Investments	9 Months Ended
Mar. 31, 2017
Investments
Investments	11. Investments Investment in Web International Education Group, Ltd. In January 2011, the Company invested $10.0 million to obtain a 20% minority interest in Web International Group, Ltd. (“Web”), a provider of English language learning centers in cities throughout China. From January 2011 through May 2013, the Company recorded its investment in Web as an available for sale debt security because of the ability to put the investment to other Web shareholders in return for the original $10.0 million investment plus interest. The Company’s option to purchase no less than 51% of Web expired on March 31, 2013 and on May 6, 2013, the Company exercised its right to put its investment back to Web for return of its original $10.0 million investment plus interest of 8%, which Web was contractually required to pay by May 31, 2014, as amended. The Company reclassified this $10.0 million investment, recording it in other current assets. The Company accrued interest up through December 31, 2014. Given the difficulties in expatriating money from China, the Company discontinued the accrual of interest and wrote off the interest accrued during fiscal year 2015. At March 31, 2017, the Web investment of $10.0 million was included in other current assets. The Company and Web have continued negotiations to determine an appropriate mechanism to pay the total outstanding principal. During the three and nine months ended March 31, 2017 and 2016, the Company has not recorded any interest income associated with Web. Investment in School Mortgage On September 11, 2013, the Company issued a mortgage note (“Mortgage”) lending $2.1 million to a managed school partner (“Partner”). The note bore interest at a fixed rate of 5.25% per year with a five year maturity and it was secured by the underlying property. During fiscal year 2016, the borrower defaulted on the loan payment and in March 2017 the Company received the deed of ownership to the property. At March 31, 2017, the Company decided to dispose of the property and classified it as an asset held for sale, which was included in other current assets on the condensed consolidated balance sheet. During the three months ended March 31, 2017, management approved a plan to sell, and began actively marketing the property. As of March 31, 2017, the Company reduced the property’s estimated carrying value to $1.2 million, resulting in an impairment loss of $0.6 million, which is included in selling, administrative and other operating expenses on the condensed consolidated statements of operations.

Investments

9 Months Ended

Mar. 31, 2017

11. Investments

Investment in Web International Education Group, Ltd.

In January 2011, the Company invested $10.0 million to obtain a 20% minority interest in Web International Group, Ltd. (“Web”), a provider of English language learning centers in cities throughout China. From January 2011 through May 2013, the Company recorded its investment in Web as an available for sale debt security because of the ability to put the investment to other Web shareholders in return for the original $10.0 million investment plus interest. The Company’s option to purchase no less than 51% of Web expired on March 31, 2013 and on May 6, 2013, the Company exercised its right to put its investment back to Web for return of its original $10.0 million investment plus interest of 8%, which Web was contractually required to pay by May 31, 2014, as amended. The Company reclassified this $10.0 million investment, recording it in other current assets.

The Company accrued interest up through December 31, 2014. Given the difficulties in expatriating money from China, the Company discontinued the accrual of interest and wrote off the interest accrued during fiscal year 2015. At March 31, 2017, the Web investment of $10.0 million was included in other current assets. The Company and Web have continued negotiations to determine an appropriate mechanism to pay the total outstanding principal.

During the three and nine months ended March 31, 2017 and 2016, the Company has not recorded any interest income associated with Web.

Investment in School Mortgage

On September 11, 2013, the Company issued a mortgage note (“Mortgage”) lending $2.1 million to a managed school partner (“Partner”). The note bore interest at a fixed rate of 5.25% per year with a five year maturity and it was secured by the underlying property. During fiscal year 2016, the borrower defaulted on the loan payment and in March 2017 the Company received the deed of ownership to the property.

At March 31, 2017, the Company decided to dispose of the property and classified it as an asset held for sale, which was included in other current assets on the condensed consolidated balance sheet. During the three months ended March 31, 2017, management approved a plan to sell, and began actively marketing the property. As of March 31, 2017, the Company reduced the property’s estimated carrying value to $1.2 million, resulting in an impairment loss of $0.6 million, which is included in selling, administrative and other operating expenses on the condensed consolidated statements of operations.