Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 04, 2023 | Dec. 31, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-13988 | ||
Entity Registrant Name | Adtalem Global Education Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-3150143 | ||
Entity Address, Address Line One | 500 West Monroe Street | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60661 | ||
City Area Code | 312 | ||
Local Phone Number | 651-1400 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,579,836,762 | ||
Entity Common Stock, Shares Outstanding | 41,543,730 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0000730464 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | Chicago, Illinois | ||
New York Stock Exchange | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | ATGE | ||
Security Exchange Name | NYSE | ||
NYSE Chicago | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, $0.01 par value per share | ||
Trading Symbol | ATGE | ||
Security Exchange Name | CHX |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 273,689 | $ 346,973 |
Restricted cash | 1,386 | 964 |
Accounts receivable, net | 102,749 | 81,635 |
Prepaid expenses and other current assets | 100,715 | 127,532 |
Total current assets | 478,539 | 557,104 |
Noncurrent assets: | ||
Property and equipment, net | 258,522 | 289,926 |
Operating lease assets | 174,677 | 177,995 |
Deferred income taxes | 56,694 | 51,093 |
Intangible assets, net | 812,338 | 873,577 |
Goodwill | 961,262 | 961,262 |
Other assets, net | 68,509 | 119,283 |
Total noncurrent assets | 2,332,002 | 2,473,136 |
Total assets | 2,810,541 | 3,030,240 |
Current liabilities: | ||
Accounts payable | 81,812 | 57,140 |
Accrued payroll and benefits | 52,041 | 67,792 |
Accrued liabilities | 105,806 | 98,124 |
Deferred revenue | 153,871 | 149,810 |
Current operating lease liabilities | 37,673 | 50,781 |
Total current liabilities | 431,203 | 423,647 |
Noncurrent liabilities: | ||
Long-term debt | 695,077 | 838,908 |
Long-term operating lease liabilities | 163,441 | 177,045 |
Deferred income taxes | 26,068 | 25,554 |
Other liabilities | 37,416 | 73,700 |
Total noncurrent liabilities | 922,002 | 1,115,207 |
Total liabilities | 1,353,205 | 1,538,854 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.01 par value per share, 200,000 shares authorized; 42,310 and 45,177 shares outstanding as of June 30, 2023 and June 30, 2022, respectively | 822 | 818 |
Additional paid-in capital | 568,761 | 521,848 |
Retained earnings | 2,403,750 | 2,310,396 |
Accumulated other comprehensive loss | (2,227) | (2,227) |
Treasury stock, at cost, 39,922 and 36,619 shares as of June 30, 2023 and June 30, 2022, respectively | (1,513,770) | (1,339,449) |
Total shareholders' equity | 1,457,336 | 1,491,386 |
Total liabilities and shareholders' equity | $ 2,810,541 | $ 3,030,240 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000 | 200,000 |
Common Stock, Shares Outstanding | 42,310 | 45,177 |
Treasury Stock, Shares | 39,922 | 36,619 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 1,450,826 | $ 1,381,842 | $ 899,248 |
Operating cost and expense: | |||
Cost of educational services | 648,486 | 659,776 | 457,905 |
Student services and administrative expense | 586,009 | 566,494 | 292,482 |
Restructuring expense | 18,817 | 25,628 | 6,869 |
Business acquisition and integration expense | 42,661 | 53,198 | 31,593 |
Gain on sale of assets | (13,317) | 0 | 0 |
Total operating cost and expense | 1,282,656 | 1,305,096 | 788,849 |
Operating income | 168,170 | 76,746 | 110,399 |
Other income (expense): | |||
Interest expense | (63,100) | (129,348) | (41,365) |
Other income, net | 6,965 | 1,108 | 6,732 |
Income (loss) from continuing operations before income taxes | 112,035 | (51,494) | 75,766 |
(Provision for) benefit from income taxes | (10,283) | 15,539 | (12,318) |
Income (loss) from continuing operations | 101,752 | (35,955) | 63,448 |
Discontinued operations: | |||
(Loss) income from discontinued operations before income taxes | (8,464) | (986) | 9,307 |
(Loss) gain on disposal of discontinued operations before income taxes | (3,576) | 473,483 | 0 |
Benefit from (provision for) income taxes | 3,646 | (125,551) | (3,162) |
(Loss) income from discontinued operations | (8,394) | 346,946 | 6,145 |
Net income | 93,358 | 310,991 | 69,593 |
Net loss attributable to redeemable noncontrolling interest from discontinued operations | 0 | 0 | 434 |
Net Income (Loss) | 93,358 | 310,991 | 70,027 |
Amounts attributable to Adtalem: | |||
Continuing operations | 101,752 | (35,955) | 63,448 |
Net (loss) income from discontinued operations | (8,394) | 346,946 | 6,579 |
Net Income (Loss) | $ 93,358 | $ 310,991 | $ 70,027 |
Basic: | |||
Continuing operations | $ 2.27 | $ (0.74) | $ 1.24 |
Discontinued operations | (0.19) | 7.17 | 0.13 |
Total basic earnings per share | 2.08 | 6.43 | 1.36 |
Diluted: | |||
Continuing operations | 2.23 | (0.74) | 1.23 |
Discontinued operations | (0.18) | 7.17 | 0.13 |
Total diluted earnings per share | $ 2.05 | $ 6.43 | $ 1.36 |
Weighted-average shares outstanding: | |||
Basic shares | 44,781 | 48,388 | 51,322 |
Diluted shares | 45,600 | 48,388 | 51,645 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||
Net income | $ 93,358 | $ 310,991 | $ 69,593 |
Other comprehensive income (loss), net of tax: | |||
Gain on foreign currency translation adjustments | 0 | 0 | 713 |
Unrealized loss on available-for-sale marketable securities | 0 | 0 | (57) |
Unrealized gain on interest rate swap | 0 | 0 | 1,160 |
Comprehensive income before reclassification | 93,358 | 310,991 | 71,409 |
Reclassification adjustment for gain on available-for-sale marketable securities | 0 | 0 | (126) |
Reclassification adjustment for realized loss on foreign currency translation adjustments | 0 | 296 | 0 |
Reclassification adjustment for loss on interest rate swap | 0 | 6,695 | 0 |
Comprehensive income | 93,358 | 317,982 | 71,283 |
Comprehensive loss attributable to redeemable noncontrolling interest from discontinued operations | 0 | 0 | 434 |
Comprehensive income attributable to Adtalem | $ 93,358 | $ 317,982 | $ 71,717 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Operating activities: | |||
Net income | $ 93,358,000 | $ 310,991,000 | $ 69,593,000 |
Loss (income) from discontinued operations | 8,394,000 | (346,946,000) | (6,145,000) |
Income (loss) from continuing operations | 101,752,000 | (35,955,000) | 63,448,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 14,299,000 | 22,611,000 | 12,824,000 |
Amortization and impairments to operating lease assets | 48,470,000 | 44,748,000 | 50,651,000 |
Depreciation | 41,575,000 | 44,574,000 | 33,888,000 |
Amortization of intangible assets | 61,239,000 | 97,274,000 | 0 |
Amortization and write-off of debt discount and issuance costs | 9,129,000 | 42,654,000 | 2,657,000 |
Reclassification adjustment from other comprehensive income | 0 | 0 | (126,000) |
Provision for bad debts | 32,999,000 | 27,141,000 | 11,023,000 |
Deferred income taxes | (5,087,000) | (544,000) | 62,000 |
Loss on disposals, accelerated depreciation, and impairments to property and equipment | 3,999,000 | 3,501,000 | 1,912,000 |
Gain on extinguishment of debt | (71,000) | (2,072,000) | 0 |
Loss (gain) on investments | 3,689,000 | 3,271,000 | (2,638,000) |
Gain on sale of assets | (13,317,000) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (37,614,000) | (29,881,000) | 15,443,000 |
Prepaid expenses and other current assets | 9,324,000 | (2,827,000) | (17,969,000) |
Accounts payable | 21,666,000 | (15,724,000) | 5,666,000 |
Accrued payroll and benefits | (15,683,000) | (12,118,000) | 12,552,000 |
Accrued liabilities | 241,000 | (16,305,000) | 29,312,000 |
Deferred revenue | 5,807,000 | 70,355,000 | 12,965,000 |
Operating lease liabilities | (59,188,000) | (49,147,000) | (48,588,000) |
Other assets and liabilities | (17,545,000) | (27,554,000) | (14,322,000) |
Net cash provided by operating activities-continuing operations | 205,684,000 | 164,002,000 | 168,760,000 |
Net cash (used in) provided by operating activities-discontinued operations | (2,776,000) | (153,401,000) | 23,439,000 |
Net cash provided by operating activities | 202,908,000 | 10,601,000 | 192,199,000 |
Investing activities: | |||
Capital expenditures | (37,008,000) | (31,054,000) | (39,881,000) |
Proceeds from sales of marketable securities | 7,635,000 | 3,447,000 | 2,721,000 |
Purchases of marketable securities | (1,508,000) | (3,624,000) | (10,745,000) |
Proceeds from note receivable related to property sold | 46,800,000 | 0 | 0 |
Payment for purchase of business, net of cash and restricted cash acquired | 0 | (1,488,054,000) | 0 |
Net cash provided by (used in) investing activities-continuing operations | 15,919,000 | (1,509,285,000) | (47,905,000) |
Net cash used in investing activities-discontinued operations | 0 | (3,287,000) | (8,783,000) |
Proceeds from sale of business, net of cash transferred | 0 | 960,768,000 | 0 |
Payment for working capital adjustment for sale of business | (3,174,000) | 0 | 0 |
Net cash provided by (used in) investing activities | 12,745,000 | (551,804,000) | (56,688,000) |
Financing activities: | |||
Proceeds from exercise of stock options | 2,625,000 | 8,879,000 | 1,457,000 |
Employee taxes paid on withholding shares | (4,592,000) | (2,834,000) | (4,206,000) |
Proceeds from stock issued under Colleague Stock Purchase Plan | 608,000 | 535,000 | 262,000 |
Repurchases of common stock for treasury | (123,133,000) | (120,000,000) | (100,000,000) |
Payment on equity forward contract | (13,162,000) | (30,000,000) | 0 |
Proceeds from long-term debt | 0 | 850,000,000 | 800,000,000 |
Repayments of long-term debt | (150,861,000) | (1,079,713,000) | (3,000,000) |
Payment of debt discount and issuance costs | 0 | (49,553,000) | (18,047,000) |
Payment for purchase of redeemable noncontrolling interest of subsidiary | 0 | (1,790,000) | 0 |
Net cash (used in) provided by financing activities | (288,515,000) | (424,476,000) | 676,466,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 534,000 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (72,862,000) | (965,679,000) | 812,511,000 |
Cash, cash equivalents and restricted cash at beginning of period | 347,937,000 | 1,313,616,000 | 501,105,000 |
Cash, cash equivalents and restricted cash at end of period | 275,075,000 | 347,937,000 | 1,313,616,000 |
Less: cash, cash equivalents and restricted cash of discontinued operations at end of period | 0 | 0 | 18,236,000 |
Cash, cash equivalents and restricted cash of continuing operations at end of period | 275,075,000 | 347,937,000 | 1,295,380,000 |
Supplemental cash flow disclosure: | |||
Interest paid | 53,126,000 | 107,093,000 | 14,429,000 |
Income taxes paid, net | 12,312,000 | 94,355,000 | 26,431,000 |
Non-cash investing and financing activities: | |||
Accrued capital expenditures | 8,203,000 | 4,321,000 | 3,380,000 |
Accrued liability for repurchases of common stock | 2,995,000 | 0 | 0 |
Accrued excise tax on share repurchases | 1,126,000 | 0 | 0 |
Settlement of financing liability with assets | 38,606,000 | 0 | 0 |
Decrease in redemption value of redeemable noncontrolling interest put option | 0 | 0 | (628,000) |
DeVry University | |||
Investing activities: | |||
Proceeds from note receivable related to property sold | $ 0 | $ 10,000,000 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock, Common | Total |
Balance at the beginning of period at Jun. 30, 2020 | $ 807 | $ 504,434 | $ 1,928,750 | $ (10,908) | $ (1,113,333) | $ 1,309,750 |
Balance at the beginning of period (in shares) at Jun. 30, 2020 | 80,665,000 | 28,794,000 | ||||
Net Income (Loss) | 70,027 | 70,027 | ||||
Other comprehensive income, net of tax | 1,816 | 1,816 | ||||
Reclassification adjustment for gain on available-for-sale marketable securities | (126) | (126) | ||||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 0 | |||||
Reclassification adjustment for loss on interest rate swap | 0 | |||||
Change in redeemable noncontrolling interest put option | 628 | 628 | ||||
Stock-based compensation | 13,880 | 13,880 | ||||
Net activity from stock-based compensation awards | $ 4 | 1,561 | $ (4,314) | (2,749) | ||
Net activity from stock-based compensation awards (in shares) | 434,000 | 131,000 | ||||
Proceeds from stock issued under Colleague Stock Purchase Plan | (49) | $ 340 | $ 291 | |||
Proceeds from stock issued under Colleague Stock Purchase Plan (in shares) | (9,000) | (8,857) | ||||
Repurchases of common stock for treasury | $ (100,000) | $ (100,000) | ||||
Repurchases of common stock for treasury (in shares) | 2,930,000 | |||||
Balance at the end of period at Jun. 30, 2021 | $ 811 | 519,826 | 1,999,405 | (9,218) | $ (1,217,307) | 1,293,517 |
Balance at the end of period (in shares) at Jun. 30, 2021 | 81,099,000 | 31,846,000 | ||||
Net Income (Loss) | 310,991 | 310,991 | ||||
Reclassification adjustment for gain on available-for-sale marketable securities | 0 | |||||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 296 | 296 | ||||
Reclassification adjustment for loss on interest rate swap | 6,695 | 6,695 | ||||
Change in redeemable noncontrolling interest put option | 0 | |||||
Stock-based compensation | 23,247 | 23,247 | ||||
Net activity from stock-based compensation awards | $ 7 | 8,872 | $ (2,834) | 6,045 | ||
Net activity from stock-based compensation awards (in shares) | 697,000 | 82,000 | ||||
Proceeds from stock issued under Colleague Stock Purchase Plan | (97) | $ 692 | $ 595 | |||
Proceeds from stock issued under Colleague Stock Purchase Plan (in shares) | (19,000) | (18,328) | ||||
Repurchases of common stock for treasury | $ (120,000) | $ (120,000) | ||||
Repurchases of common stock for treasury (in shares) | 4,710,000 | |||||
Equity forward contract | (30,000) | (30,000) | ||||
Balance at the end of period at Jun. 30, 2022 | $ 818 | 521,848 | 2,310,396 | (2,227) | $ (1,339,449) | $ 1,491,386 |
Balance at the end of period (in shares) at Jun. 30, 2022 | 81,796,000 | 36,619,000 | 45,177,000 | |||
Net Income (Loss) | 93,358 | $ 93,358 | ||||
Reclassification adjustment for gain on available-for-sale marketable securities | 0 | |||||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 0 | |||||
Reclassification adjustment for loss on interest rate swap | 0 | |||||
Change in redeemable noncontrolling interest put option | 0 | |||||
Stock-based compensation | 14,299 | 14,299 | ||||
Net activity from stock-based compensation awards | $ 4 | 2,621 | $ (4,592) | (1,967) | ||
Net activity from stock-based compensation awards (in shares) | 436,000 | 115,000 | ||||
Proceeds from stock issued under Colleague Stock Purchase Plan | (7) | (4) | $ 687 | $ 676 | ||
Proceeds from stock issued under Colleague Stock Purchase Plan (in shares) | (19,000) | (18,463) | ||||
Settlement of equity forward contract | 30,000 | $ (43,162) | $ (13,162) | |||
Repurchases of common stock for treasury | $ (127,254) | (127,254) | ||||
Repurchases of common stock for treasury (in shares) | 3,207,000 | |||||
Balance at the end of period at Jun. 30, 2023 | $ 822 | $ 568,761 | $ 2,403,750 | $ (2,227) | $ (1,513,770) | $ 1,457,336 |
Balance at the end of period (in shares) at Jun. 30, 2023 | 82,232,000 | 39,922,000 | 42,310,000 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 1. Nature of Operations In this Annual Report on Form 10-K, Adtalem Global Education Inc., together with its subsidiaries, is collectively referred to as “Adtalem,” “we,” “our,” “us,” or similar references. Adtalem is a national leader in post-secondary education and a leading provider of professional talent to the healthcare industry. Our schools consist of Chamberlain University (“Chamberlain”), Walden University (“Walden”), the American University of the Caribbean School of Medicine (“AUC”), Ross University School of Medicine (“RUSM”), and Ross University School of Veterinary Medicine (“RUSVM”). AUC, RUSM, and RUSVM is collectively referred to as the “medical and veterinary schools.” See Note 22 “Segment Information” for information on our reportable segments. Beginning in the second quarter of fiscal year 2022, Adtalem eliminated its Financial Services segment when the Association of Certified Anti-Money Laundering Specialists (“ACAMS”), Becker Professional Education (“Becker”), OnCourse Learning (“OCL”), and EduPristine were classified as discontinued operations and assets held for sale. In accordance with U.S. generally accepted accounting principles (“GAAP”), we have classified the ACAMS, Becker, OCL, and EduPristine entities as “Held for Sale” and “Discontinued Operations” in all periods presented as applicable. As a result, all financial results, disclosures, and discussions of continuing operations in this Annual Report on Form 10-K exclude ACAMS, Becker, OCL, and EduPristine operations, unless otherwise noted. On March 10, 2022, we completed the sale of ACAMS, Becker, and OCL and on June 17, 2022, we completed the sale of EduPristine. In addition, we continue to incur costs associated with ongoing litigation and settlements related to the DeVry University divestiture, which was completed during fiscal year 2019, and are classified as expense within discontinued operations. See Note 4 “Discontinued Operations and Assets Held for Sale” for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies For each accounting topic that is addressed in its own note, the description of the accounting policy may be found in the related note. Other significant accounting policies are described below. Principles of Consolidation The Consolidated Financial Statements include the accounts of Adtalem and its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Where our ownership interest is less than 100%, but greater than 50%, the noncontrolling ownership interest is reported on our Consolidated Balance Sheets. The noncontrolling ownership interest earnings portion is classified as “net loss attributable to redeemable noncontrolling interest from discontinued operations” in our Consolidated Statements of Income. Unless indicated, or the context requires otherwise, references to years refer to Adtalem’s fiscal years. Certain prior periods amounts have been reclassified for consistency with the current period presentation. Business acquisition and integration expense was $42.7 million, $53.2 million, and $31.6 million in fiscal year 2023, 2022, and 2021, respectively. These are transaction costs associated with acquiring Walden and costs associated with integrating Walden into Adtalem. In addition, during fiscal year 2023, we initiated transformation initiatives to accelerate growth and organizational agility. Certain costs relating to this transformation are included in business acquisition and integration costs in the Consolidated Statements of Income. 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 the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Although our current estimates contemplate current conditions, including, but not limited to, the impact of (i) the novel coronavirus (“COVID-19”) pandemic, (ii) rising interest rates, and (iii) labor and material cost increases and shortages, and how we anticipate them to change in the future, as appropriate, it is reasonably possible that actual conditions could differ from what was anticipated in those estimates, which could materially affect our results of operations and financial condition. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The carrying value of cash and cash equivalents approximate fair value. We maintain cash and cash equivalent balances that exceed federally insured limits. We have not experienced any losses on our cash and cash equivalents. Restricted Cash Restricted cash represents amounts received from 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 Adtalem’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. Property and Equipment Property and equipment is recorded at cost and is depreciated on the straight-line method. Cost includes additions and those improvements that enhance performance, increase the capacity, or lengthen the useful lives of the assets. Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing computer software applications for internal use, are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or retirement of an asset, the accounts are relieved of the cost and the related accumulated depreciation, with any resulting gain or loss included in income. Assets under construction are reflected in construction in progress until they are placed into service for their intended use. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the asset, whichever is shorter. Depreciation is computed using the straight-line method over estimated service lives. These lives range from 5 to 40 years for buildings and leasehold improvements, and from 3 to 8 years for computers, furniture, and equipment. See Note 11 “Property and Equipment, Net” for additional information. Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. Our annual testing date is May 31. We have the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is determined that the reporting unit fair value is more likely than not less than its carrying value, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the reporting unit’s fair value. If the carrying value of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized equal to the difference between the carrying value of the reporting unit and its fair value, not to exceed the carrying value of goodwill. We also have the option to perform a qualitative assessment to test indefinite-lived intangible assets for impairment by determining whether it is more likely than not that the indefinite-lived intangible assets are impaired. If it is determined that the indefinite-lived intangible asset is more likely than not impaired, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the indefinite-lived intangible assets. If the carrying value of the indefinite-lived intangible assets exceeds its fair value, an impairment loss is recognized to the extent the carrying value exceeds fair value. For intangible assets with finite lives, we evaluate for potential impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset or asset group, the amount of the impairment is the difference between the carrying amount and the fair value of the asset or asset group. Intangible assets with finite lives are amortized over their expected economic lives, ranging from 3 to 5 years. All intangible assets and certain goodwill are being amortized for tax reporting purposes over statutory lives. 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 future impairments of goodwill or intangible assets. See Note 13 “Goodwill and Intangible Assets” for additional information on our goodwill and intangible assets impairment analysis. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset or asset group, the amount of the impairment is the difference between the carrying amount and the fair value of the asset or asset group. 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. Capitalized Curriculum Development Certain costs incurred to create course and educational material for a program offering are capitalized as curriculum development assets within other assets on the Consolidated Balance Sheets. Costs are capitalized for new programs or products, or the content being developed enhances, updates, or improves current programs, curriculum, or products, so long as the cost incurred extends the useful life of the existing curriculum and course content. Costs that are capitalized include payroll and payroll-related costs for employees who spend time producing content and external vendor costs related to the project. Adtalem begins capitalizing costs during the content development phase, which includes time to develop course materials based on the requirements defined in the planning phase. Curriculum development assets are amortized using the straight-line method over the estimated useful life, which is generally three Treasury Stock Shares that are repurchased by Adtalem under its share repurchase programs are recorded as treasury stock at cost and result in a reduction in shareholders’ equity. See Note 16 “Share Repurchases” for additional information. From time to time, shares of our common stock are delivered back to Adtalem under a swap arrangement resulting from employees’ exercise of stock options pursuant to the terms of the Adtalem’s stock-based incentive plans (see Note 18 “Stock-Based Compensation”). In addition, shares of our common stock are delivered back to Adtalem for payment of withholding taxes from employees for vesting restricted stock units (“RSUs”). These shares are recorded as treasury stock at cost and result in a reduction in shareholders’ equity. Treasury shares are reissued at market value, less a 10% discount, to the Adtalem Colleague Stock Purchase Plan in exchange for employee payroll deductions. The 10% discount is considered compensatory and recorded as an expense in the Consolidated Statements of Income. When treasury shares are reissued, Adtalem uses an average cost method to reduce the treasury stock balance. Gains on the difference between the average cost and the reissuance price, less the amount recorded as expense, 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. Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income or loss attributable to Adtalem by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income or loss attributable to Adtalem by diluted weighted-average number of shares outstanding during the period. 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. Diluted EPS considers the impact of potentially dilutive securities, except in periods in which there is a loss from continuing operations, because the inclusion of the potential common shares would have an antidilutive effect. Income Taxes Adtalem accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Adtalem also recognizes future tax benefits associated with tax loss and credit carryforwards as deferred tax assets. Adtalem’s deferred tax assets are reduced by a valuation allowance, when in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Adtalem measures deferred tax assets and liabilities using enacted tax rates in effect for the year in which Adtalem expects to recover or settle the temporary differences. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. Adtalem reduces its net tax assets for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions Adtalem has taken. Restructuring Charges Restructuring charges include costs for severance and related benefits for workforce reductions, impairments on operating lease assets, and losses on disposals of property and equipment related to campus and administrative office consolidations and contract termination costs (see Note 6 “Restructuring Charges”). When estimating the costs of exiting lease space, estimates are made which could differ materially from actual results and result in additional restructuring charges or reversals in future periods. Advertising Costs Advertising costs are expensed when incurred and totaled $219.4 million, $190.7 million, and $72.7 million for the years ended June 30, 2023, 2022, and 2021, respectively. The increase in advertising costs for the year ended June 30, 2023 and 2022 was driven by the Walden acquisition during the first quarter of fiscal year 2022. Advertising costs are included in student services and administrative expense in the Consolidated Statements of Income. 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. EduPristine’s operations and Becker’s and ACAMS’s international operations were 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 exchange rates. The resulting translation adjustments are recorded as foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income. Transaction gains or losses during each of the fiscal years presented were not material. Recent Accounting Standards Recently adopted accounting standards In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08: “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The amendments require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. We adopted this guidance on July 1, 2022 and will apply the guidance to any future business combinations. Recently issued accounting standards not yet adopted In March 2022, the FASB issued ASU No. 2022-02: “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The guidance was issued as improvements to ASU No. 2016-13. The vintage disclosure changes are relevant to Adtalem and require an entity to disclose current-period gross write-offs by year of origination for financing receivables. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively. Early adoption of the amendments is permitted, including adoption in an interim period. We will implement this guidance effective July 1, 2023. The amendments will impact our disclosures but will not otherwise impact Adtalem’s Consolidated Financial Statements. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our Consolidated Financial Statements. Revision to Previously Issued Financial Statements During the third quarter of fiscal year 2023, Adtalem identified an error in its revenue recognition related to certain scholarship programs within its Medical and Veterinary segment. Certain scholarships and discounts offered within that segment provide students a discount on future tuition that constitute a material right under Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers” that should be accounted for as a separate performance obligation within a contract. Adtalem assessed the materiality of this error individually and in the aggregate with other previously identified errors to prior periods’ Consolidated Financial Statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99 “Materiality” and SAB 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” codified in ASC 250 “Accounting Changes and Error Corrections.” Adtalem concluded that the errors were not material to prior periods and therefore, amendments of previously filed reports are not required. However, Adtalem determined it was appropriate to revise its previously issued financial statements. Treating the discount on future tuition as a material right results in the deferral of revenue for a portion of tuition to future periods. In accordance with ASC 250, Adtalem corrected prior periods presented herein by revising the financial statement line item amounts previously disclosed in SEC filings in order to achieve comparability in the Consolidated Financial Statements. The impact of this revision of Adtalem’s previously reported Consolidated Financial Statements are detailed below. In connection with this revision, Adtalem also corrected other immaterial errors in the prior periods, including certain errors that had previously been adjusted for as out of period corrections in the period identified. The following table summarizes the effect of the revisions on the affected line items within the Consolidated Balance Sheets (in thousands): June 30, 2022 As reported Adjustment As revised Assets: Current assets: Prepaid expenses and other current assets $ 126,467 $ 1,065 $ 127,532 Total current assets 556,039 1,065 557,104 Total assets 3,029,175 1,065 3,030,240 Liabilities and shareholders' equity: Current liabilities: Accrued payroll and benefits 66,642 1,150 67,792 Deferred revenue 144,840 4,970 149,810 Total current liabilities 417,527 6,120 423,647 Noncurrent liabilities: Other liabilities 65,074 8,626 73,700 Total noncurrent liabilities 1,106,581 8,626 1,115,207 Total liabilities 1,524,108 14,746 1,538,854 Shareholders' equity: Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Total liabilities and shareholders' equity 3,029,175 1,065 3,030,240 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Income (in thousands, except per share data): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Revenue $ 1,387,122 $ (5,280) $ 1,381,842 $ 906,901 $ (7,653) $ 899,248 Operating cost and expense: Student services and administrative expense 568,056 (1,562) 566,494 292,482 — 292,482 Total operating cost and expense 1,306,658 (1,562) 1,305,096 788,849 — 788,849 Operating income 80,464 (3,718) 76,746 118,052 (7,653) 110,399 Other income, net 3,820 (2,712) 1,108 6,732 — 6,732 (Loss) income from continuing operations before income taxes (45,064) (6,430) (51,494) 83,419 (7,653) 75,766 Benefit from (provision for) income taxes 15,237 302 15,539 (13,089) 771 (12,318) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Discontinued operations: (Loss) income from discontinued operations before income taxes (395) (591) (986) 9,485 (178) 9,307 (Provision for) benefit from income taxes (125,556) 5 (125,551) (3,340) 178 (3,162) Income from discontinued operations 347,532 (586) 346,946 6,145 — 6,145 Net income 317,705 (6,714) 310,991 76,475 (6,882) 69,593 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Amounts attributable to Adtalem: Net (loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Net income from discontinued operations 347,532 (586) 346,946 6,579 — 6,579 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Earnings (loss) per share: Basic: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.37 $ (0.13) $ 1.24 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total basic earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.50 $ (0.14) $ 1.36 Diluted: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.36 $ (0.13) $ 1.23 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total diluted earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.49 $ (0.13) $ 1.36 To conform to current period presentation, the previously reported interest and dividend income and investment gain (loss) lines have been condensed to other income, net. The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Comprehensive Income (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Gain on foreign currency translation adjustments 59 (59) — 713 — 713 Comprehensive income before reclassification 317,764 (6,773) 310,991 78,291 (6,882) 71,409 Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 — — — Comprehensive income 324,110 (6,128) 317,982 78,165 (6,882) 71,283 Comprehensive income attributable to Adtalem 324,110 (6,128) 317,982 78,599 (6,882) 71,717 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Cash Flows (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Operating activities: Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Income from discontinued operations (347,532) 586 (346,946) (6,145) — (6,145) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Adjustments to reconcile net income to net cash provided by operating activities: Loss (gain) on investments — 3,271 3,271 (2,638) — (2,638) Changes in assets and liabilities: Prepaid expenses and other current assets 569 (3,396) (2,827) (17,198) (771) (17,969) Accrued payroll and benefits (13,268) 1,150 (12,118) 12,552 — 12,552 Deferred revenue 65,075 5,280 70,355 5,312 7,653 12,965 Net cash provided by operating activities-continuing operations 163,825 177 164,002 168,760 — 168,760 Net cash provided by operating activities 10,424 177 10,601 192,199 — 192,199 Investing activities: Proceeds from sales of marketable securities — 3,447 3,447 2,721 — 2,721 Purchases of marketable securities — (3,624) (3,624) (10,745) — (10,745) Net cash used in investing activities-continuing operations (1,509,108) (177) (1,509,285) (47,905) — (47,905) Net cash used in investing activities (551,627) (177) (551,804) (56,688) — (56,688) The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Shareholders’ Equity (in thousands): As reported Adjustment As revised June 30, 2020 Retained earnings $ 1,927,568 $ 1,182 $ 1,928,750 Accumulated other comprehensive loss (9,055) (1,853) (10,908) Total shareholders' equity 1,310,421 (671) 1,309,750 June 30, 2021 Retained earnings 2,005,105 (5,700) 1,999,405 Accumulated other comprehensive loss (7,365) (1,853) (9,218) Total shareholders' equity 1,301,070 (7,553) 1,293,517 June 30, 2022 Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Year Ended June 30, 2021 Net income attributable to Adtalem 76,909 (6,882) 70,027 Year Ended June 30, 2022 Net income attributable to Adtalem 317,705 (6,714) 310,991 Other comprehensive income, net of tax 59 (59) — Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2023 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions Walden University On August 12, 2021, Adtalem completed the acquisition of 100% of the equity interest of Walden for $1,488.1 million, net of cash and restricted cash of $83.4 million. Adtalem funded the purchase with the $800.0 million in Notes (as defined in Note 14 “Debt”), the $850.0 million Term Loan B (as defined in Note 14 “Debt”), and available cash on hand. Walden offers more than 100 online certificate, bachelor’s, master’s, and doctoral degrees. The acquisition furthers Adtalem’s growth strategy as a national leader in post-secondary education and leading provider of professional talent to the healthcare industry. The operations of Walden are included in Adtalem’s Walden reportable segment (see Note 22 “Segment Information”). The results of Walden’s operations have been included in the Consolidated Financial Statements of Adtalem since the date of acquisition, which included revenue of $485.4 million and net loss of $3.9 million from the operations of Walden in fiscal year 2022. In addition, we incurred acquisition-related costs of $22.3 million and $14.8 million in fiscal year 2022 and 2021, respectively, which were included in business acquisition and integration expense in the Consolidated Statements of Income. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): August 12, 2021 Assets acquired: Cash and cash equivalents $ 65,010 Restricted cash 18,389 Accounts receivable 22,091 Prepaid expenses and other current assets 8,819 Property and equipment 25,882 Operating lease assets 6,096 Deferred income taxes 59 Intangible assets 833,351 Goodwill 651,052 Other assets, net 21,316 Total assets acquired 1,652,065 Liabilities assumed: Accounts payable 31,971 Accrued payroll and benefits 25,639 Accrued liabilities 1,620 Deferred revenue 10,958 Current operating lease liabilities 1,983 Long-term operating lease liabilities 4,343 Other liabilities 4,098 Total liabilities assumed 80,612 Net assets acquired $ 1,571,453 The fair value of the assets acquired includes accounts receivable of $22.1 million. The gross amount due under contracts is $37.9 million, of which $15.8 million was expected to be uncollectible. Goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired, was all assigned to the Walden reporting unit and reportable segment. The entire goodwill amount is tax deductible. Factors that contributed to a purchase price resulting in the recognition of goodwill includes Walden’s strategic fit into Adtalem’s healthcare educator strategy, the reputation of the Walden brand as a leader in online education industry, and potential future growth opportunity. Of the $833.4 million of acquired intangible assets, $495.8 million was assigned to Title IV eligibility and accreditations and $119.6 million was assigned to trade names, each of which has been determined not to be subject to amortization. The values and estimated useful lives of other intangible assets acquired are as follows (in thousands): August 12, 2021 Value Estimated Assigned Useful Life Student relationships $ 161,900 3 years Curriculum $ 56,091 5 years The Title IV eligibility and accreditations intangible asset was valued using the with and without method of the income approach. The student relationships intangible asset was valued using the multi-period excess earnings method. The trade name intangible asset was valued using the relief-from-royalty method. The curriculum intangible asset was valued using the cost to replace method. Significant judgments and assumptions were used in these valuations. We applied judgment which involved the use of significant assumptions with respect to the discount rate and recovery period for the Title IV eligibility and accreditations intangible asset and royalty rate and discount rate for the trade name intangible asset. We also applied judgment which involved the use of assumptions, including the discount rate and EBITDA margin for the student relationships intangible asset and labor rates and hours and obsolescence rate for the curriculum intangible asset. The following unaudited pro forma financial information summarizes our results of operations as though the acquisition occurred on July 1, 2020 (in thousands): Year Ended June 30, 2022 2021 Revenue $ 1,451,081 $ 1,533,870 Net income attributable to Adtalem $ 385,110 $ 24,177 The unaudited pro forma financial information includes adjustments to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from July 1, 2020, with the consequential tax effects. The unaudited pro forma financial information also includes adjustments to reflect the additional interest expense on the debt we issued to fund the acquisition (see Note 14 “Debt” for additional information). As the ticking fees are representative of the historical interest expense incurred by Adtalem on the Term Loan B from the period of February 12, 2021 to August 12, 2021 and the unaudited pro forma financial information for fiscal year 2021 has been adjusted to include interest expense assuming the Term Loan B had been entered into as of July 1, 2020, we have made a further adjustment to remove the ticking fees recognized in the unaudited pro forma financial information for fiscal year 2022 (see Note 14 “Debt” for additional information on ticking fees). Had the Term Loan B been drawn upon on July 1, 2020, none of the ticking fees would have been incurred and, accordingly, the inclusion of such amounts would be duplicative to the interest expense incurred by Adtalem on a pro forma basis. The acquisition transaction costs we incurred in connection with the Walden acquisition are reflected in the unaudited pro forma financial information results for fiscal year 2021. This unaudited pro forma financial information is for informational purposes only. It does not reflect the integration of the business or any synergies that may result from the acquisition. As such, it is not indicative of the results of operations that would have been achieved had the acquisition been consummated on July 1, 2020. In addition, the unaudited pro forma financial information amounts are not indicative of future operating results. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | 4. Discontinued Operations and Assets Held for Sale On December 11, 2018, Adtalem completed the sale of DeVry University to Cogswell Education, LLC (“Cogswell”) for de minimis consideration. As the sale represented a strategic shift that had a major effect on Adtalem’s operations and financial results, DeVry University is presented in Adtalem’s Consolidated Financial Statements as a discontinued operation. The purchase agreement includes an earn-out entitling Adtalem to payments of up to $20.0 million over a ten-year period payable based on DeVry University’s free cash flow. Adtalem received $4.1 million and $2.9 million during fiscal year 2023 and 2022, respectively, related to the earn-out, resulting in a total of $7.0 million being received thus far. In connection with the closing of the sale, Adtalem loaned to DeVry University $10.0 million under the terms of the promissory note, dated as of December 11, 2018 (the “DeVry Note”). The DeVry Note bore interest at a rate of 4% per annum, payable annually in arrears, and had a maturity date of January 1, 2022. We received the loan repayment of $10.0 million during the third quarter of fiscal year 2022. On March 10, 2022, Adtalem completed the sale of ACAMS, Becker, and OCL to Wendel Group and Colibri Group (“Purchaser”), pursuant to the Equity Purchase Agreement (“Purchase Agreement”) dated January 24, 2022. Pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, Adtalem sold the issued and outstanding shares of ACAMS, Becker, and OCL to the Purchaser for $962.7 million, net of cash of $21.5 million, subject to certain post-closing adjustments. In addition, on June 17, 2022, Adtalem completed the sale of EduPristine for de minimis consideration, which resulted in a transfer of $1.9 million in cash. We recorded a loss of $3.6 million in fiscal year 2023 for post-closing working capital adjustments to the initial sales price for ACAMS, Becker, and OCL and a tax return to provision adjustment, which is included in (loss) gain on disposal of discontinued operations before income taxes in the Consolidated Statements of Income. These divestitures are the culmination of a long-term strategy to sharpen the focus of our portfolio and enhance our ability to address the growing and unmet demand for healthcare professionals in the U.S. As these sales represented a strategic shift that had a major effect on Adtalem’s operations and financial results, these businesses previously included in our former Financial Services segment are presented in Adtalem’s Consolidated Financial Statements as discontinued operations. In accordance with GAAP, we have classified ACAMS, Becker, OCL, and EduPristine entities as “Held for Sale” and “Discontinued Operations” in all periods presented as applicable. The following is a summary of income statement information of operations reported as discontinued operations, which includes ACAMS, Becker, OCL, and EduPristine operations through the date of each respective sale, the gain on disposal of these entities, a loss from post-closing working capital adjustments and a tax return to provision adjustment, and activity related to the DeVry University divestiture, which includes litigation and settlement costs we continue to incur and the earn-outs we received (in thousands): Year Ended June 30, 2023 2022 2021 Revenue $ — $ 153,762 $ 205,479 Operating cost and expense: Cost of educational services — 26,996 31,328 Student services and administrative expense 8,464 126,252 161,908 Restructuring expense — 1,500 2,936 Total operating cost and expense 8,464 154,748 196,172 (Loss) income from discontinued operations before income taxes (8,464) (986) 9,307 (Loss) gain on disposal of discontinued operations before income taxes (3,576) 473,483 — Benefit from (provision for) income taxes 3,646 (125,551) (3,162) (Loss) income from discontinued operations (8,394) 346,946 6,145 Net loss attributable to redeemable noncontrolling interest from discontinued operations — — 434 Net (loss) income from discontinued operations attributable to Adtalem $ (8,394) $ 346,946 $ 6,579 |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 5. Revenue Revenue is recognized when control of the promised goods or services is transferred to our customers (students), in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following tables disaggregate revenue by source (in thousands): Year Ended June 30, 2023 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 571,034 $ 533,725 $ 334,323 $ 1,439,082 Other — — 11,744 11,744 Total $ 571,034 $ 533,725 $ 346,067 $ 1,450,826 Year Ended June 30, 2022 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 557,536 $ 485,393 $ 328,382 $ 1,371,311 Other — — 10,531 10,531 Total $ 557,536 $ 485,393 $ 338,913 $ 1,381,842 Year Ended June 30, 2021 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 563,814 $ — $ 332,159 $ 895,973 Other — — 3,275 3,275 Total $ 563,814 $ — $ 335,434 $ 899,248 In addition, see Note 22 “Segment Information” for a disaggregation of revenue by geographical region. Performance Obligations and Revenue Recognition Tuition and fees Other Arrangements for payment are agreed to prior to registration of the student’s first academic term. The majority of U.S. students obtain Title IV or other financial aid resulting in institutions receiving a significant amount of the transaction price at the beginning of the academic term. Students not utilizing Title IV or other financial aid funding may pay after the academic term is complete. Transaction Price Revenue, or transaction price, is measured as the amount of consideration expected to be received in exchange for transferring goods or services. Students may receive discounts, scholarships, or refunds, which gives rise to variable consideration. The amounts of discounts or scholarships are generally applied to individual student accounts when such amounts are awarded. Therefore, the transaction price is immediately reduced directly by these discounts or scholarships from the amount of the standard tuition rate charged. Scholarships and discounts that are only applied to future tuition charged are considered a separate performance obligation if they represent a material right in accordance with ASC 606. In those instances, we defer the value of the related performance obligation associated with the future scholarship or discount based on estimates of future redemption based on our historical experience of student persistence toward completion of study. The contract liability associated with these material rights are presented as deferred revenue within current liabilities and other liabilities within noncurrent liabilities on the Consolidated Balance Sheets based on the amounts expected to be redeemed in the next 12 months. The contract liability amount associated with these material rights within current liabilities is $10.6 million and $8.2 million as of June 30, 2023 and 2022, respectively, and the amount within noncurrent liabilities is $10.4 million and $8.6 million as of June 30, 2023 and 2022, respectively. The noncurrent contract liability associated with these material rights is expected to be earned over approximately the next four fiscal years. Upon withdrawal, a student may be eligible to receive a refund, or partial refund, the amount of which is dependent on the timing of the withdrawal during the academic term. If a student withdraws prior to completing an academic term, federal and state regulations and accreditation criteria permit Adtalem 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 Adtalem in excess of such set percentages of tuition are refunded to the student or the appropriate funding source. For contracts with similar characteristics and historical data on refunds, the expected value method is applied in determining the variable consideration related to refunds. Estimates of Adtalem’s expected refunds are determined at the outset of each academic term, based upon actual refunds in previous academic terms. Reserves related to refunds are presented as refund liabilities within accrued liabilities on the Consolidated Balance Sheets. All refunds are netted against revenue during the applicable academic term. Management reassesses collectability on a student-by-student basis throughout the period revenue is recognized. This reassessment is based upon new information and changes in facts and circumstances relevant to a student’s ability to pay. Management also 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. We believe it is probable that no significant reversal will occur in the amount of cumulative revenue recognized when the uncertainty associated with the variable consideration is subsequently resolved. Therefore, the estimate of variable consideration is not constrained. Contract Balances Students are billed at the beginning of each academic term and payment is due at that time. Adtalem’s performance obligation is to provide educational services in the form of instruction during the academic term and to provide for any scholarships or discounts that are deemed a material right under ASC 606. As instruction is provided or the deferred value of material rights are redeemed, deferred revenue is reduced. A significant portion of student payments are from Title IV financial aid and other programs and are generally received during the first month of the respective academic term. For students utilizing Adtalem’s credit extension programs (see Note 10 “Accounts Receivable and Credit Losses”), payments are generally received after the academic term, and the corresponding performance obligation, is complete. When payments are received, accounts receivable is reduced. Deferred revenue within current liabilities is $153.9 million and $149.8 million as of June 30, 2023 and 2022, respectively, and deferred revenue within noncurrent liabilities is $10.4 million and $8.6 million as of June 30, 2023 and 2022, respectively. Revenue of $149.8 million and $71.7 million was recognized during fiscal year 2023 and 2022, respectively, that was included in the deferred revenue balance at the beginning of fiscal year 2023 and 2022, respectively. Revenue recognized from performance obligations that were satisfied or partially satisfied in prior periods was not material. The difference between the opening and closing balances of deferred revenue includes decreases from revenue recognized during the period, increases from charges related to the start of academic terms beginning during the period, increases from payments received related to academic terms commencing after the end of the reporting period, and increases from recognizing additional performance liabilities for material rights. In addition, for fiscal year 2022, the difference between the opening and closing balances of deferred revenue included an increase from the Walden acquisition. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 6. Restructuring Charges During fiscal year 2023, Adtalem recorded restructuring charges primarily driven by real estate consolidations at Walden, Medical and Veterinary, and Adtalem’s home office resulting in impairments on operating lease assets and property and equipment. During fiscal year 2022, Adtalem recorded restructuring charges primarily driven by workforce reductions and contract terminations related to synergy actions with regards to the Walden acquisition and Medical and Veterinary and Adtalem’s home office real estate consolidations. During fiscal year 2021, Adtalem recorded restructuring charges primarily driven by Adtalem’s home office real estate consolidations. When estimating costs of exiting lease space, estimates are made which could differ materially from actual results and may result in additional restructuring charges or reversals in future periods. Termination benefit charges represent severance pay and benefits for employees impacted by workforce reductions. Adtalem’s home office is classified as “Home Office and Other” in Note 22 “Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands): Year Ended June 30, 2023 Real Estate and Other Termination Benefits Total Chamberlain $ 818 $ — $ 818 Walden 3,191 54 3,245 Medical and Veterinary 7,071 616 7,687 Home Office and Other 6,117 950 7,067 Total $ 17,197 $ 1,620 $ 18,817 Year Ended June 30, 2022 Real Estate and Other Termination Benefits Total Chamberlain $ 835 $ 2,003 $ 2,838 Walden — 4,053 4,053 Medical and Veterinary 7,675 2,116 9,791 Home Office and Other 5,977 2,969 8,946 Total $ 14,487 $ 11,141 $ 25,628 Year Ended June 30, 2021 Real Estate and Other Termination Benefits Total Home Office and Other $ 6,379 $ 490 $ 6,869 Total $ 6,379 $ 490 $ 6,869 The following table summarizes the separation and restructuring plan activity for fiscal years 2022 and 2023, for which cash payments are required (in thousands): Liability balance as of June 30, 2021 $ — Increase in liability (separation and other charges) 11,851 Reduction in liability (payments and adjustments) (11,038) Liability balance as of June 30, 2022 813 Increase in liability (separation and other charges) 1,620 Reduction in liability (payments and adjustments) (1,692) Liability balance as of June 30, 2023 $ 741 The liability balance of $0.7 million is recorded as accrued liabilities on the Consolidated Balance Sheets as of June 30, 2023. We continue to incur restructuring charges or reversals related to exited leased space from previous restructuring activities. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | 7. Other Income, Net Other income, net consists of the following (in thousands): Year Ended June 30, 2023 2022 2021 Interest and dividend income $ 10,654 $ 4,379 $ 4,094 Investment (loss) gain (3,689) (3,271) 2,638 Other income, net $ 6,965 $ 1,108 $ 6,732 Investment (loss) gain includes trading gains and losses related to the rabbi trust used to fund nonqualified deferred compensation plan obligations (see Note 19 “Employee Benefit Plans” for additional information). In addition, investment (loss) gain includes an impairment of $5.0 million in fiscal year 2023 on an equity investment with no readily determinable fair value (see Note 20 “Fair Value Measurements” for additional information). |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income from continuing operations before income taxes, classified by source of income, was as follows (in thousands): Year Ended June 30, 2023 2022 2021 Domestic $ 51,422 $ (112,151) $ 12,471 Foreign 60,613 60,657 63,295 Total $ 112,035 $ (51,494) $ 75,766 The components of the provision for (benefit from) income taxes were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Current tax provision (benefit): U.S. federal $ 13,761 $ (6,767) $ 9,860 State and local 824 4,154 1,691 Foreign 614 725 547 Total current 15,199 (1,888) 12,098 Deferred tax provision (benefit): U.S. federal (1,099) (6,425) (2,970) State and local (4,347) (6,597) 996 Foreign 530 (629) 2,194 Total deferred (4,916) (13,651) 220 Provision for (benefit from) income taxes $ 10,283 $ (15,539) $ 12,318 The effective tax rate differs from the statutory tax rates as follows (in thousands): Year Ended June 30, 2023 2022 2021 Income tax at statutory rate $ 23,527 21.0 % $ (10,814) 21.0 % $ 15,911 21.0 % Lower rates on foreign operations (11,668) (10.4) % (12,879) 25.0 % (10,664) (14.1) % State income taxes 2,719 2.4 % (661) 1.3 % 1,199 1.6 % Loss on investment in subsidiary — — % (1,669) 3.2 % — — % Deferred tax benefit from acquisitions and divestitures — — % (1,153) 2.2 % — — % Research and development tax credits (1,862) (1.7) % — — % — — % Change in valuation allowance (9,769) (8.7) % 5,406 (10.5) % (162) (0.2) % Reduction in state loss carryforwards 2,340 2.1 % (5,882) 11.4 % — — % Permanent non-deductible items 1,630 1.5 % 2,788 (5.4) % 796 1.1 % Foreign tax provisions under GILTI 3,569 3.2 % 8,581 (16.7) % 4,787 6.3 % Other (203) (0.2) % 744 (1.4) % 451 0.6 % Provision for (benefit from) income taxes $ 10,283 9.2 % $ (15,539) 30.2 % $ 12,318 16.3 % Deferred income tax assets and liabilities result primarily from temporary differences in the recognition of various expenses for tax and financial statement purposes, and from the recognition of the tax benefits of net operating loss carryforwards. The components of the deferred income tax assets and liabilities were as follows (in thousands): June 30, 2023 2022 Employee benefits $ 11,719 $ 9,936 Stock-based compensation 7,310 6,675 Receivable reserve 6,246 6,919 Capitalized research and experimental costs 8,075 — Operating lease liabilities 41,235 44,089 Other reserves 6,246 1,865 Loss and credit carryforwards, net 19,259 21,206 Less: valuation allowance (621) (10,390) Gross deferred tax assets 99,469 80,300 Depreciation (5,643) (5,314) Deferred taxes on unremitted foreign earnings (428) (397) Amortization of intangible assets (31,294) (18,975) Operating lease assets (31,478) (30,075) Gross deferred tax liability (68,843) (54,761) Net deferred tax asset $ 30,626 $ 25,539 As of June 30, 2023, Adtalem has $190.8 million of gross, post apportioned state net operating loss carryforwards, and $17.3 million of foreign net operating loss carryforwards in St. Maarten and other jurisdictions. As of June 30, 2022, Adtalem had $259.9 million of gross, post apportioned state net operating loss carryforwards, and $15.7 million of foreign net operating loss carryforwards in St. Maarten and other jurisdictions. The Tax Cuts and Jobs Act of 2017 (the “Tax Act”) requires taxpayers to capitalize and subsequently amortize research and experimental (“R&E”) expenditures that fall within the scope of Internal Revenue Code Section 174 for tax years starting after December 31, 2021. This rule became effective for Adtalem during fiscal year 2023 and resulted in the deferred tax asset for capitalization of R&E costs of $8.1 million, based on interpretation of the law as currently enacted. Adtalem will capitalize and amortize these costs for tax purposes over 5 years for R&E performed in the U.S. and over 15 years for R&E performed outside of the U.S. Adtalem has the following tax net operating loss (tax effected), interest (tax effected), and credit carryforwards as of June 30, 2023 (in thousands): June 30, Years of Expiration 2023 Beginning Ending U.S. interest expense carryforwards $ 1,861 no expiration U.S. credit carryforwards 672 2027 2030 State net operating loss carryforwards 10,388 2024 2042 State interest expense carryforwards 862 no expiration Foreign net operating loss carryforwards 5,476 2024 2033 Total loss and credit carryforwards, net $ 19,259 Three of Adtalem’s businesses benefit from local tax incentives: AUC, which operates in St. Maarten, RUSM, which operates in Barbados, and RUSVM, which operates in St. Kitts. AUC’s effective tax rate reflects benefits derived from investment incentives. RUSM and RUSVM each have agreements with their respective domestic governments that exempt them from local income taxation. RUSM has an exemption in Barbados until 2039. RUSVM has an exemption in St. Kitts until 2037. Adtalem does not assert that the accumulated undistributed earnings of its foreign subsidiaries are indefinitely reinvested in foreign jurisdictions. Adtalem has accrued applicable state income and foreign withholding taxes on such distributed earnings. Valuation allowances are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The valuation allowance on our deferred tax assets was $0.6 million as of June 30, 2023 and mainly relates to foreign net operating loss carryforwards. The valuation allowance on our deferred tax assets was $10.4 million as of June 30, 2022 and relates to foreign and state net operating loss carryforwards. The valuation allowance decreased by $9.8 million in fiscal year 2023 compared to fiscal year 2022 and increased by $5.4 million in fiscal year 2022 compared to fiscal year 2021. Insufficient projected taxable income in certain jurisdictions gives rise to the need for a valuation allowance. Based on Adtalem’s expectations for future taxable income, management believes that it is more likely than not that operating income in other respective jurisdictions will be sufficient to recognize fully all deferred tax assets. Our income tax provisions or benefits from continuing operations were $10.3 million tax provision, $15.5 million tax benefit, and $12.3 million tax provision in fiscal year 2023, 2022, and 2021, respectively. Fiscal year 2023 resulted in an income tax provision compared to an income tax benefit in fiscal year 2022 primarily due to the impacts recognized in fiscal year 2022 related to the Walden acquisition. In addition, in fiscal year 2023, we recorded a net tax benefit of $6.4 million for the release of a valuation allowance on certain deferred tax assets based on our reassessment of the amount of state net operating loss carryforwards that are more likely than not to be realized. The net benefit is comprised of the release of a valuation allowance of $9.3 million offset by a reduction in state net operating loss carryforwards of $2.3 million and a revaluation of deferred tax assets due to a tax rate change of $0.6 million. The income tax benefits in fiscal year 2022 and the income tax expense in fiscal years 2023 and 2021 reflect the U.S. federal tax rate of 21% adjusted for taxes related to global intangible low-taxed income (“GILTI”), state and local taxes, benefits of the foreign rate differences, tax credits related to research and development expenditures, a net tax benefit for the release of a valuation allowance on state net operating loss carryforwards, and benefits associated with local tax incentives. As of June 30, 2023 and 2022, the total amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, was $13.1 million and $11.6 million, respectively, which if recognized, would impact the effective tax rate. We expect that our unrecognized tax benefits will decrease during the next 12 months due to the settlement of various audits and the lapsing of statutes of limitation. We estimate this decrease to be immaterial. Adtalem classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. The total amount of interest and penalties accrued as of June 30, 2023 and 2022 was $1.6 million and $0.9 million, respectively. Interest and penalties expense recognized during the years ended June 30, 2023, 2022, and 2021 were a net increase of $0.7 million, $0.3 million, and $0.2 million, respectively. The changes in our unrecognized tax benefits were (in thousands): Year Ended June 30, 2023 2022 2021 Balance at beginning of period $ 11,645 $ 9,836 $ 10,473 Increases from positions taken during prior periods 1,299 1,074 — Decreases from positions taken during prior periods — (1,737) (419) Increases from positions taken during the current period 665 2,845 42 Reductions due to lapse of statute (481) (373) (257) Reductions due to settlement — — (3) Balance at end of period $ 13,128 $ 11,645 $ 9,836 Adtalem files tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions based on existing tax laws and incentives. Adtalem remains generally subject to examination in the U.S. for years beginning on or after July 1, 2019; in various states for years beginning on or after July 1, 2017; and in our significant foreign jurisdictions for years beginning on or after July 1, 2017. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jun. 30, 2023 | |
Earnings per Share | |
Earnings per Share | 9. Earnings per Share As a result of incurring a net loss from continuing operations in fiscal year 2022, potential common stock of 416 thousand shares were excluded from diluted loss per share because the effect would have been antidilutive. As further described in Note 16 “Share Repurchases,” on March 14, 2022, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $150.0 million of common stock. For purposes of calculating earnings per share for the periods presented, Adtalem reflected the ASR agreement as a repurchase of Adtalem common stock and as a forward contract indexed to its own common stock. Based on the volume-weighted average price of Adtalem’s common stock per the terms of the ASR agreement, common stock of 76 thousand shares were contingently issuable by Adtalem under the ASR agreement and were included in the diluted earnings per share calculation for fiscal year 2023 because the effect would have been dilutive. As of June 30, 2023, the ASR agreement is no longer outstanding. Certain shares related to stock awards were excluded from the computation of earnings per share because the effect would have been antidilutive. The following table sets forth the computations of basic and diluted earnings per share and antidilutive shares (in thousands, except per share data): Year Ended June 30, 2023 2022 2021 Numerator: Net income (loss) attributable to Adtalem: Continuing operations $ 101,752 $ (35,955) $ 63,448 Discontinued operations (8,394) 346,946 6,579 Net income attributable to Adtalem $ 93,358 $ 310,991 $ 70,027 Denominator: Weighted-average basic shares outstanding 44,781 48,388 51,322 Effect of dilutive stock awards 743 — 323 Effect of ASR 76 — — Weighted-average diluted shares outstanding 45,600 48,388 51,645 Earnings (loss) per share attributable to Adtalem: Basic: Continuing operations $ 2.27 $ (0.74) $ 1.24 Discontinued operations $ (0.19) $ 7.17 $ 0.13 Total basic earnings per share $ 2.08 $ 6.43 $ 1.36 Diluted: Continuing operations $ 2.23 $ (0.74) $ 1.23 Discontinued operations $ (0.18) $ 7.17 $ 0.13 Total diluted earnings per share $ 2.05 $ 6.43 $ 1.36 Weighted-average antidilutive shares 403 1,869 1,143 |
Accounts Receivable and Credit
Accounts Receivable and Credit Losses | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable and Credit Losses | 10. Accounts Receivable and Credit Losses We categorize our accounts receivable balances as trade receivables or financing receivables. Our trade receivables relate to student balances occurring in the normal course of business. Trade receivables have a term of less than one year and are included in accounts receivable, net on our Consolidated Balance Sheets. Our financing receivables relate to credit extension programs where the student is provided payment terms in excess of one year with their respective school and are included in accounts receivable, net and other assets, net on our Consolidated Balance Sheets. The classification of our accounts receivable balances was as follows (in thousands): June 30, 2023 Gross Allowance Net Trade receivables, current $ 129,318 $ (29,190) $ 100,128 Financing receivables, current 4,757 (2,136) 2,621 Accounts receivable, current $ 134,075 $ (31,326) $ 102,749 Financing receivables, current $ 4,757 $ (2,136) $ 2,621 Financing receivables, noncurrent 36,368 (9,332) 27,036 Total financing receivables $ 41,125 $ (11,468) $ 29,657 June 30, 2022 Gross Allowance Net Trade receivables, current $ 109,882 $ (30,897) $ 78,985 Financing receivables, current 6,116 (3,466) 2,650 Accounts receivable, current $ 115,998 $ (34,363) $ 81,635 Financing receivables, current $ 6,116 $ (3,466) $ 2,650 Financing receivables, noncurrent 36,265 (11,425) 24,840 Total financing receivables $ 42,381 $ (14,891) $ 27,490 Our financing receivables relate to credit extension programs available to students at Chamberlain, AUC, RUSM, and RUSVM. These credit extension programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, fees, and books, and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM, and RUSVM allow students to finance their living expenses. Repayment plans for financing agreements are developed to address the financial circumstances of the particular student. Interest charges at rates from 3.0% to 12.0% per annum accrue each month on the unpaid balance once a student withdraws or graduates from a program. Most students are required to begin repaying their loans while they are still in school with a minimum payment level designed to demonstrate their capability to repay, which reduces the possibility of over borrowing. Payments may increase upon completing or departing school. After a student leaves school, the student typically will have a monthly installment repayment plan. Credit Quality The primary credit quality indicator for our financing receivables is delinquency. Balances are considered delinquent when contractual payments on the loan become past due. We write-off financing receivable balances after they have been sent to a third-party collector, the timing of which varies by the institution granting the loan, but in most cases is when the financing agreement is at least 181 days past due. Payments are applied first to outstanding interest and then to the unpaid principal balance. The credit quality analysis of financing receivables as of June 30, 2023 was as follows (in thousands): Amortized Cost Basis by Origination Year Prior 2019 2020 2021 2022 2023 Total 1-30 days past due $ 186 $ 79 $ 115 $ 137 $ 735 $ 1,944 $ 3,196 31-60 days past due 61 34 — 359 573 1,103 2,130 61-90 days past due 97 39 110 65 559 368 1,238 91-120 days past due 2 17 2 13 77 200 311 121-150 days past due 62 37 26 45 147 129 446 Greater than 150 days past due 2,641 734 708 2,071 1,457 381 7,992 Total past due 3,049 940 961 2,690 3,548 4,125 15,313 Current 6,199 1,112 820 5,350 2,608 9,723 25,812 Financing receivables, gross $ 9,248 $ 2,052 $ 1,781 $ 8,040 $ 6,156 $ 13,848 $ 41,125 The credit quality analysis of financing receivables as of June 30, 2022 was as follows (in thousands): Amortized Cost Basis by Origination Year Prior 2018 2019 2020 2021 2022 Total 1-30 days past due $ 104 $ 140 $ 114 $ 191 $ 699 $ 782 $ 2,030 31-60 days past due 278 38 214 145 691 332 1,698 61-90 days past due 58 29 217 8 668 273 1,253 91-120 days past due 97 139 113 45 670 14 1,078 121-150 days past due 17 30 20 41 206 81 395 Greater than 150 days past due 6,978 876 1,077 683 1,596 377 11,587 Total past due 7,532 1,252 1,755 1,113 4,530 1,859 18,041 Current 4,687 2,229 1,483 1,167 8,910 5,864 24,340 Financing receivables, gross $ 12,219 $ 3,481 $ 3,238 $ 2,280 $ 13,440 $ 7,723 $ 42,381 Allowance for Credit Losses The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in our accounts receivable balances as of each balance sheet date. In evaluating the collectability of all our accounts receivable balances, we utilize historical events, current conditions, and reasonable and supportable forecasts about the future. For our trade receivables, we primarily use historical loss rates based on an aging schedule and a student’s status to determine the allowance for credit losses. As these trade receivables are short-term in nature, management believes a student’s status provides the best credit loss estimate, while also factoring in delinquency. Students still attending classes, recently graduated, or current on payments are more likely to pay than those who are inactive due to being on a leave of absence, withdrawing from school, or not current on payments. For our financing receivables, we primarily use historical loss rates based on an aging schedule. As these financing receivables are based on long-term financing agreements offered by Adtalem, management believes that delinquency provides the best credit loss estimate. As the financing receivable balances become further past due, it is less likely we will receive payment, causing our estimate of credit losses to increase. The following tables provide a roll-forward of the allowance for credit losses (in thousands): Year Ended June 30, 2023 Trade Financing Total Beginning balance $ 30,897 $ 14,891 $ 45,788 Write-offs (43,273) (7,653) (50,926) Recoveries 12,207 590 12,797 Provision for credit losses 29,359 3,640 32,999 Ending balance $ 29,190 $ 11,468 $ 40,658 Year Ended June 30, 2022 Trade Financing Total Beginning balance $ 11,559 $ 16,832 $ 28,391 Write-offs (15,980) (5,287) (21,267) Recoveries 11,488 35 11,523 Provision for credit losses 23,830 3,311 27,141 Ending balance $ 30,897 $ 14,891 $ 45,788 Other Financing Receivables In connection with the sale of DeVry University, Adtalem loaned $10.0 million to DeVry University under the terms of the DeVry Note. The DeVry Note bore interest at a rate of 4% per annum, payable annually in arrears, and had a maturity date of January 1, 2022. We received the loan payment of $10.0 million during the third quarter of fiscal year 2022. On July 31, 2019, Adtalem sold its Chicago, Illinois, campus facility to DePaul College Prep Foundation (“DePaul College Prep”). In connection with the sale, Adtalem held a mortgage from DePaul College Prep for $46.8 million. The mortgage was due on July 31, 2024 as a balloon payment and bore interest at a rate of 4% per annum, payable monthly. The carrying value of the DePaul College Prep loan receivable was included in other assets, net on the Consolidated Balance Sheets as of June 30, 2022 in the amount of $44.0 million and was determined by discounting the future cash flows using an average of current rates for similar arrangements, which was estimated at 7% per annum. On February 23, 2023, DePaul College Prep paid the mortgage in full, which resulted in derecognition of the note receivable from the Consolidated Balance Sheets. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant And Equipment [Abstract] | |
Property and Equipment, Net | 11. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, 2023 2022 Land $ 38,345 $ 44,478 Building 303,737 342,236 Equipment 226,600 268,352 Construction in progress 28,668 11,188 Property and equipment, gross 597,350 666,254 Accumulated depreciation (338,828) (376,328) Property and equipment, net $ 258,522 $ 289,926 Depreciation expense was $41.6 million, $44.6 million, and $33.9 million for the years ended June 30, 2023, 2022, and 2021, respectively. On July 31, 2019, Adtalem sold its Chicago, Illinois, campus facility to DePaul College Prep for $52.0 million. Adtalem received $5.2 million of cash at the time of closing and held a mortgage, secured by the property, from DePaul College Prep for $46.8 million. The mortgage was due on July 31, 2024 as a balloon payment and bore interest at a rate of 4% per annum, payable monthly. The buyer had an option to make prepayments. Due to Adtalem’s involvement with financing the sale, the transaction did not qualify as a sale for accounting purposes. Adtalem continued to maintain the assets associated with the sale on the Consolidated Balance Sheets. We recorded a note receivable of $40.3 million and a financing payable of $45.5 million at the time of the sale, which were classified as other assets, net and other liabilities, respectively, on the Consolidated Balance Sheets. See Note 10 “Accounts Receivable and Credit Losses” for a discussion on the discounting of the note receivable. On February 23, 2023, DePaul College Prep paid the mortgage in full. The $46.8 million received during fiscal year 2023 is classified as an investing activity in the Consolidated Statements of Cash Flows. Upon receiving full repayment of the mortgage, Adtalem no longer is involved in the financing of the sale and therefore derecognized the note receivable, the financing payable, and the assets associated with the campus facility, which resulted in recognizing a gain on sale of assets of $13.3 million in fiscal year 2023. This gain was recorded at Adtalem’s home office, which is classified as “Home Office and Other” in Note 22 “Segment Information.” |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Lessee Disclosure [Abstract] | |
Leases | 12. Leases We determine if a contract contains a lease at inception. We have entered into operating leases for academic sites, housing facilities, and office space which expire at various dates through January 2035, most of which include options to terminate for a fee or extend the leases for an additional five-year period. The lease term includes the noncancelable period of the lease, as well as any periods for which we are reasonably certain to exercise extension options. We elected to account for lease and non-lease components (e.g., common-area maintenance costs) as a single lease component for all operating leases. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. We have not entered into any financing leases. Operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets represent our right to use an underlying asset during the lease term. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. Operating lease assets are adjusted for any prepaid or accrued lease payments, lease incentives, initial direct costs, and impairments. Our incremental borrowing rate is utilized in determining the present value of the lease payments based upon the information available at the commencement date. Our incremental borrowing rate is determined using a secured borrowing rate for the same currency and term as the associated lease. Operating lease expense is recognized on a straight-line basis over the lease term. As of June 30, 2023, we entered into one additional operating lease that has not yet commenced. The lease is expected to commence during the second quarter of fiscal year 2024, has a 12-year lease term, and will result in an additional operating lease asset and operating lease liability of approximately $16.6 million. The components of lease cost were follows (in thousands): Year Ended June 30, 2023 2022 Operating lease cost $ 48,181 $ 55,257 Sublease income (13,329) (13,920) Total lease cost $ 34,852 $ 41,337 Maturities of lease liabilities by fiscal year as of June 30, 2023 were as follows (in thousands): Operating Fiscal Year Leases 2024 $ 49,487 2025 43,307 2026 37,468 2027 35,499 2028 28,350 Thereafter 59,538 Total lease payments 253,649 Less: tenant improvement allowance not yet received (3,364) Less: imputed interest (49,171) Present value of lease liabilities $ 201,114 Lease term and discount rate were as follows: June 30, 2023 Weighted-average remaining operating lease term (years) 6.2 Weighted-average operating lease discount rate 6.4% Supplemental of cash flow information related to leases were as follows (in thousands): Year Ended June 30, 2023 2022 Cash paid for amounts in the measurement of operating lease liabilities (net of sublease receipts) $ 58,198 $ 52,540 Operating lease assets obtained in exchange for operating lease liabilities $ 32,476 $ 49,136 Adtalem maintains an agreement to lease one facility owned by Adtalem to DeVry University with an expiration date of December 2023. Adtalem maintains agreements to sublease either a portion or the full leased spac e at seven of its operating lease locations. Most of these subleases are a result of Adtalem retaining leases associated with restructured lease activities at DeVry University and Carrington College prior to their divestitures during fiscal year 2019. All sublease expirations with DeVry University and Carrington College coincide with Adtalem’s original head lease expiration dates. At that time, Adtalem will be relieved of its obligations. In addition, Adtalem has entered into subleases with non-affiliated entities for vacated or partially vacated space from restructuring activities. Adtalem’s sublease agreements expire at various dates through December 2025. We record sublease income as an offset against our lease expense recorded on the head lease. For leases which Adtalem vacated or partially vacated space, we recorded estimated restructuring charges in prior periods. Actual results may differ from these estimates, which could result in additional restructuring charges or reversals in future periods. Future minimum lease and sublease income under these agreements as of June 30, 2023, were as follows (in thousands): Fiscal Year Amount 2024 $ 10,204 2025 5,082 2026 2,038 Total lease and sublease rental income $ 17,324 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 13. Goodwill and Intangible Assets The table below summarizes goodwill balances by reporting unit (in thousands): June 30, 2023 2022 Chamberlain $ 4,716 $ 4,716 Walden 651,052 651,052 AUC 68,321 68,321 RUSM 180,089 180,089 RUSVM 57,084 57,084 Total $ 961,262 $ 961,262 The table below summarizes goodwill balances by reportable segment (in thousands): June 30, 2023 2022 Chamberlain $ 4,716 $ 4,716 Walden 651,052 651,052 Medical and Veterinary 305,494 305,494 Total $ 961,262 $ 961,262 The table below summarizes the changes in goodwill balances by reportable segment (in thousands): Medical and Chamberlain Walden Veterinary Total June 30, 2021 $ 4,716 $ — $ 305,494 $ 310,210 Acquisition — 651,052 — 651,052 June 30, 2022 $ 4,716 $ 651,052 $ 305,494 $ 961,262 June 30, 2023 $ 4,716 $ 651,052 $ 305,494 $ 961,262 Amortizable intangible assets consisted of the following (in thousands): June 30, 2023 June 30, 2022 Gross Carrying Accumulated Gross Carrying Accumulated Weighted-Average Amount Amortization Amount Amortization Amortization Period Student relationships $ 161,900 $ (137,476) $ 161,900 $ (87,457) 3 Years Curriculum 56,091 (21,037) 56,091 (9,817) 5 Years Total $ 217,991 $ (158,513) $ 217,991 $ (97,274) Indefinite-lived intangible assets consisted of the following (in thousands): June 30, 2023 2022 Walden trade name $ 119,560 $ 119,560 AUC trade name 17,100 17,100 RUSM trade name 3,500 3,500 RUSVM trade name 1,600 1,600 Chamberlain Title IV eligibility and accreditations 1,200 1,200 Walden Title IV eligibility and accreditations 495,800 495,800 AUC Title IV eligibility and accreditations 100,000 100,000 RUSM Title IV eligibility and accreditations 11,600 11,600 RUSVM Title IV eligibility and accreditations 2,500 2,500 Total $ 752,860 $ 752,860 The table below summarizes the indefinite-lived intangible asset balances by reportable segment (in thousands): June 30, 2023 2022 Chamberlain $ 1,200 $ 1,200 Walden 615,360 615,360 Medical and Veterinary 136,300 136,300 Total $ 752,860 $ 752,860 Amortization expense for amortized intangible assets was $61.2 million and $97.3 million in the years ended June 30, 2023 and 2022, respectively. There was no amortization expense for the year ended June 30, 2021. Future intangible asset amortization expense, by reporting unit, is expected to be as follows (in thousands): Fiscal Year Walden 2024 $ 35,644 2025 11,220 2026 11,220 2027 1,394 Total $ 59,478 Curriculum is amortized on a straight-line basis. Student relationships is amortized based on the estimated retention of the students and giving consideration to the revenue and cash flow associated with these existing students. Indefinite-lived intangible assets related to trade names and Title IV eligibility and accreditations 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. Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. There were no triggering events in fiscal year 2023 and our annual testing date is May 31. Adtalem has five reporting units that contain goodwill and indefinite-lived intangible assets as of May 31, 2023. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. We have the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is determined that the reporting unit fair value is more likely than not less than its carrying value, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the reporting unit’s fair value. If the carrying value of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized equal to the difference between the carrying value of the reporting unit and its fair value, not to exceed the carrying value of goodwill. We also have the option to perform a qualitative assessment to test indefinite-lived intangible assets for impairment by determining whether it is more likely than not that the indefinite-lived intangible assets are impaired. If it is determined that the indefinite-lived intangible asset is more likely than not impaired, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the indefinite-lived intangible assets. If the carrying value of the indefinite-lived intangible assets exceeds its fair value, an impairment loss is recognized to the extent the carrying value exceeds fair value. As of May 31, 2023, we elected to perform a qualitative assessment for all reporting units, except Walden. We analyzed qualitative factors, including results of operations and business conditions of the four reporting units, significant changes in cash flows of the reporting unit level or individual indefinite-lived intangible asset level, if applicable, as well as how much previously calculated fair values exceeded carrying values to determine if it is more likely than not that the goodwill or indefinite-lived intangible assets were impaired. Based on the qualitative assessment of the four reporting units, it was determined that it was more likely than not that the fair values of the reporting units or individual indefinite-lived intangible assets exceeded the respective carrying values. As of May 31, 2023, we did not elect to perform a qualitative assessment for the Walden trade name and Walden Title IV eligibility and accreditation indefinite-lived intangible assets, and therefore performed a quantitative assessment of the respective fair values. In determining fair value of the Walden trade name indefinite-lived intangible asset, we used the relief-from-royalty method. The significant estimates used in this valuation approach are the risk-adjusted discount rate of 12.5%, forecasted revenue, a terminal revenue growth rate of 3.0% and a royalty rate of 2.25%. In determining fair value of the Walden Title IV eligibility and accreditation indefinite-lived intangible asset, we used the with and without method in a discounted cash flow model. The significant estimates used in this valuation approach are the risk-adjusted discount rate of 12.5%, forecasted revenue with and without the accreditations in place, and forecasted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) with and without the accreditations in place. Based on these quantitative assessments, it was determined that the fair values of these indefinite-lived intangible assets in the Walden reporting unit exceeded their carrying values and therefore no impairment was identified. As of May 31, 2023, we did not elect to perform a qualitative assessment for our Walden reporting unit and therefore performed a quantitative assessment of the reporting unit’s fair value. In determining fair value of the Walden reporting unit, we used the discounted cash flow method and the market multiple valuation approach. The significant estimates used in the discounted cash flow model are the risk-adjusted discount rate of 12.5%, forecasted revenue and EBITDA, and terminal growth rates of 3%. The significant estimates used in the market multiple valuation approach include earnings multiples for comparable companies. Based on this quantitative assessment, it was determined that the fair value of the Walden reporting unit exceeded its carrying value and therefore no goodwill impairment was identified. 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. If economic conditions deteriorate, interest rates continue to rise, or operating performance of our Walden or other reporting units do not meet expectations such that we revise our long-term forecasts, we may recognize impairments of goodwill and other intangible assets in future periods. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt Long-term debt consisted of the following senior secured credit facilities (in thousands): June 30, 2023 2022 Total debt: Senior Secured Notes due 2028 $ 404,950 $ 405,882 Term Loan B 303,333 453,333 Total principal payments due 708,283 859,215 Unamortized debt discount and issuance costs (13,206) (20,307) Total amount outstanding and noncurrent $ 695,077 $ 838,908 Scheduled future maturities of long-term debt were as follows (in thousands): Maturity Fiscal Year Payments 2024 $ — 2025 — 2026 — 2027 — 2028 708,283 Total $ 708,283 Senior Secured Notes due 2028 On March 1, 2021, Adtalem Escrow Corporation (the “Escrow Issuer”), a wholly-owned subsidiary of Adtalem, issued $800.0 million aggregate principal amount of 5.50% Senior Secured Notes due 2028 (the “Notes”), which mature on March 1, 2028, pursuant to an indenture, dated as of March 1, 2021 (the “Indenture”), by and between the Escrow Issuer and U.S. Bank National Association, as trustee and notes collateral agent. The Notes were sold within the U.S. only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the U.S. to non-U.S. persons in reliance on Regulation S under the Securities Act. The Escrow Issuer deposited the net proceeds of the offering, along with certain additional funds, into a segregated depositary account (the “Escrow Account”). On August 12, 2021, Adtalem used the net proceeds of the offering, along with other financing sources, to finance the purchase price paid in connection with the Walden acquisition, repay the then existing $291.0 million senior secured term loan B, and to pay related acquisition fees and expenses. On August 12, 2021, the Escrow Issuer merged with and into Adtalem, with Adtalem continuing as the surviving corporation (the “Escrow Merger”), and Adtalem assumed all of the Escrow Issuer's obligations under the Notes, the Indenture, any supplemental indentures thereto, the applicable collateral documents, and the other applicable documents (the “Assumption”) and subject to the satisfaction of certain other conditions, the net proceeds from the offering and the other additional funds were released from the Escrow Account to the Issuer or its designee. The term “Issuer” refers (a) prior to the Assumption, to the Escrow Issuer and (b) from and after the Assumption, to Adtalem. The Notes were issued at 100.0% of their par value. The Notes bear interest at a rate of 5.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2021, to holders of record on the preceding February 15 and August 15, as the case may be. The Notes were initially the senior secured obligations of the Escrow Issuer, secured only by the amounts deposited in the Escrow Account. As of August 12, 2021, the Notes are guaranteed by certain of Adtalem’s subsidiaries that are borrowers or guarantors under its senior secured credit facilities and certain of its other senior indebtedness, subject to certain exceptions (the “Guarantors”). As of August 12, 2021, the Notes are secured, subject to permitted liens and certain other exceptions, by first priority liens on the same collateral that secures the obligations under Adtalem’s senior secured credit facilities. At any time prior to March 1, 2024, the Issuer may redeem all or a part of the Notes at a redemption price equal to 100% of the principal amount of the Notes being redeemed plus a make-whole premium set forth in the Indenture and accrued and unpaid interest, if any, to, but not including, the redemption date. The Issuer may redeem the Notes, in whole or in part, at any time on or after March 1, 2024 at redemption prices equal to 102.75%, 101.375% and 100% of the principal amount of the Notes redeemed if the redemption occurs during the twelve-month periods beginning on March 1 of the years 2024, 2025, and 2026 and thereafter, respectively, in each case plus accrued and unpaid interest, if any, thereon to, but not including, the applicable redemption date. In addition, at any time prior to March 1, 2024, the Issuer may redeem up to 40% of the aggregate principal amount of the Notes at a redemption price equal to 105.5% of the aggregate principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, with the net cash proceeds the Issuer receives from one or more qualifying equity offerings. On April 11, 2022, we repaid $373.3 million of Notes at a price equal to 100% of the principal amount of the Notes. During June 2022, we repurchased on the open market an additional $20.8 million of Notes at a price equal to approximately 90% of the principal amount of the Notes, resulting in a gain on extinguishment of debt of $2.1 million recorded within interest expense in the Consolidated Statements of Income for the year ended June 30, 2022. This debt was subsequently retired. During the first quarter of fiscal year 2023, we repurchased on the open market an additional $0.9 million of Notes at a price equal to approximately 92% of the principal amount of the Notes, resulting in a gain on extinguishment of debt of $0.1 million recorded within interest expense in the Consolidated Statements of Income for the year ended June 30, 2023. This debt was subsequently retired. Accrued interest on the Notes of $7.4 Credit Agreement On February 12, 2021, Adtalem placed an $850.0 million senior secured term loan (“Term Loan B”) into the loan market to provide future funding for the Walden acquisition. For 30 days beginning on March 15, 2021, Adtalem began accruing ticking fees at 50% of the applicable 4.5% margin. Beginning on April 14, 2021 and until the closing date of the Term Loan B, Adtalem accrued ticking fees at a rate equal to LIBOR plus a 4.5% margin, subject to a LIBOR floor of 0.75%. All ticking fees were paid at the time of the Term Loan B closing date, on August 12, 2021, and were recorded within interest expense as accrued in the Consolidated Statements of Income. On August 12, 2021, Adtalem replaced the Prior Credit Agreement (as defined below) by entering into its new credit agreement (the “Credit Agreement”) that provides for (1) a $850.0 million senior secured term loan with a maturity date of August 12, 2028 and (2) a $400.0 million senior secured revolving loan facility (“Revolver”) with a maturity date of August 12, 2026. We refer to the Term Loan B and Revolver collectively as the “Credit Facility.” The Revolver has availability for letters of credit and currencies other than U.S. dollars of up to $400.0 million. Through June 30, 2023, interest on our Credit Facility was set based on LIBOR, which was based on observable market transactions. On June 27, 2023, Adtalem entered into Amendment No. 1 to Credit Agreement, identifying the Secured Overnight Financing Rate (“SOFR”) as the replacement benchmark rate for eurocurrency rate loans within the Credit Agreement. Beginning with the next interest rate reset in July 2023, the base rate will change to SOFR. Term Loan B Borrowings under the Term Loan B bear interest at Adtalem’s option at a rate per annum equal to LIBOR, subject to a LIBOR floor of 0.75%, plus an applicable margin ranging from 4.00% to 4.50% for eurocurrency term loan borrowings or 3.00% to 3.50% for alternative base rate (“ABR”) borrowings depending on Adtalem’s net first lien leverage ratio for such period. As of June 30, 2023, the interest rate for borrowings under the Term Loan B facility was 9.19%, which approximated the effective interest rate. The proceeds of the Term Loan B were used, among other things, to finance the Walden acquisition, refinance Adtalem’s Prior Credit Agreement (as defined below), and pay fees and expenses related to the Walden acquisition. The Term Loan B originally required quarterly installment payments of $2.125 million beginning on March 31, 2022. On March 11, 2022, we made a prepayment of $396.7 million on the Term Loan B. With that prepayment, we are no longer required to make quarterly installment payments. We made additional Term Loan B prepayments of $100.0 million and $50.0 million on September 22, 2022 and November 22, 2022, respectively. Revolver Borrowings under the Revolver bear interest at a rate per annum equal to LIBOR, subject to a LIBOR floor of 0.75%, plus an applicable margin ranging from 3.75% to 4.25% for LIBOR borrowings or 2.75% to 3.25% for ABR borrowings depending on Adtalem’s net first lien leverage ratio for such period. There were no borrowings under the Revolver during the year ended June 30, 2023 or 2022. The Credit Agreement requires payment of a commitment fee equal to 0.25% as of June 30, 2023, of the unused portion of the Revolver. The commitment fee expense is recorded within interest expense in the Consolidated Statements of Income. The amount unused under the Revolver was $323.8 million as of June 30, 2023. Prior Credit Agreement On April 13, 2018, Adtalem entered into a credit agreement (the “Prior Credit Agreement”) that provided for (1) a $300.0 million senior secured term loan (“Prior Term Loan B”), which was set to mature on April 13, 2025 and (2) a $300.0 million revolving facility (“Prior Revolver”), which was set to mature on April 13, 2023. We refer to the Prior Term Loan B and Prior Revolver collectively as the “Prior Credit Facility.” Prior Term Loan B For eurocurrency rate loans, Prior Term Loan B interest was equal to LIBOR or a LIBOR-equivalent rate plus 3%. For base rate loans, Prior Term Loan B interest was equal to the base rate plus 2%. The Prior Term Loan B required quarterly installment payments of $750,000, with the balance due at maturity on April 13, 2025. On March 24, 2020, we executed a pay-fixed, receive-variable interest rate swap agreement (the “Swap”) with a multinational financial institution to mitigate risks associated with the variable interest rate on our Prior Term Loan B debt. We paid interest at a fixed rate of 0.946% and received variable interest of one-month LIBOR (subject to a minimum of 0.00%), on a notional amount equal to the amount outstanding under the Prior Term Loan B. The effective date of the Swap was March 31, 2020 and settlements with the counterparty occurred on a monthly basis. The Swap was set to terminate on February 28, 2025. During the operating term of the Swap, the annual interest rate on the amount of the Prior Term Loan B was fixed at 3.946% (including the impact of the 3% interest rate margin on LIBOR loans) for the applicable interest rate period. The Swap was designated as a cash flow hedge and as such, changes in its fair value were recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets and were reclassified into the Consolidated Statements of Income within interest expense in the periods in which the hedged transactions affected earnings. On July 29, 2021, prior to refinancing our Credit Agreement (as discussed above), we settled and terminated the Swap for $4.5 million, which resulted in a charge to interest expense in the year ended June 30, 2022. Prior Revolver Prior Revolver interest was equal to LIBOR or a LIBOR-equivalent rate for eurocurrency rate loans or a base rate, plus an applicable margin based on Adtalem’s consolidated leverage ratio, as defined in the Prior Credit Agreement. The applicable margin ranged from 1.75% to 2.75% for eurocurrency rate loans and from 0.75% to 1.75% for base rate loans. Debt Discount and Issuance Costs The Term Loan B was issued at a price of 99% of its principal amount, resulting in an original issue discount of 1%. The debt discount and issuance costs related to the Notes and Term Loan B are capitalized and presented as a direct deduction from the face amount of the debt, while the debt issuance costs related to the Revolver are classified as other assets, net on the Consolidated Balance Sheets. The debt discount and issuance costs are amortized as interest expense over seven years for the Notes and Term Loan B and over five years for the Revolver. The remaining $6.0 million of unamortized debt issuance costs related to the Prior Credit Facility and the $10.3 million of debt issuances costs associated with an unused bridge facility, which was in place should the permanent financing not have been obtained, were expensed in interest expense in the Consolidated Statements of Income in the year ended June 30, 2022. In addition, based on the $396.7 million prepayment on the Term Loan B and $394.1 million prepayment on the Notes during fiscal year 2022, we expensed $12.5 million and $6.8 million, respectively, in interest expense in the Consolidated Statements of Income for the year ended June 30, 2022, which was the proportionate amount of the remaining unamortized debt discount and issuance costs related to the Term Loan B and Notes as of the prepayment dates. In addition, based on the $150.0 million prepayments on the Term Loan B during fiscal year 2023, we expensed $4.3 million in interest expense in the Consolidated Statements of Income for the year ended June 30, 2023, which was the proportionate amount of the remaining unamortized debt discount and issuance costs related to the Term Loan B as of the prepayment date. The following table summarizes the unamortized debt discount and issuance costs activity for fiscal year 2023 (in thousands): Notes Term Loan B Revolver Total Unamortized debt discount and issuance costs as of June 30, 2022 $ 6,725 $ 13,582 $ 8,383 $ 28,690 Amortization of debt discount and issuance costs (1,118) (1,686) (2,028) (4,832) Debt discount and issuance costs write-off (15) (4,282) — (4,297) Unamortized debt discount and issuance costs as of June 30, 2023 $ 5,592 $ 7,614 $ 6,355 $ 19,561 Off-Balance Sheet Arrangements Adtalem had a surety-backed letter of credit outstanding of $84.0 million as of June 30, 2023, in favor of the U.S. Department of Education (“ED”) on behalf of Walden, which allows Walden to participate in Title IV programs. In addition, Adtalem has posted a letter of credit under its Revolver in the amount of $76.2 million as of June 30, 2023, in favor of ED, which also allows Walden to participate in Title IV programs. Many states require private-sector postsecondary education institutions to post surety bonds for licensure. In the U.S., Adtalem has posted $31.9 million of surety bonds with regulatory authorities on behalf of Chamberlain, Walden, AUC, RUSM, and RUSVM. Adtalem had a letter of credit of $68.4 million, which was posted in the second quarter of fiscal year 2017 in relation to a settlement with the Federal Trade Commission (“FTC”) and required the letter of credit to be equal to the greater of 10% of DeVry University’s annual Title IV disbursements or $68.4 million for a five-year period. Adtalem continued to post the letter of credit in relation to the settlement with the FTC on behalf of DeVry University and was reimbursed by DeVry University for 2.00% of the outstanding amount of this letter of credit. This letter of credit expired during the second quarter of fiscal year 2022. Interest Expense The components of interest expense were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Notes interest expense $ 22,301 $ 39,371 $ 14,667 Term Loan B interest expense 26,831 33,413 — Term Loan B ticking fees — 5,330 11,263 Prior Term Loan B interest expense — 1,272 9,311 Term Loan B debt discount and issuance costs write-off 4,282 12,471 — Notes issuance costs write-off 15 6,771 — Gain on extinguishment of debt (71) (2,072) — Unused bridge fee — 10,329 — Prior Credit Facility issuance costs write-off — 6,000 — Swap settlement — 4,525 — Amortization of debt discount and issuance costs 4,832 7,083 2,657 Other 4,910 4,855 3,467 Total interest expense $ 63,100 $ 129,348 $ 41,365 Covenants and Guarantees The Credit Agreement and Notes contain customary covenants, including restrictions on our restricted subsidiaries’ ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interest on assets, make acquisitions, loans, advances or investments, or sell or otherwise transfer assets. Under the terms of the Credit Agreement, beginning on the fiscal quarter ending December 31, 2021 and through December 31, 2023, Adtalem is required to maintain a Total Net Leverage Ratio of equal to or less than 4.00 to 1.00, which requirement reduces to 3.25 to 1.00 for the fiscal quarter ending March 31, 2024 and thereafter. The Total Net Leverage Ratio under the Credit Agreement is defined as the ratio of (a) the aggregate principal amount of Consolidated Debt (as defined in the Credit Agreement) of Adtalem and its subsidiaries as of the last day of the most recently ended Test Period (as defined in the Credit Agreement) minus Obligations under the Credit Agreement are secured by a first-priority lien on substantially all of the assets of Adtalem and certain of its domestic wholly owned subsidiaries (the “Subsidiary Guarantors”), which Subsidiary Guarantors also guarantee the obligations of Adtalem under the Credit Agreement, subject to certain exceptions. The Credit Agreement contains customary affirmative and negative covenants customary for facilities of its type, which, among other things, generally limit (with certain exceptions): mergers, amalgamations, or consolidations; the incurrence of additional indebtedness (including guarantees); the incurrence of additional liens; the sale, assignment, lease, conveyance or transfer of assets; certain investments; dividends and stock redemptions or repurchases in excess of certain amounts; transactions with affiliates; engaging in materially different lines of business; payments and modifications of indebtedness or the governing documents of Adtalem or any Subsidiary Guarantor; and other activities customarily restricted in such agreements. The Credit Agreement contains customary events of default for facilities of this type. If an event of default under the Credit Agreement occurs and is continuing, the commitments thereunder may be terminated and the principal amount outstanding thereunder, together with all accrued and unpaid interest and other amounts owed thereunder, may be declared immediately due and payable. The Term Loan B requires mandatory prepayments equal to the net cash proceeds from an asset sale or disposition which is not reinvested in assets within one-year from the date of disposition if the asset sale or disposition is in excess of $20.0 million, among other mandatory prepayment terms (see the Credit Agreement, as filed under Form 8-K dated August 12, 2021, for additional information and term definitions). With the $396.7 million prepayment on March 11, 2022 on the Term Loan B, the $394.1 million prepayment on the Notes during the fourth quarter of fiscal year 2022, and the $100.0 million prepayment on September 22, 2022 on the Term Loan B, we satisfied the mandatory prepayment requirement resulting from the sale proceeds received from the sale of the Financial Services segment. No other mandatory prepayments have been required since the execution of the Credit Agreement. The Notes contain covenants that limit the ability of the Issuer and each of the Guarantors to incur or guarantee additional debt or issue disqualified stock or preferred stock; pay dividends and make other distributions on, or redeem or repurchase, capital stock; make certain investments; incur certain liens; enter into transactions with affiliates; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; create certain restrictions on the Guarantors to make dividends or other payments to Adtalem; designate restricted subsidiaries as unrestricted subsidiaries; and transfer or sell certain assets. These covenants are subject to a number of important exceptions and qualifications. The Indenture and the Notes also provide for certain customary events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the Notes to become or be declared due and payable or would allow the trustee or the holders of at least 25% in principal amount of the then outstanding Notes to declare the principal of and accrued and unpaid interest, if any, on all the Notes to be due and payable by notice in writing to the Issuer and, upon such declaration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Adtalem was in compliance with the debt covenants related to the Credit Agreement and the Notes covenants as of June 30, 2023. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Jun. 30, 2023 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | 15. Redeemable Noncontrolling Interest Prior to the third quarter of fiscal year 2022, Adtalem maintained a 69% ownership interest in EduPristine with the remaining 31% owned by Kaizen Management Advisors (“Kaizen”), an India-based private equity firm. Beginning on March 26, 2020, Adtalem had the right to exercise a call option and purchase any remaining EduPristine stock from Kaizen. Likewise, Kaizen had the right to exercise a put option and sell up to 33% of its remaining ownership interest in EduPristine to Adtalem. Beginning on March 26, 2022, Kaizen had the right to exercise a put option and sell its remaining ownership interest in EduPristine to Adtalem. During fiscal year 2022, Adtalem purchased the remaining ownership interest in EduPristine from Kaizen for $1.8 million, resulting in Adtalem owning 100% of EduPristine. Subsequently, Adtalem sold EduPristine in its entirety on June 17, 2022 (see Note 4 “Discontinued Operations and Assets Held for Sale” for additional information). Since the put option was out of the control of Adtalem, authoritative guidance required the redeemable noncontrolling interest, which included the value of the put option, to be displayed outside of the equity section of the Consolidated Balance Sheets. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Jun. 30, 2023 | |
Dividends And Share Repurchase Program [Abstract] | |
Share Repurchases | 16. Share Repurchases Open Market Share Repurchase Programs On November 8, 2018, we announced that the Board authorized Adtalem’s eleventh share repurchase program, which allowed Adtalem to repurchase up to $300.0 million of its common stock through December 31, 2021. The eleventh share repurchase program commenced in January 2019 and was completed in January 2021. On February 4, 2020, we announced that the Board authorized Adtalem’s twelfth share repurchase program, which allowed Adtalem to repurchase up to $300.0 million of its common stock through December 31, 2021. The twelfth share repurchase program commenced in January 2021 and expired on December 31, 2021. Life-to-Date Year Ended June 30, Current Share 2023 2022 Repurchase Program Total number of share repurchases 3,207,036 — 3,207,036 Total cost of share repurchases $ 127,254 $ — $ 127,254 Average price paid per share $ 39.68 $ — $ 39.68 As of June 30, 2023, $172.7 million of authorized share repurchases were remaining under the current share repurchase program. The timing and amount of any future repurchases will be determined based on an evaluation of market conditions and other factors. These repurchases may be made through the open market, including block purchases, in private negotiated transactions, or otherwise. Repurchases will be funded through available cash balances and/or borrowings and may be suspended or discontinued at any time. Shares of stock repurchased under the programs are held as treasury shares. Repurchases under our share repurchase programs reduce the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations . ASR Agreement On March 14, 2022, we entered into an ASR agreement to repurchase $150.0 million of common stock. We received an initial delivery of 4,709,576 On March 14, 2022, we recorded the $150.0 million purchase price of the ASR as a reduction to shareholders’ equity, consisting of a $120.0 million increase in treasury stock and a $30.0 million reduction in additional paid-in capital, which represented an equity forward contract, on the Consolidated Balance Sheets. During the second quarter of fiscal year 2023, the $30.0 million initially recorded as a reduction in additional paid-in capital was reclassified to treasury stock and an additional $13.2 million was recorded in treasury stock, which represented our final cash settlement payment. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income, Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss The following table shows the changes in accumulated other comprehensive loss by component (in thousands): Year Ended June 30, 2023 2022 2021 Foreign currency translation adjustments Beginning balance $ (2,227) $ (2,523) $ (3,236) Gain on foreign currency translation — — 713 Reclassification from other comprehensive income — 296 — Ending balance $ (2,227) $ (2,227) $ (2,523) Available-for-sale marketable securities Beginning balance, gross $ — $ — $ 242 Beginning balance, tax effect — — (59) Beginning balance, net of tax — — 183 Unrealized loss on available-for-sale marketable securities — — (75) Tax effect — — 18 Reclassification from other comprehensive income — — (126) Ending balance $ — $ — $ — Interest rate swap Beginning balance, gross $ — $ (8,926) $ (10,399) Beginning balance, tax effect — 2,231 2,544 Beginning balance, net of tax — (6,695) (7,855) Unrealized gain on interest rate swap — — 1,473 Tax effect — — (313) Reclassification from other comprehensive income — 6,695 — Ending balance $ — $ — $ (6,695) Total ending balance $ (2,227) $ (2,227) $ (9,218) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 18. Stock-Based Compensation Adtalem maintains two stock-based incentive plans: the Amended and Restated Incentive Plan of 2005 and the Fourth Amended and Restated Incentive Plan of 2013, which are administered by the Compensation Committee of the Board. Under these plans, directors, key executives, and managerial employees are eligible to receive incentive or nonqualified stock options to purchase shares of Adtalem’s common stock and also permit the granting of stock appreciation rights, RSUs, performance-based RSUs, and other stock and cash-based compensation. Although options remain outstanding under the 2005 incentive plan, no further grants will be issued under this plan. Stock-based compensation expense is measured at the grant date based on the fair value of the award. Adtalem 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 as expense over the employee requisite service period. We account for forfeitures of unvested awards in the period they occur. As of June 30, 2023, 2,730,474 shares were authorized for issuance but not issued or subject to outstanding awards under Adtalem’s stock-based incentive plans. We issued options generally with a four-year graduated vesting from the grant date that expire ten years from the grant date. The option price under the plans is the fair market value of the shares on the date of the grant. The Compensation Committee of the Board determined to no longer grant stock options beginning with the fiscal year 2023 stock-based grant awards. The following is a summary of options activity for the year ended June 30, 2023: Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of July 1, 2022 1,144,372 $ 35.36 Exercised (93,021) 28.23 Forfeited (3,975) 36.46 Expired (1,575) 18.60 Outstanding as of June 30, 2023 1,045,801 36.02 5.5 $ 1,218 Exercisable as of June 30, 2023 774,995 $ 36.04 4.8 $ 980 The total intrinsic value of options exercised in the years ended June 30, 2023, 2022, and 2021 was $1.1 million, $6.9 million, and $1.1 million, respectively. The tax benefit from options exercised for the years ended June 30, 2023, 2022, and 2021 was $0.3 million, $1.8 million, and $0.3 million, respectively. The fair value of Adtalem’s options was estimated using a binomial model. This model uses historical cancellation and exercise experience of Adtalem to determine the option value. It also considers 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 Adtalem’s stock-based incentive plans during the years ended June 30, 2022 and 2021 was $14.72 and $12.23, per share, respectively. No stock options were granted during fiscal year 2023. The fair value of Adtalem’s option grants was estimated assuming the following weighted-average assumptions: Fiscal Year 2022 2021 Expected life (in years) 6.56 6.54 Expected volatility 39.99 % 39.27 % Risk-free interest rate 0.94 % 0.45 % Dividend yield 0.00 % 0.00 % The expected life of the options During fiscal year 2023, Adtalem granted 525,180 RSUs to selected employees and directors. Of these, 200,720 were performance-based RSUs and 324,460 were non-performance-based RSUs. We issue performance-based RSUs generally with a three-year cliff vest from the grant date. The final number of shares issued under performance-based RSUs is based on metrics approved by the Compensation Committee of the Board. Prior to fiscal year 2023, we issued non-performance-based RSUs generally with a four-year graduated vesting from the grant date. Beginning in fiscal year 2023, we issue non-performance-based RSUs generally with a three-year graduated vesting from the grant date. We also regularly issue RSUs to our Board members with a one-year cliff vest from the grant date. The recipient of the non-performance-based RSUs has the right to receive dividend equivalents, if any. This right does not pertain to the performance-based RSUs. The following is a summary of RSU activity for the year ended June 30, 2023: Weighted-Average Number of Grant Date RSUs Fair Value Unvested as of July 1, 2022 1,171,692 $ 35.05 Granted 525,180 40.10 Vested (342,713) 37.19 Forfeited (126,126) 37.07 Unvested as of June 30, 2023 1,228,033 $ 36.40 The weighted-average estimated Stock-based compensation expense, which is included in student services and administrative expense, and the related income tax benefit were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Stock-based compensation $ 14,299 $ 22,611 $ 12,824 Income tax benefit (3,938) (3,658) (2,824) Stock-based compensation, net of tax $ 10,361 $ 18,953 $ 10,000 As of June 30, 2023, $22.7 million of total pre-tax unrecognized stock-based compensation expense related to unvested grants is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of options and RSUs vested during the years ended June 30, 2023, 2022, and 2021 was $15.0 million, $15.2 million, and $17.3 million, respectively. There was no capitalized stock-based compensation cost as of each of June 30, 2023 and 2022. Adtalem issues new shares of common stock to satisfy option exercises and RSU vests. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 19. Employee Benefit Plans 401(k) Retirement Plan All U.S. employees who meet certain eligibility requirements can participate in Adtalem’s 401(k) Retirement Plan. Effective January 1, 2020, Adtalem makes a matching employer contribution into the 401(k) Retirement Plan of 100% up to the first 6% of the participant’s eligible compensation. Expense for the matching employer contributions under the plan were $17.9 million, $18.4 million, and $12.0 million for the years ended June 30, 2023, 2022, and 2021, respectively. Colleague Stock Purchase Plan Under provisions of Adtalem’s current Colleague Stock Purchase Plan, any eligible employee may authorize Adtalem to withhold up to $25,000 of annual wages to purchase common stock of Adtalem. Adtalem implemented a new Colleague Stock Purchase Plan approved by stockholders at Adtalem’s annual meeting of stockholders held on November 6, 2019 which allows for the issuance of 500,000 shares. Currently, employees can purchase Adtalem’s common stock at 90% of the prevailing market price on the purchase date. Adtalem subsidizes the remaining 10% and pays all brokerage commissions and administrative fees associated with the plan. These expenses were insignificant for the years ended June 30, 2023, 2022, and 2021. Total shares issued under the plans were 18,463, 18,328, and 8,857 for the years ended June 30, 2023, 2022, and 2021, respectively. These plans are intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code. Currently, Adtalem is re-issuing treasury shares to satisfy colleague share purchases under this plan. Nonqualified Deferred Compensation Plan Adtalem has a nonqualified deferred compensation (“NDCP”) plan for highly compensated employees and its Board members. The plan allows participants to make tax-deferred contributions that cannot be made under the 401(k) Retirement Plan because of Internal Revenue Service limitations. The plan permits the deferral of up to 50% of a participant’s salary and up to 100% of a participant’s bonus or board fee. Adtalem currently matches up to 6% of the total eligible compensation of participants who make contributions under the plan. Amounts contributed and deferred under the plan are credited or charged with the performance of investment options offered under the plan as elected by the participants. The participant’s “investments” are in a hypothetical portfolio of investments which are tracked by an administrator. Total liabilities under the NDCP plan included in accrued liabilities on the Consolidated Balance Sheets as of June 30, 2023 and 2022 were $12.6 million and $16.3 million, respectively. The increase or decrease in the fair value of the liabilities under the NDCP plan is included in student services and administrative expense in the Consolidated Statements of Income. We have elected to fund our NDCP plan obligations through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are placed in investments whose performance is generally consistent with the investments chosen by participants under their NDCP plan accounts, which are designated as trading securities and carried at fair value. The fair value of the investments in the rabbi trust included in prepaid expenses and other current assets on the Consolidated Balance Sheets as of June 30, 2023 and 2022 was $12.5 million and $17.8 million, respectively. We record trading gains and losses in other income, net in the Consolidated Statements of Income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 20. Fair Value Measurements Adtalem 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. 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 – Observable inputs other than prices included in Level 1, such as 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, Adtalem uses quoted market prices to determine fair value, and such measurements are classified within Level 1. In cases where market prices are not available, Adtalem 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. The carrying value of our cash and cash equivalents approximates fair value because of their short-term nature and is classified as Level 1. Adtalem maintains a rabbi trust with investments in stock and bond mutual funds to fund obligations under a nonqualified deferred compensation plan. are recorded at fair value based upon quoted market prices using Level 1 inputs. The carrying value of the credit extension programs, which approximates its fair value, is included in accounts receivable, net and other assets, net on the Consolidated Balance Sheets as of June 30, 2023 and and $27.5 million, respectively, and is classified as Level 2. See Note 10 “Accounts Receivable and Credit Losses” for additional information on these credit extension programs. On July 31, 2019, Adtalem sold its Chicago, Illinois, campus facility to DePaul College Prep. In connection with the sale, Adtalem held a mortgage from DePaul College Prep for $46.8 million. The mortgage was due on July 31, 2024 as a balloon payment and bore interest at a rate of 4% per annum, payable monthly. The carrying value of the DePaul College Prep loan receivable, which approximates its fair value, is included in other assets, net on the Consolidated Balance Sheets as of June 30, 2022 was $44.0 million. Fair value was estimated by discounting the future cash flows using an average of current rates for similar arrangements, which was estimated at 7% per annum and was classified as Level 2. On February 23, 2023, DePaul College Prep paid the mortgage in full, which resulted in derecognition of the note receivable from the Consolidated Balance Sheets. Adtalem has a nonqualified deferred compensation plan for highly compensated employees and its Board members. The participant’s “investments” are in a hypothetical portfolio of investments which are tracked by an administrator. Changes in the fair value of the nonqualified deferred compensation obligation are derived using quoted prices in active markets based on the market price per unit multiplied by the number of units. Total liabilities under the plan included in accrued liabilities on the Consolidated Balance Sheets as of June 30, 2023 and 2022 were $12.6 million and $16.3 million, respectively. The fair value of the nonqualified deferred compensation obligation is classified as Level 2 because their inputs are derived principally from observable market data by correlation to the hypothetical investments. As of June 30, 2023 and 2022, borrowings under our long-term debt agreements were $708.3 million and $859.2 million, respectively. The fair value of the Notes was $368.5 million as of June 30, 2023, which is based upon quoted market prices and is classified as Level 1. The fair value of the Term Loan B was $304.3 million as of June 30, 2023, which is based upon quoted market prices in a non-active market and is classified as Level 2. See Note 14 “Debt” for additional information on our long-term debt agreements. As of June 30, 2023 and 2022, there were no assets or liabilities measured at fair value using Level 3 inputs. We recorded an impairment of $5.0 million on an equity investment with no readily determinable fair value within other income, net in the Consolidated Statements of Income in the year ended June 30, 2023 as the carrying value is no longer recoverable. Since initial recognition of the investment, there have been no upward or downward adjustments as a result of observable price changes. Following the impairment, the carrying amount of $5.0 million was reduced to zero . Assets measured at fair value on a nonrecurring basis include goodwill and indefinite-lived intangible assets arising from a business combination. These assets are not amortized and charged to expense over time. Instead, goodwill and indefinite-lived intangible assets 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, 2023. See Note 13 “Goodwill and Intangible Assets” for additional information on the impairment review, including valuation techniques and assumptions. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Adtalem 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. As of June 30, 2023, Adtalem believes it has adequately reserved for potential losses. 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. We have recorded accruals for those matters where management believes a loss is probable and can be reasonably estimated as of June 30, 2023. For those matters for which we have not recorded an accrual, their possible impact on Adtalem’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. On April 13, 2018, a putative class action lawsuit was filed by Nicole Versetto, individually and on behalf of others similarly situated, against Adtalem, DeVry University Inc., and DeVry/New York Inc. (collectively the “Adtalem Parties”) in the Circuit Court of Cook County, Illinois, Chancery Division. The complaint was filed on behalf of herself and three separate classes of similarly situated individuals who were citizens of the State of Illinois and who purchased or paid for a DeVry University program between January 1, 2008 and April 8, 2016. The plaintiff claimed that defendants made false or misleading statements regarding DeVry University’s graduate employment rate and asserts causes of action under the Illinois Uniform Deceptive Trade Practices Act, Illinois Consumer Fraud and Deceptive Trade Practices Act, and Illinois Private Business and Vocational Schools Act, and claims of breach of contract, fraudulent misrepresentation, concealment, negligence, breach of fiduciary duty, conversion, unjust enrichment, and declaratory relief as to violations of state law. The plaintiff sought compensatory, exemplary, punitive, treble, and statutory penalties and damages, including pre-judgment and post-judgment interest, in addition to restitution, declaratory and injunctive relief, and attorneys’ fees. The plaintiff later filed an amended complaint asserting similar claims with a new lead plaintiff, Dave McCormick. After discussions among the parties, the court granted a Motion for Preliminary Approval of Class Action Settlement (the “McCormick Settlement”) on May 28, 2020. In conjunction with the McCormick Settlement, Adtalem was required to establish a settlement fund by placing $44.95 million into an escrow account, which is recorded within prepaid expenses and other current assets on the Consolidated Balance Sheets as of each of June 30, 2023 and 2022. Adtalem management determined a loss contingency was probable and reasonably estimable. As such, we also recorded a loss contingency accrual of $44.95 million on the Consolidated Balance Sheets as of June 30, 2020 and charged the contingency loss within discontinued operations in the Consolidated Statements of Income (Loss) for the year ended June 30, 2020. As of June 30, 2020, we had anticipated the potential payments related to this loss contingency to be made from the escrow account during fiscal year 2021. We now anticipate the potential payments related to this loss contingency to be made from the escrow account during fiscal year 2024. This loss contingency estimate could differ from actual results and result in additional charges or reversals in future periods. The court issued an order approving the McCormick Settlement on October 7, 2020 and dismissed the action with prejudice. On November 2, 2020, Stoltmann Law Offices filed on behalf of Jose David Valderrama (“Valderrama”), a class member who objected to the terms of the McCormick Settlement, a notice of appeal of the court’s order approving the McCormick Settlement. On November 5, 2020, Richardo Peart (“Peart”), another class member who objected to the terms of the McCormick Settlement, filed a similar notice of appeal. Those appeals were consolidated before the Appellate Court of Illinois, First District and fully briefed. The Appellate Court agreed to stay Valderrama’s and Peart’s appeals of the McCormick Settlement pending the outcome of mediation involving the objections to the McCormick Settlement. The objections were not resolved at a mediation on February 1, 2022. Valderrama’s objection was withdrawn as part of the Stoltmann settlement discussed below. Peart’s objection remained pending a decision by the Appellate Court. On May 4, 2022, the Appellate Court denied Peart’s objection and affirmed the Circuit Court of Cook County’s approval of the McCormick Settlement. Adtalem settled with Peart and the $44.95 million McCormick Settlement became final. The $44.95 million settlement fund was reduced by $8.92 million reflecting an offset of amounts paid to the Settlement Class. Adtalem received the $8.92 million return of escrow on July 18, 2023. The remaining $36.03 million settlement fund is being distributed to the Settlement Class. In addition to Valderrama, Stoltmann Law Offices represented 552 individuals (“Stoltmann Claimants”) who opted out of the McCormick Settlement and filed claims with the Judicial Arbitration and Mediation Services, Inc. (“JAMS”) alleging fraud-based claims based on DeVry University’s graduate employment statistics. On November 2, 2021, Adtalem and the Stoltmann Law Offices participated in a mediation to resolve the claims of the Stoltmann Claimants. Adtalem and the Stoltmann Law Offices have reached agreement on settlement terms (“Stoltmann Settlement”). The Adtalem Board of Directors approved the Stoltmann Settlement. The settlement amount, $20,375,000, was reduced by $75,000 for each of the Stoltmann Claimants that declined to participate in the settlement. Of Stoltmann’s 552 Claimants, six declined to participate, reducing the settlement amount by $450,000. On February 28, 2022, Adtalem remitted $19,925,000 to the Stoltmann Laws Offices on behalf of the 546 participating Stoltmann Claimants. Of the six Stoltmann Claimants that declined to participate in the settlement, two voluntarily dismissed their arbitrations; one arbitration was stayed at the Claimant’s request; and three Claimants have not recommenced their arbitrations. On March 12, 2021, Travontae Johnson, a current student of Chamberlain, filed a putative class action against Chamberlain in the Circuit Court of Cook County, Illinois, Chancery Division. The plaintiff claims that Chamberlain’s use of Respondus Monitor, an online remote proctoring tool for student examinations, violated the Illinois Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/15. More particularly, the plaintiff claims that Chamberlain required students to use Respondus Monitor, which collected, captured, stored, used, and disclosed students’ biometric identifiers and biometric information without written and informed consent. The plaintiff also alleges that Chamberlain lacked a legally compliant written policy establishing a retention schedule and guidelines for destroying biometric identifiers and biometric information. The potential class purportedly includes all students who took an assessment using the proctoring tool, as a student of Chamberlain in Illinois, at any time from March 12, 2016 through January 20, 2021. The plaintiff and the putative class seek damages in excess of $50,000, attorney’s fees and costs. The plaintiff and class also seek an unspecified amount of enhanced damages based on alleged negligent or reckless conduct by Chamberlain. On June 16, 2021, Chamberlain filed a motion to dismiss plaintiff’s complaint. On June 29, 2021, plaintiff filed an amended complaint. On July 19, 2021, Chamberlain filed its motion to dismiss the amended complaint arguing that plaintiff’s lawsuit is expressly preempted by Title V of the Gramm-Leach-Bliley Act. On February 1, 2023, the Court granted Chamberlain’s motion to dismiss plaintiff’s complaint. On March 3, 2023, plaintiff filed an appeal, which is pending. On January 12, 2022, Walden was served with a complaint filed in the United States District Court for the District of Maryland by Aljanal Carroll, Claudia Provost Charles, and Tiffany Fair against Walden for damages, injunctive relief, and declaratory relief on behalf of themselves and all other similarly-situated individuals alleging violations of Title VI of the Civil Rights Act of 1964, the Equal Credit Opportunity Act, the Minnesota Prevention of Consumer Fraud Act, the Minnesota Uniform Deceptive Trade Practices Act, Minnesota statutes prohibiting false statements in advertising, and for common law fraudulent misrepresentation. Plaintiffs allege that Walden has targeted, deceived, and exploited Black and female Doctor of Business Administration (“DBA”) students by knowingly misrepresenting and understating the number of “capstone” credits required to complete the DBA program and obtain a degree. On March 23, 2022, Walden filed a Motion to Dismiss the Plaintiffs’ claims for failure to state a claim upon which relief can be granted. On November 27, 2022, the Court denied Walden’s motion to dismiss the complaint. Plaintiffs filed an amended complaint to add an additional plaintiff, Tareion Fluker. Walden answered the amended complaint on February 2, 2023. The parties participated in a non-binding mediation on May 4, 2023 and settlement discussions are ongoing. The parties filed a joint motion to stay discovery through August 31, 2023 pending the outcome of the ongoing settlement discussions. On June 6, 2022, plaintiff Rajesh Verma filed a lawsuit on behalf of himself and a class of similarly situated individuals in the Circuit Court of the Fourth Judicial Circuit, Duval County Florida, against Walden alleging that Walden was placing telephonic sales calls to persons on the National Do-Not-Call Registry, in violation of the Telephone Consumer Protection Act, 47 U.S.C. § 227, et seq. Although originally filed in state court, Walden removed the case to federal court and filed a motion to dismiss plaintiff’s complaint. On August 26, 2022, plaintiff filed a motion to remand Count I of the complaint to state court. On March 2, 2023, plaintiff filed an amended complaint to add a Florida state law claim against Walden under the Florida Telephone Solicitation Act (“FTSA”). On March 16, 2023, Walden filed its answer to the amended complaint. On March 29, 2023, Walden’s motion to dismiss plaintiff’s complaint and plaintiff’s motion to remand Count I of the complaint were denied. In June 2023, the parties agreed to participate in non-binding mediation, which is scheduled for September 18, 2023. As previously disclosed, pursuant to the terms of the Stock Purchase Agreement (“SPA”) by and between Adtalem and Cogswell Education, LLC (“Cogswell”), dated as of December 4, 2017, as amended, Adtalem sold DeVry University to Cogswell and Adtalem agreed to indemnify DeVry University for certain losses up to $340.0 million (the “Liability Cap”). Adtalem has previously disclosed DeVry University related matters that have consumed a portion of the Liability Cap. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 22. Segment Information We present three reportable segments as follows: Chamberlain Walden Medical and Veterinary Certain expenses previously allocated to ACAMS, Becker, OCL, and EduPristine within our former Financial Services segment during fiscal year 2021 and the first quarter of fiscal year 2022 have been reclassified to Home Office and Other based on discontinued operations reporting guidance regarding allocation of corporate overhead. Beginning in the second quarter of fiscal year 2022, these costs are being allocated to the Chamberlain, Walden, and Medical and Veterinary segments. These segments are consistent with the method by which the Chief Operating Decision Maker (Adtalem’s President and Chief Executive Officer) evaluates performance and allocates resources. Performance evaluations are based on each segment’s adjusted operating income. Adjusted operating income excludes special items, which consists of deferred revenue adjustment, CEO transition costs, restructuring expense, business acquisition and integration expense, intangible amortization expense, litigation reserve, and gain on sale of assets. Adtalem’s management excludes these items from its review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. “Home Office and Other” includes activities not allocated to a reportable segment and is included to reconcile segment results to the Consolidated Financial Statements. Total assets by segment is not presented as our CODM does not review or allocate resources based on segment assets. The accounting policies of the segments are the same as those described in Note 2 “Summary of Significant Accounting Policies.” Summary financial information by reportable segment is as follows (in thousands): Year Ended June 30, 2023 2022 2021 Revenue: Chamberlain $ 571,034 $ 557,536 $ 563,814 Walden 533,725 485,393 — Medical and Veterinary 346,067 338,913 335,434 Total consolidated revenue $ 1,450,826 $ 1,381,842 $ 899,248 Adjusted operating income: Chamberlain $ 135,503 $ 127,252 $ 128,851 Walden 110,364 104,582 — Medical and Veterinary 67,336 69,148 60,199 Home Office and Other (25,633) (33,380) (40,189) Total consolidated adjusted operating income 287,570 267,602 148,861 Reconciliation to Consolidated Financial Statements: Deferred revenue adjustment — (8,561) — CEO transition costs — (6,195) — Restructuring expense (18,817) (25,628) (6,869) Business acquisition and integration expense (42,661) (53,198) (31,593) Intangible amortization expense (61,239) (97,274) — Litigation reserve (10,000) — — Gain on sale of assets 13,317 — — Total consolidated operating income 168,170 76,746 110,399 Interest expense (63,100) (129,348) (41,365) Other income, net 6,965 1,108 6,732 Total consolidated income (loss) from continuing operations before income taxes $ 112,035 $ (51,494) $ 75,766 Capital expenditures: Chamberlain $ 17,749 $ 15,235 $ 28,631 Walden 4,688 5,393 — Medical and Veterinary 4,386 3,277 4,121 Home Office and Other 10,185 7,149 7,129 Total consolidated capital expenditures $ 37,008 $ 31,054 $ 39,881 Depreciation expense: Chamberlain $ 17,264 $ 18,547 $ 16,123 Walden 9,492 9,255 — Medical and Veterinary 12,475 13,890 14,431 Home Office and Other 2,344 2,882 3,334 Total consolidated depreciation expense $ 41,575 $ 44,574 $ 33,888 Intangible amortization expense: Walden $ 61,239 $ 97,274 $ — Total consolidated intangible amortization expense $ 61,239 $ 97,274 $ — Adtalem conducts its educational operations in the U.S., Barbados, St. Kitts, and St. Maarten. Revenue and long-lived assets by geographic area are as follows (in thousands): Year Ended June 30, 2023 2022 2021 Revenue from unaffiliated customers: Domestic operations $ 1,104,759 $ 1,042,929 $ 563,814 Barbados, St. Kitts, and St. Maarten 346,067 338,913 335,434 Total consolidated revenue $ 1,450,826 $ 1,381,842 $ 899,248 Long-lived assets: Domestic operations $ 269,147 $ 289,129 $ 286,720 Barbados, St. Kitts, and St. Maarten 164,052 178,792 164,337 Total consolidated long-lived assets $ 433,199 $ 467,921 $ 451,057 No one customer accounted for more than 10% of Adtalem’s consolidated revenue for all periods presented. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Adtalem and its controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Where our ownership interest is less than 100%, but greater than 50%, the noncontrolling ownership interest is reported on our Consolidated Balance Sheets. The noncontrolling ownership interest earnings portion is classified as “net loss attributable to redeemable noncontrolling interest from discontinued operations” in our Consolidated Statements of Income. Unless indicated, or the context requires otherwise, references to years refer to Adtalem’s fiscal years. Certain prior periods amounts have been reclassified for consistency with the current period presentation. Business acquisition and integration expense was $42.7 million, $53.2 million, and $31.6 million in fiscal year 2023, 2022, and 2021, respectively. These are transaction costs associated with acquiring Walden and costs associated with integrating Walden into Adtalem. In addition, during fiscal year 2023, we initiated transformation initiatives to accelerate growth and organizational agility. Certain costs relating to this transformation are included in business acquisition and integration costs in the Consolidated Statements of Income. |
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 the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Although our current estimates contemplate current conditions, including, but not limited to, the impact of (i) the novel coronavirus (“COVID-19”) pandemic, (ii) rising interest rates, and (iii) labor and material cost increases and shortages, and how we anticipate them to change in the future, as appropriate, it is reasonably possible that actual conditions could differ from what was anticipated in those estimates, which could materially affect our results of operations and financial condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. The carrying value of cash and cash equivalents approximate fair value. We maintain cash and cash equivalent balances that exceed federally insured limits. We have not experienced any losses on our cash and cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash represents amounts received from 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 Adtalem’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. |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and is depreciated on the straight-line method. Cost includes additions and those improvements that enhance performance, increase the capacity, or lengthen the useful lives of the assets. Purchases of computer software, including external costs and certain internal costs (including payroll and payroll-related costs of employees) directly associated with developing computer software applications for internal use, are capitalized. Repairs and maintenance costs are expensed as incurred. Upon sale or retirement of an asset, the accounts are relieved of the cost and the related accumulated depreciation, with any resulting gain or loss included in income. Assets under construction are reflected in construction in progress until they are placed into service for their intended use. Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the asset, whichever is shorter. Depreciation is computed using the straight-line method over estimated service lives. These lives range from 5 to 40 years for buildings and leasehold improvements, and from 3 to 8 years for computers, furniture, and equipment. See Note 11 “Property and Equipment, Net” for additional information. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. Our annual testing date is May 31. We have the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is determined that the reporting unit fair value is more likely than not less than its carrying value, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the reporting unit’s fair value. If the carrying value of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized equal to the difference between the carrying value of the reporting unit and its fair value, not to exceed the carrying value of goodwill. We also have the option to perform a qualitative assessment to test indefinite-lived intangible assets for impairment by determining whether it is more likely than not that the indefinite-lived intangible assets are impaired. If it is determined that the indefinite-lived intangible asset is more likely than not impaired, or if we do not elect the option to perform an initial qualitative assessment, we perform a quantitative assessment of the indefinite-lived intangible assets. If the carrying value of the indefinite-lived intangible assets exceeds its fair value, an impairment loss is recognized to the extent the carrying value exceeds fair value. For intangible assets with finite lives, we evaluate for potential impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset or asset group, the amount of the impairment is the difference between the carrying amount and the fair value of the asset or asset group. Intangible assets with finite lives are amortized over their expected economic lives, ranging from 3 to 5 years. All intangible assets and certain goodwill are being amortized for tax reporting purposes over statutory lives. 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 future impairments of goodwill or intangible assets. See Note 13 “Goodwill and Intangible Assets” for additional information on our goodwill and intangible assets impairment analysis. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying value is no longer recoverable based upon the undiscounted future cash flows of the asset or asset group, the amount of the impairment is the difference between the carrying amount and the fair value of the asset or asset group. 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. |
Capitalized Curriculum Development | Capitalized Curriculum Development Certain costs incurred to create course and educational material for a program offering are capitalized as curriculum development assets within other assets on the Consolidated Balance Sheets. Costs are capitalized for new programs or products, or the content being developed enhances, updates, or improves current programs, curriculum, or products, so long as the cost incurred extends the useful life of the existing curriculum and course content. Costs that are capitalized include payroll and payroll-related costs for employees who spend time producing content and external vendor costs related to the project. Adtalem begins capitalizing costs during the content development phase, which includes time to develop course materials based on the requirements defined in the planning phase. Curriculum development assets are amortized using the straight-line method over the estimated useful life, which is generally three |
Treasury Stock | Treasury Stock Shares that are repurchased by Adtalem under its share repurchase programs are recorded as treasury stock at cost and result in a reduction in shareholders’ equity. See Note 16 “Share Repurchases” for additional information. From time to time, shares of our common stock are delivered back to Adtalem under a swap arrangement resulting from employees’ exercise of stock options pursuant to the terms of the Adtalem’s stock-based incentive plans (see Note 18 “Stock-Based Compensation”). In addition, shares of our common stock are delivered back to Adtalem for payment of withholding taxes from employees for vesting restricted stock units (“RSUs”). These shares are recorded as treasury stock at cost and result in a reduction in shareholders’ equity. Treasury shares are reissued at market value, less a 10% discount, to the Adtalem Colleague Stock Purchase Plan in exchange for employee payroll deductions. The 10% discount is considered compensatory and recorded as an expense in the Consolidated Statements of Income. When treasury shares are reissued, Adtalem uses an average cost method to reduce the treasury stock balance. Gains on the difference between the average cost and the reissuance price, less the amount recorded as expense, 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. |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income or loss attributable to Adtalem by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income or loss attributable to Adtalem by diluted weighted-average number of shares outstanding during the period. 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. Diluted EPS considers the impact of potentially dilutive securities, except in periods in which there is a loss from continuing operations, because the inclusion of the potential common shares would have an antidilutive effect. |
Income Taxes | Income Taxes Adtalem accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Adtalem also recognizes future tax benefits associated with tax loss and credit carryforwards as deferred tax assets. Adtalem’s deferred tax assets are reduced by a valuation allowance, when in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Adtalem measures deferred tax assets and liabilities using enacted tax rates in effect for the year in which Adtalem expects to recover or settle the temporary differences. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. Adtalem reduces its net tax assets for the estimated additional tax and interest that may result from tax authorities disputing uncertain tax positions Adtalem has taken. |
Restructuring Charges | Restructuring Charges Restructuring charges include costs for severance and related benefits for workforce reductions, impairments on operating lease assets, and losses on disposals of property and equipment related to campus and administrative office consolidations and contract termination costs (see Note 6 “Restructuring Charges”). When estimating the costs of exiting lease space, estimates are made which could differ materially from actual results and result in additional restructuring charges or reversals in future periods. |
Advertising Costs | Advertising Costs Advertising costs are expensed when incurred and totaled $219.4 million, $190.7 million, and $72.7 million for the years ended June 30, 2023, 2022, and 2021, respectively. The increase in advertising costs for the year ended June 30, 2023 and 2022 was driven by the Walden acquisition during the first quarter of fiscal year 2022. Advertising costs are included in student services and administrative expense in the Consolidated Statements of Income. |
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. EduPristine’s operations and Becker’s and ACAMS’s international operations were 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 exchange rates. The resulting translation adjustments are recorded as foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income. Transaction gains or losses during each of the fiscal years presented were not material. |
Recent Accounting Standards | Recent Accounting Standards Recently adopted accounting standards In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08: “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The amendments require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. We adopted this guidance on July 1, 2022 and will apply the guidance to any future business combinations. Recently issued accounting standards not yet adopted In March 2022, the FASB issued ASU No. 2022-02: “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The guidance was issued as improvements to ASU No. 2016-13. The vintage disclosure changes are relevant to Adtalem and require an entity to disclose current-period gross write-offs by year of origination for financing receivables. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The amendments should be applied prospectively. Early adoption of the amendments is permitted, including adoption in an interim period. We will implement this guidance effective July 1, 2023. The amendments will impact our disclosures but will not otherwise impact Adtalem’s Consolidated Financial Statements. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on our Consolidated Financial Statements. |
Revision to Previously Issued Financial Statements | Revision to Previously Issued Financial Statements During the third quarter of fiscal year 2023, Adtalem identified an error in its revenue recognition related to certain scholarship programs within its Medical and Veterinary segment. Certain scholarships and discounts offered within that segment provide students a discount on future tuition that constitute a material right under Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers” that should be accounted for as a separate performance obligation within a contract. Adtalem assessed the materiality of this error individually and in the aggregate with other previously identified errors to prior periods’ Consolidated Financial Statements in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99 “Materiality” and SAB 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” codified in ASC 250 “Accounting Changes and Error Corrections.” Adtalem concluded that the errors were not material to prior periods and therefore, amendments of previously filed reports are not required. However, Adtalem determined it was appropriate to revise its previously issued financial statements. Treating the discount on future tuition as a material right results in the deferral of revenue for a portion of tuition to future periods. In accordance with ASC 250, Adtalem corrected prior periods presented herein by revising the financial statement line item amounts previously disclosed in SEC filings in order to achieve comparability in the Consolidated Financial Statements. The impact of this revision of Adtalem’s previously reported Consolidated Financial Statements are detailed below. In connection with this revision, Adtalem also corrected other immaterial errors in the prior periods, including certain errors that had previously been adjusted for as out of period corrections in the period identified. The following table summarizes the effect of the revisions on the affected line items within the Consolidated Balance Sheets (in thousands): June 30, 2022 As reported Adjustment As revised Assets: Current assets: Prepaid expenses and other current assets $ 126,467 $ 1,065 $ 127,532 Total current assets 556,039 1,065 557,104 Total assets 3,029,175 1,065 3,030,240 Liabilities and shareholders' equity: Current liabilities: Accrued payroll and benefits 66,642 1,150 67,792 Deferred revenue 144,840 4,970 149,810 Total current liabilities 417,527 6,120 423,647 Noncurrent liabilities: Other liabilities 65,074 8,626 73,700 Total noncurrent liabilities 1,106,581 8,626 1,115,207 Total liabilities 1,524,108 14,746 1,538,854 Shareholders' equity: Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Total liabilities and shareholders' equity 3,029,175 1,065 3,030,240 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Income (in thousands, except per share data): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Revenue $ 1,387,122 $ (5,280) $ 1,381,842 $ 906,901 $ (7,653) $ 899,248 Operating cost and expense: Student services and administrative expense 568,056 (1,562) 566,494 292,482 — 292,482 Total operating cost and expense 1,306,658 (1,562) 1,305,096 788,849 — 788,849 Operating income 80,464 (3,718) 76,746 118,052 (7,653) 110,399 Other income, net 3,820 (2,712) 1,108 6,732 — 6,732 (Loss) income from continuing operations before income taxes (45,064) (6,430) (51,494) 83,419 (7,653) 75,766 Benefit from (provision for) income taxes 15,237 302 15,539 (13,089) 771 (12,318) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Discontinued operations: (Loss) income from discontinued operations before income taxes (395) (591) (986) 9,485 (178) 9,307 (Provision for) benefit from income taxes (125,556) 5 (125,551) (3,340) 178 (3,162) Income from discontinued operations 347,532 (586) 346,946 6,145 — 6,145 Net income 317,705 (6,714) 310,991 76,475 (6,882) 69,593 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Amounts attributable to Adtalem: Net (loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Net income from discontinued operations 347,532 (586) 346,946 6,579 — 6,579 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Earnings (loss) per share: Basic: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.37 $ (0.13) $ 1.24 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total basic earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.50 $ (0.14) $ 1.36 Diluted: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.36 $ (0.13) $ 1.23 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total diluted earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.49 $ (0.13) $ 1.36 To conform to current period presentation, the previously reported interest and dividend income and investment gain (loss) lines have been condensed to other income, net. The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Comprehensive Income (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Gain on foreign currency translation adjustments 59 (59) — 713 — 713 Comprehensive income before reclassification 317,764 (6,773) 310,991 78,291 (6,882) 71,409 Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 — — — Comprehensive income 324,110 (6,128) 317,982 78,165 (6,882) 71,283 Comprehensive income attributable to Adtalem 324,110 (6,128) 317,982 78,599 (6,882) 71,717 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Cash Flows (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Operating activities: Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Income from discontinued operations (347,532) 586 (346,946) (6,145) — (6,145) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Adjustments to reconcile net income to net cash provided by operating activities: Loss (gain) on investments — 3,271 3,271 (2,638) — (2,638) Changes in assets and liabilities: Prepaid expenses and other current assets 569 (3,396) (2,827) (17,198) (771) (17,969) Accrued payroll and benefits (13,268) 1,150 (12,118) 12,552 — 12,552 Deferred revenue 65,075 5,280 70,355 5,312 7,653 12,965 Net cash provided by operating activities-continuing operations 163,825 177 164,002 168,760 — 168,760 Net cash provided by operating activities 10,424 177 10,601 192,199 — 192,199 Investing activities: Proceeds from sales of marketable securities — 3,447 3,447 2,721 — 2,721 Purchases of marketable securities — (3,624) (3,624) (10,745) — (10,745) Net cash used in investing activities-continuing operations (1,509,108) (177) (1,509,285) (47,905) — (47,905) Net cash used in investing activities (551,627) (177) (551,804) (56,688) — (56,688) The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Shareholders’ Equity (in thousands): As reported Adjustment As revised June 30, 2020 Retained earnings $ 1,927,568 $ 1,182 $ 1,928,750 Accumulated other comprehensive loss (9,055) (1,853) (10,908) Total shareholders' equity 1,310,421 (671) 1,309,750 June 30, 2021 Retained earnings 2,005,105 (5,700) 1,999,405 Accumulated other comprehensive loss (7,365) (1,853) (9,218) Total shareholders' equity 1,301,070 (7,553) 1,293,517 June 30, 2022 Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Year Ended June 30, 2021 Net income attributable to Adtalem 76,909 (6,882) 70,027 Year Ended June 30, 2022 Net income attributable to Adtalem 317,705 (6,714) 310,991 Other comprehensive income, net of tax 59 (59) — Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of effect of revision on affected line items within financial statements | The following table summarizes the effect of the revisions on the affected line items within the Consolidated Balance Sheets (in thousands): June 30, 2022 As reported Adjustment As revised Assets: Current assets: Prepaid expenses and other current assets $ 126,467 $ 1,065 $ 127,532 Total current assets 556,039 1,065 557,104 Total assets 3,029,175 1,065 3,030,240 Liabilities and shareholders' equity: Current liabilities: Accrued payroll and benefits 66,642 1,150 67,792 Deferred revenue 144,840 4,970 149,810 Total current liabilities 417,527 6,120 423,647 Noncurrent liabilities: Other liabilities 65,074 8,626 73,700 Total noncurrent liabilities 1,106,581 8,626 1,115,207 Total liabilities 1,524,108 14,746 1,538,854 Shareholders' equity: Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Total liabilities and shareholders' equity 3,029,175 1,065 3,030,240 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Income (in thousands, except per share data): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Revenue $ 1,387,122 $ (5,280) $ 1,381,842 $ 906,901 $ (7,653) $ 899,248 Operating cost and expense: Student services and administrative expense 568,056 (1,562) 566,494 292,482 — 292,482 Total operating cost and expense 1,306,658 (1,562) 1,305,096 788,849 — 788,849 Operating income 80,464 (3,718) 76,746 118,052 (7,653) 110,399 Other income, net 3,820 (2,712) 1,108 6,732 — 6,732 (Loss) income from continuing operations before income taxes (45,064) (6,430) (51,494) 83,419 (7,653) 75,766 Benefit from (provision for) income taxes 15,237 302 15,539 (13,089) 771 (12,318) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Discontinued operations: (Loss) income from discontinued operations before income taxes (395) (591) (986) 9,485 (178) 9,307 (Provision for) benefit from income taxes (125,556) 5 (125,551) (3,340) 178 (3,162) Income from discontinued operations 347,532 (586) 346,946 6,145 — 6,145 Net income 317,705 (6,714) 310,991 76,475 (6,882) 69,593 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Amounts attributable to Adtalem: Net (loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Net income from discontinued operations 347,532 (586) 346,946 6,579 — 6,579 Net income attributable to Adtalem 317,705 (6,714) 310,991 76,909 (6,882) 70,027 Earnings (loss) per share: Basic: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.37 $ (0.13) $ 1.24 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total basic earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.50 $ (0.14) $ 1.36 Diluted: Continuing operations $ (0.62) $ (0.12) $ (0.74) $ 1.36 $ (0.13) $ 1.23 Discontinued operations $ 7.18 $ (0.01) $ 7.17 $ 0.13 $ — $ 0.13 Total diluted earnings per share $ 6.57 $ (0.14) $ 6.43 $ 1.49 $ (0.13) $ 1.36 To conform to current period presentation, the previously reported interest and dividend income and investment gain (loss) lines have been condensed to other income, net. The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Comprehensive Income (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Gain on foreign currency translation adjustments 59 (59) — 713 — 713 Comprehensive income before reclassification 317,764 (6,773) 310,991 78,291 (6,882) 71,409 Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 — — — Comprehensive income 324,110 (6,128) 317,982 78,165 (6,882) 71,283 Comprehensive income attributable to Adtalem 324,110 (6,128) 317,982 78,599 (6,882) 71,717 The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Cash Flows (in thousands): Year Ended June 30, 2022 Year Ended June 30, 2021 As reported Adjustment As revised As reported Adjustment As revised Operating activities: Net income $ 317,705 $ (6,714) $ 310,991 $ 76,475 $ (6,882) $ 69,593 Income from discontinued operations (347,532) 586 (346,946) (6,145) — (6,145) (Loss) income from continuing operations (29,827) (6,128) (35,955) 70,330 (6,882) 63,448 Adjustments to reconcile net income to net cash provided by operating activities: Loss (gain) on investments — 3,271 3,271 (2,638) — (2,638) Changes in assets and liabilities: Prepaid expenses and other current assets 569 (3,396) (2,827) (17,198) (771) (17,969) Accrued payroll and benefits (13,268) 1,150 (12,118) 12,552 — 12,552 Deferred revenue 65,075 5,280 70,355 5,312 7,653 12,965 Net cash provided by operating activities-continuing operations 163,825 177 164,002 168,760 — 168,760 Net cash provided by operating activities 10,424 177 10,601 192,199 — 192,199 Investing activities: Proceeds from sales of marketable securities — 3,447 3,447 2,721 — 2,721 Purchases of marketable securities — (3,624) (3,624) (10,745) — (10,745) Net cash used in investing activities-continuing operations (1,509,108) (177) (1,509,285) (47,905) — (47,905) Net cash used in investing activities (551,627) (177) (551,804) (56,688) — (56,688) The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Shareholders’ Equity (in thousands): As reported Adjustment As revised June 30, 2020 Retained earnings $ 1,927,568 $ 1,182 $ 1,928,750 Accumulated other comprehensive loss (9,055) (1,853) (10,908) Total shareholders' equity 1,310,421 (671) 1,309,750 June 30, 2021 Retained earnings 2,005,105 (5,700) 1,999,405 Accumulated other comprehensive loss (7,365) (1,853) (9,218) Total shareholders' equity 1,301,070 (7,553) 1,293,517 June 30, 2022 Retained earnings 2,322,810 (12,414) 2,310,396 Accumulated other comprehensive loss (960) (1,267) (2,227) Total shareholders' equity 1,505,067 (13,681) 1,491,386 Year Ended June 30, 2021 Net income attributable to Adtalem 76,909 (6,882) 70,027 Year Ended June 30, 2022 Net income attributable to Adtalem 317,705 (6,714) 310,991 Other comprehensive income, net of tax 59 (59) — Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments (349) 645 296 |
Acquisitions (Tables)
Acquisitions (Tables) - Walden University, LLC | 12 Months Ended |
Jun. 30, 2023 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): August 12, 2021 Assets acquired: Cash and cash equivalents $ 65,010 Restricted cash 18,389 Accounts receivable 22,091 Prepaid expenses and other current assets 8,819 Property and equipment 25,882 Operating lease assets 6,096 Deferred income taxes 59 Intangible assets 833,351 Goodwill 651,052 Other assets, net 21,316 Total assets acquired 1,652,065 Liabilities assumed: Accounts payable 31,971 Accrued payroll and benefits 25,639 Accrued liabilities 1,620 Deferred revenue 10,958 Current operating lease liabilities 1,983 Long-term operating lease liabilities 4,343 Other liabilities 4,098 Total liabilities assumed 80,612 Net assets acquired $ 1,571,453 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The values and estimated useful lives of other intangible assets acquired are as follows (in thousands): August 12, 2021 Value Estimated Assigned Useful Life Student relationships $ 161,900 3 years Curriculum $ 56,091 5 years |
Schedule of pro forma financial information | The following unaudited pro forma financial information summarizes our results of operations as though the acquisition occurred on July 1, 2020 (in thousands): Year Ended June 30, 2022 2021 Revenue $ 1,451,081 $ 1,533,870 Net income attributable to Adtalem $ 385,110 $ 24,177 |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Income Statement Information of Discontinued Operations | The following is a summary of income statement information of operations reported as discontinued operations, which includes ACAMS, Becker, OCL, and EduPristine operations through the date of each respective sale, the gain on disposal of these entities, a loss from post-closing working capital adjustments and a tax return to provision adjustment, and activity related to the DeVry University divestiture, which includes litigation and settlement costs we continue to incur and the earn-outs we received (in thousands): Year Ended June 30, 2023 2022 2021 Revenue $ — $ 153,762 $ 205,479 Operating cost and expense: Cost of educational services — 26,996 31,328 Student services and administrative expense 8,464 126,252 161,908 Restructuring expense — 1,500 2,936 Total operating cost and expense 8,464 154,748 196,172 (Loss) income from discontinued operations before income taxes (8,464) (986) 9,307 (Loss) gain on disposal of discontinued operations before income taxes (3,576) 473,483 — Benefit from (provision for) income taxes 3,646 (125,551) (3,162) (Loss) income from discontinued operations (8,394) 346,946 6,145 Net loss attributable to redeemable noncontrolling interest from discontinued operations — — 434 Net (loss) income from discontinued operations attributable to Adtalem $ (8,394) $ 346,946 $ 6,579 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregate revenue | The following tables disaggregate revenue by source (in thousands): Year Ended June 30, 2023 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 571,034 $ 533,725 $ 334,323 $ 1,439,082 Other — — 11,744 11,744 Total $ 571,034 $ 533,725 $ 346,067 $ 1,450,826 Year Ended June 30, 2022 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 557,536 $ 485,393 $ 328,382 $ 1,371,311 Other — — 10,531 10,531 Total $ 557,536 $ 485,393 $ 338,913 $ 1,381,842 Year Ended June 30, 2021 Chamberlain Walden Medical and Veterinary Consolidated Tuition and fees $ 563,814 $ — $ 332,159 $ 895,973 Other — — 3,275 3,275 Total $ 563,814 $ — $ 335,434 $ 899,248 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Pre-tax restructuring charges by segment were as follows (in thousands): Year Ended June 30, 2023 Real Estate and Other Termination Benefits Total Chamberlain $ 818 $ — $ 818 Walden 3,191 54 3,245 Medical and Veterinary 7,071 616 7,687 Home Office and Other 6,117 950 7,067 Total $ 17,197 $ 1,620 $ 18,817 Year Ended June 30, 2022 Real Estate and Other Termination Benefits Total Chamberlain $ 835 $ 2,003 $ 2,838 Walden — 4,053 4,053 Medical and Veterinary 7,675 2,116 9,791 Home Office and Other 5,977 2,969 8,946 Total $ 14,487 $ 11,141 $ 25,628 Year Ended June 30, 2021 Real Estate and Other Termination Benefits Total Home Office and Other $ 6,379 $ 490 $ 6,869 Total $ 6,379 $ 490 $ 6,869 |
Separation and Restructuring Plan Activity | The following table summarizes the separation and restructuring plan activity for fiscal years 2022 and 2023, for which cash payments are required (in thousands): Liability balance as of June 30, 2021 $ — Increase in liability (separation and other charges) 11,851 Reduction in liability (payments and adjustments) (11,038) Liability balance as of June 30, 2022 813 Increase in liability (separation and other charges) 1,620 Reduction in liability (payments and adjustments) (1,692) Liability balance as of June 30, 2023 $ 741 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other income, net | Other income, net consists of the following (in thousands): Year Ended June 30, 2023 2022 2021 Interest and dividend income $ 10,654 $ 4,379 $ 4,094 Investment (loss) gain (3,689) (3,271) 2,638 Other income, net $ 6,965 $ 1,108 $ 6,732 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income before Income Tax | Income from continuing operations before income taxes, classified by source of income, was as follows (in thousands): Year Ended June 30, 2023 2022 2021 Domestic $ 51,422 $ (112,151) $ 12,471 Foreign 60,613 60,657 63,295 Total $ 112,035 $ (51,494) $ 75,766 |
Income Tax Provisions (Benefits) | The components of the provision for (benefit from) income taxes were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Current tax provision (benefit): U.S. federal $ 13,761 $ (6,767) $ 9,860 State and local 824 4,154 1,691 Foreign 614 725 547 Total current 15,199 (1,888) 12,098 Deferred tax provision (benefit): U.S. federal (1,099) (6,425) (2,970) State and local (4,347) (6,597) 996 Foreign 530 (629) 2,194 Total deferred (4,916) (13,651) 220 Provision for (benefit from) income taxes $ 10,283 $ (15,539) $ 12,318 |
Income Tax Provisions Computed using Statutory U.S. Federal Rate | The effective tax rate differs from the statutory tax rates as follows (in thousands): Year Ended June 30, 2023 2022 2021 Income tax at statutory rate $ 23,527 21.0 % $ (10,814) 21.0 % $ 15,911 21.0 % Lower rates on foreign operations (11,668) (10.4) % (12,879) 25.0 % (10,664) (14.1) % State income taxes 2,719 2.4 % (661) 1.3 % 1,199 1.6 % Loss on investment in subsidiary — — % (1,669) 3.2 % — — % Deferred tax benefit from acquisitions and divestitures — — % (1,153) 2.2 % — — % Research and development tax credits (1,862) (1.7) % — — % — — % Change in valuation allowance (9,769) (8.7) % 5,406 (10.5) % (162) (0.2) % Reduction in state loss carryforwards 2,340 2.1 % (5,882) 11.4 % — — % Permanent non-deductible items 1,630 1.5 % 2,788 (5.4) % 796 1.1 % Foreign tax provisions under GILTI 3,569 3.2 % 8,581 (16.7) % 4,787 6.3 % Other (203) (0.2) % 744 (1.4) % 451 0.6 % Provision for (benefit from) income taxes $ 10,283 9.2 % $ (15,539) 30.2 % $ 12,318 16.3 % |
Deferred Tax Assets (Liabilities) | The components of the deferred income tax assets and liabilities were as follows (in thousands): June 30, 2023 2022 Employee benefits $ 11,719 $ 9,936 Stock-based compensation 7,310 6,675 Receivable reserve 6,246 6,919 Capitalized research and experimental costs 8,075 — Operating lease liabilities 41,235 44,089 Other reserves 6,246 1,865 Loss and credit carryforwards, net 19,259 21,206 Less: valuation allowance (621) (10,390) Gross deferred tax assets 99,469 80,300 Depreciation (5,643) (5,314) Deferred taxes on unremitted foreign earnings (428) (397) Amortization of intangible assets (31,294) (18,975) Operating lease assets (31,478) (30,075) Gross deferred tax liability (68,843) (54,761) Net deferred tax asset $ 30,626 $ 25,539 |
Net Operating Loss and Credit Carryforwards | Adtalem has the following tax net operating loss (tax effected), interest (tax effected), and credit carryforwards as of June 30, 2023 (in thousands): June 30, Years of Expiration 2023 Beginning Ending U.S. interest expense carryforwards $ 1,861 no expiration U.S. credit carryforwards 672 2027 2030 State net operating loss carryforwards 10,388 2024 2042 State interest expense carryforwards 862 no expiration Foreign net operating loss carryforwards 5,476 2024 2033 Total loss and credit carryforwards, net $ 19,259 |
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands): Year Ended June 30, 2023 2022 2021 Balance at beginning of period $ 11,645 $ 9,836 $ 10,473 Increases from positions taken during prior periods 1,299 1,074 — Decreases from positions taken during prior periods — (1,737) (419) Increases from positions taken during the current period 665 2,845 42 Reductions due to lapse of statute (481) (373) (257) Reductions due to settlement — — (3) Balance at end of period $ 13,128 $ 11,645 $ 9,836 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings per Share | |
Earnings per Share | The following table sets forth the computations of basic and diluted earnings per share and antidilutive shares (in thousands, except per share data): Year Ended June 30, 2023 2022 2021 Numerator: Net income (loss) attributable to Adtalem: Continuing operations $ 101,752 $ (35,955) $ 63,448 Discontinued operations (8,394) 346,946 6,579 Net income attributable to Adtalem $ 93,358 $ 310,991 $ 70,027 Denominator: Weighted-average basic shares outstanding 44,781 48,388 51,322 Effect of dilutive stock awards 743 — 323 Effect of ASR 76 — — Weighted-average diluted shares outstanding 45,600 48,388 51,645 Earnings (loss) per share attributable to Adtalem: Basic: Continuing operations $ 2.27 $ (0.74) $ 1.24 Discontinued operations $ (0.19) $ 7.17 $ 0.13 Total basic earnings per share $ 2.08 $ 6.43 $ 1.36 Diluted: Continuing operations $ 2.23 $ (0.74) $ 1.23 Discontinued operations $ (0.18) $ 7.17 $ 0.13 Total diluted earnings per share $ 2.05 $ 6.43 $ 1.36 Weighted-average antidilutive shares 403 1,869 1,143 |
Accounts Receivable and Credi_2
Accounts Receivable and Credit Losses (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of classification of our accounts receivable | The classification of our accounts receivable balances was as follows (in thousands): June 30, 2023 Gross Allowance Net Trade receivables, current $ 129,318 $ (29,190) $ 100,128 Financing receivables, current 4,757 (2,136) 2,621 Accounts receivable, current $ 134,075 $ (31,326) $ 102,749 Financing receivables, current $ 4,757 $ (2,136) $ 2,621 Financing receivables, noncurrent 36,368 (9,332) 27,036 Total financing receivables $ 41,125 $ (11,468) $ 29,657 June 30, 2022 Gross Allowance Net Trade receivables, current $ 109,882 $ (30,897) $ 78,985 Financing receivables, current 6,116 (3,466) 2,650 Accounts receivable, current $ 115,998 $ (34,363) $ 81,635 Financing receivables, current $ 6,116 $ (3,466) $ 2,650 Financing receivables, noncurrent 36,265 (11,425) 24,840 Total financing receivables $ 42,381 $ (14,891) $ 27,490 |
Schedule of credit quality analysis of financing receivable | The credit quality analysis of financing receivables as of June 30, 2023 was as follows (in thousands): Amortized Cost Basis by Origination Year Prior 2019 2020 2021 2022 2023 Total 1-30 days past due $ 186 $ 79 $ 115 $ 137 $ 735 $ 1,944 $ 3,196 31-60 days past due 61 34 — 359 573 1,103 2,130 61-90 days past due 97 39 110 65 559 368 1,238 91-120 days past due 2 17 2 13 77 200 311 121-150 days past due 62 37 26 45 147 129 446 Greater than 150 days past due 2,641 734 708 2,071 1,457 381 7,992 Total past due 3,049 940 961 2,690 3,548 4,125 15,313 Current 6,199 1,112 820 5,350 2,608 9,723 25,812 Financing receivables, gross $ 9,248 $ 2,052 $ 1,781 $ 8,040 $ 6,156 $ 13,848 $ 41,125 The credit quality analysis of financing receivables as of June 30, 2022 was as follows (in thousands): Amortized Cost Basis by Origination Year Prior 2018 2019 2020 2021 2022 Total 1-30 days past due $ 104 $ 140 $ 114 $ 191 $ 699 $ 782 $ 2,030 31-60 days past due 278 38 214 145 691 332 1,698 61-90 days past due 58 29 217 8 668 273 1,253 91-120 days past due 97 139 113 45 670 14 1,078 121-150 days past due 17 30 20 41 206 81 395 Greater than 150 days past due 6,978 876 1,077 683 1,596 377 11,587 Total past due 7,532 1,252 1,755 1,113 4,530 1,859 18,041 Current 4,687 2,229 1,483 1,167 8,910 5,864 24,340 Financing receivables, gross $ 12,219 $ 3,481 $ 3,238 $ 2,280 $ 13,440 $ 7,723 $ 42,381 |
Rollforward of the allowance for credit losses | The following tables provide a roll-forward of the allowance for credit losses (in thousands): Year Ended June 30, 2023 Trade Financing Total Beginning balance $ 30,897 $ 14,891 $ 45,788 Write-offs (43,273) (7,653) (50,926) Recoveries 12,207 590 12,797 Provision for credit losses 29,359 3,640 32,999 Ending balance $ 29,190 $ 11,468 $ 40,658 Year Ended June 30, 2022 Trade Financing Total Beginning balance $ 11,559 $ 16,832 $ 28,391 Write-offs (15,980) (5,287) (21,267) Recoveries 11,488 35 11,523 Provision for credit losses 23,830 3,311 27,141 Ending balance $ 30,897 $ 14,891 $ 45,788 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant And Equipment [Abstract] | |
Schedule of Property and equipment, net | Property and equipment, net consisted of the following (in thousands): June 30, 2023 2022 Land $ 38,345 $ 44,478 Building 303,737 342,236 Equipment 226,600 268,352 Construction in progress 28,668 11,188 Property and equipment, gross 597,350 666,254 Accumulated depreciation (338,828) (376,328) Property and equipment, net $ 258,522 $ 289,926 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Lessee Disclosure [Abstract] | |
Summary of components of lease cost | The components of lease cost were follows (in thousands): Year Ended June 30, 2023 2022 Operating lease cost $ 48,181 $ 55,257 Sublease income (13,329) (13,920) Total lease cost $ 34,852 $ 41,337 |
Summary of maturities of lease liabilities | Maturities of lease liabilities by fiscal year as of June 30, 2023 were as follows (in thousands): Operating Fiscal Year Leases 2024 $ 49,487 2025 43,307 2026 37,468 2027 35,499 2028 28,350 Thereafter 59,538 Total lease payments 253,649 Less: tenant improvement allowance not yet received (3,364) Less: imputed interest (49,171) Present value of lease liabilities $ 201,114 |
Summary of lease term and discount rate | Lease term and discount rate were as follows: June 30, 2023 Weighted-average remaining operating lease term (years) 6.2 Weighted-average operating lease discount rate 6.4% |
Summary of supplemental disclosures of cash flow information related to leases | Supplemental of cash flow information related to leases were as follows (in thousands): Year Ended June 30, 2023 2022 Cash paid for amounts in the measurement of operating lease liabilities (net of sublease receipts) $ 58,198 $ 52,540 Operating lease assets obtained in exchange for operating lease liabilities $ 32,476 $ 49,136 |
Schedule of Future minimum lease and sublease rental income | Future minimum lease and sublease income under these agreements as of June 30, 2023, were as follows (in thousands): Fiscal Year Amount 2024 $ 10,204 2025 5,082 2026 2,038 Total lease and sublease rental income $ 17,324 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill | The table below summarizes goodwill balances by reporting unit (in thousands): June 30, 2023 2022 Chamberlain $ 4,716 $ 4,716 Walden 651,052 651,052 AUC 68,321 68,321 RUSM 180,089 180,089 RUSVM 57,084 57,084 Total $ 961,262 $ 961,262 The table below summarizes goodwill balances by reportable segment (in thousands): June 30, 2023 2022 Chamberlain $ 4,716 $ 4,716 Walden 651,052 651,052 Medical and Veterinary 305,494 305,494 Total $ 961,262 $ 961,262 The table below summarizes the changes in goodwill balances by reportable segment (in thousands): Medical and Chamberlain Walden Veterinary Total June 30, 2021 $ 4,716 $ — $ 305,494 $ 310,210 Acquisition — 651,052 — 651,052 June 30, 2022 $ 4,716 $ 651,052 $ 305,494 $ 961,262 June 30, 2023 $ 4,716 $ 651,052 $ 305,494 $ 961,262 |
Summary of Amortizable Intangible Assets | Amortizable intangible assets consisted of the following (in thousands): June 30, 2023 June 30, 2022 Gross Carrying Accumulated Gross Carrying Accumulated Weighted-Average Amount Amortization Amount Amortization Amortization Period Student relationships $ 161,900 $ (137,476) $ 161,900 $ (87,457) 3 Years Curriculum 56,091 (21,037) 56,091 (9,817) 5 Years Total $ 217,991 $ (158,513) $ 217,991 $ (97,274) |
Summary of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets consisted of the following (in thousands): June 30, 2023 2022 Walden trade name $ 119,560 $ 119,560 AUC trade name 17,100 17,100 RUSM trade name 3,500 3,500 RUSVM trade name 1,600 1,600 Chamberlain Title IV eligibility and accreditations 1,200 1,200 Walden Title IV eligibility and accreditations 495,800 495,800 AUC Title IV eligibility and accreditations 100,000 100,000 RUSM Title IV eligibility and accreditations 11,600 11,600 RUSVM Title IV eligibility and accreditations 2,500 2,500 Total $ 752,860 $ 752,860 The table below summarizes the indefinite-lived intangible asset balances by reportable segment (in thousands): June 30, 2023 2022 Chamberlain $ 1,200 $ 1,200 Walden 615,360 615,360 Medical and Veterinary 136,300 136,300 Total $ 752,860 $ 752,860 |
Estimated Amortization Expense for Amortized Intangible Assets | Future intangible asset amortization expense, by reporting unit, is expected to be as follows (in thousands): Fiscal Year Walden 2024 $ 35,644 2025 11,220 2026 11,220 2027 1,394 Total $ 59,478 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following senior secured credit facilities (in thousands): June 30, 2023 2022 Total debt: Senior Secured Notes due 2028 $ 404,950 $ 405,882 Term Loan B 303,333 453,333 Total principal payments due 708,283 859,215 Unamortized debt discount and issuance costs (13,206) (20,307) Total amount outstanding and noncurrent $ 695,077 $ 838,908 |
Schedule of Maturities of Long-term Debt | Scheduled future maturities of long-term debt were as follows (in thousands): Maturity Fiscal Year Payments 2024 $ — 2025 — 2026 — 2027 — 2028 708,283 Total $ 708,283 |
Schedule Of Debt Issuance Costs | In addition, based on the $150.0 million prepayments on the Term Loan B during fiscal year 2023, we expensed $4.3 million in interest expense in the Consolidated Statements of Income for the year ended June 30, 2023, which was the proportionate amount of the remaining unamortized debt discount and issuance costs related to the Term Loan B as of the prepayment date. The following table summarizes the unamortized debt discount and issuance costs activity for fiscal year 2023 (in thousands): Notes Term Loan B Revolver Total Unamortized debt discount and issuance costs as of June 30, 2022 $ 6,725 $ 13,582 $ 8,383 $ 28,690 Amortization of debt discount and issuance costs (1,118) (1,686) (2,028) (4,832) Debt discount and issuance costs write-off (15) (4,282) — (4,297) Unamortized debt discount and issuance costs as of June 30, 2023 $ 5,592 $ 7,614 $ 6,355 $ 19,561 |
Schedule of components of interest expense | The components of interest expense were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Notes interest expense $ 22,301 $ 39,371 $ 14,667 Term Loan B interest expense 26,831 33,413 — Term Loan B ticking fees — 5,330 11,263 Prior Term Loan B interest expense — 1,272 9,311 Term Loan B debt discount and issuance costs write-off 4,282 12,471 — Notes issuance costs write-off 15 6,771 — Gain on extinguishment of debt (71) (2,072) — Unused bridge fee — 10,329 — Prior Credit Facility issuance costs write-off — 6,000 — Swap settlement — 4,525 — Amortization of debt discount and issuance costs 4,832 7,083 2,657 Other 4,910 4,855 3,467 Total interest expense $ 63,100 $ 129,348 $ 41,365 |
Share Repurchases (Tables)
Share Repurchases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
Shares Repurchased Under Programs | Adtalem made share repurchases under its share repurchase programs as follows, which includes the market price of the shares, commissions, and excise tax (in thousands, except shares and per share data): Life-to-Date Year Ended June 30, Current Share 2023 2022 Repurchase Program Total number of share repurchases 3,207,036 — 3,207,036 Total cost of share repurchases $ 127,254 $ — $ 127,254 Average price paid per share $ 39.68 $ — $ 39.68 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Comprehensive Income, Net Of Tax [Abstract] | |
Schedule of accumulated other comprehensive income loss | The following table shows the changes in accumulated other comprehensive loss by component (in thousands): Year Ended June 30, 2023 2022 2021 Foreign currency translation adjustments Beginning balance $ (2,227) $ (2,523) $ (3,236) Gain on foreign currency translation — — 713 Reclassification from other comprehensive income — 296 — Ending balance $ (2,227) $ (2,227) $ (2,523) Available-for-sale marketable securities Beginning balance, gross $ — $ — $ 242 Beginning balance, tax effect — — (59) Beginning balance, net of tax — — 183 Unrealized loss on available-for-sale marketable securities — — (75) Tax effect — — 18 Reclassification from other comprehensive income — — (126) Ending balance $ — $ — $ — Interest rate swap Beginning balance, gross $ — $ (8,926) $ (10,399) Beginning balance, tax effect — 2,231 2,544 Beginning balance, net of tax — (6,695) (7,855) Unrealized gain on interest rate swap — — 1,473 Tax effect — — (313) Reclassification from other comprehensive income — 6,695 — Ending balance $ — $ — $ (6,695) Total ending balance $ (2,227) $ (2,227) $ (9,218) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of options Activity | The following is a summary of options activity for the year ended June 30, 2023: Weighted-Average Remaining Aggregate Number of Weighted-Average Contractual Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of July 1, 2022 1,144,372 $ 35.36 Exercised (93,021) 28.23 Forfeited (3,975) 36.46 Expired (1,575) 18.60 Outstanding as of June 30, 2023 1,045,801 36.02 5.5 $ 1,218 Exercisable as of June 30, 2023 774,995 $ 36.04 4.8 $ 980 |
Fair Values of Stock Option Awards Estimated Weighted Average Assumptions | No stock options were granted during fiscal year 2023. The fair value of Adtalem’s option grants was estimated assuming the following weighted-average assumptions: Fiscal Year 2022 2021 Expected life (in years) 6.56 6.54 Expected volatility 39.99 % 39.27 % Risk-free interest rate 0.94 % 0.45 % Dividend yield 0.00 % 0.00 % |
Summary of Restricted Stock Units Activity | The following is a summary of RSU activity for the year ended June 30, 2023: Weighted-Average Number of Grant Date RSUs Fair Value Unvested as of July 1, 2022 1,171,692 $ 35.05 Granted 525,180 40.10 Vested (342,713) 37.19 Forfeited (126,126) 37.07 Unvested as of June 30, 2023 1,228,033 $ 36.40 |
Total Stock-Based Compensation Expense Included in Consolidated Statement of Earnings | Stock-based compensation expense, which is included in student services and administrative expense, and the related income tax benefit were as follows (in thousands): Year Ended June 30, 2023 2022 2021 Stock-based compensation $ 14,299 $ 22,611 $ 12,824 Income tax benefit (3,938) (3,658) (2,824) Stock-based compensation, net of tax $ 10,361 $ 18,953 $ 10,000 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Tabulation of Business Segment Information Based on Current Segmentation | Summary financial information by reportable segment is as follows (in thousands): Year Ended June 30, 2023 2022 2021 Revenue: Chamberlain $ 571,034 $ 557,536 $ 563,814 Walden 533,725 485,393 — Medical and Veterinary 346,067 338,913 335,434 Total consolidated revenue $ 1,450,826 $ 1,381,842 $ 899,248 Adjusted operating income: Chamberlain $ 135,503 $ 127,252 $ 128,851 Walden 110,364 104,582 — Medical and Veterinary 67,336 69,148 60,199 Home Office and Other (25,633) (33,380) (40,189) Total consolidated adjusted operating income 287,570 267,602 148,861 Reconciliation to Consolidated Financial Statements: Deferred revenue adjustment — (8,561) — CEO transition costs — (6,195) — Restructuring expense (18,817) (25,628) (6,869) Business acquisition and integration expense (42,661) (53,198) (31,593) Intangible amortization expense (61,239) (97,274) — Litigation reserve (10,000) — — Gain on sale of assets 13,317 — — Total consolidated operating income 168,170 76,746 110,399 Interest expense (63,100) (129,348) (41,365) Other income, net 6,965 1,108 6,732 Total consolidated income (loss) from continuing operations before income taxes $ 112,035 $ (51,494) $ 75,766 Capital expenditures: Chamberlain $ 17,749 $ 15,235 $ 28,631 Walden 4,688 5,393 — Medical and Veterinary 4,386 3,277 4,121 Home Office and Other 10,185 7,149 7,129 Total consolidated capital expenditures $ 37,008 $ 31,054 $ 39,881 Depreciation expense: Chamberlain $ 17,264 $ 18,547 $ 16,123 Walden 9,492 9,255 — Medical and Veterinary 12,475 13,890 14,431 Home Office and Other 2,344 2,882 3,334 Total consolidated depreciation expense $ 41,575 $ 44,574 $ 33,888 Intangible amortization expense: Walden $ 61,239 $ 97,274 $ — Total consolidated intangible amortization expense $ 61,239 $ 97,274 $ — |
Revenues and Long-Lived Assets by Geographic Area | Revenue and long-lived assets by geographic area are as follows (in thousands): Year Ended June 30, 2023 2022 2021 Revenue from unaffiliated customers: Domestic operations $ 1,104,759 $ 1,042,929 $ 563,814 Barbados, St. Kitts, and St. Maarten 346,067 338,913 335,434 Total consolidated revenue $ 1,450,826 $ 1,381,842 $ 899,248 Long-lived assets: Domestic operations $ 269,147 $ 289,129 $ 286,720 Barbados, St. Kitts, and St. Maarten 164,052 178,792 164,337 Total consolidated long-lived assets $ 433,199 $ 467,921 $ 451,057 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business acquisition and integration expense | $ 42,661 | $ 53,198 | $ 31,593 |
Employee Stock Purchase Plan, Percent Of Base Earnings | 10% | ||
Advertising expense | $ 219,400 | 190,700 | 72,700 |
Minimum | |||
Finite live intangible assets amortization period | 3 years | ||
Maximum | |||
Finite live intangible assets amortization period | 5 years | ||
Curriculum | |||
Finite live intangible assets amortization period | 5 years | ||
Curriculum | Minimum | |||
Finite live intangible assets amortization period | 3 years | ||
Curriculum | Maximum | |||
Finite live intangible assets amortization period | 5 years | ||
Building and Building Improvements [Member] | Minimum | |||
Useful life of assets | 5 years | ||
Building and Building Improvements [Member] | Maximum | |||
Useful life of assets | 40 years | ||
Furniture and Fixtures [Member] | Minimum | |||
Useful life of assets | 3 years | ||
Furniture and Fixtures [Member] | Maximum | |||
Useful life of assets | 8 years | ||
Walden University, LLC | |||
Business acquisition and integration expense | $ 42,700 | $ 53,200 | $ 31,600 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Effect of Revision on Affected Line Items Within Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | $ 100,715 | $ 127,532 | ||
Total current assets | 478,539 | 557,104 | ||
Total assets | 2,810,541 | 3,030,240 | ||
Accrued payroll and benefits | 52,041 | 67,792 | ||
Deferred revenue | 153,871 | 149,810 | ||
Total current liabilities | 431,203 | 423,647 | ||
Other liabilities | 37,416 | 73,700 | ||
Total noncurrent liabilities | 922,002 | 1,115,207 | ||
Total liabilities | 1,353,205 | 1,538,854 | ||
Retained earnings | 2,403,750 | 2,310,396 | ||
Accumulated other comprehensive loss | (2,227) | (2,227) | ||
Total shareholders' equity | 1,457,336 | 1,491,386 | $ 1,293,517 | $ 1,309,750 |
Total liabilities and shareholders' equity | $ 2,810,541 | 3,030,240 | ||
Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | 126,467 | |||
Total current assets | 556,039 | |||
Total assets | 3,029,175 | |||
Accrued payroll and benefits | 66,642 | |||
Deferred revenue | 144,840 | |||
Total current liabilities | 417,527 | |||
Other liabilities | 65,074 | |||
Total noncurrent liabilities | 1,106,581 | |||
Total liabilities | 1,524,108 | |||
Retained earnings | 2,322,810 | |||
Accumulated other comprehensive loss | (960) | |||
Total shareholders' equity | 1,505,067 | 1,301,070 | 1,310,421 | |
Total liabilities and shareholders' equity | 3,029,175 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other current assets | 1,065 | |||
Total current assets | 1,065 | |||
Total assets | 1,065 | |||
Accrued payroll and benefits | 1,150 | |||
Deferred revenue | 4,970 | |||
Total current liabilities | 6,120 | |||
Other liabilities | 8,626 | |||
Total noncurrent liabilities | 8,626 | |||
Total liabilities | 14,746 | |||
Retained earnings | (12,414) | |||
Accumulated other comprehensive loss | (1,267) | |||
Total shareholders' equity | (13,681) | $ (7,553) | $ (671) | |
Total liabilities and shareholders' equity | $ 1,065 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Effect of Revision on Affected Line Items Within Consolidated Statements of Income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | $ 1,450,826 | $ 1,381,842 | $ 899,248 |
Student services and administrative expense | 586,009 | 566,494 | 292,482 |
Total operating cost and expense | 1,282,656 | 1,305,096 | 788,849 |
Operating income | 168,170 | 76,746 | 110,399 |
Other income, net | 6,965 | 1,108 | 6,732 |
(Loss) income from continuing operations before income taxes | 112,035 | (51,494) | 75,766 |
Benefit from (provision for) income taxes | (10,283) | 15,539 | (12,318) |
Income (loss) from continuing operations | 101,752 | (35,955) | 63,448 |
(Loss) income from discontinued operations before income taxes | (8,464) | (986) | 9,307 |
(Provision for) benefit from income taxes | 3,646 | (125,551) | (3,162) |
Income from discontinued operations | (8,394) | 346,946 | 6,145 |
Net income | 93,358 | 310,991 | 69,593 |
Net (loss) income from discontinued operations | (8,394) | 346,946 | 6,579 |
Net Income (Loss) | $ 93,358 | $ 310,991 | $ 70,027 |
Basic: | |||
Continuing operations | $ 2.27 | $ (0.74) | $ 1.24 |
Discontinued operations | (0.19) | 7.17 | 0.13 |
Total basic earnings per share | 2.08 | 6.43 | 1.36 |
Diluted: | |||
Continuing operations | 2.23 | (0.74) | 1.23 |
Discontinued operations | (0.18) | 7.17 | 0.13 |
Total diluted earnings per share | $ 2.05 | $ 6.43 | $ 1.36 |
Previously Reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | $ 1,387,122 | $ 906,901 | |
Student services and administrative expense | 568,056 | 292,482 | |
Total operating cost and expense | 1,306,658 | 788,849 | |
Operating income | 80,464 | 118,052 | |
Other income, net | 3,820 | 6,732 | |
(Loss) income from continuing operations before income taxes | (45,064) | 83,419 | |
Benefit from (provision for) income taxes | 15,237 | (13,089) | |
Income (loss) from continuing operations | (29,827) | 70,330 | |
(Loss) income from discontinued operations before income taxes | (395) | 9,485 | |
(Provision for) benefit from income taxes | (125,556) | (3,340) | |
Income from discontinued operations | 347,532 | 6,145 | |
Net income | 317,705 | 76,475 | |
Net (loss) income from discontinued operations | 347,532 | 6,579 | |
Net Income (Loss) | $ 317,705 | $ 76,909 | |
Basic: | |||
Continuing operations | $ (0.62) | $ 1.37 | |
Discontinued operations | 7.18 | 0.13 | |
Total basic earnings per share | 6.57 | 1.50 | |
Diluted: | |||
Continuing operations | (0.62) | 1.36 | |
Discontinued operations | 7.18 | 0.13 | |
Total diluted earnings per share | $ 6.57 | $ 1.49 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Revenue | $ (5,280) | $ (7,653) | |
Student services and administrative expense | (1,562) | ||
Total operating cost and expense | (1,562) | ||
Operating income | (3,718) | (7,653) | |
Other income, net | (2,712) | ||
(Loss) income from continuing operations before income taxes | (6,430) | (7,653) | |
Benefit from (provision for) income taxes | 302 | 771 | |
Income (loss) from continuing operations | (6,128) | (6,882) | |
(Loss) income from discontinued operations before income taxes | (591) | (178) | |
(Provision for) benefit from income taxes | 5 | 178 | |
Income from discontinued operations | (586) | ||
Net income | (6,714) | (6,882) | |
Net (loss) income from discontinued operations | (586) | ||
Net Income (Loss) | $ (6,714) | $ (6,882) | |
Basic: | |||
Continuing operations | $ (0.12) | $ (0.13) | |
Discontinued operations | (0.01) | ||
Total basic earnings per share | (0.14) | (0.14) | |
Diluted: | |||
Continuing operations | (0.12) | (0.13) | |
Discontinued operations | (0.01) | ||
Total diluted earnings per share | $ (0.14) | $ (0.13) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Effect of Revision on Affected Line Items Within Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net Income | $ (93,358) | $ (310,991) | $ (69,593) |
Gain on foreign currency translation adjustments | 0 | 0 | 713 |
Comprehensive income before reclassification | 93,358 | 310,991 | 71,409 |
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 0 | 296 | 0 |
Comprehensive income | 93,358 | 317,982 | 71,283 |
Comprehensive income attributable to Adtalem | $ 93,358 | 317,982 | 71,717 |
Previously Reported [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net Income | (317,705) | (76,475) | |
Gain on foreign currency translation adjustments | 59 | 713 | |
Comprehensive income before reclassification | 317,764 | 78,291 | |
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | (349) | ||
Comprehensive income | 324,110 | 78,165 | |
Comprehensive income attributable to Adtalem | 324,110 | 78,599 | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Net Income | 6,714 | 6,882 | |
Gain on foreign currency translation adjustments | (59) | ||
Comprehensive income before reclassification | (6,773) | (6,882) | |
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 645 | ||
Comprehensive income | (6,128) | (6,882) | |
Comprehensive income attributable to Adtalem | $ (6,128) | $ (6,882) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Effect of Revision on Affected Line Items Within Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | |||
Net income | $ 93,358 | $ 310,991 | $ 69,593 |
Loss (income) from discontinued operations | 8,394 | (346,946) | (6,145) |
Continuing operations | 101,752 | (35,955) | 63,448 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (gain) on investments | 3,689 | 3,271 | (2,638) |
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | 9,324 | (2,827) | (17,969) |
Accrued payroll and benefits | (15,683) | (12,118) | 12,552 |
Deferred revenue | 5,807 | 70,355 | 12,965 |
Net cash provided by operating activities-continuing operations | 205,684 | 164,002 | 168,760 |
Net cash provided by operating activities | 202,908 | 10,601 | 192,199 |
Investing activities: | |||
Proceeds from sales of marketable securities | 7,635 | 3,447 | 2,721 |
Purchases of marketable securities | (1,508) | (3,624) | (10,745) |
Net cash used in investing activities-continuing operations | 15,919 | (1,509,285) | (47,905) |
Net cash used in investing activities | $ 12,745 | (551,804) | (56,688) |
Previously Reported [Member] | |||
Operating activities: | |||
Net income | 317,705 | 76,475 | |
Loss (income) from discontinued operations | (347,532) | (6,145) | |
Continuing operations | (29,827) | 70,330 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (gain) on investments | (2,638) | ||
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | 569 | (17,198) | |
Accrued payroll and benefits | (13,268) | 12,552 | |
Deferred revenue | 65,075 | 5,312 | |
Net cash provided by operating activities-continuing operations | 163,825 | 168,760 | |
Net cash provided by operating activities | 10,424 | 192,199 | |
Investing activities: | |||
Proceeds from sales of marketable securities | 2,721 | ||
Purchases of marketable securities | (10,745) | ||
Net cash used in investing activities-continuing operations | (1,509,108) | (47,905) | |
Net cash used in investing activities | (551,627) | (56,688) | |
Adjustment | |||
Operating activities: | |||
Net income | (6,714) | (6,882) | |
Loss (income) from discontinued operations | 586 | ||
Continuing operations | (6,128) | (6,882) | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (gain) on investments | 3,271 | ||
Changes in assets and liabilities: | |||
Prepaid expenses and other current assets | (3,396) | (771) | |
Accrued payroll and benefits | 1,150 | ||
Deferred revenue | 5,280 | $ 7,653 | |
Net cash provided by operating activities-continuing operations | 177 | ||
Net cash provided by operating activities | 177 | ||
Investing activities: | |||
Proceeds from sales of marketable securities | 3,447 | ||
Purchases of marketable securities | (3,624) | ||
Net cash used in investing activities-continuing operations | (177) | ||
Net cash used in investing activities | $ (177) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Effect of Revision on Affected Line Items Within Consolidated Statements of Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income (Loss) | $ 93,358 | $ 310,991 | $ 70,027 | |
Other comprehensive income, net of tax | 1,816 | |||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 0 | 296 | 0 | |
Total shareholders' equity | 1,457,336 | 1,491,386 | 1,293,517 | $ 1,309,750 |
Retained Earnings | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income (Loss) | 93,358 | 310,991 | 70,027 | |
Total shareholders' equity | 2,403,750 | 2,310,396 | 1,999,405 | 1,928,750 |
Accumulated other comprehensive loss | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Other comprehensive income, net of tax | 1,816 | |||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 296 | |||
Total shareholders' equity | $ (2,227) | (2,227) | (9,218) | (10,908) |
Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income (Loss) | 317,705 | 76,909 | ||
Other comprehensive income, net of tax | 59 | |||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | (349) | |||
Total shareholders' equity | 1,505,067 | 1,301,070 | 1,310,421 | |
Previously Reported [Member] | Retained Earnings | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total shareholders' equity | 2,322,810 | 2,005,105 | 1,927,568 | |
Previously Reported [Member] | Accumulated other comprehensive loss | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total shareholders' equity | (960) | (7,365) | (9,055) | |
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income (Loss) | (6,714) | (6,882) | ||
Other comprehensive income, net of tax | (59) | |||
Reclassification adjustment for realized gain (loss) on foreign currency translation adjustments | 645 | |||
Total shareholders' equity | (13,681) | (7,553) | (671) | |
Adjustment | Retained Earnings | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total shareholders' equity | (12,414) | (5,700) | 1,182 | |
Adjustment | Accumulated other comprehensive loss | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Total shareholders' equity | $ (1,267) | $ (1,853) | $ (1,853) |
Acquisitions (Estimated Fair Va
Acquisitions (Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Aug. 12, 2021 |
Assets acquired: | |||
Goodwill | $ 961,262 | $ 961,262 | |
Walden University, LLC | |||
Assets acquired: | |||
Cash and cash equivalents | $ 65,010 | ||
Restricted cash | 18,389 | ||
Accounts receivable | 22,091 | ||
Prepaid expenses and other current assets | 8,819 | ||
Property and equipment | 25,882 | ||
Operating lease assets | 6,096 | ||
Deferred income taxes | 59 | ||
Intangible assets | 833,351 | ||
Goodwill | 651,052 | ||
Other assets, net | 21,316 | ||
Total assets acquired | 1,652,065 | ||
Liabilities assumed: | |||
Accounts payable | 31,971 | ||
Accrued payroll and benefits | 25,639 | ||
Accrued liabilities | 1,620 | ||
Deferred revenue | 10,958 | ||
Current operating lease liabilities | 1,983 | ||
Long-term operating lease liabilities | 4,343 | ||
Other liabilities | 4,098 | ||
Total liabilities assumed | 80,612 | ||
Net assets acquired | $ 1,571,453 |
Acquisitions (Acquired Intangib
Acquisitions (Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Lives) (Details) - Walden University, LLC $ in Thousands | Aug. 12, 2021 USD ($) |
Student Relationships | |
Business Acquisition [Line Items] | |
Intangible assets, finite lived | $ 161,900 |
Amortizable intangible assets, estimated useful lives | 3 years |
Curriculum | |
Business Acquisition [Line Items] | |
Intangible assets, finite lived | $ 56,091 |
Amortizable intangible assets, estimated useful lives | 5 years |
Acquisitions (Unaudited Proform
Acquisitions (Unaudited Proforma Financial Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Unaudited pro forma financial information | ||
Revenue | $ 1,451,081 | $ 1,533,870 |
Net income attributable to Adtalem | $ 385,110 | $ 24,177 |
Acquisitions (Additional Inform
Acquisitions (Additional Information) (Details) $ in Thousands | 12 Months Ended | |||
Aug. 12, 2021 USD ($) item | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||
Payments to acquire business | $ 0 | $ 1,488,054 | $ 0 | |
Long-term debt, gross | 708,283 | 859,215 | ||
Senior Secured Notes Due 2028 | ||||
Business Acquisition [Line Items] | ||||
Long-term debt, gross | 404,950 | 405,882 | ||
Term B Loan | ||||
Business Acquisition [Line Items] | ||||
Long-term debt, gross | $ 303,333 | 453,333 | ||
Walden University, LLC | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 100% | |||
Payments to acquire business | $ 1,488,100 | |||
Cash acquired from acquisition | $ 83,400 | |||
Minimum number of courses offered | item | 100 | |||
Revenue | 485,400 | |||
Net loss | 3,900 | |||
Acquisition costs | $ 22,300 | $ 14,800 | ||
Fair value of acquired accounts receivable | $ 22,100 | |||
Gross amount due under contracts | 37,900 | |||
Expected uncollectible | 15,800 | |||
Intangible assets | 833,351 | |||
Walden University, LLC | Senior Secured Notes Due 2028 | ||||
Business Acquisition [Line Items] | ||||
Long-term debt, gross | 800,000 | |||
Walden University, LLC | Term B Loan | ||||
Business Acquisition [Line Items] | ||||
Long-term debt, gross | 850,000 | |||
Walden University, LLC | Walden Title IV eligibility and accreditations | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, indefinite lived | 495,800 | |||
Walden University, LLC | Trade Name | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 119,600 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale (Summary of Income Statement Information of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Revenue | $ 0 | $ 153,762 | $ 205,479 |
Operating cost and expense: | |||
Cost of educational services | 0 | 26,996 | 31,328 |
Student services and administrative expense | 8,464 | 126,252 | 161,908 |
Restructuring expense | 0 | 1,500 | 2,936 |
Total operating cost and expense | 8,464 | 154,748 | 196,172 |
(Loss) income from discontinued operations before income taxes | (8,464) | (986) | 9,307 |
(Loss) gain on disposal of discontinued operations before income taxes | (3,576) | 473,483 | 0 |
Benefit from (provision for) income taxes | 3,646 | (125,551) | (3,162) |
(Loss) income from discontinued operations | (8,394) | 346,946 | 6,145 |
Net loss attributable to redeemable noncontrolling interest from discontinued operations | 0 | 0 | 434 |
Net (loss) income from discontinued operations attributable to Adtalem | $ (8,394) | $ 346,946 | $ 6,579 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Jun. 17, 2022 | Mar. 10, 2022 | Dec. 11, 2018 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2023 | |
Earn Out Received | $ 4,100 | $ 2,900 | $ 7,000 | |||||
Loss on disposal of discontinued operations before income taxes | (3,576) | 473,483 | $ 0 | |||||
Loan payment received | 46,800 | $ 0 | $ 0 | |||||
Wendel Group and Colibri Group | Equity Purchase Agreement | ||||||||
Cash balance | $ 21,500 | |||||||
Sale of stock | $ 962,700 | |||||||
DeVry University | ||||||||
Earn Out Term | 10 years | |||||||
Earn Out Maximum | $ 20,000 | |||||||
Receivable with Imputed Interest, Face Amount | $ 10,000 | |||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4% | |||||||
Receivable with Imputed Interest, Due Date | Jan. 01, 2022 | |||||||
Loan payment received | $ 10,000 | |||||||
EduPristine | Wendel Group and Colibri Group | Equity Purchase Agreement | ||||||||
Cash Transferred In Divestitures Of Discontinued Operation | $ 1,900 | |||||||
Association of Certified Anti-Money Laundering Specialists | Wendel Group and Colibri Group | Equity Purchase Agreement | ||||||||
Loss on disposal of discontinued operations before income taxes | $ (3,600) |
Revenue (Disaggregate revenue)
Revenue (Disaggregate revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,450,826 | $ 1,381,842 | $ 899,248 |
Tuition and fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,439,082 | 1,371,311 | 895,973 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11,744 | 10,531 | 3,275 |
Chamberlain | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 571,034 | 557,536 | 563,814 |
Chamberlain | Tuition and fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 571,034 | 557,536 | 563,814 |
Chamberlain | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Walden | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 533,725 | 485,393 | 0 |
Walden | Tuition and fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 533,725 | 485,393 | 0 |
Walden | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | 0 |
Medical and Veterinary | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 346,067 | 338,913 | 335,434 |
Medical and Veterinary | Tuition and fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 334,323 | 328,382 | 332,159 |
Medical and Veterinary | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 11,744 | $ 10,531 | $ 3,275 |
Revenue (Additional Information
Revenue (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized included in the deferred revenue | $ 149,800 | $ 71,700 |
Deferred revenue, current | 153,871 | 149,810 |
Deferred revenue, non-current | 10,400 | 8,600 |
Deferred revenue, current | ||
Disaggregation of Revenue [Line Items] | ||
Contract liability, current | 10,600 | 8,200 |
Other Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Contract liability, non-current | $ 10,400 | $ 8,600 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 18,817 | $ 25,628 | $ 6,869 |
Operating Segments [Member] | Chamberlain. | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 818 | 2,838 | |
Operating Segments [Member] | Walden | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 3,245 | 4,053 | |
Operating Segments [Member] | Medical and Veterinary | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 7,687 | 9,791 | |
Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 7,067 | 8,946 | 6,869 |
Real Estate and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 17,197 | 14,487 | 6,379 |
Real Estate and Other | Operating Segments [Member] | Chamberlain. | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 818 | 835 | |
Real Estate and Other | Operating Segments [Member] | Walden | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 3,191 | ||
Real Estate and Other | Operating Segments [Member] | Medical and Veterinary | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 7,071 | 7,675 | |
Real Estate and Other | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 6,117 | 5,977 | 6,379 |
Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,620 | 11,141 | 490 |
Termination Benefits | Operating Segments [Member] | Chamberlain. | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 2,003 | |
Termination Benefits | Operating Segments [Member] | Walden | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 54 | 4,053 | |
Termination Benefits | Operating Segments [Member] | Medical and Veterinary | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 616 | 2,116 | |
Termination Benefits | Corporate, Non-Segment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 950 | $ 2,969 | $ 490 |
Restructuring Charges (Separati
Restructuring Charges (Separation and Restructuring Plan Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Liability beginning balance | $ 813 | |
Increase in liability (separation and other charges) | 1,620 | $ 11,851 |
Reduction in liability (payments and adjustments) | (1,692) | (11,038) |
Liability ending balance | $ 741 | $ 813 |
Restructuring Charges (Addition
Restructuring Charges (Additional Information) (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Liability balance | $ 741 | $ 813 |
Accrued Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Liability balance | $ 700 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |||
Interest and dividend income | $ 10,654 | $ 4,379 | $ 4,094 |
Investment (loss) gain | (3,689) | (3,271) | 2,638 |
Other income, net | $ 6,965 | $ 1,108 | $ 6,732 |
Other Income, Net - Impairment
Other Income, Net - Impairment (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Other Income | |
Other Income, Net | |
Impairment on equity investment | $ 5 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 51,422 | $ (112,151) | $ 12,471 |
Foreign | 60,613 | 60,657 | 63,295 |
Income (loss) from continuing operations before income taxes | $ 112,035 | $ (51,494) | $ 75,766 |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provisions (Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current tax provision (benefit): | |||
U.S. federal | $ 13,761 | $ (6,767) | $ 9,860 |
State and local | 824 | 4,154 | 1,691 |
Foreign | 614 | 725 | 547 |
Total current | 15,199 | (1,888) | 12,098 |
Deferred tax provision (benefit): | |||
U.S. federal | (1,099) | (6,425) | (2,970) |
State and local | (4,347) | (6,597) | 996 |
Foreign | 530 | (629) | 2,194 |
Total deferred | (4,916) | (13,651) | 220 |
Provision for (benefit from) income taxes | $ 10,283 | $ (15,539) | $ 12,318 |
Income Taxes (Income Tax Prov_2
Income Taxes (Income Tax Provisions Computed using Statutory U.S. Federal Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax at statutory rate | $ 23,527 | $ (10,814) | $ 15,911 |
Lower rates on foreign operations | (11,668) | (12,879) | (10,664) |
State income taxes | 2,719 | (661) | 1,199 |
Loss on investment in subsidiary | 0 | (1,669) | 0 |
Deferred tax benefit from acquisitions and divestitures | 0 | (1,153) | 0 |
Research and development tax credits | (1,862) | 0 | 0 |
Change in valuation allowance | (9,769) | 5,406 | (162) |
Reduction in state loss carryforwards | 2,340 | (5,882) | 0 |
Permanent non-deductible items | 1,630 | 2,788 | 796 |
Foreign tax provisions under GILTI | 3,569 | 8,581 | 4,787 |
Other | (203) | 744 | 451 |
Provision for (benefit from) income taxes | $ 10,283 | $ (15,539) | $ 12,318 |
Income tax at statutory rate | 21% | 21% | 21% |
Lower rates on foreign operations | (10.40%) | 25% | (14.10%) |
State income taxes | 2.40% | 1.30% | 1.60% |
Loss on investment in subsidiary | 0% | 3.20% | 0% |
Deferred tax benefit from acquisitions and divestitures | 0% | 2.20% | 0% |
Research and development tax credits | (1.70%) | 0% | 0% |
Change in valuation allowance | (8.70%) | (10.50%) | (0.20%) |
Reduction in state loss carryforwards | 2.10% | 11.40% | 0% |
Permanent non-deductible items | 1.50% | (5.40%) | 1.10% |
Foreign tax provisions under GILTI | 3.20% | 16.70% | 6.30% |
Other | (0.20%) | (1.40%) | 0.60% |
(Benefit from) provision for income taxes | 9.20% | 30.20% | 16.30% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Asset (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Employee benefits | $ 11,719 | $ 9,936 |
Stock-based compensation | 7,310 | 6,675 |
Receivable reserve | 6,246 | 6,919 |
Capitalized research and experimental costs | 8,075 | 0 |
Operating lease liabilities | 41,235 | 44,089 |
Other reserves | 6,246 | 1,865 |
Loss and credit carryforwards, net | 19,259 | 21,206 |
Less: valuation allowance | (621) | (10,390) |
Gross deferred tax assets | 99,469 | 80,300 |
Depreciation | (5,643) | (5,314) |
Deferred taxes on unremitted foreign earnings | (428) | (397) |
Amortization of intangible assets | (31,294) | (18,975) |
Operating lease assets | (31,478) | (30,075) |
Gross deferred tax liability | (68,843) | (54,761) |
Net deferred tax asset | $ 30,626 | $ 25,539 |
Income Taxes (Tax Net Operating
Income Taxes (Tax Net Operating Loss (Tax Effected) and Credit Carryforwards) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Gross Deferred Tax Assets | $ 19,259 |
Domestic Tax Authority [Member] | |
Tax credit carryforwards | $ 672 |
Tax Credit Carryforward Expiration Period Start | 2027 |
Tax Credit Carryforward Expiration Period End | 2030 |
U.S. Interest Expense Carryforwards | $ 1,861 |
State [Member] | |
U.S. Net Operating Loss Carryforwards | $ 10,388 |
U.S. Net Operating Loss Carryforwards Expiration Period Start | 2024 |
U.S. Net Operating Loss Carryforwards Expiration Period End | 2042 |
U.S. Interest Expense Carryforwards | $ 862 |
Foreign [Member] | |
U.S. Net Operating Loss Carryforwards | $ 5,476 |
U.S. Net Operating Loss Carryforwards Expiration Period Start | 2024 |
U.S. Net Operating Loss Carryforwards Expiration Period End | 2033 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 USD ($) item | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Income Tax Contingency [Line Items] | ||||
(Benefit from) provision for income taxes | $ 10,283 | $ (15,539) | $ 12,318 | |
Net tax benefit | 6,400 | |||
Reconciliation valuation allowance release | 9,300 | |||
Reduction in state loss carryforwards | 2,340 | (5,882) | 0 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 600 | |||
Valuation Allowance | 621 | 10,390 | ||
Valuation allowance decreased amount | 9,800 | (5,400) | ||
Loss on Investment in Subsidiary | 0 | 1,669 | 0 | |
Benefit to adjust deferred state tax balances for the acquisition | $ 0 | $ 1,153 | $ 0 | |
U.S. federal corporate tax rate | 21% | 21% | 21% | |
Income tax examination penalties and interest expense | $ 700 | $ 300 | $ 200 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 1,600 | 900 | ||
Unrecognized tax benefits that would impact effective tax rate | 13,100 | 11,600 | ||
Deferred tax assets, operating loss carryforwards, foreign | 17,300 | 15,700 | ||
Capitalized research and experimental costs | 8,075 | 0 | ||
Unrecognized Tax Benefits | 13,128 | 11,645 | $ 9,836 | $ 10,473 |
Deferred tax assets, operating loss carryforwards, state and local | $ 190,800 | $ 259,900 | ||
Number of operating units local tax incentives | item | 3 | |||
U.S. [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Capitalized research and experimental costs amortization period | 5 years | |||
Foreign [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Capitalized research and experimental costs amortization period | 15 years |
Income Taxes (Changes in Unreco
Income Taxes (Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 11,645 | $ 9,836 | $ 10,473 |
Increases from positions taken during prior periods | 1,299 | 1,074 | |
Decreases from positions taken during prior periods | (1,737) | (419) | |
Increases from positions taken during the current period | 665 | 2,845 | 42 |
Reductions due to lapse of statute | (481) | (373) | (257) |
Reductions due to settlement | (3) | ||
Balance at end of period | $ 13,128 | $ 11,645 | $ 9,836 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 14, 2022 | |
Numerator: | ||||
Continuing operations | $ 101,752 | $ (35,955) | $ 63,448 | |
Discontinued operations | (8,394) | 346,946 | 6,579 | |
Net income | $ 93,358 | $ 310,991 | $ 70,027 | |
Denominator: | ||||
Weighted-average basic shares outstanding | 44,781 | 48,388 | 51,322 | |
Effect of dilutive stock awards | 743 | 0 | 323 | |
Effect of ASR | 76 | |||
Weighted-average diluted shares outstanding | 45,600 | 48,388 | 51,645 | |
Basic: | ||||
Continuing operations | $ 2.27 | $ (0.74) | $ 1.24 | |
Discontinued operations | (0.19) | 7.17 | 0.13 | |
Total basic earnings per share | 2.08 | 6.43 | 1.36 | |
Diluted: | ||||
Continuing operations | 2.23 | (0.74) | 1.23 | |
Discontinued operations | (0.18) | 7.17 | 0.13 | |
Total diluted earnings per share | $ 2.05 | $ 6.43 | $ 1.36 | |
Weighted-average anti-dilutive shares | 416 | |||
Authorized amount for repurchase | $ 150,000 | |||
Weighted Average | ||||
Diluted: | ||||
Weighted-average anti-dilutive shares | 403 | 1,869 | 1,143 |
Accounts Receivable and Credi_3
Accounts Receivable and Credit Losses (Classification of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Trade receivables, current - Gross | $ 129,318 | $ 109,882 | |
Trade receivables, current - Allowance | (29,190) | (30,897) | |
Trade receivables, current - Net | 100,128 | 78,985 | |
Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Financing receivables, current - Gross | 4,757 | 6,116 | |
Financing receivables, current - Allowance | (2,136) | (3,466) | |
Financing receivables, current - Net | 2,621 | 2,650 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Accounts receivable, current - Gross | 134,075 | 115,998 | |
Accounts receivable, current - Allowance | (31,326) | (34,363) | |
Accounts receivable, current - Net | 102,749 | 81,635 | |
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract] | |||
Financing receivables, noncurrent - Gross | 36,368 | 36,265 | |
Financing receivables, noncurrent - Allowance | (9,332) | (11,425) | |
Financing receivables, noncurrent - Net | 27,036 | 24,840 | |
Financing Receivable, after Allowance for Credit Loss [Abstract] | |||
Total | 41,125 | 42,381 | |
Total Financing receivables - Allowance | (11,468) | (14,891) | $ (16,832) |
Total Financing receivables - Net | $ 29,657 | $ 27,490 |
Accounts Receivable and Credi_4
Accounts Receivable and Credit Losses (Credit Quality Analysis of Financing Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 41,125 | $ 42,381 |
Total Institutional Loans | 41,125 | 42,381 |
Financing Receivables 1 To 30 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 186 | 104 |
Four Years Before | 79 | 140 |
Three Years Before | 115 | 114 |
Two Years Before | 137 | 191 |
Year Before | 735 | 699 |
Origination Year | 1,944 | 782 |
Total | 3,196 | 2,030 |
Total Institutional Loans | 3,196 | 2,030 |
Financing Receivables 31 To 60 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 61 | 278 |
Four Years Before | 34 | 38 |
Three Years Before | 214 | |
Two Years Before | 359 | 145 |
Year Before | 573 | 691 |
Origination Year | 1,103 | 332 |
Total | 2,130 | 1,698 |
Total Institutional Loans | 2,130 | 1,698 |
Financing Receivables 61 To 90 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 97 | 58 |
Four Years Before | 39 | 29 |
Three Years Before | 110 | 217 |
Two Years Before | 65 | 8 |
Year Before | 559 | 668 |
Origination Year | 368 | 273 |
Total | 1,238 | 1,253 |
Total Institutional Loans | 1,238 | 1,253 |
Financing Receivables 91 To 120 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 2 | 97 |
Four Years Before | 17 | 139 |
Three Years Before | 2 | 113 |
Two Years Before | 13 | 45 |
Year Before | 77 | 670 |
Origination Year | 200 | 14 |
Total | 311 | 1,078 |
Total Institutional Loans | 311 | 1,078 |
Financing Receivables 121 To 150 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 62 | 17 |
Four Years Before | 37 | 30 |
Three Years Before | 26 | 20 |
Two Years Before | 45 | 41 |
Year Before | 147 | 206 |
Origination Year | 129 | 81 |
Total | 446 | 395 |
Total Institutional Loans | 446 | 395 |
Financing Receivables Greater Than 150 Days Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 2,641 | 6,978 |
Four Years Before | 734 | 876 |
Three Years Before | 708 | 1,077 |
Two Years Before | 2,071 | 683 |
Year Before | 1,457 | 1,596 |
Origination Year | 381 | 377 |
Total | 7,992 | 11,587 |
Total Institutional Loans | 7,992 | 11,587 |
Financial Asset, Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 3,049 | 7,532 |
Four Years Before | 940 | 1,252 |
Three Years Before | 961 | 1,755 |
Two Years Before | 2,690 | 1,113 |
Year Before | 3,548 | 4,530 |
Origination Year | 4,125 | 1,859 |
Total | 15,313 | 18,041 |
Total Institutional Loans | 15,313 | 18,041 |
Financing Receivable Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 6,199 | 4,687 |
Four Years Before | 1,112 | 2,229 |
Three Years Before | 820 | 1,483 |
Two Years Before | 5,350 | 1,167 |
Year Before | 2,608 | 8,910 |
Origination Year | 9,723 | 5,864 |
Total | 25,812 | 24,340 |
Total Institutional Loans | 25,812 | 24,340 |
Financing Receivable Gross | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 9,248 | 12,219 |
Four Years Before | 2,052 | 3,481 |
Three Years Before | 1,781 | 3,238 |
Two Years Before | 8,040 | 2,280 |
Year Before | 6,156 | 13,440 |
Origination Year | 13,848 | 7,723 |
Total | 41,125 | 42,381 |
Total Institutional Loans | $ 41,125 | $ 42,381 |
Accounts Receivable and Credi_5
Accounts Receivable and Credit Losses (Rollforward of Allowances for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Trade | |||
Beginning balance | $ 30,897 | $ 11,559 | |
Write-offs | (43,273) | (15,980) | |
Recoveries | 12,207 | 11,488 | |
Provision for credit losses | 29,359 | 23,830 | |
Ending balance | 29,190 | 30,897 | $ 11,559 |
Financing | |||
Beginning balance | 14,891 | 16,832 | |
Write-offs | (7,653) | (5,287) | |
Recoveries | 590 | 35 | |
Provision for credit losses | 3,640 | 3,311 | |
Ending balance | 11,468 | 14,891 | 16,832 |
Allowance for credit losses | |||
Beginning balance | 45,788 | 28,391 | |
Write-offs | (50,926) | (21,267) | |
Recoveries | 12,797 | 11,523 | |
Provision for credit losses | 32,999 | 27,141 | 11,023 |
Ending balance | $ 40,658 | $ 45,788 | $ 28,391 |
Accounts Receivable and Credi_6
Accounts Receivable and Credit Losses (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2021 | Jul. 31, 2019 | Dec. 11, 2018 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivables [Line Items] | |||||||
Loan payment received | $ 46,800 | $ 0 | $ 0 | ||||
Minimum | |||||||
Financing Receivables [Line Items] | |||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 3% | ||||||
Maximum | |||||||
Financing Receivables [Line Items] | |||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 12% | ||||||
DeVry University | |||||||
Financing Receivables [Line Items] | |||||||
Receivable with Imputed Interest, Face Amount | $ 10,000 | ||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4% | ||||||
Receivable with Imputed Interest, Due Date | Jan. 01, 2022 | ||||||
Loan payment received | $ 10,000 | ||||||
Chicago, Illinois Campus | Other Noncurrent Assets | |||||||
Financing Receivables [Line Items] | |||||||
Loan Receivable | 44,000 | ||||||
Chicago, Illinois Campus | Discontinued Operations, Disposed of by Sale | |||||||
Financing Receivables [Line Items] | |||||||
Receivable with Imputed Interest, Face Amount | $ 46,800 | ||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4% | ||||||
Receivable with Imputed Interest, Due Date | Jul. 31, 2024 | Jul. 31, 2024 | |||||
Future Cash Flows Discounting Rate | 7% | ||||||
Loan payment received | $ 46,800 | ||||||
Chicago, Illinois Campus | Discontinued Operations, Disposed of by Sale | Other Noncurrent Assets | |||||||
Financing Receivables [Line Items] | |||||||
Loan Receivable | $ 44,000 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and equipment, net) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property and Equipment, Net | ||
Property and equipment, gross | $ 597,350 | $ 666,254 |
Accumulated depreciation | (338,828) | (376,328) |
Property and equipment, net | 258,522 | 289,926 |
Land | ||
Property and Equipment, Net | ||
Property and equipment, gross | 38,345 | 44,478 |
Building | ||
Property and Equipment, Net | ||
Property and equipment, gross | 303,737 | 342,236 |
Equipment | ||
Property and Equipment, Net | ||
Property and equipment, gross | 226,600 | 268,352 |
Construction in progress | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 28,668 | $ 11,188 |
Property and Equipment, Net (Ad
Property and Equipment, Net (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Line Items] | ||||
Depreciation expense | $ 41,575 | $ 44,574 | $ 33,888 | |
Proceeds from note receivable related to property sold | 46,800 | 0 | 0 | |
Realized Gain on Sale of Assets | 13,317 | 0 | 0 | |
Discontinued Operations, Disposed of by Sale | Chicago, Illinois Campus | ||||
Real Estate [Line Items] | ||||
Proceeds from disposal | $ 52,000 | |||
Proceeds From Down Payment on Seller Loan | 5,200 | |||
Receivable with Imputed Interest, Face Amount | $ 46,800 | |||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4% | |||
Proceeds from note receivable related to property sold | 46,800 | |||
Discontinued Operations, Disposed of by Sale | Chicago, Illinois Campus | Other Noncurrent Assets | ||||
Real Estate [Line Items] | ||||
Notes receivable | $ 40,300 | |||
Discontinued Operations, Disposed of by Sale | Chicago, Illinois Campus | Other Liabilities | ||||
Real Estate [Line Items] | ||||
Financing payables | $ 45,500 | |||
Corporate, Non-Segment [Member] | ||||
Real Estate [Line Items] | ||||
Depreciation expense | 2,344 | $ 2,882 | $ 3,334 | |
Corporate, Non-Segment [Member] | Discontinued Operations, Disposed of by Sale | Chicago, Illinois Campus | ||||
Real Estate [Line Items] | ||||
Realized Gain on Sale of Assets | $ 13,300 |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 48,181 | $ 55,257 |
Sublease income | (13,329) | (13,920) |
Total lease cost | $ 34,852 | $ 41,337 |
Leases (Maturities of Lease Lia
Leases (Maturities of Lease Liabilities) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Maturities of lease liabilities | |
2024 | $ 49,487 |
2025 | 43,307 |
2026 | 37,468 |
2027 | 35,499 |
2028 | 28,350 |
Thereafter | 59,538 |
Total lease payments | 253,649 |
Less: tenant improvement allowance not yet received | (3,364) |
Less: imputed interest | (49,171) |
Present value of lease liabilities | $ 201,114 |
Leases (Lease Term, Discount Ra
Leases (Lease Term, Discount Rate and Cash Flow Information ) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining operating lease term (years) | 6 years 2 months 12 days | |
Weighted-average operating lease discount rate | 6.40% | |
Cash paid for amounts in the measurement of operating lease liabilities (net of sublease receipts) | $ 58,198 | $ 52,540 |
Operating lease assets obtained in exchange for operating lease liabilities | $ 32,476 | $ 49,136 |
Leases (Future Minimum Rental C
Leases (Future Minimum Rental Commitments for Noncancelable Operating Leases ) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2024 | $ 10,204 |
2025 | 5,082 |
2026 | 2,038 |
Total lease and sublease rental income | $ 17,324 |
Leases (Additional Information)
Leases (Additional Information) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) facility location lease | Dec. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Option to terminate lease | true | ||
Option to extend lease | true | ||
Extension term | 5 years | ||
Number of facilities owned by lessor | facility | 1 | ||
Number of operating lease locations the entity has agreements to sublease either a portion or the full leased space | location | 7 | ||
Number of leases yet to commence | lease | 1 | ||
Operating Lease, Right-of-Use Asset | $ 174,677 | $ 177,995 | |
Operating Lease, Liability | $ 201,114 | ||
Operating Lease, Lease Not yet Commenced, Contract One | Forecast | |||
Lessee, Lease, Description [Line Items] | |||
Lease term on property lease that has not yet commenced | 12 years | ||
Operating Lease, Right-of-Use Asset | $ 16,600 | ||
Operating Lease, Liability | $ 16,600 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Summary of Goodwill Balances by Reporting Unit) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 961,262 | $ 961,262 |
Chamberlain | ||
Goodwill [Line Items] | ||
Goodwill | 4,716 | 4,716 |
Walden | ||
Goodwill [Line Items] | ||
Goodwill | 651,052 | 651,052 |
AUC | ||
Goodwill [Line Items] | ||
Goodwill | 68,321 | 68,321 |
RUSM | ||
Goodwill [Line Items] | ||
Goodwill | 180,089 | 180,089 |
RUSVM | ||
Goodwill [Line Items] | ||
Goodwill | $ 57,084 | $ 57,084 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Summary of Goodwill Balances by Reporting Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 961,262 | $ 961,262 |
Chamberlain | ||
Goodwill [Line Items] | ||
Goodwill | 4,716 | 4,716 |
Walden University | ||
Goodwill [Line Items] | ||
Goodwill | 651,052 | 651,052 |
Medical and Veterinary | ||
Goodwill [Line Items] | ||
Goodwill | $ 305,494 | $ 305,494 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Changes in Carrying Amount of Goodwill, by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 310,210 | |
Acquisitions | 651,052 | |
Goodwill ending balance | 961,262 | |
Goodwill balance | 961,262 | $ 961,262 |
Chamberlain | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 4,716 | |
Goodwill ending balance | 4,716 | |
Goodwill balance | 4,716 | 4,716 |
Walden University | ||
Goodwill [Line Items] | ||
Acquisitions | 651,052 | |
Goodwill ending balance | 651,052 | |
Goodwill balance | 651,052 | 651,052 |
Medical and Veterinary | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 305,494 | |
Goodwill ending balance | 305,494 | |
Goodwill balance | $ 305,494 | $ 305,494 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 217,991 | $ 217,991 |
Amortizable Intangible Assets, Accumulated Amortization | (158,513) | (97,274) |
Indefinite-lived Intangible Assets, Gross Carrying Amount | 752,860 | 752,860 |
Student Relationships | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 161,900 | 161,900 |
Amortizable Intangible Assets, Accumulated Amortization | $ (137,476) | (87,457) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 3 years | |
Curriculum | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 56,091 | 56,091 |
Amortizable Intangible Assets, Accumulated Amortization | $ (21,037) | (9,817) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 5 years | |
Walden trade name | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 119,560 | 119,560 |
AUC trade name | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 17,100 | 17,100 |
RUSM trade name | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 3,500 | 3,500 |
RUSVM trade name | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 1,600 | 1,600 |
Chamberlain Title IV eligibility and accreditations | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 1,200 | 1,200 |
Walden Title IV eligibility and accreditations | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 495,800 | 495,800 |
AUC Title IV eligibility and accreditations | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 100,000 | 100,000 |
RUSM Title IV eligibility and accreditations | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 11,600 | 11,600 |
RUSVM Title IV eligibility and accreditations | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 2,500 | $ 2,500 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets (Summary of Indefinite-Lived Intangible Assets Balances by Reporting Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 752,860 | $ 752,860 |
Chamberlain | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 1,200 | 1,200 |
Walden University | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 615,360 | 615,360 |
Medical and Veterinary | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 136,300 | $ 136,300 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets (Estimated Amortization Expense for Amortized Intangible Assets) (Details) - Walden University $ in Thousands | Jun. 30, 2023 USD ($) |
Intangible Assets [Line Items] | |
2024 | $ 35,644 |
2025 | 11,220 |
2026 | 11,220 |
2027 | 1,394 |
Total | $ 59,478 |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets (Additional Information) (Details) | 11 Months Ended | 12 Months Ended | ||
May 31, 2023 USD ($) segment | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Intangible Assets [Line Items] | ||||
Number of reporting units | segment | 5 | |||
Number of reporting units qualitative assessment performed | segment | 4 | |||
Amortization of Intangible Assets | $ | $ 61,239,000 | $ 97,274,000 | $ 0 | |
Walden | ||||
Intangible Assets [Line Items] | ||||
Goodwill write-off | $ | $ 0 | |||
Discount rate | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.125 | |||
Measurement Input Terminal Growth Rate [Member] | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.03 | |||
Walden trade name | Discount rate | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.125 | |||
Walden trade name | Measurement Input Terminal Growth Rate [Member] | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.030 | |||
Walden trade name | Measurement Input, Royalty Rate [Member] | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.0225 | |||
Walden Title IV eligibility and accreditations | Discount rate | Walden | Fair Value, Inputs, Level 3 [Member] | ||||
Intangible Assets [Line Items] | ||||
Intangible assets, measurement input | 0.125 |
Debt (Long-term debt) (Details)
Debt (Long-term debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Total debt: | ||
Long-term Debt, Gross | $ 708,283 | $ 859,215 |
Unamortized debt discount and issuance costs | (13,206) | (20,307) |
Total Amount Outstanding | 695,077 | 838,908 |
Senior Secured Notes Due 2028 | ||
Total debt: | ||
Long-term Debt, Gross | 404,950 | 405,882 |
Term B Loan | ||
Total debt: | ||
Long-term Debt, Gross | $ 303,333 | $ 453,333 |
Debt (Scheduled maturities of l
Debt (Scheduled maturities of long-term debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 708,283 | |
Long-term Debt | $ 708,283 | $ 859,215 |
Debt (Debt Issuance Costs) (Det
Debt (Debt Issuance Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unamortized debt discount and issuance costs, beginning | $ 28,690 | ||
Amortization of debt discount and issuance costs | (4,832) | $ (7,083) | $ (2,657) |
Debt discount and issuance costs write-off | (4,297) | ||
Unamortized debt discount and issuance costs, ending | 19,561 | 28,690 | |
Revolver | |||
Unamortized debt discount and issuance costs, beginning | 8,383 | ||
Amortization of debt discount and issuance costs | (2,028) | ||
Unamortized debt discount and issuance costs, ending | 6,355 | 8,383 | |
Senior Secured Notes Due 2028 | |||
Unamortized debt discount and issuance costs, beginning | 6,725 | ||
Amortization of debt discount and issuance costs | (1,118) | ||
Debt discount and issuance costs write-off | (15) | (6,771) | |
Unamortized debt discount and issuance costs, ending | 5,592 | 6,725 | |
Term B Loan | |||
Unamortized debt discount and issuance costs, beginning | 13,582 | ||
Amortization of debt discount and issuance costs | (1,686) | ||
Debt discount and issuance costs write-off | (4,282) | (12,471) | |
Unamortized debt discount and issuance costs, ending | $ 7,614 | $ 13,582 |
Debt (Interest Expense) (Detail
Debt (Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Expense, Debt [Abstract] | |||
Debt discount and issuance costs write-off | $ 4,297 | ||
Gain on extinguishment of debt | (71) | $ (2,072) | $ 0 |
Amortization of debt discount and issuance costs | 4,832 | 7,083 | 2,657 |
Other | 4,910 | 4,855 | 3,467 |
Total interest expense | 63,100 | 129,348 | 41,365 |
Senior Secured Notes Due 2028 | |||
Interest Expense, Debt [Abstract] | |||
Interest expense | 22,301 | 39,371 | 14,667 |
Debt discount and issuance costs write-off | 15 | 6,771 | |
Gain on extinguishment of debt | (100) | (2,100) | |
Amortization of debt discount and issuance costs | 1,118 | ||
Term B Loan | |||
Interest Expense, Debt [Abstract] | |||
Interest expense | 26,831 | 33,413 | |
Ticking fees | 5,330 | 11,263 | |
Debt discount and issuance costs write-off | 4,282 | 12,471 | |
Amortization of debt discount and issuance costs | $ 1,686 | ||
Prior Term Loan B | |||
Interest Expense, Debt [Abstract] | |||
Interest expense | 1,272 | $ 9,311 | |
Interest Rate Swap | |||
Interest Expense, Debt [Abstract] | |||
Loss on derivative | (4,525) | ||
Bridge | |||
Interest Expense, Debt [Abstract] | |||
Debt discount and issuance costs write-off | 10,329 | ||
Prior Revolving Credit Facility | |||
Interest Expense, Debt [Abstract] | |||
Debt discount and issuance costs write-off | $ 6,000 |
Debt (Additional Information) (
Debt (Additional Information) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Nov. 22, 2022 | Sep. 22, 2022 | Apr. 11, 2022 | Mar. 11, 2022 | Aug. 12, 2021 | Jul. 29, 2021 | Mar. 01, 2021 | Feb. 12, 2021 | Mar. 31, 2020 | Mar. 24, 2020 | Apr. 13, 2018 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2024 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Repayment of long-term debt | $ 150,861,000 | $ 1,079,713,000 | $ 3,000,000 | |||||||||||||||||||
Gain on extinguishment of debt | 71,000 | 2,072,000 | $ 0 | |||||||||||||||||||
Line of Credit facility, initiation date | Apr. 13, 2018 | |||||||||||||||||||||
Debt Issuance Costs Write-off | 4,297,000 | |||||||||||||||||||||
Surety Bond [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Guarantor Obligations, Current Carrying Value | 31,900,000 | |||||||||||||||||||||
Interest Rate Swap | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | (4,525,000) | |||||||||||||||||||||
Interest Rate Swap | Interest Expense. | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (4,500,000) | |||||||||||||||||||||
Revolver | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||||||||||||||||
Letters of credit outstanding | $ 76,200,000 | |||||||||||||||||||||
Commitment fee percentage | 0.25% | |||||||||||||||||||||
Undrawn amount on letters of credit | $ 323,800,000 | |||||||||||||||||||||
Long-term Line of Credit | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||
Term | 5 years | |||||||||||||||||||||
Revolver | LIBOR Floor | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 0.75% | |||||||||||||||||||||
Revolver | Alternate Base Rate | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 2.75% | |||||||||||||||||||||
Revolver | Alternate Base Rate | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 3.25% | |||||||||||||||||||||
Revolver | London Interbank Offered Rate L I B O R Extension [Member] | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 3.75% | |||||||||||||||||||||
Revolver | London Interbank Offered Rate L I B O R Extension [Member] | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 4.25% | |||||||||||||||||||||
De Vry University Title IV Letter Of Credit | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Letters of credit outstanding | $ 68,400,000 | $ 68,400,000 | ||||||||||||||||||||
Letter Of Credit Title Iv Disbursement Percentage | 10% | |||||||||||||||||||||
Letter of credit, repayment period | 5 years | |||||||||||||||||||||
Credit annual fee percentage reimbursement | 2% | |||||||||||||||||||||
Walden Title IV Letter Of Credit | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Letters of credit outstanding | $ 84,000,000 | |||||||||||||||||||||
Prior Revolving Credit Facility | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Maximum borrowing capacity | $ 300,000,000 | |||||||||||||||||||||
Debt Issuance Costs Write-off | $ 6,000,000 | |||||||||||||||||||||
Prior Revolving Credit Facility | Interest Expense. | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt Issuance Costs Write-off | 6,000,000 | |||||||||||||||||||||
Prior Revolving Credit Facility | Base Rate | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Application rate, percentage | 0.75% | |||||||||||||||||||||
Prior Revolving Credit Facility | Base Rate | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Application rate, percentage | 1.75% | |||||||||||||||||||||
Prior Revolving Credit Facility | Eurocurrency Rate | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Application rate, percentage | 1.75% | |||||||||||||||||||||
Prior Revolving Credit Facility | Eurocurrency Rate | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Application rate, percentage | 2.75% | |||||||||||||||||||||
Term Loan B | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 850,000,000 | |||||||||||||||||||||
Repayment of long-term debt | $ 396,700,000 | 150,000,000 | 396,700,000 | |||||||||||||||||||
Debt Instrument, Issuance Price, Percent Of Principal Amount | 99% | |||||||||||||||||||||
Debt Instrument, Issuance Discount, Percent | 1% | |||||||||||||||||||||
Debt Covenant, Mandatory Cash Payment In Excess Of Amount Minimum | 20,000,000 | |||||||||||||||||||||
Debt Issuance Costs Write-off | $ 4,300,000 | 12,500,000 | ||||||||||||||||||||
Asset sale or disposition period | 1 year | |||||||||||||||||||||
Mandatory prepayment terms | $ 0 | |||||||||||||||||||||
Bridge | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt Issuance Costs Write-off | 10,329,000 | |||||||||||||||||||||
Bridge | Interest Expense. | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt Issuance Costs Write-off | 10,300,000 | |||||||||||||||||||||
Senior Secured Notes Due 2028 And Term B Loan | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Cap percentage | 20% | |||||||||||||||||||||
Amortization period | 7 years | |||||||||||||||||||||
Senior Secured Notes Due 2028 And Term B Loan | Scenario, Plan | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Total net leverage ratio | 3.25% | 4% | ||||||||||||||||||||
Senior Secured Notes Due 2028 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 800,000,000 | |||||||||||||||||||||
Fixed interest rate | 5.50% | |||||||||||||||||||||
Repayment of long-term debt | $ 373,300,000 | $ 20,800,000 | $ 900,000 | 394,100,000 | 394,100,000 | |||||||||||||||||
Gain on extinguishment of debt | $ 100,000 | 2,100,000 | ||||||||||||||||||||
Percentage of notes issued on par value | 100% | |||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100% | 100% | 90% | 92% | ||||||||||||||||||
Debt covenant, percentage of principal amount of notes outstanding | 25% | |||||||||||||||||||||
Debt Issuance Costs Write-off | 15,000 | 6,771,000 | ||||||||||||||||||||
Senior Secured Notes Due 2028 | Interest Expense. | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt Issuance Costs Write-off | 6,800,000 | |||||||||||||||||||||
Senior Secured Notes Due 2028 | Accrued Liabilities | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt Instrument, Accrued Interest | $ 7,400,000 | $ 7,400,000 | $ 7,400,000 | 7,400,000 | ||||||||||||||||||
Senior Secured Notes Due 2028 | 2024 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 102.75% | |||||||||||||||||||||
Senior Secured Notes Due 2028 | 2025 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 101.375% | |||||||||||||||||||||
Senior Secured Notes Due 2028 | 2026 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 100% | |||||||||||||||||||||
Senior Secured Notes Due 2028 | Prior to March 1,2024 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Redemption price percentage | 105.50% | |||||||||||||||||||||
Senior Secured Notes Due 2028 | Maximum | Prior to March 1,2024 | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Redemption price, percentage of principal amount redeemed | 40% | |||||||||||||||||||||
Term B Loan | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 850,000,000 | |||||||||||||||||||||
Fixed interest rate | 9.19% | |||||||||||||||||||||
Repayment of long-term debt | $ 50,000,000 | $ 100,000,000 | $ 396,700,000 | |||||||||||||||||||
Debt Instrument, Ticking Fee, Term | 30 days | |||||||||||||||||||||
Debt Instrument, Ticking Fee, Percent | 50% | |||||||||||||||||||||
Basic spread rate | 4.50% | |||||||||||||||||||||
Principal payment | $ 2,125,000 | |||||||||||||||||||||
Debt Issuance Costs Write-off | $ 4,282,000 | $ 12,471,000 | ||||||||||||||||||||
Term B Loan | LIBOR Floor | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 0.75% | 0.75% | ||||||||||||||||||||
Term B Loan | Alternate Base Rate | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 3% | |||||||||||||||||||||
Term B Loan | Alternate Base Rate | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 3.50% | |||||||||||||||||||||
Term B Loan | London Interbank Offered Rate L I B O R Extension [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 4.50% | |||||||||||||||||||||
Term B Loan | Eurocurrency Rate | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 4% | |||||||||||||||||||||
Term B Loan | Eurocurrency Rate | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 4.50% | |||||||||||||||||||||
Prior Term Loan B | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | 300,000,000 | |||||||||||||||||||||
Repayment of long-term debt | $ 291,000,000 | |||||||||||||||||||||
Principal payment | $ 750,000 | |||||||||||||||||||||
Prior Term Loan B | Base Rate | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 2% | |||||||||||||||||||||
Debt instrument, description of variable rate basis | base rate plus 2% | |||||||||||||||||||||
Prior Term Loan B | Eurocurrency Rate | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Basic spread rate | 3% | 3% | ||||||||||||||||||||
Debt instrument, description of variable rate basis | LIBOR-equivalent rate plus 3% | |||||||||||||||||||||
Prior Term Loan B | Interest Rate Swap | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Derivative, Fixed Interest Rate | 0.946% | |||||||||||||||||||||
Derivative, Swaption Interest Rate | 3.946% | |||||||||||||||||||||
Prior Term Loan B | Interest Rate Swap | London Interbank Offered Rate L I B O R Extension [Member] | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||||||||||||||||||
Prior Term Loan B | Interest Rate Swap | London Interbank Offered Rate L I B O R Extension [Member] | Minimum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Derivative, Floor Interest Rate | 0% | |||||||||||||||||||||
Prior Term Loan B | Prior Revolving Credit Facility | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||
Line of credit facility, expiration date | Apr. 13, 2023 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Additional Information) (Details) - EduPristine - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2021 | Mar. 26, 2020 | |
Noncontrolling Interest [Line Items] | |||
Ownership interest of parent in subsidiary | 100% | 69% | |
Kaizen | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 31% | ||
Ownership percentage held by minority available for purchase | 33% | ||
Decrease in noncontrolling interest | $ 1.8 |
Share Repurchases (Shares Repur
Share Repurchases (Shares Repurchased Under Programs) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total cost of share repurchases | $ 127,254 | $ 120,000 | $ 100,000 |
Life-to-Date Current Shares Repurchase Program Total number of share repurchases | 39,922,000 | 36,619,000 | |
Life-to-Date Current Shares Repurchase Program Total cost of share repurchases | $ 1,513,770 | $ 1,339,449 | |
Open Market Share Repurchase Programs [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total number of share repurchases | 3,207,036 | ||
Total cost of share repurchases | $ 127,254 | ||
Average price paid per share | $ 39.68 | ||
Life-to-Date Current Shares Repurchase Program Total number of share repurchases | 3,207,036 | ||
Life-to-Date Current Shares Repurchase Program Total cost of share repurchases | $ 127,254 | ||
Life-to-Date Current Shares Repurchase Program Average price paid per share | $ 39.68 |
Share Repurchases (Open Market
Share Repurchases (Open Market Share Repurchase Programs) (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Mar. 14, 2022 | Mar. 01, 2022 | Feb. 04, 2020 | Nov. 08, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount for repurchase | $ 150 | ||||
Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Remaining authorized amount for repurchase | $ 172.7 | ||||
Maximum | Authorized On November Eighth Two-Thousand Twenty [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount for repurchase | $ 300 | ||||
Maximum | Authorized On February Fourth Two-Thousand Twenty | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount for repurchase | $ 300 | ||||
Maximum | Authorized On March One, Two-Thousand Twenty Two | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount for repurchase | $ 300 |
Share Repurchases (ASR Agreemen
Share Repurchases (ASR Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Nov. 02, 2022 | Mar. 14, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Oct. 14, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount for repurchase | $ 150,000 | ||||||
Payment on equity forward contract | $ 13,162 | $ 30,000 | $ 0 | ||||
Asr Agreement | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount for repurchase | $ 150,000 | ||||||
Number of shares for common stock | 4,709,576 | ||||||
Accelerated Share Repurchase Program, Percent Delivery | 80% | ||||||
Shares owed to counterparty | 332,212 | ||||||
Payment on equity forward contract | $ 13,200 | ||||||
Asr Agreement | Treasury Stock, Common | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount for repurchase | $ 120,000 | ||||||
Payment on equity forward contract | $ 13,200 | ||||||
Asr Agreement | Additional Paid-In Capital | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Authorized amount for repurchase | $ 30,000 | ||||||
Additional paid in capital reclassified into treasury stock | $ 30,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period | $ 1,491,386 | $ 1,293,517 | $ 1,309,750 |
Reclassification adjustment for gain on available-for-sale marketable securities | 0 | 0 | (126) |
Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments | 0 | (296) | 0 |
Reclassification from other comprehensive income | 0 | 6,695 | 0 |
Balance at the end of period | 1,457,336 | 1,491,386 | 1,293,517 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period | (2,227) | (9,218) | (10,908) |
Reclassification adjustment for gain on available-for-sale marketable securities | (126) | ||
Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments | (296) | ||
Reclassification from other comprehensive income | 6,695 | ||
Balance at the end of period | (2,227) | (2,227) | (9,218) |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period | (2,227) | (2,523) | (3,236) |
Other comprehensive income (loss) - Gross | 0 | 0 | 713 |
Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments | 0 | 296 | 0 |
Balance at the end of period | (2,227) | (2,227) | (2,523) |
Available-for-sale marketable securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period - Gross | 0 | 0 | 242 |
Balance at the beginning of period - Tax | 0 | 0 | (59) |
Balance at the beginning of period | 0 | 0 | 183 |
Other comprehensive income (loss) - Gross | 0 | 0 | (75) |
Other comprehensive income (loss) - Tax | 0 | 0 | 18 |
Reclassification adjustment for gain on available-for-sale marketable securities | 0 | 0 | (126) |
Balance at the end of period | 0 | 0 | 0 |
Interest Rate Swap. | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at the beginning of period - Gross | 0 | (8,926) | (10,399) |
Balance at the beginning of period - Tax | 0 | 2,231 | 2,544 |
Balance at the beginning of period | 0 | (6,695) | (7,855) |
Other comprehensive income (loss) - Gross | 0 | 0 | 1,473 |
Other comprehensive income (loss) - Tax | 0 | 0 | (313) |
Reclassification from other comprehensive income | 0 | 6,695 | 0 |
Balance at the end of period | $ 0 | $ 0 | $ (6,695) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Options Activity) (Details) - Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Number of Options, Outstanding at beginning of period | shares | 1,144,372 |
Number of Options, Exercised | shares | (93,021) |
Number of Options Forfeited | shares | (3,975) |
Number of Options Expired | shares | (1,575) |
Number of Options, Outstanding at end of period | shares | 1,045,801 |
Number of Options, Exercisable at end of period | shares | 774,995 |
Weighted Average Exercise Price at beginning of period | $ / shares | $ 35.36 |
Weighted Average Exercise Price, Options Exercised | $ / shares | 28.23 |
Weighted Average Exercise Price, Options Forfeited | $ / shares | 36.46 |
Weighted Average Exercise Price, Options Expired | $ / shares | 18.60 |
Weighted Average Exercise Price, Outstanding at end of period | $ / shares | 36.02 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 36.04 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | 5 years 6 months |
Weighted Average Remaining Contractual Life, Exercisable at end of period | 4 years 9 months 18 days |
Aggregate Intrinsic Value, Outstanding at End of period | $ | $ 1,218 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 980 |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Values of Stock Option Awards Weighted Average Assumptions) (Details) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected life (in years) | 6 years 6 months 21 days | 6 years 6 months 14 days |
Expected volatility | 39.99% | 39.27% |
Risk-free interest rate | 0.94% | 0.45% |
Dividend yield | 0% | 0% |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Restricted Stock Units Activity) (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units Unvested at beginning of period | 1,171,692 | ||
Restricted Stock Units Unvested, Shares Granted | 525,180 | ||
Restricted Stock Units, Shares Vested | (342,713) | ||
Restricted Stock Units, Shares Forfeited | (126,126) | ||
Restricted Stock Units Unvested at end of period | 1,228,033 | 1,171,692 | |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ 35.05 | ||
Weighted Average Grant Date Fair Value, Shares Granted | 40.10 | $ 35.03 | $ 31.26 |
Weighted Average Grant Date Fair Value, Shares Vested | 37.19 | ||
Weighted Average Grant Date Fair Value, Shares Forfeited | 37.07 | ||
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ 36.40 | $ 35.05 |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Stock-Based Compensation Expense Included in Consolidated Statement of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation | $ 14,299 | $ 22,611 | $ 12,824 |
Income tax benefit | (3,938) | (3,658) | (2,824) |
Stock-based compensation, net of tax | $ 10,361 | $ 18,953 | $ 10,000 |
Stock-Based Compensation (Addit
Stock-Based Compensation (Additional Information) (Details) | 12 Months Ended | ||
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 1,100,000 | $ 6,900,000 | $ 1,100,000 |
Tax benefit from options exercised | 300,000 | 1,800,000 | 300,000 |
Total pre-tax unrecognized compensation costs related to non-vested awards | $ 22,700,000 | ||
Total pre-tax unrecognized compensation costs related to non-vested awards expected to be recognized, years | 2 years | ||
Total fair value of options and Restricted Stock Units vested | $ 15,000,000 | 15,200,000 | $ 17,300,000 |
Share-based Payment Arrangement, Amount Capitalized | $ 0 | $ 0 | |
Stock Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation arrangements plans | 2 | ||
Term of options (in years) | 10 years | ||
Vesting Period (in years) | 4 years | ||
Weighted average estimated grant date fair values, for options granted at market price, per share | $ / shares | $ 14.72 | $ 12.23 | |
Number of options granted | shares | 0 | ||
Common Stock, Capital Shares Reserved for Future Issuance | shares | 2,730,474 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Shares Granted | $ / shares | $ 40.10 | $ 35.03 | $ 31.26 |
Restricted Stock Units Outstanding, Shares Granted | shares | 525,180 | ||
Restricted Stock Units | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period (in years) | 1 year | ||
Performance Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of options (in years) | 3 years | ||
Restricted Stock Units Outstanding, Shares Granted | shares | 200,720 | ||
Non-Performance Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period (in years) | 3 years | 4 years | |
Restricted Stock Units Outstanding, Shares Granted | shares | 324,460 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Nov. 06, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||
Contributes percentage | 6% | |||
Matching and discretionary contributions expense | $ 17,900,000 | $ 18,400,000 | $ 12,000,000 | |
Authorized amount | $ 25,000 | |||
Number of ESPP issuable | 500,000 | |||
Market price | 90% | |||
Brokerage commissions and administrative fees, percentage | 10% | |||
Total share issued | 18,463 | 18,328 | 8,857 | |
Nonqualified Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributes percentage | 6% | |||
Deferred Compensation Plan, Maximum Percentage of Deferment of Participant's Salary | 50% | |||
Deferred Compensation Plan, Maximum percentage of participant's Bonus or Board Fee | 100% | |||
Accrued Liabilities | Nonqualified Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Liability, Current | $ 12,600,000 | $ 16,300,000 | ||
Investment in Rabbi Trust | Nonqualified Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Plan Assets, Fair Value Disclosure | $ 12,500,000 | $ 17,800,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2019 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, gross | $ 708,283 | $ 859,215 | ||
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 5,000 | ||
Assets measured at fair value using Level 3 | 0 | 0 | ||
Liabilities measured at fair value using Level 3 | 0 | 0 | ||
Senior Secured Notes Due 2028 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, gross | 404,950 | 405,882 | ||
Senior Secured Notes Due 2028 | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | 368,500 | |||
Term B Loan | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, gross | 303,333 | 453,333 | ||
Term B Loan | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | 304,300 | |||
Other income, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment impairment | 5,000 | |||
Accounts Receivable | Credit extension program | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans Receivable, Fair Value Disclosure | 29,700 | 27,500 | ||
Nonqualified Deferred Compensation Plan | Investment in Rabbi Trust | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred Compensation Plan Assets, Fair Value Disclosure | 12,500 | 17,800 | ||
Nonqualified Deferred Compensation Plan | Accrued Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred Compensation Liability, Current, Fair Value Disclosure | 12,600 | 16,300 | ||
Nonqualified Deferred Compensation Plan | Prepaid Expenses and Other Current Assets | Investment in Rabbi Trust | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Deferred Compensation Plan Assets, Fair Value Disclosure | $ 12,500 | 17,800 | ||
Chicago, Illinois Campus | Discontinued Operations, Disposed of by Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Receivable with Imputed Interest, Face Amount | $ 46,800 | |||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4% | |||
Receivable with Imputed Interest, Due Date | Jul. 31, 2024 | Jul. 31, 2024 | ||
Chicago, Illinois Campus | Discount rate | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Instrument, Measurement Input | 0.07 | |||
Chicago, Illinois Campus | Other Noncurrent Assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans Receivable, Fair Value Disclosure | 44,000 | |||
Chicago, Illinois Campus | Other Noncurrent Assets | Discontinued Operations, Disposed of by Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans Receivable, Fair Value Disclosure | $ 44,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended | |||||||||
Jul. 18, 2023 USD ($) | May 04, 2022 USD ($) | Feb. 28, 2022 USD ($) claim | Nov. 02, 2021 USD ($) claim | Mar. 12, 2021 USD ($) | Apr. 13, 2018 lawsuit | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2020 USD ($) | Dec. 04, 2017 USD ($) | |
Maximum | DeVry University | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Indemnification | $ 340,000,000 | |||||||||
Nicole Versetto | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of other individuals filed lawsuit | lawsuit | 3 | |||||||||
Loss contingency accrual | $ 44,950,000 | |||||||||
Nicole Versetto | Prepaid Expenses and Other Current Assets | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Settlement fund | $ 44,950,000 | $ 44,950,000 | ||||||||
McCormick | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Remitted | $ 44,950,000 | |||||||||
Litigation Settlement, Liability Reduction, Amounts Paid To Settlement Class | $ 8,920,000 | |||||||||
Litigation Settlement, Liability, Amount Remaining To Be Paid To Settlement Class | $ 36,030,000 | |||||||||
Stoltmann Case | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Settlement amount | $ 20,375,000 | |||||||||
Settlement reduced | $ 75,000 | |||||||||
Number of claimants | claim | 552 | |||||||||
Number of plaintiff declined to participate | claim | 6 | 6 | ||||||||
Reducing settlement amount | $ 450,000 | |||||||||
Remitted | $ 19,925,000 | |||||||||
Number of claimants declined to participate | claim | 546 | |||||||||
Number of plaintiff declined to participate due to voluntary dismiss of arbitration | claim | 2 | |||||||||
Number of plaintiff declined to participate due to arbitration in progress | claim | 1 | |||||||||
Number of plaintiff declined to participate due to arbitration not recommenced | claim | 3 | |||||||||
John Doe Plaintiff Case | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency sought value | $ 50,000 | |||||||||
Subsequent Event [Member] | McCormick | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Escrow deposit | $ 8,920,000 |
Segment Information (Tabulation
Segment Information (Tabulation of Business Segment Information Based on Current Segmentation) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | $ 1,450,826,000 | $ 1,381,842,000 | $ 899,248,000 |
Total consolidated adjusted operating income | 287,570,000 | 267,602,000 | 148,861,000 |
Deferred revenue adjustment | (8,561,000) | ||
CEO transition costs | (6,195,000) | ||
Restructuring expense | (18,817,000) | (25,628,000) | (6,869,000) |
Business acquisition and integration expense | (42,661,000) | (53,198,000) | (31,593,000) |
Litigation settlement expense | (10,000,000) | ||
Gain on sale of assets | 13,317,000 | 0 | 0 |
Total consolidated operating income | 168,170,000 | 76,746,000 | 110,399,000 |
Interest expense | (63,100,000) | (129,348,000) | (41,365,000) |
Other income, net | 6,965,000 | 1,108,000 | 6,732,000 |
Total consolidated income (loss) from continuing operations before income taxes | 112,035,000 | (51,494,000) | 75,766,000 |
Total Consolidated capital expenditures | 37,008,000 | 31,054,000 | 39,881,000 |
Total consolidated depreciation expense | 41,575,000 | 44,574,000 | 33,888,000 |
Total consolidated intangible amortization expense | (61,239,000) | (97,274,000) | 0 |
Chamberlain | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 571,034,000 | 557,536,000 | 563,814,000 |
Walden University | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 533,725,000 | 485,393,000 | 0 |
Medical and Veterinary | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 346,067,000 | 338,913,000 | 335,434,000 |
Operating Segments [Member] | Chamberlain | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 571,034,000 | 557,536,000 | 563,814,000 |
Total consolidated adjusted operating income | 135,503,000 | 127,252,000 | 128,851,000 |
Total Consolidated capital expenditures | 17,749,000 | 15,235,000 | 28,631,000 |
Total consolidated depreciation expense | 17,264,000 | 18,547,000 | 16,123,000 |
Operating Segments [Member] | Walden University | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 533,725,000 | 485,393,000 | |
Total consolidated adjusted operating income | 110,364,000 | 104,582,000 | |
Total Consolidated capital expenditures | 4,688,000 | 5,393,000 | |
Total consolidated depreciation expense | 9,492,000 | 9,255,000 | |
Total consolidated intangible amortization expense | (61,239,000) | (97,274,000) | |
Operating Segments [Member] | Medical and Veterinary | |||
Segment Reporting Information [Line Items] | |||
Total Consolidated Revenue | 346,067,000 | 338,913,000 | 335,434,000 |
Total consolidated adjusted operating income | 67,336,000 | 69,148,000 | 60,199,000 |
Restructuring expense | (7,687,000) | (9,791,000) | |
Total Consolidated capital expenditures | 4,386,000 | 3,277,000 | 4,121,000 |
Total consolidated depreciation expense | 12,475,000 | 13,890,000 | 14,431,000 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Total consolidated adjusted operating income | (25,633,000) | (33,380,000) | (40,189,000) |
Restructuring expense | (7,067,000) | (8,946,000) | (6,869,000) |
Total Consolidated capital expenditures | 10,185,000 | 7,149,000 | 7,129,000 |
Total consolidated depreciation expense | $ 2,344,000 | $ 2,882,000 | $ 3,334,000 |
Segment Information (Revenues a
Segment Information (Revenues and Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Consolidated Revenue | $ 1,450,826 | $ 1,381,842 | $ 899,248 |
Total Consolidated Long-lived Assets | 433,199 | 467,921 | 451,057 |
Domestic Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Consolidated Revenue | 1,104,759 | 1,042,929 | 563,814 |
Total Consolidated Long-lived Assets | 269,147 | 289,129 | 286,720 |
Barbados, St. Kitts and St. Maarten [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Consolidated Revenue | 346,067 | 338,913 | 335,434 |
Total Consolidated Long-lived Assets | $ 164,052 | $ 178,792 | $ 164,337 |
Segment Information (Additional
Segment Information (Additional Information) (Details) | 12 Months Ended |
Jun. 30, 2023 segment item | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Walden University | |
Segment Reporting Information [Line Items] | |
Minimum number of courses offered | item | 100 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 93,358 | $ 310,991 | $ 70,027 |
Insider Trading Arrangements
Insider Trading Arrangements - Mr.Gangadharan | 3 Months Ended |
Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 31, 2023, Mr. Gangadharan, Adtalem’s Chief Accounting Officer, entered in a 10b5-1 Preset Diversification Program (the “10b5-1 Plan”). Mr. Gangadharan’s 10b5-1 Plan is intended to satisfy the affirmative defense of Rule 10b5-1(c). The estimated selling start date under Mr. Gangadharan’s 10b5-1 Plan is August 28, 2023. The 10b5-1 Plan end date is June 1, 2026. The 10b5-1 Plan governs Mr. Gangadharan’s sale of 2,222 restricted stock units (“RSUs”) that will vest over the duration of the 10b5-1 Plan. The RSUs will be acquired in connection with Adtalem’s Fourth Amended and Restated Incentive Plan of 2013 for directors, key executives, and managerial employees. A portion of the shares will be withheld by Adtalem or sold to cover withholding taxes. Transactions under Section 16 officer trading plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission to the extent required by law. |
Name | Mr. Gangadharan |
Title | Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 31, 2023 |
Aggregate Available | 2,222 |
Expiration Date | June 1, 2026 |