesting forfeiture rate is the change in the business environment at DeVry Group and its institutions, which has resulted in increased turnover in executive management. If factors change and different assumptions are employed in the valuation of stock-based grants 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 three months of fiscal year 2017, DeVry Group granted 621,350 221,710 399,640 Weighted Average Number of Grant Date RSUs Fair Value Nonvested at July 1, 2016 1,139,350 $ 27.78 RSUs Granted 621,350 23.70 RSUs Vested (324,091) 27.29 RSUs Forfeited (30,886) 29.10 Nonvested at September 30, 2016 1,405,723 $ 26.06 The weighted average estimated grant date fair value for RSUs granted at market price under DeVry Group’s stock-based incentive plans during the first three months of fiscal years 2017 and 2016 was $ 23.70 26.16 For the Three Months Ended 2016 2015 Cost of Educational Services $ 1,840 $ 1,996 Student Services and Administrative Expense 3,910 4,242 5,750 6,238 Income Tax Benefit (2,072) (2,204) Net Stock-Based Compensation Expense $ 3,678 $ 4,034 As of September 30, 2016, $ 28.7 2.6 11.8 14.0 There was no capitalized stock-based compensation expense at September 30, 2016 and 2015. DeVry Group has an established practice of issuing new shares of common stock to satisfy stock-based grant exercises. However, DeVry Group also may issue treasury shares to satisfy stock-based grant exercises under certain of its stock-based incentive plans. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4: 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 nonrecurring basis include goodwill, 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 September 30, 2016. 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 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 as of May 31, 2016. See “Note 8: Intangible Assets” for further discussion on the impairment review including valuation techniques and assumptions. The following table presents DeVry Group's assets and liabilities at September 30, 2016, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 189,017 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,738 - - Institutional Loans Receivable, Net - 50,212 - Deferred Acquisition Obligations - 28,559 - FIES Long-Term Receivable - 13,032 - Total Financial Assets at Fair Value $ 192,755 $ 91,803 $ - The following table presents DeVry Group's assets and liabilities at June 30, 2016, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 308,164 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,609 - - Institutional Loans Receivable, Net - 49,025 - Deferred Acquisition Obligations - 32,121 - FIES Long-Term Receivable - 13,057 - Total Financial Assets at Fair Value $ 311,773 $ 94,203 $ - The following table presents DeVry Group's assets and liabilities at September 30, 2015, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 436,453 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,398 - - Institutional Loans Receivable, Net - 48,742 - Deferred Acquisition Obligations - 19,732 - Total Financial Assets at Fair Value $ 439,851 $ 68,474 $ - Cash and Cash Equivalents and Investments in short-term Marketable Securities are valued using a market approach based on quoted market prices of identical instruments. The fair value of the institutional loans receivable included in Accounts Receivable, Net and Other Assets on the Consolidated Balance Sheets as of September 30, 2016, June 30, 2016 and September 30, 2015 is estimated by discounting the future cash flows using current rates for similar arrangements. See “Note 5: Financing Receivables” for further discussion on these institutional loans receivable. The fair value of the deferred acquisition obligations is estimated by discounting the future cash flows using current rates for similar arrangements. $ 10.9 7.7 7.4 17.7 24.4 12.3 The fair value of DeVry Brasil’s receivable under Brazil’s FIES public loan program included in Other Assets on the Consolidated Balance Sheets as of September 30, 2016 and June 30,2016 is estimated by discounting the future cash flows using published market data on Brazilian interest and inflation rates. As of September 30, 2016, June 30, 2016 and September 30, 2015, there were no assets or liabilities measured at fair value using Level 3 inputs. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 5: FINANCING RECEIVABLES DeVry Group’s institutional loan programs are available to students at its AUC, RUSM, RUSVM, Chamberlain, Carrington and DeVry University institutions. These loan programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, books and fees and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM and RUSVM 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. Chamberlain, Carrington and DeVry University require that students begin repaying loans while they are still in school with a minimum payment level designed to prove their capability to repay and reduce the possibility of over borrowing and targeted to minimize interest being accrued on the loan balance. Payments may increase upon completing or departing the program. After a student leaves school, the student typically will have a monthly installment repayment plan. In addition, the Becker CPA Review Course can be financed through Becker with an 18 Reserves for uncollectible loans are determined by analyzing the current aging of accounts receivable and historical loss rates of loans at each 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. As of September 30, 2016 2015 Gross Institutional Loans $ 71,669 $ 71,774 Allowance for Credit Losses: Balance at July 1 $ (20,800) $ (20,630) Charge-offs and Adjustments 2,513 1,726 Recoveries (316) (189) Additional Provision (2,854) (3,939) Balance at End of Period (21,457) (23,032) Net Institutional Loans $ 50,212 $ 48,742 Of the net balances above, $ 23.0 25.7 27.2 23.0 As of September 30, 2016 2015 Institutional Loans: Performing $ 51,234 $ 55,467 Nonperforming 20,435 16,307 Total Institutional Loans $ 71,669 $ 71,774 30-59 60-89 90-119 Greater Total Current Total Institutional Loans: September 30, 2016 $ 7,892 $ 2,680 $ 1,782 $ 20,435 $ 32,789 $ 38,880 $ 71,669 September 30, 2015 $ 5,193 $ 2,602 $ 2,503 $ 16,307 $ 26,605 $ 45,169 $ 71,774 Loans are considered nonperforming if they are more than 120 20.4 20.2 16.3 15.9 |
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS | 3 Months Ended |
Sep. 30, 2016 | |
Share Repurchase Program [Abstract] | |
SHARE REPURCHASE PROGRAMS | NOTE 6: SHARE REPURCHASE PROGRAMS Date Shares Total Cost Authorized Repurchased (in millions) November 15, 2006 908,399 $ 35.0 May 13, 2008 1,027,417 50.0 November 11, 2009 972,205 50.0 August 11, 2010 1,103,628 50.0 November 10, 2010 968,105 50.0 May 20, 2011 2,396,143 100.0 November 2, 2011 3,478,299 100.0 August 29, 2012 2,005,317 62.7 December 15, 2015 1,240,010 24.4 Totals 14,099,523 $ 522.1 On December 15, 2015, the Board authorized DeVry Group’s ninth share repurchase program, which allows DeVry Group to repurchase up to $ 100 370,708 8.3 Shares of stock repurchased under the programs are held as treasury shares. These repurchased shares have reduced the weighted average number of shares of common stock outstanding for basic and diluted earnings per share calculations. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 3 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 7: BUSINESS COMBINATIONS Association of Certified Anti-Money Laundering Specialists On July 1, 2016, Becker completed the acquisition of 100 331.1 24.2 175 The At July 1, 2016 Current Assets $ 25,562 Property and Equipment 432 Other Long-term Assets 3,318 Intangible Assets 88,600 Goodwill 274,672 Total Assets Acquired 392,584 Liabilities Assumed 37,326 Net Assets Acquired $ 355,258 Goodwill, which represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, was all assigned to the Becker 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 ACAMS’s strategic fit into Becker’s expanding presence in professional education, the reputation of the ACAMS brand as a leader in the industry and potential future growth opportunity. None of the goodwill acquired is expected to be deductible for income tax purposes. Of the $88.6 million of acquired intangible assets, $ 39.9 At July 1, 2016 Value Estimated Customer Relationships $ 42,500 10 years Curriculum 5,000 3 years Non-compete Agreements 700 1 year Proprietary Technology 500 4 years There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. Faculdade de Imperatriz On June 1, 2016, DeVry Brasil completed the acquisition of Faculdade de Imperatriz (“Facimp”). Under the terms of the agreement, DeVry Brasil agreed to pay approximately $ 6.3 100 3.5 2.8 2,000 The operations of Facimp are included in DeVry Group’s International and Professional Education segment. The results of Facimp’s operations have been included in the Consolidated Financial Statements of DeVry Group since the date of acquisition. At June 1, 2016 Current Assets $ 1,057 Property and Equipment 291 Intangible Assets 2,652 Goodwill 4,997 Total Assets Acquired 8,997 Liabilities Assumed 2,704 Net Assets Acquired $ 6,293 Goodwill, which represents the excess of the purchase price 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 Facimp’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 $2.7 million of acquired intangible assets, $ 2.1 0.5 There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. Grupo Ibmec Educacional S.A. On December 15, 2015, DeVry Brasil completed the acquisition of Grupo Ibmec Educacional S.A. (“Grupo Ibmec”). Under the terms of the agreement, DeVry Brasil agreed to pay approximately $ 191.0 100 180.5 10.5 15,000 At December 15, 2015 Current Assets $ 27,615 Property and Equipment 17,968 Other Long-term Assets 2,639 Intangible Assets 60,634 Goodwill 106,529 Total Assets Acquired 215,385 Liabilities Assumed 24,423 Net Assets Acquired $ 190,962 Goodwill, which represents the excess of the purchase price 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. The goodwill balance changed from that reported at June 30, 2016 after an adjustment to purchase accounting. Factors that contributed to a purchase price resulting in the recognition of goodwill include Grupo Ibmec’s strategic fit into DeVry Group’s expanding presence in 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 $ 60.6 34.7 18.4 At December 15, 2015 Value Estimated Student Relationships $ 5,720 5 years Curriculum 1,821 5 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 | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 the net tangible and intangible assets acquired. Intangible assets consist of the following (in thousands): As of September 30, 2016 Gross Accumulated Weighted Average Amortizable Intangible Assets: Student Relationships $ 14,333 $ (8,107 ) 5 Years Customer Relationships 42,900 (1,367 ) 10 Years Non-compete Agreements 1,640 (1,012 ) 3 Years Curriculum/Software 8,151 (1,635 ) 4 Years Franchise Contracts 10,818 (1,002 ) 18 Years Clinical Agreements 401 (87 ) 15 Years Trade Names 1,167 (875 ) 10 Years Proprietary Technology 500 (31 ) 4 Years Total $ 79,910 $ (14,116 ) Indefinite-lived Intangible Assets: Trade Names $ 110,162 Trademarks 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 20,200 AUC Title IV Eligibility and Accreditations 100,000 DeVry Brasil Accreditation 99,048 Total $ 360,295 As of September 30, 2015 Gross Accumulated Amortizable Intangible Assets: Student Relationships $ 6,111 $ (3,360 ) Customer Relationships 400 (140 ) Test Prep Relationships 808 (539 ) Non-compete Agreements 940 (658 ) Curriculum/Software 1,922 (1,506 ) Outplacement Relationships 3,900 (1,829 ) Franchise Contracts 8,864 (328 ) Clinical Agreements 328 (49 ) Trade Names 957 (622 ) Total $ 24,230 $ (9,031 ) Indefinite-lived Intangible Assets: Trade Names $ 45,566 Trademarks 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 45,291 Total $ 288,942 Amortization expense for amortized intangible assets was $3.3 million and $1.2 million for the three months ended September 30, 2016 and 2015, respectively. Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30 and in the aggregate, by reporting unit, is as follows (in thousands): Fiscal Year DeVry Brasil Becker Total 2017 $ 4,704 $ 7,482 $ 12,186 2018 3,281 6,501 9,782 2019 2,259 6,422 8,681 2020 1,529 4,671 6,200 2021 933 4,440 5,373 Thereafter 7,149 19,686 26,835 All amortizable intangible assets except student relationships and customer relationships are being amortized on a straight-line basis. The amount being amortized for student relationships is based on the estimated progression of the students through the respective Faculdade Boa Viagem (“FBV”), Centro Universitário Vale do Ipojuca (“Unifavip”), Damásio Educacional (“Damasio”) and Grupo Ibmec programs, giving consideration to the revenue and cash flow associated with both existing students and new applicants. The amount being amortized for customer relationships related to ACAMS is based on the estimated retention of the customers, giving consideration to the revenue and cash flow associated with these existing customers. 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 GAAP, 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. DeVry Group’s annual impairment review was most recently completed during the fourth quarter of fiscal year 2016, at which time there were impairment losses recorded related to Carrington goodwill and the Carrington Accreditation and Title IV Eligibility indefinite-lived intangible asset totaling $48.2 million. No impairment loss associated with recorded goodwill or indefinite-lived intangible assets for any other reporting unit was realized as estimated fair values exceeded carrying amounts. DeVry Group had six reporting units which contained goodwill as of the first quarter of fiscal year 2017. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. If the carrying amount of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized to the extent the “implied fair value” of the reporting unit goodwill is less than the carrying amount of the goodwill. In analyzing the results of operations and business conditions of all six reporting units as of September 30, 2016, it was determined that no triggering event had occurred that would indicate the carrying value of a reporting unit had exceeded its fair value. For indefinite-lived intangible assets, management first analyzes qualitative factors including results of operations and business conditions of the seven reporting units that contained indefinite-lived intangible assets, significant changes in cash flows at the individual indefinite-lived intangible asset level, if applicable, as well as how much previously calculated fair values exceed carrying values to determine if it is more likely than not that the intangible assets associated with these reporting units have been impaired. Based on its analysis, management has determined that, as of September 2016, no triggering event had occurred that would indicate the carrying value of an indefinite-lived intangible asset had exceeded its fair value. These interim triggering event conclusions were based on the fact that the qualitative analysis of DeVry Group’s reporting units and indefinite-lived intangible assets resulted in no impairment indicators as of the end of fiscal year 2016, except at the Carrington and DeVry University reporting units, and that no interim events or deviations from planned operating results occurred as of September 30, 2016, that would cause management to reassess these conclusions. In regards to Carrington, first quarter of fiscal year 2017 revenue and operating income was better than those projected in the fiscal year 2017 operating plan which was used in the May 31, 2016 impairment analysis; thus, management believes that no indicator of further impairment currently exists with this reporting unit. Should declines in student enrollment at Carrington result in financial performance that is significantly below management expectations, the carrying value of this reporting unit may exceed its fair value and indefinite-lived intangible assets could be impaired. This could require a write-off of up to $20.2 million. Although the DeVry University reporting unit experienced a 24.2% decline in revenue as compared to the year-ago quarter and generated an operating loss (as planned) in the first quarter of fiscal year 2017, this reporting unit is expected to meet planned positive operating results for fiscal year 2017. As a result, management did not believe business conditions had deteriorated such that it was more likely than not that the fair value of DeVry University was below carrying value for this reporting unit or its associated indefinite-lived intangible assets as of September 30, 2016. Based on the May 31, 2016 impairment review, DeVry University’s current and forecasted profitability is sufficient to maintain a fair value greater than its carrying value. The fair value of this reporting unit exceeded its carrying value by 6% as of the May 31, 2016 valuation date. DeVry University has been able to adjust operating expenses to offset in excess of 90% of the revenue declines experienced over the last two years. This has resulted in positive cash flows sufficient to produce a fair value in excess of the carrying value of this reporting unit. Management monitors enrollment and financial performance of the reporting unit. Should management not be able to adjust costs to offset future declines in student enrollment and revenue, resulting in financial performance that is significantly below management expectations, the carrying value of this reporting unit may exceed its fair value, and goodwill and indefinite-lived intangible assets could be impaired. Also, regulatory changes and the outcome of legal or regulatory actions could have a material adverse effect on the financial condition, results of operations and cash flows of DeVry University and impose significant restrictions on the ability of DeVry University to operate. These scenarios could require a write-off of up to $23.8 million of indefinite-lived intangible assets and goodwill. Operating income and cash flows at all other reporting units in the first quarter of fiscal year 2017 was not materially different from the budgeted amounts used in the impairment analysis as of May 31, 2016; thus, management does not believe any of the reporting units or their associated indefinite-lived intangible assets fair values would have declined enough to fall below the carrying values as of September 30, 2016. 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 which could lead to additional impairments of intangible assets. At September 30, 2016, intangible assets from business combinations totaled $426.1 million and goodwill totaled $854.2 million. Together, these assets equaled approximately 55% of total assets as of such date, and any impairment could significantly affect future results of operations. The table below summarizes goodwill balances by reporting unit as of September 30, 2016 (in thousands): Reporting Unit As of American University of the Caribbean School of Medicine $ 68,321 Ross University School of Medicine and Ross University School of Veterinary Medicine 237,173 Chamberlain College of Nursing 4,716 DeVry Brasil 215,140 Becker Professional Education 306,642 DeVry University 22,196 Total $ 854,188 The table below summarizes goodwill balances by reporting segment as of September 30, 2016 (in thousands): Reporting Segment As of Medical and Healthcare $ 310,210 International and Professional Education 521,782 Business, Technology and Management 22,196 Total $ 854,188 The table below summarizes the changes in the carrying amount of goodwill by segment as of September 30, 2016 (in thousands): Medical and Healthcare International Business, Accumulated and Technology Impairment Professional and Gross Losses Education Management Total Balance at June 30, 2014 $ 495,927 $ (86,933 ) $ 88,689 $ 22,196 $ 519,879 Acquisitions - - 55,915 - 55,915 Foreign currency exchange rate changes - - (23,465 ) - (23,465 ) Balance at June 30, 2015 495,927 (86,933 ) 121,139 22,196 552,329 Foreign currency exchange rate changes - - (19,150 ) - (19,150 ) Balance at September 30, 2015 495,927 (86,933 ) 101,989 22,196 533,179 Purchase Accounting Adjustment - - 4,575 - 4,575 Acquisitions - - 116,007 - 116,007 Impairments - (98,784 ) - - (98,784 ) Foreign currency exchange rate changes - - 33,030 - 33,030 Balance at June 30, 2016 495,927 (185,717 ) 255,601 22,196 588,007 Purchase Accounting Adjustment - - (4,481 ) - (4,481 ) Acquisitions - - 274,672 - 274,672 Foreign currency exchange rate changes - - (4,010 ) - (4,010 ) Balance at September 30, 2016 $ 495,927 $ (185,717 ) $ 521,782 $ 22,196 $ 854,188 The increase in the goodwill balance from June 30, 2016 in the International and Professional Education segment is the result of the addition of $274.7 million with the acquisition of ACAMS. The increase was partially offset by a change in the value of the Brazilian Real as compared to the U.S. dollar. Since DeVry Brasil goodwill is recorded in local currency, fluctuations in the respective local currency’s 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 segment as of September 30, 2016 (in thousands): Reporting Segment As of Medical and Healthcare $ 157,700 International and Professional Educational 200,950 Business, Technology and Management 1,645 Total $ 360,295 Total indefinite-lived intangible assets increased by $38.1 million from June 30, 2016. The increase is the result of the addition of $39.9 million with the acquisition of ACAMS. This increase was partially offset by a change in the value of the Brazilian Real as compared to the U.S. dollar. 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 | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 9: RESTRUCTURING CHARGES During the first quarter of fiscal year 2017, DeVry Group recorded pre-tax charges, including accelerated depreciation, primarily related to real estate consolidations of $ 5.0 1.3 1.7 2.0 During the first quarter of fiscal year 2016, DeVry Group recorded pre-tax charges, including accelerated depreciation, related to real estate consolidations of $ 18.8 104 5.3 0.4 23.7 Liability balance at June 30, 2015 $ 27.0 Increase in liability (separation and other charges) 67.5 Reduction in liability (payments and adjustments) (46.3) Liability balance at June 30, 2016 48.2 Increase in liability (separation and other charges) 4.1 Reduction in liability (payments and adjustments) (11.9) Liability balance at September 30, 2016 $ 40.4 Of this liability balance, $ 17.1 23.3 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10: INCOME TAXES The effective tax rate on income was 21.5 10.9 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 U.S. 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 September 30, 2016 and 2015, cumulative undistributed earnings attributable to international operations were approximately $ 918 797 |
DEBT
DEBT | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 11: DEBT Revolving Credit Facility DeVry Group entered into a revolving credit facility on March 31, 2015 March 31, 2020 400 200 550 50 100 68.4 2 3 1 2 130 2.53 0.1 2.0 0.35 The revolving credit agreement contains covenants that, among other things, require maintenance of certain financial ratios, as defined in the agreement. Maintenance of these financial ratios could place restrictions on DeVry Group’s ability to pay dividends. These financial ratios include a consolidated fixed charge coverage ratio, a consolidated leverage ratio and a U.S. Department of Education financial responsibility ratio based upon a composite score of an equity ratio, a primary reserve ratio and a net income ratio. Failure to maintain any of these ratios or to comply with other covenants contained in the agreement would constitute an event of default and could result in termination of the agreement and require payment of all outstanding borrowings and replacement of outstanding letters of credit. DeVry Group was in compliance with the debt covenants as of September 30, 2016. The stock of all U.S. and certain foreign subsidiaries of DeVry Group is pledged as collateral for the borrowings under the revolving credit facility. DeVry Group also has liabilities recorded for deferred purchase price agreements with sellers related to the purchases of Faculdade Diferencial Integral (“Facid”), Faculdade Ideal (“Faci”), Damasio, Grupo Ibmec and Facimp (see “Note 7: Business Combinations” for discussion of the Grupo Ibmec and Facimp acquisitions). This financing is in the form of holdbacks of a portion of the purchase price of these acquisitions or installment payments. Payments are made under these agreements based on payment schedules or the resolution of any pre-acquisition contingencies. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 and regulatory matters that may be considered other than ordinary, routine and incidental to the business. Descriptions of certain matters from prior SEC filings may not be carried forward in this report to the extent we believe such matters no longer are required to be disclosed or there has not been, to our knowledge, significant activity relating to them. The timing or outcome of the following matters, or their possible impact on DeVry Group’s business, financial condition or results of operations, cannot be predicted at this time. The continued defense, resolution or settlement of any of the following matters could require us to expend significant resources and could have a material adverse effect on our business, financial condition, results of operations and cash flows and result in the imposition of significant restrictions on us and our ability to operate. In April 2013, DeVry Group received a Civil Investigative Demand (a “CID”) issued by the Office of the Attorney General of the Commonwealth of Massachusetts. The CID 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 required DeVry Group to answer interrogatories and to provide documents relating to periods on or after January 1, 2007. DeVry Group responded to the CID in May 2013. In July 2016, DeVry Group received a second CID from the Office requesting information regarding advertising, admissions materials, placement rates, and credit/transferability agreements. DeVry Group is in the process of responding to the second CID. On July 15, 2014, DeVry Group received a letter dated July 9, 2014 from the New York Office of the Attorney General (“NYOAG”). The letter requested cooperation with the NYOAG’s inquiry into whether recent television advertisements and website marketing regarding DeVry University may have violated federal and state laws prohibiting false advertising and deceptive practices. The letter requested relevant information from January 1, 2011, to the date of the aforementioned letter request to enable NYOAG to make a determination of what action, if any, is warranted. DeVry Group has produced, and continues to produce, responsive information in cooperation with the NYOAG’s inquiry, and presently is in discussions with the NYOAG Staff to address certain concerns the Staff has raised that could form the basis for potential claims by the NYOAG if not addressed to the Staff’s satisfaction. On August 28, 2015, DeVry University received a request for documents and information regarding published employment outcomes and relative earnings information of DeVry University graduates from the Multi-Regional and Foreign School Participation Division of the Federal Student Aid office of the Department of Education (“ED FSA”). The stated purpose of the request was to permit ED FSA to assess DeVry University's compliance with applicable regulations under Title IV. On January 27, 2016, DeVry University received a Notice of Intent to Limit from ED FSA (the “January 2016 Notice”), based on a portion of its pending August 28, 2015 inquiry, informing DeVry University of ED FSA’s intention to impose certain limitations on the participation of DeVry University in programs authorized pursuant to Title IV. The proposed limitations relate to representations in advertising and marketing, regarding the post-graduation employment outcomes of DeVry University students over a period from 1975 to October 1980 (the “Since 1975 Representation”). DeVry University requested a hearing regarding ED’s proposed limitations and, on October 13, 2016, reached a negotiated settlement agreement with ED regarding the January 2016 Notice (the “ED Settlement”). Under the terms of the ED Settlement, among other things, without admitting wrongdoing, DeVry University (1) may no longer make representations regarding the graduate employment outcomes of DeVry University graduates from 1975 to October 1980, including advertising regarding the cumulative graduate employment outcomes since 1975, (2) will maintain or undertake certain recordkeeping and compliance practices to support future representations regarding graduate employment rates and (3) will post a notice on its website and in its enrollment agreements regarding the Since 1975 Representation. The ED Settlement also provides that, except for Heightened Cash Monitoring 1 status, ED will not impose conditions on the timing of, or documentation requirements for, disbursement of aid due to matters relating to lack of substantiation for the Since 1975 Representation. As a result of the ED Settlement, DeVry University’s participation in the Title IV programs will be subject to provisional certification for five years and DeVry University will be required to post a letter of credit equal to the greater of 10 68.4 five On January 27, 2016, the Federal Trade Commission (“FTC”) (collectively, the “DeVry Group Defendants”) On May 13, 2016, a putative class action lawsuit was filed by the Pension Trust Fund for Operation Engineers, individually and on behalf of others similarly situated, against DeVry Group, Daniel Hamburger, Richard M. Gunst, and Timothy J. Wiggins in the United States District Court for the Northern District of Illinois. The complaint was filed on behalf of a putative class of persons who purchased DeVry Group common stock between February 4, 2011 and January 27, 2016. Citing the FTC lawsuit and the U.S. Department of Education’s (“ED”) January 2016 Notice, the plaintiffs claim that defendants made false or misleading statements regarding DeVry University’s graduate employment rate and the earnings of DeVry University graduates relative to the graduates of other universities and colleges. As a result of these false or misleading statements about DeVry University graduate outcomes, plaintiffs allege, defendants overstated DeVry Group’s growth, revenue and earnings potential and made false or misleading statements about DeVry Group’s business, operations and prospects. The plaintiffs allege direct liability against all defendants for violations of §10(b) and Rule 10b-5 of the Exchange Act and asserted liability against the individual defendants pursuant to § 20(a) of the Exchange Act. The plaintiffs seek monetary damages, interest, attorneys’ fees, costs and other unspecified relief. On July 13, 2016, the Utah Retirement System moved for appointment as lead plaintiff and approval of its selection of counsel, which was not opposed by the Pension Trust Fund for Operation Engineers and was approved on August 24, 2016. The Utah Retirement System has until November 8, 2016 to submit an amended compliant as lead plaintiff. On or about June 21, 2016, T’Lani Robinson and Robby Brown filed an arbitration demand with the American Arbitration Association in Chicago, seeking to represent a putative class of students who received a DeVry University education from January 1, 2008 until April 8, 2016. Following DeVry Group’s filing of a declaratory judgment action in the United States District Court for the Northern District of Illinois seeking, among other things, an order declaring that federal court is the appropriate venue for this putative class action, on September 12, 2016, T’Lani Robinson and Robby Brown voluntarily withdrew their demand for arbitration. On September 20, 2016, Robinson and Brown answered the declaratory judgement action and filed a putative class action counterclaim (the “Robinson Complaint”), individually and on behalf of others similarly situated, against DeVry Group Inc., DeVry University, Inc., and DeVry/New York, Inc. in the United States District Court for the Northern District of Illinois. The counterclaim, which, following a stipulated dismissal of the arbitration demand and the declaratory action was realigned by the court as a claim, is predicated on the same core allegations as the FTC lawsuit, and asserts causes of action for breach of contract, misrepresentation, concealment, negligence, violations of the Illinois Uniform Deceptive Trade Practices Act, the Illinois Consumer Fraud and Deceptive Trade Practices Act, and the Illinois Private Business and Vocational Schools Act, conversion, unjust enrichment, and declaratory relief. The plaintiffs seek monetary, declaratory, injunctive, and other unspecified relief. On October 14, 2016, a putative class action lawsuit was filed by six former DeVry University students, Debbie Petrizzo, Renee Heather Polly, Brandy Van Buren, Melissa Lotzman, Jamison Purry and Cheryl Costello, individually and on behalf of others similarly situated, against the DeVry Group Defendants in the United States District Court for the Northern District of Illinois. The complaint was filed on behalf of a putative class of persons consisting of those who enrolled in and/or attended classes at DeVry University from at least 2002 through the present and who were unable to find employment within their chosen field of study within six months of graduation. Citing the FTC lawsuit, the plaintiffs claim that defendants made false or misleading statements regarding DeVry University’s graduate employment rate and assert claims for unjust enrichment and violations of six different states’ consumer fraud, unlawful trade practices, and consumer protection laws. The plaintiffs seek monetary, declaratory, injunctive, and other unspecified relief. On October 28, 2016, a putative class action lawsuit was filed by twelve individuals, Jairo Jara, Elijah Morgan, Steven Nickens, Julie Ramroop, Jorge Rivas, David Viglielmo, Jennifer Wallace, Suzane Apodaca, Jorge Munoz, Alex Haberer, Annette Pearson, and Thomas Pearson, individually and on behalf of others similarly situated, against the DeVry Group Defendants in the United States District Court for the Northern District of Illinois. The individual plaintiffs claim to have graduated from DeVry University in 2001 or later and seek to proceed on behalf of a putative class of persons consisting of those who obtained a degree from DeVry University and who were unable to find employment within their chosen field of study within six months of graduation. Citing the FTC lawsuit, the plaintiffs claim that defendants made false or misleading statements regarding DeVry University’s graduate employment rate and assert claims for unjust enrichment and violations of ten different states’ consumer fraud, unlawful trade practices, and consumer protection laws. The plaintiffs seek monetary, declaratory, injunctive, and other unspecified relief. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 13: SEGMENT INFORMATION DeVry Group’s principal business is providing postsecondary education. DeVry Group presents three reportable segments: “Medical and Healthcare,” which includes the operations of AUC, RUSM, RUSVM (under the DeVry Medical International reporting unit), Chamberlain and Carrington; “International and Professional Education,” which includes the operations of DeVry Brasil and Becker; and “Business, Technology and Management,” which is comprised solely of DeVry University. These segments are consistent with the method by which the Chief Operating Decision Maker (DeVry Group’s President and Chief Executive Officer) evaluates performance and allocates resources. Performance evaluations are based, in part, on each segment’s operating income, which is defined as income before special charges, noncontrolling interest, income taxes and interest. Interest and certain home office related expenses are reconciling items in arriving at consolidated income before income taxes. 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 Home Office and Other assets. Additions to long-lived assets have been measured in this same manner. Reconciling items are included as Home Office and Other assets. The accounting policies of the segments are the same as those described in “Note 2: Summary of Significant Accounting Policies.” For the Three Months Ended 2016 2015 Revenue: Medical and Healthcare $ 236,754 $ 223,984 International and Professional Education 92,970 58,673 Business, Technology and Management 120,890 159,466 Intersegment Revenue and Other (722) (710) Total Consolidated Revenue $ 449,892 $ 441,413 Operating Income (Loss): Medical and Healthcare $ 41,842 $ 34,252 International and Professional Education 4,081 2,038 Business, Technology and Management (7,985) (25,249) Home Office and Other (4,831) (2,794) Total Consolidated Operating Income $ 33,107 $ 8,247 Interest: Interest Income $ 1,058 $ 127 Interest Expense (2,115) (2,326) Net Interest Expense (1,057) (2,199) Total Consolidated Income Before Income Taxes $ 32,050 $ 6,048 Segment Assets: Medical and Healthcare $ 961,809 $ 1,231,104 International and Professional Education 1,037,249 337,036 Business, Technology and Management 244,279 471,571 Home Office and Other 81,019 66,898 Total Consolidated Assets $ 2,324,356 $ 2,106,609 Additions to Long-Lived Assets: Medical and Healthcare $ 4,510 $ 10,668 International and Professional Education 368,495 5,661 Business, Technology and Management 790 3,183 Home Office and Other 1,227 3,241 Total Consolidated Additions to Long-Lived Assets $ 375,022 $ 22,753 Reconciliation to Consolidated Financial Statements: Capital Expenditures $ 11,318 $ 22,753 Increase in Capital Assets from Acquisitions 4,913 - Increase in Intangible Assets and Goodwill 358,791 - Total Increase in Consolidated Long-Lived Assets $ 375,022 $ 22,753 Depreciation Expense: Medical and Healthcare $ 7,669 $ 7,934 International and Professional Education 2,108 1,434 Business, Technology and Management 4,763 7,309 Home Office and Other 2,936 3,000 Total Consolidated Depreciation $ 17,476 $ 19,677 Intangible Asset Amortization Expense: Medical and Healthcare $ - $ 60 International and Professional Education 3,263 1,112 Total Consolidated Amortization $ 3,263 $ 1,172 Home Office and Other Segment Assets in fiscal year 2016 have been revised to reflect the reclassification of deferred tax assets and liabilities related to adoption of ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” DeVry Group conducts its educational operations in the U.S., Dominica, St. Kitts, St. Maarten, Brazil, Canada, Europe, the Middle East, India, China and the Pacific Rim. Other international revenue, which is derived principally from Europe and the Pacific Rim, was less than 5% of total revenue for each of the three month periods ended September 30, 2016 and 2015. For the Three Months Ended 2016 2015 Revenue from Unaffiliated Customers: Domestic Operations $ 302,046 $ 323,998 International Operations: Dominica, St. Kitts and St. Maarten 88,304 82,849 Brazil 58,240 33,252 Other 1,302 1,314 Total International 147,846 117,415 Total Consolidated Revenue $ 449,892 $ 441,413 Long-Lived Assets: Domestic Operations $ 284,961 $ 347,188 International Operations: Dominica, St. Kitts and St. Maarten 189,235 184,731 Brazil 110,772 49,322 Other 3,416 67 Total International 303,423 234,120 Total Consolidated Long-Lived Assets $ 588,384 $ 581,308 No one customer accounted for more than 10 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of DeVry Group and its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Where our ownership interest is less than 100 percent, the noncontrolling ownership interests are reported on our Consolidated Balance Sheets. The noncontrolling ownership interest in our earnings is classified as “Net Loss Attributable to Noncontrolling Interest” in our Consolidated Statements of Income. Unless indicated, or the context requires otherwise, references to years refer to DeVry Group’s fiscal years. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include time deposits, high-grade commercial paper, money market funds and bankers acceptances with original maturities of three months or less. Short-term investment objectives are to minimize risk and maintain liquidity. These investments are stated at cost (which approximates fair value) because of their short duration or liquid nature. DeVry Group places its cash and temporary cash investments with high credit quality institutions. Cash and cash equivalent balances in U.S. bank accounts are generally in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Cash and cash equivalent balances in Brazilian bank accounts are generally in excess of the deposit insurance limits for Brazilian banks. DeVry Group has not experienced any losses on its cash and cash equivalents. Management periodically evaluates the creditworthiness of the security issuers and financial institutions with which it invests and maintains deposit accounts. |
Financial Aid and Restricted Cash | Financial Aid and Restricted Cash A significant portion of revenue is received from students who participate in government financial aid and assistance programs which are subject to political and governmental budgetary considerations. There is no assurance that such funding will be maintained at current levels. Extensive and complex regulations in the U.S. and Brazil govern all of the government financial assistance programs in which students participate. Administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for disciplinary action, which could include the suspension, limitation or termination from such financial aid programs. Restricted cash represents amounts received from the federal and state governments under various student aid grant and loan programs and such restricted funds are held in separate bank accounts. Once the financial aid authorization and disbursement process for the student has been completed, the funds are transferred to unrestricted accounts, and these funds then become available for use in DeVry Group’s operations. This authorization and disbursement process that precedes the transfer of funds generally occurs within the period of the academic term for which such funds were authorized. As a requirement of continuing operations in Pennsylvania, DeVry Group is required to maintain a “minimum protective endowment” of at least $ 500,000 |
Revenue Recognition | Revenue Recognition Tuition Chamberlain College of Nursing (“Chamberlain”), Carrington College (“Carrington”), DeVry Educacional do Brasil (“DeVry Brasil”) higher education and DeVry University tuition revenue is recognized on a straight-line basis over their respective applicable academic terms. In addition, American University of the Caribbean School of Medicine (“AUC”), Ross University School of Medicine (“RUSM”) and Ross University School of Veterinary Medicine (“RUSVM”) basic science curriculum revenue is recognized on a straight-line basis over the academic term. The clinical portion of the AUC, RUSM and RUSVM education programs are conducted under the supervision of primarily U.S. teaching hospitals and veterinary schools. AUC, RUSM and RUSVM are responsible for the billing and collection of tuition from their students during the period of clinical education. Revenue is 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 AUC, RUSM and RUSVM students are charged to expense on the same basis. Becker Professional Education (“Becker”) and DeVry Brasil’s test preparation live classroom and DeVry Brasil’s online tuition revenue is recognized on a straight-line basis over the applicable delivery period. Revenue from Becker conferences and training services, which are generally short-term in duration, is recognized when the conference or training service is provided. Other Educational Sales of Becker subscriptions, membership dues and certifications, along with sales of textbooks, electronic books, other educational products, including Becker self-study sales, are included in Other Educational Revenue in the Consolidated Statements of Income. Revenue from Becker subscriptions and membership dues is recognized on a straight-line basis over the applicable subscription or membership period. Revenue from Becker certifications is recognized when the certification process is complete. Textbook, electronic book and other educational product revenue is recognized when the sale occurs. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenue and recognized when confirmation of course delivery is received. Refunds and Provisions Estimates of DeVry Group’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms. Inputs to this analysis include refunds issued, withdrawal rates and historical amounts owed by students for that portion of a term that was completed. Management reassesses collectability throughout the period revenue is recognized by the DeVry Group institutions, on a student-by-student basis. This reassessment is based upon new information and changes in facts and circumstances relevant to a student's ability to pay. Management reassesses collectability when a student withdraws from the institution and has unpaid tuition charges. Such unpaid charges do not meet the threshold of reasonably collectible and are recognized as revenue on a cash basis. The provisions for refunds, which are reported as a reduction to Tuition Revenue in the Consolidated Statements of Income, are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. Provisions for refunds were $ 12.3 11.1 Provisions for refunds are monitored and adjusted as necessary within the academic term and adjusted for actual refunds issued and withdrawn student accounts receivable balances at the completion of an academic term. If a student leaves school prior to completing an academic term, federal and/or state 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 academic 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. Reserves related to refunds and uncollectible accounts totaled $ 69.1 63.5 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. Provisions for uncollectible accounts, which are included in the Cost of Educational Services in the Consolidated Statements of Income, were $ 10.1 9.4 |
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 seven 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, Building and Equipment section of the Consolidated Balance Sheets. As of September 30, 2016 and 2015, the net balance of capitalized internal-use software development costs was $ 16.6 28.7 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets DeVry Group evaluates the carrying amount of its significant long-lived assets whenever changes in circumstances or events indicate that the value of such assets may not be fully recoverable. Events that may trigger an impairment analysis could include a decision by management to exit a market or a line of business or to consolidate operating locations. In the first three months of fiscal year 2017 and in fiscal year 2016, management consolidated operations at DeVry University, Carrington and DeVry Group’s home office. These decisions resulted in pre-tax accelerated depreciation and write-offs of $ 1.3 7.4 |
Perkins Program Fund | Perkins Program Fund DeVry University is required under U.S. federal aid program regulations to make contributions to the Federal Perkins Student Loan Fund, most recently at a rate equal to 33 2.6 |
Foreign Currency Translation | Foreign Currency Translation The financial position and results of operations of the AUC, RUSM and RUSVM Caribbean operations are measured using the U.S. dollar as the functional currency. As such, there is no translation gain or loss associated with these operations. DeVry Brasil’s operations and Becker’s international operations are measured using the local currency as the functional currency. Assets and liabilities of these entities are translated to U.S. dollars using exchange rates in effect at the balance sheet dates. Income and expense items are translated at monthly average rates of exchange. The resultant translation adjustments are included in the component of Shareholders’ Equity designated as Accumulated Other Comprehensive Loss. Transaction gains or losses during each of the three month periods ended September 30, 2016 and 2015 were not material. |
Noncontrolling Interest | Noncontrolling Interest DeVry Group currently maintains a 97.9 2.1 96.3 The DeVry Brasil management put option is being accreted to its redemption value in accordance with the terms of the stock purchase agreement. The adjustment to increase or decrease the put option to its expected redemption value each reporting period is recorded in retained earnings in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The adjustment to increase or decrease the DeVry Brasil noncontrolling interest each reporting period for its proportionate share of DeVry Brasil’s profit/loss will continue to flow through the Consolidated Statements of Income based on DeVry Group's noncontrolling interest accounting policy. Three Months Ended 2016 2015 Balance at Beginning of Period $ 5,112 $ 9,620 Net Loss Attributable to Noncontrolling Interest (3) (79) Payment for Purchase of Noncontrolling Interest of Subsidiary - (3,114) Decrease in Redemption Value of Noncontrolling Interest Put Option (66) (2,775) Balance at End of Period $ 5,043 $ 3,652 |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income attributable to DeVry Group by the weighted average number of common shares outstanding during the period plus unvested participating restricted stock units (“RSUs”). Diluted earnings per share is computed by dividing net income attributable to DeVry Group by the weighted average number of shares assuming dilution. Diluted shares are computed using the Treasury Stock Method and reflect the additional shares that would be outstanding if dilutive stock-based grants were exercised during the period. Excluded from the computations of diluted earnings per share were options to purchase 2,755,000 2,644,000 Three Months Ended 2016 2015 Weighted Average Shares Outstanding 62,592 63,583 Unvested Participating RSUs 827 763 Basic Shares 63,419 64,346 Effect of Dilutive Stock Options 477 383 Diluted Shares 63,896 64,729 |
Treasury Stock | Treasury Stock DeVry Group’s Board of Directors (the “Board”) has authorized share repurchase programs on nine occasions (see “Note 6: Share Repurchase Programs”). The ninth share repurchase program was approved on December 15, 2015 and commenced in January 2016. 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 3: 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 Colleague 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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 revenue and expense reported during the period. Actual results could differ from those estimates. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment, primarily at DeVry Brasil, and unrealized gains on available-for-sale marketable securities, net of the effects of income taxes. The Accumulated Other Comprehensive Loss balance at September 30, 2016 consists of $ 49.4 48.3 1.1 0.2 0.1 122.3 119.7 2.6 0.1 0.2 |
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 $ 57.6 59.3 |
Restructuring Charges | Restructuring Charges DeVry Group’s financial statements include charges related to severance and related benefits for reductions in staff. These charges also include early lease termination or cease-of-use costs and accelerated depreciation and gains and losses on disposals of property and equipment related to campus consolidations (see “Note 9: Restructuring Charges”). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15: “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This guidance was issued to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments are effective for the financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Management has determined that our current accounting policies align with this guidance. Therefore, this guidance will have no impact on the Consolidated Financial Statements. In March 2016, FASB issued ASU No. 2016-09: “CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance was issued to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements. In February 2016, FASB issued ASU No. 2016-02: “Leases (Topic 842).” This guidance was issued to increase transparency and comparability among organizations by recognizing right-to-use assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements. In January 2016, FASB issued ASU No. 2016-01: “Financial InstrumentsOverall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The guidance eliminates the classification of equity securities into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments are effective for financial statements issued for annual periods beginning after December 15, 2017, and interim periods within those annual periods. This guidance will require DeVry Group to record the changes in the fair value of its available-for-sale equity investments through net income. Management anticipates the adoption will not have a significant impact on DeVry Group’s Consolidated Financial Statements. In September 2015, FASB issued ASU No. 2015-16: “Business Combinations (Topic 805): Simplifying Accounting for Measurement-Period Adjustments.” This guidance was issued to simplify the accounting for provisional amounts for items in a business combination for which the accounting is incomplete by the end of the reporting period in which the combination occurs and where the provisional amounts have been adjusted during the measurement period. The amendments in this guidance require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2015 and is applicable to DeVry Group’s current fiscal year. This guidance requires DeVry Group to record and disclose measurement-period adjustments for future business combinations as a period adjustment as opposed to a retroactive adjustment to the opening balance sheet of the acquired entity. In April 2015, FASB issued ASU No. 2015-03: “InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This guidance was issued to simplify the presentation of debt issuance costs. The amendments in this guidance require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments. The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2015. DeVry Group’s debt includes a revolving credit facility (see “Note 11: Debt”). This update did not provide guidance specifically addressing debt issuance costs involving revolving credit facilities. As a result, it was announced that the SEC staff would not object to an entity deferring and presenting such costs as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. This is DeVry Group’s current accounting policy for debt issuance costs. In May 2014, FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606).” This guidance was issued to clarify the principles for recognizing revenue and develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The guidance is effective for the fiscal years and interim periods within those years beginning after December 15, 2017. Management is evaluating the impact the guidance will have on DeVry Group’s Consolidated Financial Statements as well as the transition methodology. |
Reclassifications | Reclassifications In the fourth quarter of fiscal year 2016, we retrospectively adopted ASU No. 2015-17: “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” This guidance was issued to simplify the accounting for classification of deferred taxes on the balance sheet. The guidance eliminates the previous requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent. As a result, we decreased current deferred income tax assets by $ 36.5 6.3 30.1 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Reconciliation of Non-Controlling Interest Balance | The following is a reconciliation of the noncontrolling interest balance (in thousands): Three Months Ended 2016 2015 Balance at Beginning of Period $ 5,112 $ 9,620 Net Loss Attributable to Noncontrolling Interest (3) (79) Payment for Purchase of Noncontrolling Interest of Subsidiary - (3,114) Decrease in Redemption Value of Noncontrolling Interest Put Option (66) (2,775) Balance at End of Period $ 5,043 $ 3,652 |
Reconciliation of Basic Shares to Diluted Shares | The following is a reconciliation of basic shares to diluted shares (in thousands): Three Months Ended 2016 2015 Weighted Average Shares Outstanding 62,592 63,583 Unvested Participating RSUs 827 763 Basic Shares 63,419 64,346 Effect of Dilutive Stock Options 477 383 Diluted Shares 63,896 64,729 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of options Activity | The following is a summary of options activity for the three months ended September 30, 2016: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Life (in Years) (in thousands) Outstanding at July 1, 2016 3,574,336 $ 32.79 Options Granted 397,700 23.78 Options Exercised (331,493) 20.11 Options Forfeited (10,407) 30.07 Options Expired (15,223) 34.60 Outstanding at September 30, 2016 3,614,913 32.97 5.91 $ 3,358 Exercisable at September 30, 2016 2,615,391 $ 36.37 4.52 $ 1,884 |
Summary of stock appreciation rights activity | The following is a summary of stock appreciation rights activity for the three months ended September 30, 2016: Weighted Number of Weighted Average Aggregate Stock Average Remaining Intrinsic Appreciation Exercise Contractual Value Rights Price Life (in Years) (in thousands) Outstanding at July 1, 2016 118,065 $ 42.74 Rights Granted - - Rights Exercised - - Rights Canceled - - Outstanding at September 30, 2016 118,065 42.74 1.17 $ - Exercisable at September 30, 2016 118,065 $ 42.74 1.17 $ - |
Fair Values of Stock Option Awards Estimated Weighted Average Assumptions | The fair value of DeVry Group’s stock option grants was estimated assuming the following weighted average assumptions: Fiscal Year 2017 2016 Expected Life (in Years) 6.88 6.78 Expected Volatility 42.41 % 41.35 % Risk-free Interest Rate 1.41 % 1.85 % Dividend Yield 1.19 % 1.01 % Pre-vesting Forfeiture Rate 10.00 % 3.00 % |
Summary of Restricted Stock Units Activity | The following is a summary of RSUs activity for the three months ended September 30, 2016: Weighted Average Number of Grant Date RSUs Fair Value Nonvested at July 1, 2016 1,139,350 $ 27.78 RSUs Granted 621,350 23.70 RSUs Vested (324,091) 27.29 RSUs Forfeited (30,886) 29.10 Nonvested at September 30, 2016 1,405,723 $ 26.06 |
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 (in thousands): For the Three Months Ended 2016 2015 Cost of Educational Services $ 1,840 $ 1,996 Student Services and Administrative Expense 3,910 4,242 5,750 6,238 Income Tax Benefit (2,072) (2,204) Net Stock-Based Compensation Expense $ 3,678 $ 4,034 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents DeVry Group's assets and liabilities at September 30, 2016, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 189,017 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,738 - - Institutional Loans Receivable, Net - 50,212 - Deferred Acquisition Obligations - 28,559 - FIES Long-Term Receivable - 13,032 - Total Financial Assets at Fair Value $ 192,755 $ 91,803 $ - The following table presents DeVry Group's assets and liabilities at June 30, 2016, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 308,164 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,609 - - Institutional Loans Receivable, Net - 49,025 - Deferred Acquisition Obligations - 32,121 - FIES Long-Term Receivable - 13,057 - Total Financial Assets at Fair Value $ 311,773 $ 94,203 $ - The following table presents DeVry Group's assets and liabilities at September 30, 2015, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 436,453 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 3,398 - - Institutional Loans Receivable, Net - 48,742 - Deferred Acquisition Obligations - 19,732 - Total Financial Assets at Fair Value $ 439,851 $ 68,474 $ - |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
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 September 30, 2016 and 2015 (in thousands). As of September 30, 2016 2015 Gross Institutional Loans $ 71,669 $ 71,774 Allowance for Credit Losses: Balance at July 1 $ (20,800) $ (20,630) Charge-offs and Adjustments 2,513 1,726 Recoveries (316) (189) Additional Provision (2,854) (3,939) Balance at End of Period (21,457) (23,032) Net Institutional Loans $ 50,212 $ 48,742 |
Credit Risk Profiles of Institutional Student Loan Balances | The following tables detail the credit risk profiles of the institutional loan balances based on payment activity and provide an aging analysis of past due institutional loans as of September 30, 2016 and 2015 (in thousands). As of September 30, 2016 2015 Institutional Loans: Performing $ 51,234 $ 55,467 Nonperforming 20,435 16,307 Total Institutional Loans $ 71,669 $ 71,774 |
Institutional Student Loans Past Due | 30-59 60-89 90-119 Greater Total Current Total Institutional Loans: September 30, 2016 $ 7,892 $ 2,680 $ 1,782 $ 20,435 $ 32,789 $ 38,880 $ 71,669 September 30, 2015 $ 5,193 $ 2,602 $ 2,503 $ 16,307 $ 26,605 $ 45,169 $ 71,774 |
SHARE REPURCHASE PROGRAMS (Tabl
SHARE REPURCHASE PROGRAMS (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
Shares Repurchased Under Programs | DeVry Group has repurchased shares under the following programs as of September 30, 2016: Date Shares Total Cost Authorized Repurchased (in millions) November 15, 2006 908,399 $ 35.0 May 13, 2008 1,027,417 50.0 November 11, 2009 972,205 50.0 August 11, 2010 1,103,628 50.0 November 10, 2010 968,105 50.0 May 20, 2011 2,396,143 100.0 November 2, 2011 3,478,299 100.0 August 29, 2012 2,005,317 62.7 December 15, 2015 1,240,010 24.4 Totals 14,099,523 $ 522.1 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Association Of Certified Anti-Money Laundering Specialists [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). At July 1, 2016 Current Assets $ 25,562 Property and Equipment 432 Other Long-term Assets 3,318 Intangible Assets 88,600 Goodwill 274,672 Total Assets Acquired 392,584 Liabilities Assumed 37,326 Net Assets Acquired $ 355,258 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The preliminary values and estimated useful lives by asset type are as follows (in thousands): At July 1, 2016 Value Estimated Customer Relationships $ 42,500 10 years Curriculum 5,000 3 years Non-compete Agreements 700 1 year Proprietary Technology 500 4 years |
Faculdade de Imperatriz [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). At June 1, 2016 Current Assets $ 1,057 Property and Equipment 291 Intangible Assets 2,652 Goodwill 4,997 Total Assets Acquired 8,997 Liabilities Assumed 2,704 Net Assets Acquired $ 6,293 |
Grupo Ibmec Educacional S A [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). At December 15, 2015 Current Assets $ 27,615 Property and Equipment 17,968 Other Long-term Assets 2,639 Intangible Assets 60,634 Goodwill 106,529 Total Assets Acquired 215,385 Liabilities Assumed 24,423 Net Assets Acquired $ 190,962 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The preliminary values and estimated useful lives by asset type are as follows (in thousands): At December 15, 2015 Value Estimated Student Relationships $ 5,720 5 years Curriculum 1,821 5 years |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following (in thousands): As of September 30, 2016 Gross Accumulated Weighted Average Amortizable Intangible Assets: Student Relationships $ 14,333 $ (8,107 ) 5 Years Customer Relationships 42,900 (1,367 ) 10 Years Non-compete Agreements 1,640 (1,012 ) 3 Years Curriculum/Software 8,151 (1,635 ) 4 Years Franchise Contracts 10,818 (1,002 ) 18 Years Clinical Agreements 401 (87 ) 15 Years Trade Names 1,167 (875 ) 10 Years Proprietary Technology 500 (31 ) 4 Years Total $ 79,910 $ (14,116 ) Indefinite-lived Intangible Assets: Trade Names $ 110,162 Trademarks 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 20,200 AUC Title IV Eligibility and Accreditations 100,000 DeVry Brasil Accreditation 99,048 Total $ 360,295 As of September 30, 2015 Gross Accumulated Amortizable Intangible Assets: Student Relationships $ 6,111 $ (3,360 ) Customer Relationships 400 (140 ) Test Prep Relationships 808 (539 ) Non-compete Agreements 940 (658 ) Curriculum/Software 1,922 (1,506 ) Outplacement Relationships 3,900 (1,829 ) Franchise Contracts 8,864 (328 ) Clinical Agreements 328 (49 ) Trade Names 957 (622 ) Total $ 24,230 $ (9,031 ) Indefinite-lived Intangible Assets: Trade Names $ 45,566 Trademarks 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 45,291 Total $ 288,942 |
Estimated Amortization Expense for Amortized Intangible Assets | Fiscal Year DeVry Brasil Becker Total 2017 $ 4,704 $ 7,482 $ 12,186 2018 3,281 6,501 9,782 2019 2,259 6,422 8,681 2020 1,529 4,671 6,200 2021 933 4,440 5,373 Thereafter 7,149 19,686 26,835 |
Changes in Carrying Amount of Goodwill, by Segment | The table below summarizes goodwill balances by reporting unit as of September 30, 2016 (in thousands): Reporting Unit As of American University of the Caribbean School of Medicine $ 68,321 Ross University School of Medicine and Ross University School of Veterinary Medicine 237,173 Chamberlain College of Nursing 4,716 DeVry Brasil 215,140 Becker Professional Education 306,642 DeVry University 22,196 Total $ 854,188 Reporting Segment As of Medical and Healthcare $ 310,210 International and Professional Education 521,782 Business, Technology and Management 22,196 Total $ 854,188 Medical and Healthcare International Business, Accumulated and Technology Impairment Professional and Gross Losses Education Management Total Balance at June 30, 2014 $ 495,927 $ (86,933) $ 88,689 $ 22,196 $ 519,879 Acquisitions - - 55,915 - 55,915 Foreign currency exchange rate changes - - (23,465) - (23,465) Balance at June 30, 2015 495,927 (86,933) 121,139 22,196 552,329 Foreign currency exchange rate changes - - (19,150) - (19,150) Balance at September 30, 2015 495,927 (86,933) 101,989 22,196 533,179 Purchase Accounting Adjustment - - 4,575 - 4,575 Acquisitions - - 116,007 - 116,007 Impairments - (98,784) - - (98,784) Foreign currency exchange rate changes - - 33,030 - 33,030 Balance at June 30, 2016 495,927 (185,717) 255,601 22,196 588,007 Purchase Accounting Adjustment - - (4,481) - (4,481) Acquisitions - - 274,672 - 274,672 Foreign currency exchange rate changes - - (4,010) - (4,010) Balance at September 30, 2016 $ 495,927 $ (185,717) $ 521,782 $ 22,196 $ 854,188 |
Summary of Indefinite-Lived Intangible Assets Balances by Reporting Segment | Reporting Segment As of Medical and Healthcare $ 157,700 International and Professional Educational 200,950 Business, Technology and Management 1,645 Total $ 360,295 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the separation and restructuring plan activity for the fiscal years 2017 and 2016, for which cash payments are required (in millions): Liability balance at June 30, 2015 $ 27.0 Increase in liability (separation and other charges) 67.5 Reduction in liability (payments and adjustments) (46.3) Liability balance at June 30, 2016 48.2 Increase in liability (separation and other charges) 4.1 Reduction in liability (payments and adjustments) (11.9) Liability balance at September 30, 2016 $ 40.4 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Tabulation of Business Segment Information Based on Current Segmentation | Following is a tabulation of business segment information based on the segmentation for the three months ended September 30, 2016 and 2015. Home Office and Other information is included where it is needed to reconcile segment data to the Consolidated Financial Statements (in thousands). For the Three Months Ended 2016 2015 Revenue: Medical and Healthcare $ 236,754 $ 223,984 International and Professional Education 92,970 58,673 Business, Technology and Management 120,890 159,466 Intersegment Revenue and Other (722) (710) Total Consolidated Revenue $ 449,892 $ 441,413 Operating Income (Loss): Medical and Healthcare $ 41,842 $ 34,252 International and Professional Education 4,081 2,038 Business, Technology and Management (7,985) (25,249) Home Office and Other (4,831) (2,794) Total Consolidated Operating Income $ 33,107 $ 8,247 Interest: Interest Income $ 1,058 $ 127 Interest Expense (2,115) (2,326) Net Interest Expense (1,057) (2,199) Total Consolidated Income Before Income Taxes $ 32,050 $ 6,048 Segment Assets: Medical and Healthcare $ 961,809 $ 1,231,104 International and Professional Education 1,037,249 337,036 Business, Technology and Management 244,279 471,571 Home Office and Other 81,019 66,898 Total Consolidated Assets $ 2,324,356 $ 2,106,609 Additions to Long-Lived Assets: Medical and Healthcare $ 4,510 $ 10,668 International and Professional Education 368,495 5,661 Business, Technology and Management 790 3,183 Home Office and Other 1,227 3,241 Total Consolidated Additions to Long-Lived Assets $ 375,022 $ 22,753 Reconciliation to Consolidated Financial Statements: Capital Expenditures $ 11,318 $ 22,753 Increase in Capital Assets from Acquisitions 4,913 - Increase in Intangible Assets and Goodwill 358,791 - Total Increase in Consolidated Long-Lived Assets $ 375,022 $ 22,753 Depreciation Expense: Medical and Healthcare $ 7,669 $ 7,934 International and Professional Education 2,108 1,434 Business, Technology and Management 4,763 7,309 Home Office and Other 2,936 3,000 Total Consolidated Depreciation $ 17,476 $ 19,677 Intangible Asset Amortization Expense: Medical and Healthcare $ - $ 60 International and Professional Education 3,263 1,112 Total Consolidated Amortization $ 3,263 $ 1,172 |
Revenues and Long-Lived Assets by Geographic Area | Revenue and long-lived assets by geographic area are as follows (in thousands): For the Three Months Ended 2016 2015 Revenue from Unaffiliated Customers: Domestic Operations $ 302,046 $ 323,998 International Operations: Dominica, St. Kitts and St. Maarten 88,304 82,849 Brazil 58,240 33,252 Other 1,302 1,314 Total International 147,846 117,415 Total Consolidated Revenue $ 449,892 $ 441,413 Long-Lived Assets: Domestic Operations $ 284,961 $ 347,188 International Operations: Dominica, St. Kitts and St. Maarten 189,235 184,731 Brazil 110,772 49,322 Other 3,416 67 Total International 303,423 234,120 Total Consolidated Long-Lived Assets $ 588,384 $ 581,308 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Non-Controlling Interest Balance) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Noncontrolling Interest [Line Items] | ||
Balance at Beginning of Period | $ 5,112 | $ 9,620 |
Net Loss Attributable to Noncontrolling Interest | (3) | (79) |
Payment for Purchase of Noncontrolling Interest of Subsidiary | 0 | (3,114) |
Decrease in Redemption Value of Noncontrolling Interest Put Option | (66) | (2,775) |
Balance at End of Period | $ 5,043 | $ 3,652 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic Shares to Diluted Shares) (Detail) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted Average Shares Outstanding | 62,592 | 63,583 |
Unvested Participating RSUs | 827 | 763 |
Basic Shares | 63,419 | 64,346 |
Effect of Dilutive Stock Options | 477 | 383 |
Diluted Shares | 63,896 | 64,729 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Minimum protective endowment related to continuing operation in Pennsylvania | $ 500,000 | |||
Reserves related to uncollectible accounts and refunds | 69,100,000 | $ 63,500,000 | ||
Net balance of capitalized software development costs | $ 16,600,000 | $ 28,700,000 | ||
Anti-dilutive shares excluded from computations of earnings per share | 2,755,000 | 2,644,000 | ||
Cumulative translation losses | $ 49,400,000 | $ 122,300,000 | ||
Advertising expense | 57,600,000 | 59,300,000 | ||
Provision for Doubtful Accounts | 22,481,000 | 20,594,000 | ||
Impairment of Leasehold | 1,300,000 | 7,400,000 | ||
Provisions For Refund Payments | 12,300,000 | 11,100,000 | ||
Deferred Tax Liabilities, Net, Noncurrent | 30,769,000 | 21,103,000 | $ 29,936,000 | |
Accounting Standards Update 2015-17 [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Deferred Tax Assets, Net, Current | 36,500,000 | |||
Deferred Tax Assets, Net, Noncurrent | 6,300,000 | |||
Deferred Tax Liabilities, Net, Noncurrent | 30,100,000 | |||
Noncontrolling Interest | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Cumulative translation losses | 1,100,000 | 2,600,000 | ||
Educational Services | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Provision for Doubtful Accounts | $ 10,100,000 | 9,400,000 | ||
Perkins Student Loan Fund | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of Contributions | 33.00% | |||
Allowances for expected losses on loan collections | $ 2,600,000 | 2,600,000 | ||
DeVry Brasil | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Minority interest ownership percentage by noncontrolling owners | 2.10% | |||
DeVry Education Group Inc. | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Ownership interest of parent in subsidiary | 97.90% | 96.30% | ||
Cumulative translation losses | $ 48,300,000 | 119,700,000 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax, Total | 200,000 | 100,000 | ||
Tax effect on unrealized gains on available-for-sale securities | $ 100,000 | $ 200,000 |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Options Activity) (Detail) - Stock Option $ / shares in Units, $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Options, Outstanding at beginning of period | shares | 3,574,336 |
Options, Granted | shares | 397,700 |
Options, Exercised | shares | (331,493) |
Options Forfeited | shares | (10,407) |
Options Expired | shares | (15,223) |
Options, Outstanding at end of period | shares | 3,614,913 |
Options, Exercisable at end of period | shares | 2,615,391 |
Weighted Average Exercise Price at beginning of period | $ / shares | $ 32.79 |
Weighted Average Exercise Price, Options Granted | $ / shares | 23.78 |
Weighted Average Exercise Price, Options Exercised | $ / shares | 20.11 |
Weighted Average Exercise Price, Options Forfeited | $ / shares | 30.07 |
Weighted Average Exercise Price, Options Expired | $ / shares | 34.6 |
Weighted Average Outstanding Price at end of period | $ / shares | 32.97 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 36.37 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | 5 years 10 months 28 days |
Weighted Average Remaining Contractual Life, Exercisable at end of period | 4 years 6 months 7 days |
Aggregate Intrinsic Value, Outstanding at End of period | $ | $ 3,358 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 1,884 |
STOCK-BASED COMPENSATION (Sum34
STOCK-BASED COMPENSATION (Summary of Stock Appreciation Rights Activity) (Detail) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Outstanding at beginning of period | shares | 118,065 |
Rights Granted | shares | 0 |
Rights Exercised | shares | 0 |
Rights Canceled | shares | 0 |
Outstanding at end of period | shares | 118,065 |
Exercisable at end of period | shares | 118,065 |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ / shares | $ 42.74 |
Weighted Average Exercise Price Rights Granted | $ / shares | 0 |
Weighted Average Exercise Price Rights Exercised | $ / shares | 0 |
Weighted Average Exercise Price Rights Canceled | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ / shares | 42.74 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 42.74 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | 1 year 2 months 1 day |
Weighted Average Remaining Contractual Life, Exercisable at end of period | 1 year 2 months 1 day |
Aggregate Intrinsic Value, Outstanding at end of period | $ | $ 0 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 0 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Values of Stock Option Awards Weighted Average Assumptions) (Detail) | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Life (in Years) | 6 years 10 months 17 days | 6 years 9 months 11 days |
Expected Volatility | 42.41% | 41.35% |
Risk-free Interest Rate | 1.41% | 1.85% |
Dividend Yield | 1.19% | 1.01% |
Pre-vesting Forfeiture Rate | 10.00% | 3.00% |
STOCK-BASED COMPENSATION (Sum36
STOCK-BASED COMPENSATION (Summary of Restricted Stock Units Activity) (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding at beginning of period | 1,139,350 | |
Restricted Stock Units Outstanding, Shares Granted | 621,350 | |
Restricted Stock Units Outstanding, Shares Vested | (324,091) | |
Restricted Stock Units Outstanding, Shares Forfeited | (30,886) | |
Outstanding at end of period | 1,405,723 | |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ 27.78 | |
Weighted Average Grant Date Fair Value, Shares Granted | 23.7 | $ 26.16 |
Weighted Average Grant Date Fair Value, Shares Vested | 27.29 | |
Weighted Average Grant Date Fair Value, Shares Forfeited | 29.1 | |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ 26.06 |
STOCK-BASED COMPENSATION (Total
STOCK-BASED COMPENSATION (Total Stock-Based Compensation Expense Included in Consolidated Statement of Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | $ 5,750 | $ 6,238 |
Income Tax Benefit | (2,072) | (2,204) |
Net Stock-Based Compensation Expense | 3,678 | 4,034 |
Cost Of Educational Services | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | 1,840 | 1,996 |
Student Services And Administrative Expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | $ 3,910 | $ 4,242 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total intrinsic value of options exercised | $ 1.3 | $ 0.1 |
Total pre-tax unrecognized compensation costs related to non-vested awards | $ 28.7 | |
Total pre-tax unrecognized compensation costs related to non-vested awards expected to be recognized, years | 2 years 7 months 6 days | |
Total fair value of options and Restricted Stock Units vested | $ 11.8 | $ 14 |
Stock Incentive Plans | ||
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 | $ 9.09 | $ 10.17 |
Common Stock, Capital Shares Reserved for Future Issuance | 7,172,419 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 23.7 | $ 26.16 |
Restricted Stock Units Outstanding, Shares Granted | 621,350 | |
Performance Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock Units Outstanding, Shares Granted | 221,710 | |
Non-Performance Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted Stock Units Outstanding, Shares Granted | 399,640 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets Measured at Fair Value on Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Available-for-Sale Investments: | |||
Marketable Securities, short-term | $ 3,738 | $ 3,609 | $ 3,398 |
Institutional Loans Receivable, Net | 50,212 | 48,742 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 189,017 | 308,164 | 436,453 |
Available-for-Sale Investments: | |||
Marketable Securities, short-term | 3,738 | 3,609 | 3,398 |
Institutional Loans Receivable, Net | 0 | 0 | 0 |
Deferred Acquisition Obligations | 0 | 0 | 0 |
FIES Long-Term Receivable | 0 | 0 | |
Total Financial Assets at Fair Value | 192,755 | 311,773 | 439,851 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Available-for-Sale Investments: | |||
Marketable Securities, short-term | 0 | 0 | 0 |
Institutional Loans Receivable, Net | 50,212 | 49,025 | 48,742 |
Deferred Acquisition Obligations | 28,559 | 32,121 | 19,732 |
FIES Long-Term Receivable | 13,032 | 13,057 | |
Total Financial Assets at Fair Value | 91,803 | 94,203 | 68,474 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents | 0 | 0 | 0 |
Available-for-Sale Investments: | |||
Marketable Securities, short-term | 0 | 0 | 0 |
Institutional Loans Receivable, Net | 0 | 0 | 0 |
Deferred Acquisition Obligations | 0 | 0 | 0 |
FIES Long-Term Receivable | 0 | 0 | |
Total Financial Assets at Fair Value | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Accrued Expenses [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred Acquisition Obligations | $ 10.9 | $ 7.7 | $ 7.4 |
Deferred Rent and Other Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Deferred Acquisition Obligations | $ 17.7 | $ 24.4 | $ 12.3 |
FINANCING RECEIVABLES (Institut
FINANCING RECEIVABLES (Institutional Loan Balances and Related Allowances for Credit Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivables [Line Items] | ||
Gross Institutional Loans | $ 71,669 | $ 71,774 |
Allowance for Credit Losses: | ||
Balance at July 1 | (20,800) | (20,630) |
Charge-offs and Adjustments | 2,513 | 1,726 |
Recoveries | (316) | (189) |
Additional Provision | (2,854) | (3,939) |
Balance at End of Period | (21,457) | (23,032) |
Net Institutional Loans | $ 50,212 | $ 48,742 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Institutional Loan Balance) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivables [Line Items] | ||
Total Institutional Loans | $ 71,669 | $ 71,774 |
Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | 71,669 | 71,774 |
Performing | Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | 51,234 | 55,467 |
Nonperforming | Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | $ 20,435 | $ 16,307 |
FINANCING RECEIVABLES (Instit43
FINANCING RECEIVABLES (Institutional Student Loans Past Due) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | $ 32,789 | $ 26,605 |
Institutional Loans, Current | 38,880 | 45,169 |
Total Institutional Loans | 71,669 | 71,774 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 7,892 | 5,193 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 2,680 | 2,602 |
Financing Receivables 90 To 119 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 1,782 | 2,503 |
Financing Receivables Greater Than 120 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | $ 20,435 | $ 16,307 |
FINANCING RECEIVABLES - Additio
FINANCING RECEIVABLES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivables [Line Items] | ||
Number of days past due, to consider loans as nonperforming | 120 days | |
Nonperforming loan | ||
Financing Receivables [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 20.4 | $ 16.3 |
Impaired Financing Receivable, Related Allowance | 20.2 | 15.9 |
Accounts Receivable | ||
Financing Receivables [Line Items] | ||
Net Institutional Student Loans, classified as Accounts Receivable | 23 | 25.7 |
Other Assets | ||
Financing Receivables [Line Items] | ||
Net Institutional Student Loans, classified as Other Assets | $ 27.2 | $ 23 |
Becker | ||
Financing Receivables [Line Items] | ||
Term of loan, in months | 18 months |
SHARE REPURCHASE PROGRAMS (Shar
SHARE REPURCHASE PROGRAMS (Shares Repurchased under Programs) (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($)shares | |
Stock Repurchase Programs Total | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 14,099,523 |
Total Cost | $ | $ 522.1 |
Authorized on November 15, 2006 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 908,399 |
Total Cost | $ | $ 35 |
Authorized on May 13, 2008 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 1,027,417 |
Total Cost | $ | $ 50 |
Authorized on November 11, 2009 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 972,205 |
Total Cost | $ | $ 50 |
Authorized on August 11, 2010 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 1,103,628 |
Total Cost | $ | $ 50 |
Authorized on November 10, 2010 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 968,105 |
Total Cost | $ | $ 50 |
Authorized on May 20, 2011 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 2,396,143 |
Total Cost | $ | $ 100 |
Authorized on November 2, 2011 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 3,478,299 |
Total Cost | $ | $ 100 |
Authorized On August 29, 2012 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 2,005,317 |
Total Cost | $ | $ 62.7 |
Authorized On December 15, 2015 | |
Share Repurchases [Line Items] | |
Shares Repurchased | shares | 1,240,010 |
Total Cost | $ | $ 24.4 |
SHARE REPURCHASE PROGRAMS - Add
SHARE REPURCHASE PROGRAMS - Additional Information (Detail) - Ninth share repurchase plan [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Dec. 15, 2015 | |
Share Repurchases [Line Items] | ||
Treasury Stock Shares Acquired | 370,708 | |
Treasury Stock Value Acquired Cost Method | $ 8.3 | |
Maximum | ||
Share Repurchases [Line Items] | ||
Authorized amount for repurchase | $ 100 |
BUSINESS COMBINATIONS (Estimate
BUSINESS COMBINATIONS (Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jul. 02, 2016 | Jun. 30, 2016 | Jun. 01, 2016 | Dec. 15, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 854,188 | $ 588,007 | $ 533,179 | |||
Association Of Certified Anti-Money Laundering Specialists [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 25,562 | |||||
Property and Equipment | 432 | |||||
Other Long-term Assets | 3,318 | |||||
Intangible Assets | 88,600 | |||||
Goodwill | 274,672 | |||||
Total Assets Acquired | 392,584 | |||||
Liabilities Assumed | 37,326 | |||||
Net Assets Acquired | $ 355,258 | |||||
Faculdade de Imperatriz [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 1,057 | |||||
Property and Equipment | 291 | |||||
Intangible Assets | 2,652 | |||||
Goodwill | 4,997 | |||||
Total Assets Acquired | 8,997 | |||||
Liabilities Assumed | 2,704 | |||||
Net Assets Acquired | $ 6,293 | |||||
Grupo Ibmec Educacional S A [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Current Assets | $ 27,615 | |||||
Property and Equipment | 17,968 | |||||
Other Long-term Assets | 2,639 | |||||
Intangible Assets | 60,634 | |||||
Goodwill | 106,529 | |||||
Total Assets Acquired | 215,385 | |||||
Liabilities Assumed | 24,423 | |||||
Net Assets Acquired | $ 190,962 |
BUSINESS COMBINATIONS (Acquired
BUSINESS COMBINATIONS (Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Lives) (Detail) - USD ($) $ in Thousands | Jul. 02, 2016 | Dec. 15, 2015 |
Association Of Certified Anti-Money Laundering Specialists [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets, estimated useful lives | 9 years | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 42,500 | |
Amortizable intangible assets, estimated useful lives | 10 years | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Curriculum Software [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 5,000 | |
Amortizable intangible assets, estimated useful lives | 3 years | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Noncompete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 700 | |
Amortizable intangible assets, estimated useful lives | 1 year | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Proprietary Technology [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 500 | |
Amortizable intangible assets, estimated useful lives | 4 years | |
Grupo Ibmec Educacional S A [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets, estimated useful lives | 5 years | |
Grupo Ibmec Educacional S A [Member] | Student Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 5,720 | |
Amortizable intangible assets, estimated useful lives | 5 years | |
Grupo Ibmec Educacional S A [Member] | Curriculum Software [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 1,821 | |
Amortizable intangible assets, estimated useful lives | 5 years |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Detail) $ in Thousands | Jul. 02, 2016USD ($) | Jun. 01, 2016USD ($) | Dec. 15, 2015USD ($) |
Grupo Ibmec Educacional S A [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 5 years | ||
Number Of Students In Degree Programs | 15,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 60,634 | ||
Payments to Acquire Businesses, Gross | 180,500 | ||
Business Combination, Consideration Transferred | $ 191,000 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Business Combination, Contingent Consideration | $ 10,500 | ||
Grupo Ibmec Educacional S A [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 18,400 | ||
Grupo Ibmec Educacional S A [Member] | Accreditations [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 34,700 | ||
Faculdade de Imperatriz [Member] | |||
Business Acquisition [Line Items] | |||
Number Of Students In Degree Programs | 2,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,652 | ||
Payments to Acquire Businesses, Gross | 3,500 | ||
Business Combination, Consideration Transferred | $ 6,300 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Business Combination, Contingent Consideration | $ 2,800 | ||
Faculdade de Imperatriz [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 500 | ||
Faculdade de Imperatriz [Member] | Accreditations [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 2,100 | ||
Association Of Certified Anti-Money Laundering Specialists [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite Lived Intangible Assets Weighted Average Useful Life | 9 years | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 88,600 | ||
Business Combination, Consideration Transferred | $ 331,100 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Cash Acquired from Acquisition | $ 24,200 | ||
Association Of Certified Anti-Money Laundering Specialists [Member] | Revolving Credit Facility [Member] | |||
Business Acquisition [Line Items] | |||
Long-term Line of Credit | 175,000 | ||
Association Of Certified Anti-Money Laundering Specialists [Member] | Trade Name [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 39,900 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Intangible Assets) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 79,910 | $ 24,230 |
Amortizable Intangible Assets, Accumulated Amortization | (14,116) | (9,031) |
Indefinite-lived Intangible Assets, Gross Carrying Amount | 360,295 | 288,942 |
Student Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 14,333 | 6,111 |
Amortizable Intangible Assets, Accumulated Amortization | $ (8,107) | (3,360) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 5 years | |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 42,900 | 400 |
Amortizable Intangible Assets, Accumulated Amortization | $ (1,367) | (140) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 10 years | |
Test Prep Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 808 | |
Amortizable Intangible Assets, Accumulated Amortization | (539) | |
Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 1,640 | 940 |
Amortizable Intangible Assets, Accumulated Amortization | $ (1,012) | (658) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 3 years | |
Curriculum/Software [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 8,151 | 1,922 |
Amortizable Intangible Assets, Accumulated Amortization | $ (1,635) | (1,506) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 4 years | |
Outplacement Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 3,900 | |
Amortizable Intangible Assets, Accumulated Amortization | (1,829) | |
Franchise Contracts [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 10,818 | 8,864 |
Amortizable Intangible Assets, Accumulated Amortization | $ (1,002) | (328) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 18 years | |
Proprietary Technology [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 500 | |
Amortizable Intangible Assets, Accumulated Amortization | $ (31) | |
Amortizable Intangible Assets, Weighted Average Amortization Period | 4 years | |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 1,167 | 957 |
Amortizable Intangible Assets, Accumulated Amortization | (875) | (622) |
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 110,162 | 45,566 |
Amortizable Intangible Assets, Weighted Average Amortization Period | 10 years | |
Trademarks [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 1,645 | 1,645 |
Ross Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 14,100 | 14,100 |
Intellectual Property [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 13,940 | 13,940 |
Chamberlain Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 1,200 | 1,200 |
Carrington Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 20,200 | 67,200 |
Devry Brasil Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 99,048 | 45,291 |
AUC Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 100,000 | 100,000 |
Clinical Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 401 | 328 |
Amortizable Intangible Assets, Accumulated Amortization | $ (87) | $ (49) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 15 years |
INTANGIBLE ASSETS (Estimated Am
INTANGIBLE ASSETS (Estimated Amortization Expense for Amortized Intangible Assets) (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Intangible Assets [Line Items] | |
2,017 | $ 12,186 |
2,018 | 9,782 |
2,019 | 8,681 |
2,020 | 6,200 |
2,021 | 5,373 |
Thereafter | 26,835 |
Becker [Member] | |
Intangible Assets [Line Items] | |
2,017 | 7,482 |
2,018 | 6,501 |
2,019 | 6,422 |
2,020 | 4,671 |
2,021 | 4,440 |
Thereafter | 19,686 |
Devry Brasil [Member] | |
Intangible Assets [Line Items] | |
2,017 | 4,704 |
2,018 | 3,281 |
2,019 | 2,259 |
2,020 | 1,529 |
2,021 | 933 |
Thereafter | $ 7,149 |
INTANGIBLE ASSETS (Summary of G
INTANGIBLE ASSETS (Summary of Goodwill Balances by Reporting Unit) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Intangible Assets [Line Items] | |||
Goodwill | $ 854,188 | $ 588,007 | $ 533,179 |
American University of the Caribbean School of Medicine [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 68,321 | ||
Ross University School of Medicine and Ross University School of Veterinary Medicine [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 237,173 | ||
Chamberlain College Of Nursing [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 4,716 | ||
DeVry Brasil [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 215,140 | ||
Becker Professional Education [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 306,642 | ||
DeVry University [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | $ 22,196 |
INTANGIBLE ASSETS (Summary of53
INTANGIBLE ASSETS (Summary of Goodwill Balances by Reporting Segment) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 |
Intangible Assets [Line Items] | |||
Goodwill | $ 854,188 | $ 588,007 | $ 533,179 |
Medical And Healthcare [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 310,210 | ||
International And Professional Education [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | 521,782 | ||
Business Technology And Management [Member] | |||
Intangible Assets [Line Items] | |||
Goodwill | $ 22,196 |
INTANGIBLE ASSETS (Changes in C
INTANGIBLE ASSETS (Changes in Carrying Amount of Goodwill, by Segment) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Line Items] | ||||
Goodwill beginning balance | $ 588,007 | $ 552,329 | $ 533,179 | $ 519,879 |
Purchase Accounting Adjustment | (4,481) | 4,575 | ||
Acquisitions | 274,672 | 116,007 | 55,915 | |
Impairments | (98,784) | |||
Foreign currency exchange rate changes | (4,010) | (19,150) | 33,030 | (23,465) |
Goodwill ending balance | 854,188 | 533,179 | 588,007 | 552,329 |
Medical And Healthcare [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 495,927 | 495,927 | 495,927 | 495,927 |
Purchase Accounting Adjustment | 0 | 0 | ||
Acquisitions | 0 | 0 | 0 | |
Impairments | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | 0 | 0 |
Goodwill ending balance | 495,927 | 495,927 | 495,927 | 495,927 |
Accumulated Impairment Losses beginning balance | (185,717) | (86,933) | (86,933) | (86,933) |
Purchase Accounting Adjustment | 0 | 0 | ||
Acquisitions | 0 | 0 | 0 | |
Impairments | (98,784) | |||
Foreign currency exchange rate changes | 0 | 0 | 0 | 0 |
Accumulated Impairment Losses ending balance | (185,717) | (86,933) | (185,717) | (86,933) |
International And Professional Education [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 255,601 | 121,139 | 101,989 | 88,689 |
Purchase Accounting Adjustment | (4,481) | 4,575 | ||
Acquisitions | 274,672 | 116,007 | 55,915 | |
Impairments | 0 | |||
Foreign currency exchange rate changes | (4,010) | (19,150) | 33,030 | (23,465) |
Goodwill ending balance | 521,782 | 101,989 | 255,601 | 121,139 |
Business Technology And Management [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill beginning balance | 22,196 | 22,196 | 22,196 | 22,196 |
Purchase Accounting Adjustment | 0 | 0 | ||
Acquisitions | 0 | 0 | 0 | |
Impairments | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | 0 | 0 |
Goodwill ending balance | $ 22,196 | $ 22,196 | $ 22,196 | $ 22,196 |
INTANGIBLE ASSETS (Summary of I
INTANGIBLE ASSETS (Summary of Indefinite-Lived Intangible Assets Balances by Reporting Unit) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 360,295 | $ 288,942 |
Medical and Healthcare | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 157,700 | |
International and Professional Education | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 200,950 | |
Business, Technology and Management | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 1,645 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
May 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Intangible Assets [Line Items] | ||||||
Amortization of Intangible Assets | $ 3,300 | $ 1,200 | ||||
Indefinite-lived Intangible Assets, Period Increase (Decrease) | 38,100 | |||||
Goodwill | 854,188 | $ 588,007 | 533,179 | $ 588,007 | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 426,089 | 342,856 | $ 304,141 | 342,856 | ||
Percentage Of Intangible Assets Including Goodwill | 55.00% | |||||
Goodwill, Acquired During Period | $ 274,672 | $ 116,007 | $ 55,915 | |||
Devry University [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Fair Value In Excess Of Carrying Value Percentage | 6.00% | |||||
Goodwill | $ 22,196 | |||||
Percentage of Decline In Revenue | 24.20% | |||||
Potential Impairment Of Goodwill And Intangible Assets | $ 23,800 | |||||
Percentage Of Cost Savings On Revenue Decline | 90.00% | |||||
Carrington [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Potential Impairment Of Goodwill And Intangible Assets | 20,200 | |||||
Carrington [Member] | Title Four Eligibility And Accreditations [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Goodwill and Intangible Asset Impairment, Total | $ 48,200 | |||||
Association Of Certified Anti-Money Laundering Specialists [Member] | ||||||
Intangible Assets [Line Items] | ||||||
Indefinite-lived Intangible Assets Acquired | 39,900 | |||||
Goodwill, Acquired During Period | $ 274,700 |
RESTRUCTURING CHARGES (Separati
RESTRUCTURING CHARGES (Separation and Restructuring Plan Activity) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | $ 48.2 | $ 27 |
Increase in liability (separation and other charges) | 4.1 | 67.5 |
Reduction in liability (payments and adjustments) | (11.9) | (46.3) |
Liability ending balance | $ 40.4 | $ 48.2 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Number of Positions Eliminated | 104 | |
Restructuring Charges, Total | $ 5,047 | $ 24,073 |
Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 5,300 | |
Real Estate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges, Total | 5,000 | 18,800 |
Business, Technology and Management | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges, Total | 1,700 | 23,700 |
Medical and Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges, Total | 1,300 | $ 400 |
DeVry Home Office [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges, Total | 2,000 | |
DeVry Group | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Noncurrent | 23,300 | |
Restructuring Reserve, Current | $ 17,100 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Contingency [Line Items] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 918 | $ 797 |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.50% | 10.90% |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2016 | Oct. 11, 2016 | Sep. 30, 2015 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 550 | ||
Letters of Credit Outstanding, Amount | $ 0.1 | $ 0.1 | |
Line Of Credit Facility Unused Capacity Commitment Fee Percentage | 0.35% | ||
Line of Credit Facility, Current Borrowing Capacity | $ 400 | ||
Letter of Credit Annual Fee Percentage | 2.00% | ||
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | ||
Foreign Currency Borrowing Capacity | $ 200 | ||
Line of Credit Facility, Initiation Date | Mar. 31, 2015 | ||
Long-term Line of Credit | $ 130 | ||
Debt, Weighted Average Interest Rate | 2.53% | ||
Revolving Credit Facility | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 1.00% | ||
Revolving Credit Facility | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 2.00% | ||
Revolving Credit Facility | Prime Rate | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 2.00% | ||
Revolving Credit Facility | Prime Rate | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Interest Rate During Period | 3.00% | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50 | ||
Letter Of Credit Title IV Disbursement, Amount | $ 68.4 | ||
Letter of Credit | Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - Letter of Credit $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Letter Of Credit Title IV Percentage | 10.00% |
Letter Of Credit Title IV Disbursement, Amount | $ 68.4 |
Letter Of Credit Provisional Certification Term | 5 years |
SEGMENT INFORMATION (Tabulation
SEGMENT INFORMATION (Tabulation of Business Segment Information Based on Current Segmentation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | $ 449,892 | $ 441,413 | |
Total Consolidated Operating Income | 33,107 | 8,247 | |
Interest Income | 1,058 | 127 | |
Interest Expense | (2,115) | (2,326) | |
Net Interest Expense | (1,057) | (2,199) | |
Total Consolidated Income Before Income Taxes | 32,050 | 6,048 | |
Total Consolidated Assets | 2,324,356 | 2,106,609 | $ 2,096,996 |
Total Consolidated Additions to Long-lived Assets | 375,022 | 22,753 | |
Total Consolidated Depreciation | 17,476 | 19,677 | |
Total Consolidated Amortization | 3,300 | 1,200 | |
Reconciliation to Consolidated Financial Statements [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital Expenditures | 11,318 | 22,753 | |
Increase in Capital Assets from Acquisitions | 4,913 | 0 | |
Increase in Intangible Assets and Goodwill | 358,791 | 0 | |
Total Consolidated Additions to Long-lived Assets | 375,022 | 22,753 | |
Medical and Healthcare | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 236,754 | 223,984 | |
Total Consolidated Operating Income | 41,842 | 34,252 | |
Total Consolidated Assets | 961,809 | 1,231,104 | |
Total Consolidated Additions to Long-lived Assets | 4,510 | 10,668 | |
Total Consolidated Depreciation | 7,669 | 7,934 | |
Total Consolidated Amortization | 0 | 60 | |
International and Professional Education | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 92,970 | 58,673 | |
Total Consolidated Operating Income | 4,081 | 2,038 | |
Total Consolidated Assets | 1,037,249 | 337,036 | |
Total Consolidated Additions to Long-lived Assets | 368,495 | 5,661 | |
Total Consolidated Depreciation | 2,108 | 1,434 | |
Total Consolidated Amortization | 3,263 | 1,112 | |
Business, Technology and Management | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 120,890 | 159,466 | |
Total Consolidated Operating Income | (7,985) | (25,249) | |
Total Consolidated Assets | 244,279 | 471,571 | |
Total Consolidated Additions to Long-lived Assets | 790 | 3,183 | |
Total Consolidated Depreciation | 4,763 | 7,309 | |
Intersegment Revenue and Other | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | (722) | (710) | |
Home Office And Other | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Operating Income | (4,831) | (2,794) | |
Total Consolidated Assets | 81,019 | 66,898 | |
Total Consolidated Additions to Long-lived Assets | 1,227 | 3,241 | |
Total Consolidated Depreciation | $ 2,936 | $ 3,000 |
SEGMENT INFORMATION (Revenues a
SEGMENT INFORMATION (Revenues and Long-Lived Assets by Geographic Area) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | $ 449,892 | $ 441,413 |
Total Consolidated Long-lived Assets | 588,384 | 581,308 |
Domestic Operations | ||
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | 302,046 | 323,998 |
Total Consolidated Long-lived Assets | 284,961 | 347,188 |
Dominica and St. Kitts, St. Maarten | ||
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | 88,304 | 82,849 |
Total Consolidated Long-lived Assets | 189,235 | 184,731 |
Brazil | ||
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | 58,240 | 33,252 |
Total Consolidated Long-lived Assets | 110,772 | 49,322 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | 1,302 | 1,314 |
Total Consolidated Long-lived Assets | 3,416 | 67 |
International Operations | ||
Segment Reporting Information [Line Items] | ||
Total Consolidated Revenue from Unaffiliated Customers | 147,846 | 117,415 |
Total Consolidated Long-lived Assets | $ 303,423 | $ 234,120 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) - Sales Revenue, Net | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Concentration Risk, Benchmark Description | less than 5% | less than 5% |
Entity Wide Revenue Major Customers | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% |