ADTALEM GLOBAL EDUCATION INC., 10-K filed on 8/10/2023
Annual Report
v3.23.2
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, $0.01 par value per share    
Trading Symbol ATGE    
Security Exchange Name CHX    
v3.23.2
Consolidated Balance Sheets - USD ($)
$ 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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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.
v3.23.2
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 to five years, and amortization is included within cost of education services in the Consolidated Statements of Income.

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

​
v3.23.2
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.
v3.23.2
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

​
v3.23.2
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: The majority of revenue is derived from tuition and fees, which is recognized on a straight-line basis over the academic term as instruction is delivered.

Other: Other revenue consists of housing and other miscellaneous services. Other revenue is recognized over the period in which the applicable performance obligation is satisfied.

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.
v3.23.2
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.
v3.23.2
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).
v3.23.2
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.
v3.23.2
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

​
v3.23.2
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.
v3.23.2
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.”
v3.23.2
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 as 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 disclosures 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 space 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 rental 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

​
v3.23.2
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.
v3.23.2
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 million is recorded within accrued liabilities on the Consolidated Balance Sheets as of each of June 30, 2023 and 2022.

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. The Credit Agreement provides guidance surrounding the implementation of a replacement benchmark rate. 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 Unrestricted Cash (as defined in the Credit Agreement) and Permitted Investments (as defined in the Credit Agreement) of the Borrower and its subsidiaries for such Test Period to (b) EBITDA (as defined in the Credit Agreement) for such Test Period. EBITDA for purposes of these restrictive covenants includes incremental adjustments beyond those included in traditional EBITDA calculations. Specifically, the Credit Agreement EBITDA definition includes the pro forma impact of EBITDA to be received from certain acquisition-related synergies and cost optimization activities, subject to a 20% cap.

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.
v3.23.2
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.
v3.23.2
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. On March 1, 2022, we announced that the Board authorized Adtalem’s thirteenth share repurchase program, which allows Adtalem to repurchase up to $300.0 million of its common stock through February 25, 2025. 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

​

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 shares of common stock representing approximately 80% of the total shares expected to be delivered at the time of executing the ASR based on the per share price on the day prior to the execution date. This initial delivery of shares reduced the weighted-average number of shares of common stock outstanding for basic and diluted earnings per share calculations. The final number of shares to be repurchased was based on the volume-weighted average price of Adtalem’s common stock during the term of the ASR agreement, less a discount and subject to adjustments pursuant to the terms of the ASR agreement. See Note 9 “Earnings per Share” for information on the ASR impact to earnings per share for fiscal year 2023. The ASR agreement ended on October 14, 2022. Based on the volume-weighted average price of Adtalem’s common stock during the term of the ASR agreement, Adtalem owed the counter party 332,212 shares of common stock. We elected to settle the contract in cash instead of delivering shares by making a cash payment of $13.2 million on November 2, 2022.

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.
v3.23.2
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)

​
v3.23.2
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 granted is based on the weighted-average exercise life with age and salary adjustment factors from historical exercise behavior. Adtalem’s expected volatility is computed by combining and weighting the implied market volatility, the most recent volatility over the expected life of the option grant, and Adtalem’s long-term historical volatility.

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 grant date fair values of RSUs granted at market price under Adtalem’s stock-based incentive plans in the years ended June 30, 2023, 2022, and 2021 were $40.10, $35.03, and $31.26 per share, respectively.

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.
v3.23.2
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.
v3.23.2
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 – Quoted prices for identical instruments in active markets.

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. 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. These investments 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 2022 of $29.7 million 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.
v3.23.2
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.
v3.23.2
Segment Information
 12 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Information

22. Segment Information

We present three reportable segments as follows:

Chamberlain – Offers degree and non-degree programs in the nursing and health professions postsecondary education industry. This segment includes the operations of Chamberlain.

Walden – Offers more than 100 online certificate, bachelor’s, master’s, and doctoral degrees, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. This segment includes the operations of Walden, which was acquired by Adtalem on August 12, 2021. See Note 3 “Acquisitions” for additional information on the acquisition.

Medical and Veterinary – Offers degree and non-degree programs in the medical and veterinary postsecondary education industry. This segment includes the operations of AUC, RUSM, and RUSVM, which are collectively referred to as the “medical and veterinary schools.”

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.
v3.23.2
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 to five years, and amortization is included within cost of education services in the Consolidated Statements of Income.
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
v3.23.2
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
v3.23.2
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

​
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
Leases (Tables)
 12 Months Ended
Jun. 30, 2023
Lessee Disclosure [Abstract]  
Summary of components of lease cost

The components of lease cost were as 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 disclosures 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 rental 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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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)
v3.23.2
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
v3.23.2
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
v3.23.2
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 10.00%    
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
v3.23.2
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    
v3.23.2
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)
v3.23.2
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)
v3.23.2
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)  
v3.23.2
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)
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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 100.00%      
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      
v3.23.2
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
v3.23.2
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)     4.00%          
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)      
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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  
v3.23.2
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
v3.23.2
Other Income, Net - Impairment (Details)
$ in Millions
 12 Months Ended
Jun. 30, 2023
USD ($)
Other Income  
Other Income, Net  
Impairment on equity investment $ 5.0
v3.23.2
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
v3.23.2
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
v3.23.2
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 21.00% 21.00% 21.00%
Lower rates on foreign operations (10.40%) 25.00% (14.10%)
State income taxes 2.40% 1.30% 1.60%
Loss on investment in subsidiary 0.00% 3.20% 0.00%
Deferred tax benefit from acquisitions and divestitures 0.00% 2.20% 0.00%
Research and development tax credits (1.70%) 0.00% 0.00%
Change in valuation allowance (8.70%) (10.50%) (0.20%)
Reduction in state loss carryforwards 2.10% 11.40% 0.00%
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%
v3.23.2
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
v3.23.2
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
v3.23.2
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 21.00% 21.00% 21.00%  
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      
v3.23.2
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
v3.23.2
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  
v3.23.2
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  
v3.23.2
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
v3.23.2
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
v3.23.2
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)         3.00%    
Maximum              
Financing Receivables [Line Items]              
Receivable with Imputed Interest, Effective Yield (Interest Rate)         12.00%    
DeVry University              
Financing Receivables [Line Items]              
Receivable with Imputed Interest, Face Amount     $ 10,000        
Receivable with Imputed Interest, Effective Yield (Interest Rate)     4.00%        
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)   4.00%          
Receivable with Imputed Interest, Due Date Jul. 31, 2024 Jul. 31, 2024          
Future Cash Flows Discounting Rate         7.00%    
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  
v3.23.2
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
v3.23.2
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) 4.00%      
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    
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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  
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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      
v3.23.2
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
v3.23.2
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
v3.23.2
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  
v3.23.2
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  
v3.23.2
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         $ 400,000,000.0                                  
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                                   10.00%        
Letter of credit, repayment period                                   5 years        
Credit annual fee percentage reimbursement                                     2.00%      
Walden Title IV Letter Of Credit                                            
Line of Credit Facility [Line Items]                                            
Letters of credit outstanding                                     $ 84,000,000.0      
Prior Revolving Credit Facility                                            
Line of Credit Facility [Line Items]                                            
Maximum borrowing capacity                     $ 300,000,000.0                      
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                                       6,000,000.0    
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               $ 850,000,000.0                            
Repayment of long-term debt       $ 396,700,000                             150,000,000.0 396,700,000    
Debt Instrument, Issuance Price, Percent Of Principal Amount         99.00%                                  
Debt Instrument, Issuance Discount, Percent         1.00%                                  
Debt Covenant, Mandatory Cash Payment In Excess Of Amount Minimum                                     20,000,000.0      
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                                     20.00%      
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%     4.00%          
Senior Secured Notes Due 2028                                            
Line of Credit Facility [Line Items]                                            
Debt instrument, face amount             $ 800,000,000.0                              
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             100.00%                              
Redemption price, percentage of principal amount redeemed     100.00%       100.00%         90.00%     92.00%              
Debt covenant, percentage of principal amount of notes outstanding             25.00%                              
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             100.00%                              
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             40.00%                              
Term B Loan                                            
Line of Credit Facility [Line Items]                                            
Debt instrument, face amount         $ 850,000,000.0                                  
Fixed interest rate                                     9.19%      
Repayment of long-term debt $ 50,000,000.0 $ 100,000,000.0   $ 396,700,000                                    
Debt Instrument, Ticking Fee, Term               30 days                            
Debt Instrument, Ticking Fee, Percent               50.00%                            
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         3.00%                                  
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         4.00%                                  
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                     300,000,000.0                      
Repayment of long-term debt         $ 291,000,000.0                                  
Principal payment                     $ 750,000                      
Prior Term Loan B | Base Rate                                            
Line of Credit Facility [Line Items]                                            
Basic spread rate                                     2.00%      
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                 3.00%                   3.00%      
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                   0.00%                        
Prior Term Loan B | Prior Revolving Credit Facility                                            
Line of Credit Facility [Line Items]                                            
Line of credit facility, expiration date                     Apr. 13, 2023                      
v3.23.2
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 100.00% 69.00%  
Kaizen      
Noncontrolling Interest [Line Items]      
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners   31.00%  
Ownership percentage held by minority available for purchase     33.00%
Decrease in noncontrolling interest $ 1.8    
v3.23.2
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    
v3.23.2
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   $ 150.0      
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         $ 300.0
Maximum | Authorized On February Fourth Two-Thousand Twenty          
Equity, Class of Treasury Stock [Line Items]          
Authorized amount for repurchase       $ 300.0  
Maximum | Authorized On March One, Two-Thousand Twenty Two          
Equity, Class of Treasury Stock [Line Items]          
Authorized amount for repurchase     $ 300.0    
v3.23.2
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   80.00%          
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        
v3.23.2
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)
v3.23.2
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
v3.23.2
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 0.00% 0.00%
v3.23.2
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  
v3.23.2
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
v3.23.2
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 $ 15,000,000.0 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    
v3.23.2
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 100.00%      
Contributes percentage 6.00%      
Matching and discretionary contributions expense $ 17,900,000 $ 18,400,000 $ 12,000,000.0  
Authorized amount $ 25,000      
Number of ESPP issuable       500,000
Market price 90.00%      
Brokerage commissions and administrative fees, percentage 10.00%      
Total share issued 18,463 18,328 8,857  
Nonqualified Deferred Compensation Plan        
Defined Benefit Plan Disclosure [Line Items]        
Contributes percentage 6.00%      
Deferred Compensation Plan, Maximum Percentage of Deferment of Participant's Salary 50.00%      
Deferred Compensation Plan, Maximum percentage of participant's Bonus or Board Fee 100.00%      
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    
v3.23.2
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)   4.00%    
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
v3.23.2
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                   $ 340,000,000.0
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             $ 36,030,000.00      
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                  
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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
v3.23.2
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