GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2011

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

3. GOODWILL AND OTHER INTANGIBLE ASSETS

The Company reviews intangible assets for impairment when indicators of impairment exist. Annually, or more frequently if necessary, the Company evaluates goodwill for impairment, with any resulting impairment reflected as an operating expense. The Company concluded that the decrease in the Company's market capitalization as of September 30, 2011 was a triggering event and, accordingly, the Company tested goodwill and indefinite lived intangibles for impairment. The tests indicated that five of the Company's reporting units were impaired, which resulted in an expense of $9.4 million in the third quarter of 2011. In addition, the Company recorded an impairment charge of $1.0 million in the third quarter of 2011 related to a regional accreditation indefinite intangible asset that is no longer being utilized.

The carrying amount of goodwill at September 30, 2011 is as follows:

Balance as of January 1, 2011
Goodwill	$	115,303
Accumulated impairment losses		(8,594	)
		106,709

Goodwill impairment		(9,338	)
Balance as of September 30, 2011
Goodwill		115,303
Accumulated impairment losses		(17,932	)
	$	97,371

Intangible assets, which are included in other assets in the accompanying condensed consolidated balance sheets, consist of the following:

	Student Contracts			Indefinite Trade Name			Trade Name			Accreditation			Curriculum		Non-compete			Total
Gross carrying amount at December 31, 2010	$	4,827		$	660		$	839		$	2,307		$	1,150	$	2,181		$	11,964
Reclassification (1)		-			(480	)		480			-			-		-			-
Write-off (2)		(4,827	)		-			(810	)		-			-		(201	)		(5,838	)
Impairment (3)		-			-			-			(1,039	)		-		-			(1,039	)
Gross carrying amount at September 30, 2011		-			180			509			1,268			1,150		1,980			5,087

Accumulated amortization at December 31, 2010		4,824			-			503			-			505		1,478			7,310
Amortization		3			-			547			-			86		516			1,152
Write-off (2)		(4,827	)		-			(810	)		-			-		(206	)		(5,843	)
Accumulated amortization at September 30, 2011		-			-			240			-			591		1,788			2,619

Net carrying amount at September 30, 2011	$	-		$	180		$	269		$	1,268		$	559	$	192		$	2,468

Weighted average amortization period (years)				Indefinite				6		Indefinite				10		3

(1) Reclassification due to the Company's plan to rebrand one of its institutions.

(2) The Company wrote-off the value of fully depreciated assets not in service.

(3) The impairment relates to regional accreditation indefinite intangible asset that is no longer being utilitized.

Amortization of intangible assets was approximately $0.7 million and $0.5 million for the three months ended September 30, 2011 and 2010, respectively, and approximately $1.2 million and $2.0 million for the nine months ended September 30, 2011 and 2010, respectively.

The following table summarizes the estimated future amortization expense:

Year Ending December 31,
Remainder of 2011	$	216
2012		232
2013		181
2014		160
2015		91
Thereafter		140

	$	1,020

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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