Goodwill and Intangibles
 9 Months Ended
May 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles
Goodwill and Intangibles
The following details changes in our goodwill by reportable segment during the nine months ended May 31, 2016:
($ in thousands)
University of
Phoenix
 
Apollo
Global
 
Other
 
Total
Goodwill as of August 31, 2015
$
71,812

 
$
142,599

 
$
32,779

 
$
247,190

Career Partner acquisition
—

 
92,840

 
—

 
92,840

Impairments
(71,812
)
 
—

 
(1,581
)
 
(73,393
)
Currency translation adjustment
—

 
(872
)
 
—

 
(872
)
Goodwill as of May 31, 2016
$
—

 
$
234,567

 
$
31,198

 
$
265,765


Intangibles consist of the following as of the respective period ends:
 
May 31, 2016
 
August 31, 2015
($ in thousands)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Effect of
Foreign
Currency
Translation
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Effect of
Foreign
Currency
Translation
 
Net
Carrying
Amount
Curriculum(1)
$
22,238

 
$
(9,645
)
 
$
(2,349
)
 
$
10,244

 
$
19,715

 
$
(7,361
)
 
$
(2,470
)
 
$
9,884

Accreditations and designations
21,628

 
(9,648
)
 
(3,024
)
 
8,956

 
21,628

 
(6,972
)
 
(3,153
)
 
11,503

Trademarks
21,019

 
(4,274
)
 
(2,910
)
 
13,835

 
21,019

 
(2,942
)
 
(3,034
)
 
15,043

Student and customer relationships(1)
14,534

 
(4,910
)
 
(1,864
)
 
7,760

 
5,517

 
(2,632
)
 
(1,975
)
 
910

Other
3,577

 
(752
)
 
(662
)
 
2,163

 
3,746

 
(597
)
 
(633
)
 
2,516

Total finite-lived intangibles
82,996

 
(29,229
)
 
(10,809
)
 
42,958

 
71,625

 
(20,504
)
 
(11,265
)
 
39,856

Trademarks(1)
132,106

 
—

 
(14,067
)
 
118,039

 
101,637

 
—

 
(9,906
)
 
91,731

Accreditations and designations(1)
42,418

 
—

 
(2,659
)
 
39,759

 
14,470

 
—

 
(2,813
)
 
11,657

Total indefinite-lived intangibles
174,524

 
—

 
(16,726
)
 
157,798

 
116,107

 
—

 
(12,719
)
 
103,388

Total intangible assets, net
$
257,520

 
$
(29,229
)
 
$
(27,535
)
 
$
200,756

 
$
187,732

 
$
(20,504
)
 
$
(23,984
)
 
$
143,244

(1) We acquired certain intangibles during fiscal year 2016 as a result of our acquisition of Career Partner. Refer to Note 4, Acquisitions.
The estimated future amortization expense of our finite-lived intangibles as of May 31, 2016 is as follows:
($ in thousands)
Remainder of 2016
 
2017
 
2018
 
2019
 
2020
 
2021
 
Thereafter
 
Total
Estimated future amortization expense(1)
$
3,831

 
$
14,074

 
$
10,103

 
$
4,937

 
$
3,041

 
$
2,127

 
$
4,845

 
$
42,958

(1) Estimated future amortization expense may vary as acquisitions and dispositions occur in the future and as a result of foreign currency translation adjustments.
Goodwill Impairments
Our market capitalization declined significantly during the first quarter of fiscal year 2016 after we reported our fourth quarter fiscal year 2015 results and our business outlook for fiscal year 2016. We believe the decline in the first quarter of fiscal year 2016 was attributable to University of Phoenix’s lower enrollment, increasing risk associated with the proprietary education sector, and uncertainty associated with its strategy to transform into a more focused, higher retaining and less complex institution. Additionally, initiatives associated with the University’s new strategy have accelerated the enrollment decline at the University and negatively impacted its cash flows in the short-term. Based on the decline in market capitalization, we performed an interim goodwill impairment analysis for University of Phoenix in the first quarter of fiscal year 2016.
University of Phoenix represents the substantial majority of our consolidated operating results and, as discussed above, we believe our market capitalization decline in the first quarter of fiscal year 2016 was attributable to the University. Accordingly, we estimated the fair value of our University of Phoenix reporting unit using a market-based valuation approach, which incorporated assumptions that we believe would be a reasonable market participant’s view of the increased risk and uncertainty associated with the University and its expected future cash flows. The market-based approach included multiples derived from comparable companies with consideration of the University’s current operating trends and transformational strategy in relation to the other companies. Our interim step one goodwill impairment analysis resulted in a lower estimated fair value for University of Phoenix compared to its carrying value. Based on the University’s estimated fair value and a hypothetical purchase price allocation, we determined the University had no implied goodwill. Accordingly, we recorded a $71.8 million impairment charge in the first quarter of fiscal year 2016 representing the University’s entire goodwill balance. We did not record an income tax benefit associated with this charge as the University’s goodwill is not deductible for tax purposes.
During the first quarter of fiscal year 2016, we also recorded a $1.6 million goodwill impairment charge representing the entire goodwill balance for our Western International University reporting unit. Western International University operates in the same sector of the U.S. proprietary education industry as University of Phoenix.
The majority of our other reporting units have annual goodwill impairment test dates during our fourth fiscal quarter, and we have not recorded any goodwill impairments for our other reporting units during fiscal year 2016. As part of our goodwill impairment evaluations in fiscal year 2016, we compared the sum of the estimated fair values of our reporting units to our market capitalization, plus an assumed control premium to acquire a controlling interest in Apollo. We considered the purchase price associated with our pending merger in estimating an assumed control premium. Based on our evaluation, the fair values of our reporting units were reasonable in relation to our market capitalization. However, we may be required to record additional goodwill impairment charges in the future if our critical assumptions deteriorate or our market capitalization declines further.