Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 16, 2018 | Dec. 31, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Adtalem Global Education Inc. | ||
Entity Central Index Key | 730,464 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,499,169,661 | ||
Trading Symbol | ATGE | ||
Entity Common Stock, Shares Outstanding | 59,931,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 430,690 | $ 240,426 |
Marketable Securities and Investments | 4,255 | 4,013 |
Restricted Cash | 310 | 1,312 |
Accounts Receivable, Net | 146,726 | 148,677 |
Prepaid Expenses and Other Current Assets | 58,887 | 36,513 |
Current Assets Held for Sale | 47,132 | 40,266 |
Total Current Assets | 688,000 | 471,207 |
Land, Building and Equipment: | ||
Land | 48,177 | 48,937 |
Building | 389,129 | 407,624 |
Equipment | 302,516 | 284,175 |
Construction in Progress | 25,360 | 21,556 |
Land, Building and Equipment, Gross | 765,182 | 762,292 |
Accumulated Depreciation | (376,528) | (336,027) |
Land, Building and Equipment Held for Sale, Net | 0 | 62,561 |
Land, Building and Equipment, Net | 388,654 | 488,826 |
Noncurrent Assets: | ||
Deferred Income Taxes | 38,780 | 34,755 |
Intangible Assets, Net | 362,931 | 391,958 |
Goodwill | 813,887 | 829,086 |
Other Assets, Net | 39,259 | 36,777 |
Noncurrent Assets Held for Sale | 13,450 | 62,409 |
Total Noncurrent Assets | 1,268,307 | 1,354,985 |
TOTAL ASSETS | 2,344,961 | 2,315,018 |
Current Liabilities: | ||
Accounts Payable | 47,477 | 43,083 |
Accrued Salaries, Wages and Benefits | 71,289 | 76,906 |
Accrued Liabilities | 80,803 | 90,061 |
Deferred Revenue | 106,773 | 103,542 |
Current Portion of Long-Term Debt | 3,000 | 0 |
Current Liabilities Held for Sale | 56,439 | 63,735 |
Total Current Liabilities | 365,781 | 377,327 |
Noncurrent Liabilities: | ||
Long-Term Debt | 290,073 | 125,000 |
Deferred Income Taxes | 29,115 | 34,712 |
Other Liabilities | 131,380 | 101,672 |
Noncurrent Liabilities Held for Sale | 216 | 983 |
Total Noncurrent Liabilities | 450,784 | 262,367 |
TOTAL LIABILITIES | 816,565 | 639,694 |
COMMITMENTS AND CONTINGENCIES (NOTE 15) | ||
NONCONTROLLING INTEREST | 9,110 | 6,285 |
SHAREHOLDERS' EQUITY: | ||
Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized: 59,893,000 and 62,371,000 Shares Outstanding at June 30, 2018 and June 30, 2017, respectively | 793 | 781 |
Additional Paid-in Capital | 454,653 | 415,912 |
Retained Earnings | 1,917,373 | 1,881,397 |
Accumulated Other Comprehensive Loss | (142,168) | (59,119) |
Treasury Stock, at Cost, 19,390,000 and 15,691,000 Shares at June 30, 2018 and June 30, 2017, respectively | (711,365) | (569,932) |
TOTAL SHAREHOLDERS' EQUITY | 1,519,286 | 1,669,039 |
TOTAL LIABILITIES, NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | $ 2,344,961 | $ 2,315,018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Jun. 30, 2017 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares Outstanding | 59,893,000 | 62,371,000 |
Treasury Stock, Shares | 19,390,000 | 15,691,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUE: | |||
Tuition | $ 1,070,721 | $ 1,056,296 | $ 950,503 |
Other Educational | 160,490 | 151,613 | 129,572 |
Total Revenue | 1,231,211 | 1,207,909 | 1,080,075 |
OPERATING COST AND EXPENSE: | |||
Cost of Educational Services | 645,604 | 638,245 | 568,950 |
Student Services and Administrative Expense | 373,064 | 369,043 | 352,646 |
Restructuring Expense | 5,067 | 12,973 | 2,389 |
Regulatory Settlements | 0 | 52,150 | 0 |
Total Operating Cost and Expense | 1,023,735 | 1,072,411 | 923,985 |
Operating Income from Continuing Operations | 207,476 | 135,498 | 156,090 |
INTEREST: | |||
Interest Income | 5,827 | 4,905 | 666 |
Interest Expense | (14,620) | (9,144) | (5,934) |
Net Interest Expense | (8,793) | (4,239) | (5,268) |
Income from Continuing Operations Before Income Taxes | 198,683 | 131,259 | 150,822 |
Income Tax Provision | (84,102) | (9,594) | (25,326) |
Equity Method Investment Loss | (138) | (694) | 0 |
Income from Continuing Operations | 114,443 | 120,971 | 125,496 |
DISCONTINUED OPERATIONS (NOTE 2): | |||
(Loss) Income from Discontinued Operations Before Income Taxes | (124,162) | 3,135 | (168,121) |
Income Tax Benefit (Provision) | 44,016 | (826) | 39,869 |
(Loss) Income from Discontinued Operations | (80,146) | 2,309 | (128,252) |
NET INCOME (LOSS) | 34,297 | 123,280 | (2,756) |
Net Income Attributable to Noncontrolling Interest | (528) | (997) | (410) |
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION | 33,769 | 122,283 | (3,166) |
AMOUNTS ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION: | |||
Income from Continuing Operations | 113,915 | 119,974 | 125,086 |
(Loss) Income from Discontinued Operations | (80,146) | 2,309 | (128,252) |
NET INCOME (LOSS) ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION | $ 33,769 | $ 122,283 | $ (3,166) |
Basic: | |||
Continuing Operations | $ 1.85 | $ 1.89 | $ 1.95 |
Discontinued Operations | (1.30) | 0.04 | (2) |
Total | 0.55 | 1.93 | (0.05) |
Diluted: | |||
Continuing Operations | 1.83 | 1.87 | 1.94 |
Discontinued Operations | (1.29) | 0.04 | (1.99) |
Total | 0.54 | 1.91 | (0.05) |
Cash Dividends Declared per Common Share | $ 0 | $ 0.18 | $ 0.36 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
NET INCOME (LOSS) | $ 34,297 | $ 123,280 | $ (2,756) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | |||
Currency Translation (Loss) Gain | (83,174) | (16,845) | 34,821 |
Change in Fair Value of Available-For-Sale Securities | 125 | 193 | (174) |
COMPREHENSIVE (LOSS) INCOME | (48,752) | 106,628 | 31,891 |
COMPREHENSIVE LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTEREST | 1,199 | (629) | (1,150) |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO ADTALEM GLOBAL EDUCATION | $ (47,553) | $ 105,999 | $ 30,741 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
CASH FLOW FROM OPERATING ACTIVITIES: | |||
Net Income (Loss) | $ 34,297 | $ 123,280 | $ (2,756) |
Loss (Income) from Discontinued Operations | 80,146 | (2,309) | 128,252 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Stock-Based Compensation Expense | 14,499 | 16,600 | 22,368 |
Depreciation | 43,286 | 45,805 | 43,319 |
Amortization of Intangible Assets | 9,538 | 11,169 | 5,192 |
Amortization of Deferred Debt Issuance Costs | 2,273 | 704 | 704 |
Impairment of Intangible Assets | 400 | 0 | 0 |
Provision for Refunds and Uncollectible Accounts | 33,801 | 34,529 | 30,034 |
Deferred Income Taxes | (10,595) | 3,797 | (15,188) |
Loss on Disposals, Accelerated Depreciation and Adjustments to Land, Building and Equipment | 31,728 | 10,507 | 694 |
Changes in Assets and Liabilities: | |||
Accounts Receivable | (43,294) | (57,356) | (56,688) |
Prepaid Expenses and Other | 16,793 | (9,647) | (1,822) |
Accounts Payable | 9,964 | 3,846 | (1,287) |
Accrued Salaries, Wages, Benefits and Liabilities | (4,938) | 9,500 | 5,040 |
Deferred Revenue | 3,382 | 11,334 | 4,106 |
Net Cash Provided by Operating Activities-Continuing Operations | 221,280 | 201,759 | 161,968 |
Net Cash Provided by Operating Activities-Discontinued Operations | 17,909 | 29,161 | 69,515 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 239,189 | 230,920 | 231,483 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital Expenditures | (66,530) | (42,508) | (51,455) |
Payment for Purchase of Businesses, Net of Cash Acquired | (4,041) | (330,567) | (173,864) |
Payment for Investment in Business | (5,000) | 0 | 0 |
Marketable Securities Purchased | (159) | (93) | (105) |
Purchase of Noncontrolling Interest of Subsidiary | 0 | 0 | (3,114) |
Net Cash Used in Investing Activities-Continuing Operations | (75,730) | (373,168) | (228,538) |
Net Cash Provided by (Used in) Investing Activities-Discontinued Operations | 4,280 | (6,486) | 13,131 |
NET CASH USED IN INVESTING ACTIVITIES | (71,450) | (379,654) | (215,407) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from Exercise of Stock Options | 23,821 | 27,675 | 337 |
Employee Taxes Paid on Withholding Shares | (4,203) | (2,956) | (3,474) |
Proceeds from Stock Issued Under Colleague Stock Purchase Plan | 803 | 865 | 1,153 |
Repurchase of Common Stock for Treasury | (137,028) | (48,508) | (32,634) |
Cash Dividends Paid | 0 | (11,414) | (22,977) |
Payments of Seller Financed Obligations | (11,413) | (4,819) | (11,500) |
Borrowings Under Credit Facility | 578,000 | 527,000 | 0 |
Repayments Under Credit Facility | (403,000) | (402,000) | 0 |
Payment of Debt Issuance Costs | (9,871) | 0 | 0 |
Capital Investment from Noncontrolling Interest | 95 | 0 | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 37,204 | 85,843 | (69,095) |
Effects of Exchange Rate Differences | (11,634) | (1,360) | 4,601 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 193,309 | (64,251) | (48,418) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 251,096 | 315,347 | 363,765 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 444,405 | 251,096 | 315,347 |
Less: Cash, Cash Equivalents and Restricted Cash of Discontinued Operations at End of Year | 13,405 | 9,358 | 10,168 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 431,000 | 241,738 | 305,179 |
Cash Paid During the Year For: | |||
Interest | 11,505 | 7,325 | 3,510 |
Income Taxes, Net | 8,365 | 14,901 | 1,420 |
Non-cash Investing and Financing Activity: | |||
(Decrease) Increase in Redemption Value of Noncontrolling Interest Put Options | $ (1,872) | $ 176 | $ (1,804) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss | Treasury Stock [Member] |
Beginning Balance at Jun. 30, 2015 | $ 1,584,810 | $ 760 | $ 350,256 | $ 1,796,361 | $ (77,114) | $ (485,453) |
Net income (Loss) | (3,166) | (3,166) | ||||
Foreign currency translation | 34,821 | 34,821 | ||||
Unrealized investment gains losses, net of tax | (174) | (174) | ||||
Change in noncontrolling interest put option | 1,804 | 1,804 | ||||
Stock-based compensation | 22,368 | 22,368 | ||||
Cash dividends | (22,977) | (22,977) | ||||
Net activity from stock-based compensation awards | (3,137) | 5 | 332 | (3,474) | ||
Tax cost from exercise of stock-based compensation awards | (781) | (781) | ||||
Proceeds from stock issued under Colleague Stock Purchase Plan | 1,153 | (954) | 2,107 | |||
Repurchase of common shares for treasury | (32,634) | (32,634) | ||||
Ending Balance at Jun. 30, 2016 | 1,582,087 | 765 | 372,175 | 1,771,068 | (42,467) | (519,454) |
Net income (Loss) | 122,283 | 122,283 | ||||
Foreign currency translation | (16,845) | (16,845) | ||||
Unrealized investment gains losses, net of tax | 193 | 193 | ||||
Change in noncontrolling interest put option | (176) | (176) | ||||
Stock-based compensation | 16,600 | 16,600 | ||||
Cash dividends | (11,414) | (11,414) | ||||
Net activity from stock-based compensation awards | 24,718 | 16 | 27,901 | (3,199) | ||
Tax cost from exercise of stock-based compensation awards | (764) | (764) | ||||
Proceeds from stock issued under Colleague Stock Purchase Plan | 865 | (364) | 1,229 | |||
Repurchase of common shares for treasury | (48,508) | (48,508) | ||||
Ending Balance at Jun. 30, 2017 | 1,669,039 | 781 | 415,912 | 1,881,397 | (59,119) | (569,932) |
Cumulative effect adjustment upon the adoption of ASU 2016-09 | (236) | (596) | 360 | |||
Net income (Loss) | 33,769 | 33,769 | ||||
Foreign currency translation | (83,174) | (83,174) | ||||
Unrealized investment gains losses, net of tax | 125 | 125 | ||||
Change in noncontrolling interest put option | 1,872 | 1,872 | ||||
Stock-based compensation | 14,499 | 14,499 | ||||
Net activity from stock-based compensation awards | 19,617 | 12 | 24,762 | (5,157) | ||
Proceeds from stock issued under Colleague Stock Purchase Plan | 803 | 76 | (25) | 752 | ||
Repurchase of common shares for treasury | (137,028) | (137,028) | ||||
Ending Balance at Jun. 30, 2018 | $ 1,519,286 | $ 793 | $ 454,653 | $ 1,917,373 | $ (142,168) | $ (711,365) |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 | $ 0.18 | $ 0 | $ 0 | $ 0.18 | $ 0.36 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL STATEMENTS | NOTE 1: NATURE OF OPERATIONS Adtalem Global Education Inc. (“Adtalem”) is a global provider of educational services and one of the largest publicly-held educational organizations in the world. Adtalem’s wholly-owned subsidiaries include: Chamberlain University (“Chamberlain”) American University of the Caribbean School of Medicine (“AUC”) Ross University School of Medicine (“RUSM”) Ross University School of Veterinary Medicine (“RUSVM”) Becker Professional Education (“Becker”) Association of Certified Anti-Money Laundering Specialists (“ACAMS”) Carrington College (“Carrington”), presented as discontinued operations (see “Note 2: Discontinued Operations and Assets Held for Sale”) DeVry University, presented as discontinued operations (see “Note 2: Discontinued Operations and Assets Held for Sale”) In addition, Adtalem maintains a 97.9% ownership interest in Adtalem Education of Brazil (“Adtalem Brazil”) and a 69% ownership interest in EduPristine. These institutions offer degree and non-degree programs in business, healthcare and technology and serve students in postsecondary education as well as accounting, finance and legal professionals. Chamberlain offers a pre-licensure bachelor’s degree in nursing at 21 campus locations and post-licensure bachelor’s, master’s and doctorate degree programs in nursing through its online platform. Pre-licensure students take non-clinical courses either online or onsite. All post-licensure nursing and Master of Public Health (“MPH”) courses are offered online. AUC operates a campus in the Caribbean country of St. Maarten. Students complete their basic science curriculum in a modern, fully equipped campus in the Caribbean and complete their clinical education in the U.S., Canadian and United Kingdom teaching hospitals under affiliation with AUC. RUSM operates a campus in the Caribbean country of Dominica. RUSM students complete their basic science curriculum in a modern, fully equipped campus in the Caribbean and complete their clinical education in the U.S. and Canadian teaching hospitals under affiliation with RUSM. See “Note 18: Subsequent Event” for details on the RUSM campus being relocated from Dominica to Barbados. RUSVM operates a campus in the Caribbean country of St. Kitts. RUSVM students complete their basic science curriculum in a modern, fully equipped campus in the Caribbean and complete their clinical education in the U.S. and international veterinary schools under affiliation with RUSVM. Becker prepares candidates for the U.S. Certified Public Accountant (“CPA”) examination, Association of Chartered Certified Accountants (“ACCA”) examination, Certified Management Accountant (“CMA”) examination, and the U.S. Medical Licensing Examination (“USMLE”). Becker also offers continuing professional education programs and seminars in accounting and finance. Classes are taught online and live across the U.S. and in approximately 35 foreign countries. ACAMS is the largest international membership organization dedicated to enhancing the knowledge, skills and expertise of anti-money laundering and financial crime detection and prevention professionals. ACAMS’ main products include membership service, Certified Anti-Money Laundering Specialist (“CAMS”) certification, conferences, risk assessment, training and publications. EduPristine is a professional education provider in India in the areas of finance, accounting, analytics, marketing and healthcare. Adtalem Brazil is based in São Paulo and is currently comprised of 15 institutions: Centro Universitário Unifanor (“UniFanor”), Faculdade Ruy Barbosa (“Ruy Barbosa”) Faculdade ÁREA1 (“AREA1”), Centro Universitário Boa Viagem (“UniFBV”), Centro Universitário Vale do Ipojuca (“UniFavip”), Faculdade Diferencial Integral (“Facid”), Faculdade Internacional de São Luis (“Sao Luis”), Faculdade Boa Viagem (“Joao Pessoa”), Faculdade Martha Falcão (“FMF”), Faculdade Ideal (“Faci”), Damásio Educacional (“Damasio”), Grupo Ibmec Educacional S.A. (“Grupo Ibmec”), Centro Universitário Metrocamp (“UniMetrocamp”), Faculdade de Imperatriz (“Facimp”) and São Judas Tadeu (“SJT”). These schools operate 22 locations located in 12 States in Northeast, North and Southeast Brazil. Adtalem Brazil also operates over 200 distance learning centers throughout Brazil under Damasio’s franchise agreements. Adtalem Brazil’s institutions offer undergraduate and graduate programs mainly focused in business, management, medical, healthcare, law and engineering. In addition, Damasio offers legal bar exam review courses. |
DISCONTINUED OPERATIONS AND ASS
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 12 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | NOTE 2: DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE On December 4, 2017, Adtalem announced the signing of a definitive agreement to divest DeVry University, pursuant to, and subject to the terms and conditions of a stock purchase agreement with Cogswell Education, LLC (“Cogswell”), with an expected closing date occurring in early fiscal year 2019. The decision to divest was made based on changes in strategic direction for the Adtalem portfolio of institutions. As the potential sale represents a strategic shift that will have a major effect on Adtalem’s operations and financial results, DeVry University is presented in Adtalem’s financial reporting as a discontinued operation. All periods presented disclose the assets and liabilities as held for sale, and operations and cash flows of DeVry University, which was previously a part of the U.S. Traditional Postsecondary reporting segment, as discontinued operations. During the year ended June 30, 2018, asset impairment charges of $58.6 million were recorded to write-down intangible assets, goodwill, building and equipment to zero based on the fair value market value of the DeVry University operations. During the year ended June 30, 2018, management also completed the sale of the DeVry University and Carrington co-located campus in Pomona, California, for $11.1 million, which was previously recorded on the Consolidated Balance Sheet as held for sale for $11.3 million, resulting in a $0.2 million realized loss on sale of assets. The assets which were previously recorded as held for sale, the unrealized loss on assets held for sale and the loss on sale of assets associated with the Pomona, California, campus have all been classified within discontinued operations. On June 28, 2018, Adtalem announced the signing of a definitive agreement to divest Carrington, pursuant to, and subject to the terms and conditions of a membership interest purchase agreement with San Joaquin Valley College (“SJVC”), with an expected closing date occurring in mid-fiscal year 2019. The decision to divest was made based on changes in strategic direction for the Adtalem portfolio of institutions. As the potential sale represents a strategic shift that will have a major effect on Adtalem’s operations and financial results, Carrington is presented in Adtalem’s financial reporting as a discontinued operation. All periods presented disclose the assets and liabilities as held for sale, and operations and cash flows of Carrington, which was previously a part of the U.S. Traditional Postsecondary reporting segment, as discontinued operations. During the year ended June 30, 2018, asset impairment charges of $37.4 million were recorded to write-down intangible assets, building and equipment to zero based on the fair value market value of the Carrington operations. The following is a summary of balance sheet information of assets and liabilities reported as held for sale (in thousands). June 30, 2018 2017 ASSETS: Current Assets: Cash and Cash Equivalents $ 1 $ 1,553 Restricted Cash 13,404 7,805 Accounts Receivable, Net 25,294 24,685 Prepaid Expenses and Other Current Assets 8,433 6,223 Total Current Assets Held for Sale 47,132 40,266 Land, Building and Equipment Held for Sale, Net - 62,561 Noncurrent Assets: Intangible Assets - 21,845 Goodwill - 22,196 Perkins Program Fund, Net 13,450 13,450 Other Assets, Net - 4,918 Total Noncurrent Assets Held for Sale 13,450 62,409 Total Assets Held for Sale $ 60,582 $ 165,236 LIABILITIES: Current Liabilities: Accounts Payable $ 24,312 $ 21,202 Accrued Salaries, Wages and Benefits 13,979 19,335 Accrued Liabilities 1,514 9,182 Deferred Revenue 16,634 14,016 Total Current Liabilities Held for Sale 56,439 63,735 Noncurrent Liabilities: Deferred Income Taxes, Net 216 983 Total Noncurrent Liabilities Held for Sale 216 983 Total Liabilities Held for Sale $ 56,655 $ 64,718 The following is a summary of income statement information of operations reported as discontinued operations (in thousands). Year Ended June 30, 2018 2017 2016 REVENUE: Tuition $ 446,534 $ 566,721 $ 722,879 Other Educational 37,734 35,170 40,583 Total Revenue 484,268 601,891 763,462 OPERATING COST AND EXPENSE: Cost of Educational Services 271,357 323,949 417,827 Student Services and Administrative Expense 222,323 249,109 301,403 Restructuring Expense 18,507 16,852 71,838 Asset Impairment Charge - Intangibles and Goodwill 44,041 - 147,660 Asset Impairment Charge - Building and Equipment 51,972 - - Loss on Sale of Assets 230 - - Regulatory Settlements - 4,102 - Loss on Assets Held for Sale - 4,764 - Gain on Sale of Assets - - (7,032 ) Total Operating Cost and Expense 608,430 598,776 931,696 Operating (Loss) Income from Discontinued Operations (124,162 ) 3,115 (168,234 ) Interest Income - 20 113 (Loss) Income from Discontinued Operations Before Income Taxes (124,162 ) 3,135 (168,121 ) Income Tax Benefit (Provision) 44,016 (826 ) 39,869 (Loss) Income from Discontinued Operations $ (80,146 ) $ 2,309 $ (128,252 ) |
REGULATORY SETTLEMENTS
REGULATORY SETTLEMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Income Statement [Abstract] | |
REGULATORY SETTLEMENTS | NOTE 3: REGULATORY SETTLEMENTS In the second quarter of fiscal year 2017, Adtalem, DeVry University Inc., and DeVry/New York Inc. (collectively, the “Adtalem Parties”) and the Federal Trade Commission (“FTC”) agreed to a Stipulation as to Entry of an Order for Permanent Injunction and Monetary Judgment (the “Agreement”) resolving litigation brought by the FTC regarding DeVry University’s use of employment statistics in former advertising. Under the terms of the Agreement, the Adtalem Parties agreed to pay $49.4 million to be distributed at the sole discretion of the FTC, to forgive $30.4 million of institutional loans issued before September 30, 2015, and to forgive outstanding DeVry University accounts receivable balances by $20.2 million for former students. In addition, the Adtalem Parties agreed that Adtalem institutions marketing to U.S. consumers will maintain specific substantiation to support any future advertising regarding graduate outcomes and educational benefits, and will implement training and other agreed-upon compliance measures. Adtalem chose to settle the FTC litigation after filing an answer denying all allegations of wrongdoing. In the second quarter of fiscal year 2017, Adtalem also recorded charges related to the resolution of an inquiry made by the Office of the Attorney General of the State of New York (“NYAG”) to the Adtalem Parties regarding DeVry University’s use of employment and salary statistics in former advertising. The Adtalem Parties chose to resolve the NYAG inquiry by entering into an Assurance of Discontinuance (the “Assurance”) with the NYAG on January 27, 2017, without admitting or denying the allegations therein. Pursuant to the Assurance, the Adtalem Parties agreed to pay $2.25 million for consumer restitution and $0.5 million in penalties, fees and costs. In addition, the Adtalem Parties agreed that Adtalem institutions marketing to New York consumers will maintain specific substantiation and present certain statistics as prescribed to support any future advertising regarding graduate outcomes and educational benefits, and will implement other agreed-upon compliance measures. Student services and access to federal student loans are not impacted by the Agreement or the Assurance and at no time has the academic quality of a DeVry University education been questioned. The regulatory settlements expense of $56.3 million recorded during the year ended June 30, 2017 consists of the $49.4 million cash payment to the FTC, $4.1 million of expensed institutional loans and the $2.75 million cash payment to the NYAG. Of these regulatory settlement charges, $4.1 million is recorded within discontinued operations and $52.2 million was allocated to the Adtalem home office which is classified as “Home Office and Other” in “Note 16: Segment Information.” Additionally, in the second quarter of fiscal year 2017, DeVry University reached a settlement agreement (the “Settlement Agreement”) with the U.S. Department of Education (“ED”) regarding its January 27, 2016 Notice of Intent to Limit (“Notice”). The Notice related narrowly to a specific graduate employment statistic previously used by DeVry University, calculated since 1975. to no longer use the statistic in question or to make any other representations regarding the graduate employment outcomes of DeVry University graduates from 1975 to October 1980. DeVry University will also refrain from making any future graduate employment representations without possessing graduate-specific information, and, for five years after the effective date of the settlement, to post a letter of credit with ED equal to 10% of DeVry University’s annual Title IV disbursement. A $68.4 million letter of credit was posted in the second quarter of fiscal year 2017 in relation to this requirement. Upon the close of the sale of DeVry University (see “Note 2: Discontinued Operations and Assets Held for Sale”), Adtalem will continue to post this letter of credit on behalf of DeVry University. in Title IV . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 4: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of Adtalem and its wholly-owned and majority-owned 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 Income Attributable to Noncontrolling Interest” in our Consolidated Statements of Income (Loss). Unless indicated, or the context requires otherwise, references to years refer to Adtalem’s fiscal years. Equity /Cost Method Investment The equity method of accounting is used for an investment where we have the ability to influence the operating and financial decisions of the investee but do not possess more than a 50% ownership interest. Generally, this occurs when the ownership interest is greater than 20%. The investment is initially recorded at cost and classified as Other Assets, Net on the Consolidated Balance Sheets. The carrying amount of the investment is adjusted in subsequent periods for Adtalem’s share of the earnings or losses of the investee, which is recorded in the Consolidated Statements of Income (Loss) as Equity Method Investment Loss. The cost method of accounting is used for an investment where we do not have the ability to influence the operating and financial decisions of the investee. Generally, this occurs when the ownership interest is less than 20%. The investment is recorded at cost and classified as Other Assets, Net on the Consolidated Balance Sheets. During fiscal year 2018, Adtalem invested $5.0 million for a 3.68% equity interest (on a fully-diluted basis) in Singularity University (“SU”) and is recorded using the cost method of accounting. Cash and Cash Equivalents Cash and cash equivalents can include time deposits, high-grade commercial paper, money market funds and bankers acceptances with original maturities of three months or less. Short-term investment objectives are to minimize risk and maintain liquidity. These investments are stated at cost (which approximates fair value) because of their short duration or liquid nature. Adtalem places its cash and temporary cash investments with high credit quality institutions. Cash and cash equivalent balances in U.S. bank accounts are generally in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Cash and cash equivalent balances in Brazilian bank accounts are generally in excess of the deposit insurance limits for Brazilian banks. Adtalem has not experienced any losses on its cash and cash equivalents. Management periodically evaluates the creditworthiness of the security issuers and financial institutions with which it invests and maintains deposit accounts. Marketable Securities and Investments Adtalem owns investments in marketable securities that have been designated as “available-for-sale” in accordance with authoritative guidance. Available-for-sale securities are carried at fair value with the unrealized gains and losses reported in the Consolidated Balance Sheets as a component of Accumulated Other Comprehensive Loss. Marketable securities and investments consist of investments in mutual funds, which are classified as available-for-sale securities. The following is a summary of our available-for-sale marketable securities at June 30, 2018 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,137 $ - $ 32 $ 1,169 Stock Mutual Funds 2,581 - 505 3,086 Total Marketable Securities $ 3,718 $ - $ 537 $ 4,255 The following is a summary of our available for sale marketable securities at June 30, 2017 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,112 $ - $ 64 $ 1,176 Stock Mutual Funds 2,448 - 389 2,837 Total Marketable Securities $ 3,560 $ - $ 453 $ 4,013 Investments are classified as short-term if they are readily convertible to cash or have other characteristics of short-term investments such as highly liquid markets or maturities within one year. All mutual fund investments are recorded at fair market value based upon quoted market prices. At June 30, 2018 and 2017, all of the bond and stock mutual fund investments are held in a rabbi trust for the purpose of paying benefits under Adtalem’s non-qualified deferred compensation plan. Realized gains and losses are computed on the basis of specific identification and are included in Interest in the Consolidated Statements of Income (Loss). Adtalem has not recorded any realized gains or realized losses for fiscal year 2018, 2017 or 2016. See “Note 6: Fair Value Measurements” for further disclosures on the Fair Value of Financial Instruments. Financial Aid and Restricted Cash A significant portion of revenue is received from students who participate in government financial aid and assistance programs which are subject to political and governmental budgetary considerations. There is no assurance that such funding will be maintained at current levels. Extensive and complex regulations in the U.S. and Brazil govern all of the government financial assistance programs in which students participate. Administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for disciplinary action, which could include the suspension, limitation or termination from such financial aid programs. 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. Revenue Recognition Tuition Chamberlain and Adtalem Brazil higher education tuition revenue is recognized on a straight-line basis over their respective applicable academic terms. In addition, AUC, RUSM and RUSVM basic science curriculum revenue is recognized on a straight-line basis over the applicable academic term. The clinical portion of the AUC, RUSM and RUSVM education programs are conducted primarily in U.S. teaching hospitals and veterinary schools under the oversight of the institutions. AUC, RUSM and RUSVM are responsible for the billing and collection of tuition from their students during the period of clinical education. Revenue is recognized on a weekly basis based on actual program attendance during the period of the clinical program. Fees paid to the hospitals and veterinary schools to support the educational infrastructure required to train AUC, RUSM and RUSVM students are charged to expense on the same basis. Becker, ACAMS and Adtalem Brazil’s live classroom test preparation revenue is recognized on a straight-line basis over the applicable delivery period. Revenue from conferences and training services, which are generally short-term in duration, is recognized when the conference or training service is provided. Other Educational Sales of ACAMS subscriptions, membership dues and certifications, along with textbooks, electronic books and other educational products, including Becker and ACAMS self-study sales, are included in Other Educational Revenue in the Consolidated Statements of Income (Loss). Revenue from subscriptions and membership dues is recognized on a straight-line basis over the applicable subscription or membership period. Revenue from certifications is recognized when the certification process is complete. Textbooks, electronic books and other educational products revenue is recognized when the sale occurs. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenue and recognized when confirmation of course delivery is received. Refunds and Provisions Estimates of Adtalem’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms. Inputs to this analysis include refunds issued, withdrawal rates and historical amounts owed by students for that portion of a term that was completed. Management reassesses collectability throughout the period revenue is recognized by the Adtalem institutions, on a student-by-student basis. 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. The provisions for refunds, which are reported as a reduction to Tuition Revenue in the Consolidated Statements of Income (Loss), are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. Provisions for refunds were $16.9 million, $15.5 million and $14.6 million for the years ended June 30, 2018, 2017 and 2016, respectively. Provisions for refunds are monitored and adjusted as necessary within the academic term and adjusted for actual refunds issued and withdrawn student accounts receivable balances at the completion of an 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. All refunds are netted against revenue during the applicable academic term. Reserves related to refunds and uncollectible accounts totaled $28.0 million and $25.0 million at June 30, 2018 and 2017, respectively. The allowance for uncollectible accounts is determined by analyzing the current aging of accounts receivable and historical loss rates on collections of accounts receivable. In addition, management considers projections of future receivable levels and collection loss rates. We monitor the inputs to this analysis periodically throughout the year. Provisions required to maintain the allowance at appropriate levels are charged to expense in each period as required. Provisions for uncollectible accounts, which are included in the Cost of Educational Services in the Consolidated Statements of Income (Loss), for years ended June 30, 2018, 2017 and 2016 were $16.9 million, $19.0 million and $15.4 million, respectively. Internal-Use Software Development Costs Adtalem capitalizes certain internal-use software development costs that are amortized using the straight-line method over the estimated lives of the software, not to exceed seven years. Capitalized costs include external direct costs of equipment, materials and services consumed in developing or obtaining internal-use software and payroll-related costs for employees directly associated with the internal-use software development project. Capitalization of such costs ceases at the point at which the project is substantially complete and ready for its intended purpose. Capitalized internal-use software development costs for projects not yet complete are included as Construction in Progress in the Land, Building and Equipment section of the Consolidated Balance Sheets. As of June 30, 2018 and 2017, the net balance of capitalized internal-use software development costs was $13.5 million and $5.9 million, respectively. Land, Building and Equipment Land, Building and Equipment, including both purchased and internal-use software development costs, are recorded at cost. Cost also includes additions and those improvements that enhance performance, increase the capacity or lengthen the useful lives of the assets. 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 profit or loss included in income in the period incurred. Assets under construction are reflected in Construction in Progress until they are placed into service for their intended use. Interest is capitalized as a component of cost on major projects during the construction period. 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. Leased property meeting certain criteria is capitalized, and the present value of the related lease payments is recorded as a liability. Amortization of capitalized leased assets is computed on the straight-line method over the term of the lease or the life of the related 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. Business Combinations, Intangible Assets and Goodwill Intangible assets relate mainly to acquired business operations (see “Note 9: Business Combinations”). These assets consist of the fair value of certain identifiable assets acquired. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), goodwill and indefinite-lived intangibles arising from a business combination are not amortized and charged to expense over time. Instead, goodwill and indefinite-lived intangibles 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, 2018. For goodwill, if the carrying amount of the reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized to the extent the “implied fair value” of the reporting unit goodwill is less than the carrying amount of the goodwill. For indefinite-lived intangible assets, if the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. See “Note 10: Intangible Assets” for results of Adtalem’s required impairment analysis of its intangible assets and goodwill. Intangible assets with finite lives are amortized over their expected economic lives. These lives range from 1 to 18 years. Amortization of all intangible assets and certain goodwill is being deducted for tax reporting purposes over statutory lives. Impairment of Long-Lived Assets Adtalem evaluates the carrying amount of its significant long-lived assets whenever changes in circumstances or events indicate that the value of such assets may not be fully recoverable. 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. In the year ended June 30, 2018, we recorded impairment charges of $34.7 million and $17.2 million to write-down building, building improvements, furniture and equipment to zero based on the fair market value of the DeVry University and Carrington operations, respectively, which are classified within discontinued operations. Additionally, during the first quarter of fiscal year 2018, the campuses of AUC and RUSM were damaged from Hurricanes Irma and Maria, respectively. Based on current estimates, we recorded hurricane-related impairment charges to building, building improvements, furniture and equipment of $31.0 million in fiscal year 2018, along with receivables for insurance reimbursements of these amounts, less deductibles, of $21.9 million as of June 30, 2018. The impairment charges are included in Cost of Educational Services in the Consolidated Statements of Income (Loss). For a discussion of the impairment review of goodwill and intangible assets see “Note 10: Intangible Assets.” Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for Cash and Cash Equivalents, Marketable Securities and Investments (see “Note 6: Fair Value Measurements”), Restricted Cash, Accounts Receivable, Net, Accounts Payable, Accrued Liabilities and Deferred Revenue approximate fair value because of the immediate or short-term maturity of these financial instruments. Adtalem’s long-term debt (see “Note 13: Debt”) bears interest at a floating rate reset to current rates on a monthly basis. Therefore, the carrying amount of Adtalem’s long-term debt approximates fair value. 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. Adtalem Brazil’s and EduPristine’s operations and Becker’s and ACAMS’s international operations are 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 included in the component of Shareholders’ Equity designated as Accumulated Other Comprehensive Loss. Transaction gains or losses during each of the years ended June 30, 2018, 2017 and 2016 were not material. 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. Four of Adtalem’s operating units, AUC, which operates in St. Maarten, RUSM, which operates in Dominica, RUSVM, which operates in St. Kitts, and Adtalem Brazil, which operates in Brazil, all benefit from local tax incentives. 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. Both of these agreements have been extended to provide, in the case of RUSM, an indefinite period of exemption and, in the case of RUSVM, exemption until 2037. Adtalem Brazil’s effective tax rate reflects benefits derived from its participation in PROUNI, a Brazilian program for providing scholarships to a portion of its undergraduate students. As a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), Adtalem revised its prior intent to indefinitely reinvest accumulated undistributed earnings and profits in foreign operations, and now only intends to maintain this assertion with respect to accumulated and future earnings in Brazil. Noncontrolling Interest Adtalem currently maintains a 97.9% ownership interest in Adtalem Brazil with the remaining 2.1% owned by members of the current Adtalem Brazil senior management group. In addition, Adtalem currently maintains a 69% ownership interest in EduPristine with the remaining 31% owned by Kaizen Management Advisors (“Kaizen”), an India-based private equity firm. The adjustment to increase or decrease the Adtalem Brazil and EduPristine noncontrolling interest each reporting period for their respective proportionate shares of Adtalem Brazil’s and EduPristine’s profit (loss) flows through the Consolidated Statements of Income (Loss) based on Adtalem’s noncontrolling interest accounting policy. Since July 1, 2015, Adtalem has had the right to exercise a call option and purchase any remaining Adtalem Brazil stock from Adtalem Brazil management. Likewise, Adtalem Brazil management has had the right to exercise a put option and sell its remaining ownership interest in Adtalem Brazil to Adtalem. Beginning on March 26, 2020, Adtalem will have the right to exercise a call option and purchase any remaining EduPristine stock from Kaizen. Likewise, Kaizen will have 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 will have the right to exercise a put option and sell its remaining ownership interest in EduPristine to Adtalem. Since the put options are out of the control of Adtalem, authoritative guidance requires the noncontrolling interest, which includes the value of the put options, to be displayed outside of the equity section of the Consolidated Balance Sheets. The Adtalem Brazil management and Kaizen put options are being accreted to their respective redemption values in accordance with the terms of the related stock purchase agreements. The adjustments to increase or decrease the put options to their expected redemption values each reporting period are recorded in retained earnings in accordance with GAAP. The following is a reconciliation of the noncontrolling interest balance (in thousands): Year Ended June 30, 2018 2017 Balance at Beginning of Year $ 6,285 $ 5,112 Net Income Attributable to Noncontrolling Interest 528 997 (Decrease) Increase in Redemption Value of Noncontrolling Interest Put Options (1,872 ) 176 Acquisition of Noncontrolling Interest in EduPristine 4,074 - Capital Investment from Noncontrolling Interest in EduPristine 95 - Balance at End of Year $ 9,110 $ 6,285 Earnings per Common Share Basic earnings per share is computed by dividing net income or loss attributable to Adtalem by the weighted average number of common shares outstanding during the period plus unvested participating restricted stock units (“RSUs”). Diluted earnings per share is computed by dividing net income or loss attributable to Adtalem by the weighted average number of shares assuming dilution. 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. Excluded from the computations of diluted earnings per share were outstanding stock-based grants representing 980 1,682 2,803 The following is a reconciliation of basic shares to diluted shares (in thousands): June 30, 2018 2017 2016 Weighted Average Shares Outstanding 60,760 62,656 63,254 Unvested Participating RSUs 702 843 782 Basic Shares 61,462 63,499 64,036 Effect of Dilutive Stock Options 818 520 335 Diluted Shares 62,280 64,019 64,371 Treasury Stock Adtalem’s Board of Directors (the “Board”) has authorized share repurchase programs on ten occasions (see “Note 8: Dividends and Share Repurchase Programs”). The tenth share repurchase program was approved on February 16, 2017 and commenced in February 2017. Shares that are repurchased by Adtalem are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. From time to time, shares of our common stock are delivered back to Adtalem under a swap arrangement resulting from employees’ exercise of incentive stock options pursuant to the terms of the Adtalem Stock Incentive Plans (see “Note 5: Stock-Based Compensation”). In addition, shares of our common stock are delivered back to Adtalem for payment of withholding taxes from employees for vesting RSUs. These shares are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. Treasury shares are reissued on a monthly basis, at market value, to the Adtalem Colleague Stock Purchase Plan in exchange for employee payroll deductions. 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 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. Stock-Based Compensation 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. With the adoption of Accounting Standard Update (“ASU”) 2016-09 on July 1, 2017, we account for forfeitures of outstanding but unvested grants in the period they occur. If factors change and different assumptions are employed in the valuation of stock-based grants in future periods, the stock-based compensation expense that Adtalem records may differ significantly from what was recorded in previous periods. The fair value of share-based awards, including those with performance conditions, are measured as of the grant date. The fair value of Adtalem’s stock option awards was estimated using a binomial model. This model uses historical cancelation and exercise experience of Adtalem to determine the option value. It also takes into account the illiquid nature of employee options during the vesting period. Share-based compensation expense is amortized for the estimated number of shares expected to vest. The estimated number of shares that will vest is based on management’s determination of the probable outcome of the performance conditions, which may require considerable judgment. Adtalem records a cumulative adjustment to share-based compensation expense in periods when the estimate of the number of shares expected to vest changes. Expense is recognized to reflect the actual vested shares following the resolution of the performance conditions. 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 disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenue and expense reported during the period. Actual results could differ from those estimates. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment, primarily at Adtalem Brazil, and unrealized gains on available-for-sale marketable securities, net of the effects of income taxes. The Accumulated Other Comprehensive Loss balance at June 30, 2018 consists of $142.6 million of cumulative translation losses ($139.6 million attributable to Adtalem and $3.0 million attributable to noncontrolling interest) and $0.4 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to Adtalem. At June 30, 2017, this balance consisted of $59.4 million of cumulative translation losses ($58.1 million attributable to Adtalem and $1.3 million attributable to noncontrolling interest) and $0.3 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.2 million and all attributable to Adtalem. Advertising Expense Advertising costs are recognized as expense in the period in which materials are purchased or services are performed. Advertising expense, which is included in Student Services and Administrative Expense in the Consolidated Statements of Income (Loss), was $80.5 million, $75.6 million and $68.3 million for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Hurricane Expense AUC and RUSM were affected by hurricane events occurring in the first quarter of fiscal year 2018. Adtalem recorded expenses of $63.3 million associated with the evacuation process, temporary housing and transportation of students, faculty and staff, and incremental additional costs of teaching in alternate locations in the year ended June 30, 2018. Received and expected insurance proceeds of $59.0 million were recorded to offset these expenses in the year ended June 30, 2018. Based upon preliminary damage assessments of facilities, impairment write-downs of building, building improvements, furniture and equipment of $31.0 million were recorded in the year ended June 30, 2018. Expected insurance proceeds of $21.9 million were recorded to offset these expenses in the year ended June 30, 2018. In total, $13.4 million of net expense was recorded in Cost of Educational Services in the Consolidated Statement of Income (Loss) for the year ended June 30, 2018. The recorded expense primarily represents the deductibles under the related insurance policies. Restructuring Charges Adtalem’s financial statements include charges related to severance and related benefits for reductions in staff. These charges also include early lease termination or cease-of-use costs and accelerated depreciation and gains and losses on disposals of property and equipment related to campus and administrative office consolidations (see “Note 11: Restructuring Charges”). Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02: “Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance was issued to allow a reclassification from accumulated other comprehensive income to retained earnings for tax effects of items within accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of this guidance is permitted. In the third quarter of fiscal year 2018, we adopted this guidance. We have chosen not to make the election to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. The adoption of this guidance did not have an impact on the Consolidated Financial Statements. In June 2016, FASB issued ASU No. 2016-13: “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This guidance was issued to provide financial statement users with more decision-useful information about the expected losses on financial instruments by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses by requiring a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is evaluating the impact the guidance will have on Adtalem’s Consolidated Financial Statements. In March 2016, FASB issued ASU No. 2016-09: “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance was issued to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeitures, and classification on the statement of cash flows. The amendments are effec |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 5: 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. Under these plans, directors, key executives and managerial employees are eligible to receive incentive stock or nonqualified options to purchase shares of Adtalem’s common stock. The Fourth Amended and Restated Incentive Plan of 2013 and the Amended and Restated Incentive Plan of 2005 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 stock-based grants will be issued under this plan. The Fourth Amended and Restated Incentive Plan of 2013 and the Amended and Restated Incentive Plan of 2005 are administered by the Compensation Committee of the Board. Options are granted for terms of up to ten years and can vest immediately or over periods of up to five years. The requisite service period is equal to the vesting period. The option price under the plans is the fair market value of the shares on the date of the grant. 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. With the adoption of ASU 2016-09 on July 1, 2017, we account for forfeitures of outstanding but unvested grants in the period they occur. At June 30, 2018, 8,236,479 authorized but unissued shares of common stock were reserved for issuance under Adtalem’s stock-based incentive plans. The following is a summary of options activity for the fiscal year ended June 30, 2018: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Life (in Years) (in thousands) Outstanding at July 1, 2017 2,794,850 $ 34.68 Options Granted 491,275 33.90 Options Exercised (823,829 ) 30.14 Options Forfeited (73,015 ) 29.72 Options Expired (583,148 ) 46.56 Outstanding at June 30, 2018 1,806,133 32.88 6.32 $ 28,516 Exercisable at June 30, 2018 819,480 $ 38.29 3.78 $ 9,069 The following is a summary of stock appreciation rights activity for the fiscal year ended June 30, 2018: Weighted Number of Weighted Average Aggregate Stock Average Remaining Intrinsic Appreciation Exercise Contractual Value Rights Price Life (in Years) (in thousands) Outstanding at July 1, 2017 99,500 $ 45.04 Rights Exercised (34,100 ) 38.71 Rights Canceled (65,400 ) 48.34 Outstanding at June 30, 2018 - - - $ - Exercisable at June 30, 2018 - $ - - $ - The total intrinsic value of options exercised for the fiscal years ended 2018, 2017 and 2016 was $11.4 million, $6.2 million and $0.1 million, respectively. The fair value of Adtalem’s stock option awards was estimated using a binomial model. This model uses historical cancellation and exercise experience of Adtalem to determine the option value. It also takes into account 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 fiscal years 2018, 2017 and 2016 was $14.63, $9.09 and $8.85, per share, respectively. The fair value of Adtalem’s stock option grants was estimated assuming the following weighted average assumptions: Fiscal Year 2018 2017 2016 Expected Life (in Years) 6.68 6.88 6.78 Expected Volatility 41.45 % 42.41 % 41.35 % Risk-free Interest Rate 1.95 % 1.41 % 1.85 % Dividend Yield 0.00 % 1.19 % 1.01 % Pre-vesting Forfeiture Rate NA 10.00 % 3.00 % 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. On February 16, 2017, Adtalem discontinued payment of cash dividends, resulting in the elimination of a dividend yield from the assumptions. The pre-vesting stock option forfeiture rate for fiscal year 2017 and 2016 were based on Adtalem’s historical stock option forfeiture experience. With the adoption of ASU 2016-09 on July 1, 2017, we account for forfeitures as they occur. Therefore, no forfeiture rate applies for fiscal year 2018. The main driver for the increased pre-vesting forfeiture rate in fiscal year 2017 was the change in the business environment at Adtalem and its institutions, which resulted in increased turnover in executive management. If factors change and different assumptions are employed in the valuation of stock-based grants in future periods, the stock-based compensation expense that Adtalem records may differ significantly from what was recorded in previous periods. During fiscal year 2018, Adtalem granted 516,090 RSUs to selected employees and directors. Of these, 246,890 are performance-based RSUs and 269,200 are non-performance-based RSUs. Performance-based RSUs are earned by the recipients over a three-year period based on achievement of certain mission-based goals, academic goals, achievement of a minimum level of Adtalem’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) or achievement of a minimum level of return on invested capital (“ROIC”). Non-performance-based RSUs are subject to restrictions which lapse ratably over one, three or four-year periods on the grant anniversary date based on the recipient’s continued service on the Board, employment with Adtalem or upon retirement. During the restriction period, 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, 2018: Weighted Average Number of Grant Date RSUs Fair Value Outstanding at July 1, 2017 1,279,667 $ 26.14 RSUs Granted 516,090 34.67 RSUs Vested (378,859 ) 31.35 RSUs Forfeited (189,940 ) 27.79 Outstanding at June 30, 2018 1,226,958 $ 28.31 The weighted average estimated grant date fair value of RSUs granted at market price under Adtalem’s stock-based incentive plans during fiscal years 2018, 2017 and 2016 was $34.67, $23.92 and $24.41, per share, respectively. The following table shows total stock-based compensation expense included in the Consolidated Statements of Income (Loss) (in thousands): Year Ended June 30, 2018 2017 2016 Cost of Educational Services $ 4,464 $ 5,312 $ 5,617 Student Services and Administrative Expense 9,487 11,288 16,751 Restructuring Expense 548 - - 14,499 16,600 22,368 Income Tax Benefit (5,829 ) (5,819 ) (8,564 ) Net Stock-Based Compensation Expense $ 8,670 $ 10,781 $ 13,804 As of June 30, 2018, $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 2.4 years. The total fair value of options and RSUs vested during the years ended June 30, 2018, 2017 and 2016 was approximately $14.8 million, $13.9 million and $21.7 million, respectively. There was no capitalized stock-based compensation cost at each of June 30, 2018 and 2017. Adtalem has an established practice of issuing new shares of common stock to satisfy stock-based grant exercises. However, Adtalem also may issue treasury shares to satisfy stock-based grant exercises under certain of its stock-based incentive plans. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6: FAIR VALUE MEASUREMENTS Adtalem has elected not to measure any assets or liabilities at fair value other than those required to be measured at fair value on a recurring basis. Assets measured at fair value on a nonrecurring basis include goodwill, intangible assets and assets of businesses where the long-term value of the operations have been impaired. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The guidance specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed market assumptions. The guidance establishes fair value measurement classifications under the following hierarchy: Level 1 – Level 2 – 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 some 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. Assets measured at fair value on a nonrecurring basis include goodwill and indefinite-lived intangibles arising from a business combination. These assets are not amortized and charged to expense over time. Instead, goodwill and indefinite-lived intangibles 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, 2018. See “Note 10: Intangible Assets” for further discussion on the impairment review including valuation techniques and assumptions. The following table presents Adtalem's assets and liabilities at June 30, 2018, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 430,690 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 4,255 - - Institutional Loans Receivable, Net - 44,320 - Deferred Acquisition Obligations - 18,585 - Total Financial Assets at Fair Value $ 434,945 $ 62,905 $ - The following table presents Adtalem's assets and liabilities at June 30, 2017, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 240,426 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 4,013 - - Institutional Loans Receivable, Net - 39,537 - Deferred Acquisition Obligations - 26,590 - FIES Receivable - 22,860 - Total Financial Assets at Fair Value $ 244,439 $ 88,987 $ - Cash and Cash Equivalents and Investments in short-term Marketable Securities are valued using a market approach based on quoted market prices of identical instruments. The fair value of the institutional loans receivable included in Accounts Receivable, Net and Other Assets, Net on the Consolidated Balance Sheets as of June 30, 2018 and 2017 is estimated by discounting the future cash flows using current rates for similar arrangements. See “Note 7: Financing Receivables” for further discussion on these institutional loans receivable. The fair value of the deferred acquisition obligations is estimated by discounting the future cash flows using current rates for similar arrangements. $4.3 million and $14.8 million were classified as Accrued Liabilities on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively, and $14.3 million and $11.8 million were classified as Other Liabilities on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively. The fair value of Adtalem Brazil’s receivable under Brazil’s FIES public loan program included in Accounts Receivable, Net on the Consolidated Balance Sheet as of June 30, 2017 is estimated by discounting the future cash flows using published market data on Brazilian interest and inflation rates. As of June 30, 2018, there were no assets or liabilities measured at fair value using Level 3 inputs. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7: FINANCING RECEIVABLES Adtalem’s institutional loan programs are available to students at Chamberlain, AUC, RUSM and RUSVM. These loan programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, books and fees and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM and RUSVM loans may be used for students’ living expenses. Repayment plans for institutional loan program balances are developed to address the financial circumstances of the particular student. Interest charges accrue each month on the unpaid balance. Chamberlain requires that students begin repaying loans while they are still in school with a minimum payment level designed to demonstrate their capability to repay, reduce the possibility of over borrowing and to minimize interest being accrued on the loan balance. Payments may increase upon completing or departing the program. After a student leaves school, the student typically will have a monthly installment repayment plan. In addition, the Becker CPA Exam Review Course can be financed through Becker with an 18-month term loan program. Reserves for uncollectible loans are determined by analyzing the current aging of institutional loans and historical loss rates of loans at each institution. Management performs this analysis periodically throughout the year. Since all of Adtalem’s financing receivables are generated through the extension of credit to fund educational costs, all such receivables are considered part of the same loan portfolio. The following table details the institutional loan balances along with the related allowances for credit losses (in thousands). June 30, 2018 2017 Gross Institutional Loans $ 54,323 $ 49,273 Allowance for Credit Losses: Balance at July 1 $ (9,736 ) $ (6,498 ) Charge-offs and Adjustments 330 436 Recoveries (61 ) (94 ) Additional Provision (536 ) (3,580 ) Balance at End of Period (10,003 ) (9,736 ) Net Institutional Loans $ 44,320 $ 39,537 Of the net balances above, $21.2 million and $17.8 million was classified as Accounts Receivable, Net on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively, and $23.1 million and $21.8 million, representing amounts due beyond one year, was classified as Other Assets, Net on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively. The following tables detail the credit risk profiles of the institutional loan balances based on payment activity and an aging of past due institutional loans (in thousands). June 30, 2018 2017 Institutional Loans: Performing $ 44,492 $ 39,745 Nonperforming 9,831 9,528 Total Institutional Loans $ 54,323 $ 49,273 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Total Institutional Loans Institutional Loans: June 30, 2018 $ 8,473 $ 900 $ 3,099 $ 9,831 $ 22,303 $ 32,020 $ 54,323 June 30, 2017 $ 5,900 $ 1,686 $ 369 $ 9,528 $ 17,483 $ 31,790 $ 49,273 Loans are considered nonperforming if they are more than 90 days past due. At June 30, 2018 and 2017, all nonperforming loans were fully reserved. |
DIVIDENDS AND STOCK REPURCHASE
DIVIDENDS AND STOCK REPURCHASE PROGRAMS | 12 Months Ended |
Jun. 30, 2018 | |
Dividends And Share Repurchase Program [Abstract] | |
DIVIDENDS AND STOCK REPURCHASE PROGRAMS | NOTE 8: DIVIDENDS AND STOCK REPURCHASE PROGRAMS Adtalem paid dividends of $11.6 million, $11.4 million and $11.4 million on December 23, 2015, June 24, 2016 and December 22, 2016, respectively. On February 16, 2017, the Board determined to discontinue cash dividend payments for the foreseeable future. Future dividends will be at the discretion of the Board. Adtalem has repurchased shares under the following programs as of June 30, 2018: Date Shares Total Cost Authorized Repurchased (in millions) November 15, 2006 908,399 $ 35.0 May 13, 2008 1,027,417 50.0 November 11, 2009 972,205 50.0 August 11, 2010 1,103,628 50.0 November 10, 2010 968,105 50.0 May 20, 2011 2,396,143 100.0 November 2, 2011 3,478,299 100.0 August 29, 2012 2,005,317 62.7 December 15, 2015 1,672,250 36.6 February 16, 2017 4,330,141 165.0 Totals 18,861,904 $ 699.3 On February 16, 2017, the Board authorized Adtalem’s tenth share repurchase program, which allows Adtalem to repurchase up to $300 million of its common stock through December 31, 2020. A total of 3,544,845 shares were repurchased during the year ended June 30, 2018 under the tenth share repurchase program for an aggregate of $137.0 million. The timing and amount of any repurchase will be determined based on evaluation of market conditions and other factors. These repurchases may be made through the open market, including block purchases, in privately negotiated transactions, or otherwise. The buyback 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. These repurchased shares have reduced the weighted average number of shares of common stock outstanding for basic and diluted earnings per share calculations. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 9: BUSINESS COMBINATIONS EduPristine On February 5, 2018, Adtalem completed the acquisition of a majority interest in EduPristine. Under the terms of the agreement, Adtalem agreed to pay approximately $3.2 million in cash, in exchange for stock of EduPristine, increasing Adtalem’s ownership share from 36% to 64%. This ownership percentage was increased to 69% with an additional equity investment of $1.3 million in March 2018. The payments for these additional investments were made in the third quarter of fiscal year 2018. EduPristine is a professional education provider in India in the areas of finance, accounting, analytics, marketing and healthcare. The acquisition furthers Adtalem’s global growth strategy into professional education. The operations of EduPristine are included in Adtalem’s Professional Education segment. Prior to the February 5, 2018 investment, Adtalem accounted for its ownership interest in EduPristine under the equity method investment of accounting. The results of EduPristine’s operations have been fully consolidated in the Consolidated Financial Statements of Adtalem since the February 5, 2018 acquisition date. The fair value of Adtalem’s equity investment immediately prior to the majority interest investment was $4.1 million, which was based on a discounted cash flow analysis. The $4.1 million noncontrolling interest recorded on the acquisition date was also derived using the same discounted cash flow analysis. In the third quarter of fiscal year 2018, Adtalem recorded a $1.2 million gain on its previous equity investment, which is included in Student Services and Administrative Expense in the Consolidated Statements of Income (Loss) for the year ended June 30, 2018. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition of Adtalem’s majority interest in EduPristine (in thousands). February 5, 2018 Current Assets $ 866 Property and Equipment 239 Other Long-term Assets 69 Intangible Assets 1,380 Goodwill 11,527 Total Assets Acquired 14,081 Liabilities Assumed 2,715 Net Assets Acquired $ 11,366 Goodwill, which represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, was assigned to the Professional Education reporting unit and reporting segment. The amounts in the table above changed from that reported in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 after an adjustment to purchase accounting. Factors that contributed to a purchase price resulting in the recognition of goodwill include EduPristine’s strategic fit into Adtalem’s expanding presence in professional education and the acquired assembled workforce. None of the goodwill acquired is expected to be deductible for income tax purposes. The $1.4 million of acquired intangible assets was assigned to Trade Names. None of the acquired intangible assets were determined to be subject to amortization. There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. São Judas Tadeu On November 1, 2017, Adtalem Brazil completed the acquisition of SJT. Under the terms of the agreement, Adtalem Brazil agreed to pay approximately $6.0 million in cash, in exchange for 100% of the stock of SJT. Approximately $1.0 million of payments were made in the second quarter of fiscal year 2018, with additional aggregate payments of approximately $5.0 million required over the succeeding four years. Located in São Paulo, SJT offers medical doctor specialty test preparation and currently serves approximately 2,700 students. The acquisition of SJT adds a new product offering to Adtalem Brazil’s test preparation business. The operations of SJT are included in Adtalem’s Technology and Business segment. The results of SJT’s operations have been included in the Consolidated Financial Statements of Adtalem since the date of acquisition. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). November 1, 2017 Current Assets $ 558 Property and Equipment 64 Other Long-term Assets 9 Intangible Assets 381 Goodwill 5,636 Total Assets Acquired 6,648 Liabilities Assumed 684 Net Assets Acquired $ 5,964 Goodwill, which represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, was assigned to the Adtalem Brazil reporting unit which is classified within the Technology and Business segment. The amounts in the table above changed from that reported in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 after an adjustment to purchase accounting. Factors that contributed to a purchase price resulting in the recognition of goodwill include SJT’s strategic fit into Adtalem’s expanding presence in test preparation and the acquired assembled workforce. Of the $0.4 million of acquired intangible assets, $0.2 million was assigned to Trade Names, which has been determined not to be subject to amortization. The remaining acquired intangible asset was determined to be subject to amortization with a useful life of approximately six months. The value and estimated useful life by asset type is as follows (in thousands): November 1, 2017 Value Assigned Estimated Useful Life Student Relationships $ 162 6 months There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. Association of Certified Anti-Money Laundering Specialists On July 1, 2016, Becker completed the acquisition of 100% of the stock of ACAMS for $330.6 million, net of cash of $23.5 million. The payment for this purchase was made in the first quarter of fiscal year 2017, and was funded with available domestic cash balances and $175 million in borrowings under Adtalem’s revolving credit facility. ACAMS is an international membership organization dedicated to enhancing the knowledge and skills of anti-money laundering and financial crime prevention professionals. The acquisition furthers Adtalem’s global growth strategy into professional education and enhances Becker’s position as a leading provider of lifelong learning for professionals. The operations of ACAMS are included in Adtalem’s Professional Education segment. The results of ACAMS’s operations have been included in the Consolidated Financial Statements of Adtalem since the date of acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). July 1, 2016 Current Assets $ 24,895 Property and Equipment 432 Other Long-term Assets 3,131 Intangible Assets 88,600 Goodwill 274,689 Total Assets Acquired 391,747 Liabilities Assumed 37,619 Net Assets Acquired $ 354,128 Goodwill, which represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired, was assigned to the Professional Education reporting unit which is classified within the Professional Education segment. Factors that contributed to a purchase price resulting in the recognition of goodwill include ACAMS’s strategic fit into Adtalem’s expanding presence in professional education, the reputation of the ACAMS brand as a leader in the industry and potential future growth opportunity. None of the goodwill acquired is expected to be deductible for income tax purposes. Of the $88.6 million of acquired intangible assets, $39.9 million was assigned to Trade Names, which has been determined not to be subject to amortization. The remaining acquired intangible assets were determined to be subject to amortization with an average useful life of approximately nine years. The values and estimated useful lives by asset type are as follows (in thousands): July 1, 2016 Value Assigned Estimated Useful Life Customer Relationships $ 42,500 10 years Curriculum 5,000 3 years Non-compete Agreements 700 1 year Proprietary Technology 500 4 years There is no pro forma presentation of operating results for this acquisition due to the insignificant effect on consolidated operations. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 10: INTANGIBLE ASSETS Intangible assets relate mainly to acquired business operations. These assets consist of the acquisition fair value of certain identifiable intangible assets acquired and goodwill. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. Intangible assets consist of the following (in thousands): June 30, 2018 Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period Amortizable Intangible Assets: Student Relationships $ 8,193 $ (6,972 ) 5 Years Customer Relationships 42,900 (9,598 ) 10 Years Non-compete Agreements 700 (700 ) 1 Year Curriculum/Software 6,833 (4,265 ) 4 Years Franchise Contracts 9,064 (1,720 ) 18 Years Clinical Agreements 336 (112 ) 15 Years Trade Names 976 (904 ) 10 Years Proprietary Technology 500 (250 ) 4 Years Total $ 69,502 $ (24,521 ) Indefinite-Lived Intangible Assets: Trade Names $ 106,132 Ross Title IV Eligibility and Accreditations 14,100 Intellectual Property 13,940 Chamberlain Title IV Eligibility and Accreditations 1,200 AUC Title IV Eligibility and Accreditations 100,000 Adtalem Brazil Accreditation 82,578 Total $ 317,950 June 30, 2017 Gross Carrying Amount Accumulated Amortization Amortizable Intangible Assets: Student Relationships $ 12,459 $ (9,323 ) Customer Relationships 42,900 (4,923 ) Non-compete Agreements 700 (665 ) Curriculum/Software 7,147 (2,329 ) Franchise Contracts 10,615 (1,425 ) Clinical Agreements 393 (104 ) Trade Names 1,145 (945 ) Proprietary Technology 500 (125 ) Total $ 75,859 $ (19,839 ) Indefinite-Lived Intangible Assets: Trade Names $ 109,519 Ross Title IV Eligibility and Accreditations 14,100 Intellectual Property 13,940 Chamberlain Title IV Eligibility and Accreditations 1,200 AUC Title IV Eligibility and Accreditations 100,000 Adtalem Brazil Accreditation 97,179 Total $ 335,938 Amortization expense for amortized intangible assets was $9.5 million, $11.2 million and $5.2 million for the years ended June 30, 2018, 2017 and 2016, respectively. Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30 and in the aggregate, by reporting unit, is as follows (in thousands): Professional Adtalem Fiscal Year Education Brazil Total 2019 $ 6,422 $ 1,728 $ 8,150 2020 4,671 1,270 5,941 2021 4,440 775 5,215 2022 4,300 526 4,826 2023 4,118 526 4,644 Thereafter 11,268 4,937 16,205 All amortizable intangible assets except student relationships and customer relationships are being amortized on a straight-line basis. The amount being amortized for student relationships is based on the estimated progression of the students through the respective Damasio, Grupo Ibmec and SJT programs, giving consideration to the revenue and cash flow associated with both existing students and new applicants. The amount being amortized for customer relationships related to ACAMS is based on the estimated retention of the customers, giving consideration to the revenue and cash flow associated with these existing customers. Indefinite-lived intangible assets related to trade names, Title IV eligibility, accreditations and intellectual property 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. In accordance with GAAP, goodwill and indefinite-lived intangibles arising from a business combination are not amortized and charged to expense over time. Instead, these assets must be reviewed annually for impairment or more frequently if circumstances arise indicating potential impairment. Adtalem’s annual impairment review was most recently completed as of May 31, 2018, at which time, there was no impairment loss associated with recorded goodwill or indefinite-lived intangible assets for any reporting unit. Adtalem had five reporting units that contained goodwill as of the start of the fourth quarter of fiscal year 2018. These reporting units constitute components for which discrete financial information is available and regularly reviewed by segment management. If the carrying amount of a reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss to goodwill is recognized. In analyzing the results of operations and business conditions of all the reporting units, as of May 31, 2018, it was determined that no triggering event had occurred that would indicate the carrying value of a reporting unit had exceeded its fair value. The estimate of the fair value of each reporting unit is based on management’s projection of revenues, gross margin, operating costs and cash flows considering planned business and operational strategies over a long-term planning horizon of five years along with a terminal value calculated based on discounted cash flows. These measures of business performance are similar to those management uses to evaluate the results of operations on a regular basis. The growth rates used to project cash flows, operating results and terminal values of reporting units are based upon an analysis of the economic environment in which the reporting units operate. The valuations employ present value techniques to estimate fair value and consider market factors. Management believes the assumptions used for the impairment testing are consistent with those that would be utilized by a market participant in performing similar valuations of its reporting units. Discount rates of 11.2% to 13.9% were utilized for the reporting units. The discount rate utilized by each unit takes into account management’s assumptions on growth rates and risk, both organization specific and macro-economic, inherent in that reporting unit. 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 these estimates which could lead to additional impairments of goodwill. All of the reporting units’ estimate fair values exceeded their carrying values as of the fourth quarter impairment analysis by at least 55% except for Adtalem Brazil, where the excess was 12%. An increase of 100 basis points in the discount rates used in this analysis would result in no less than a 41% premium of fair value over carrying value except for Adtalem Brazil where fair value less than carrying value. a goodwill balance of $186.0 million at June 30, 2018. During the second quarter of fiscal year 2018, a triggering event did occur within the DeVry University reporting unit, now classified as discontinued operation, which resulted in a write-off of all goodwill balances for this reporting unit as of December 31, 2017. On December 4, 2017, Adtalem, entered into a Stock Purchase Agreement (the “Purchase Agreement”), pursuant to which Adtalem agreed to sell DeVry University to Cogswell. Subject to the terms and conditions of the Purchase Agreement, Adtalem will sell all of the outstanding equity interests of DeVry University, Inc. and DeVry/New York Inc. to Cogswell for $1.00. As this sales price indicates a fair value that is less than the carrying value of the DeVry University goodwill and intangible asset balances, both amounts were written down to zero as of December 31, 2017. This resulted in impairment charges for goodwill of $22.2 million and indefinite-lived intangible assets of $1.6 million in the second quarter of fiscal year 2018. These amounts were charged to Discontinued Operations (see “Note 2: Discontinued Operations and Assets Held for Sale”). For indefinite-lived intangible assets at the six reporting units that contained indefinite-lived intangible assets as of May 31, 2018, management determines fair value based on the nature of the asset using various valuation techniques including a royalty rate model for trade names, trademarks and intellectual property, a discounted income stream model for Title IV Eligibility and Accreditation. The estimated fair values of these indefinite-lived intangible assets are based on management’s projection of revenues, gross margin, operating costs and cash flows considering planned business and operational strategies over a long-term planning horizon of five years. The assumed royalty rates and the growth rates used to project cash flows and operating results are based upon historical results and analysis of the economic environment in which the reporting units that record indefinite-lived intangible assets operate. The valuations employ present value techniques to measure fair value and consider market factors. Management believes the assumptions used for the impairment testing are consistent with those that would be utilized by a market participant in performing similar valuations of its indefinite-lived intangible assets. The discount rates of 11.2% to 13.9% that were utilized in the valuations take into account management’s assumptions on growth rates and risk, both company specific and macro-economic, inherent in each reporting unit that records indefinite-lived intangible assets. These intangible assets are closely tied to the overall risk of the reporting units in which they are recorded so management would expect the discount rates to also match those used for valuing these reporting units. If the carrying amount of an indefinite-lived intangible asset exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. As of May 31, 2018, it was determined that no triggering event had occurred that would indicate the carrying value of a reporting unit’s indefinite-lived intangible assets had exceeded their fair value except at the Carrington reporting unit, now classified as discontinued operations. During the fourth quarter of fiscal year 2018, management had negotiated a sale of this reporting unit, which indicated a fair value below its carrying value. On June 28, 2018, Adtalem entered into a Membership Interest Purchase Agreement (“MIPA”), pursuant to which Adtalem agreed to sell U.S. Education Holdings LLC (d/b/a Carrington College) to SJVC. Subject to the terms and conditions of the MIPA, Adtalem will sell all of the outstanding equity interests of U.S. Education Holdings LLC and its subsidiaries for $1.00. As this sales price indicates a fair value that is less than the carrying value of the Carrington intangible asset balance, the intangible asset was written down to zero as of June 30, 2018. This resulted in an impairment charge for indefinite-lived intangible assets of $20.2 million in the fourth quarter of fiscal year 2018. The impairment charge was charged to Discontinued Operations (see “Note 2: Discontinued Operations and Assets Held for Sale”). All other fair value estimates of indefinite-lived intangible assets exceed the carrying values of those assets as of the May 31, 2018 impairment analysis by more than 35% except for the ACAMS and Adtalem Brazil trade name assets where the excess was less than 10% on each. An increase of 100 basis points in the discount rates used in this analysis would result in no less than a 22% premium of fair value over carrying value except for the same two trade name assets. The smaller premium for the ACAMS trade names with a carrying value of $39.9 million would be expected considering it was acquired in fiscal year 2017 trade name, with a carrying value of $1.1 million, has declined due to a decrease in revenue from this institution. If the carrying amount of a trade name falls below its fair value, an impairment loss will be recognized in an amount equal to that excess. Management considers the use of this level of sensitivity in the discount rate reasonable considering the strength of Adtalem’s sustained operations. Since no fair values, except for the Carrington asset, were estimated to be below carrying value, no other impairment of intangible assets was recorded as of June 30, 2018. Management does not believe the effects of Hurricanes Irma and Maria created a triggering event that would require an impairment analysis of AUC’s or RUSM’s indefinite-lived intangible assets and goodwill. Damage to physical property is being repaired with the majority of costs expected to be reimbursable by insurance proceeds. The September 2017 semesters at both institutions were completed with minimal lost students and revenue and commencement of future semesters was not impacted. Management believes it is probable that the response to the crisis and its ability to continue providing educational services demonstrates AUC’s and RUSM’s ability to generate future revenue and operating results sufficient to maintain fair values of these assets in excess of their carrying values. On August 3, 2018, Adtalem announced plans to relocate RUSM to Barbados from its temporary location in Knoxville, Tennessee at facilities owned by Lincoln Memorial University (“LMU”) and a facility on St Kitts (see “Note 18: Subsequent Events”). Management believes the values of RUSM’s goodwill and indefinite-lived intangible assets will not be affected by this move. The Trade Name will continue to be used and we expect to receive ED approval to operate in Barbados prior to the move. No new accreditation is necessary, RUSM’s secondary accreditor the Caribbean Accreditation Authority for Education in Medicine and other Health Professions (“CAAM-HP”) will become its primary accreditor upon the start of the January 2019 semester, pending approval by ED. CAAM-HP is authorized to accredit medical programs by the government of Barbados. 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 additional impairments of intangible assets or goodwill. At June 30, 2018, intangible assets from business combinations totaled $362.9 million and goodwill totaled $813.9 million. Together, these assets equaled 50% of total assets as of such date, and any impairment could significantly affect future results of operations. The table below summarizes goodwill balances by reporting unit (in thousands): Reporting Unit June 30, 2018 June 30, 2017 Chamberlain $ 4,716 $ 4,716 AUC 68,321 68,321 RUSM and RUSVM 237,173 237,173 Professional Education 317,699 306,653 Adtalem Brazil 185,978 212,223 Total $ 813,887 $ 829,086 The table below summarizes goodwill balances by reporting segment (in thousands): Reporting Segment June 30, 2018 June 30, 2017 Medical and Healthcare $ 310,210 $ 310,210 Professional Education 317,699 306,653 Technology and Business 185,978 212,223 Total $ 813,887 $ 829,086 The table below summarizes the changes in the carrying amount of goodwill by reporting segment (in thousands): Medical and Healthcare Professional Education Technology and Business Total Balance at June 30, 2016 $ 310,210 $ 32,043 $ 223,558 $ 565,811 Purchase Accounting Adjustments - - (3,603 ) (3,603 ) Acquisitions - 274,689 - 274,689 Foreign exchange rate changes - (79 ) (7,732 ) (7,811 ) Balance at June 30, 2017 310,210 306,653 212,223 829,086 Acquisitions - 11,527 5,636 17,163 Foreign exchange rate changes - (481 ) (31,881 ) (32,362 ) Balance at June 30, 2018 $ 310,210 $ 317,699 $ 185,978 $ 813,887 The increase in the goodwill balance from June 30, 2017 in the Professional Education segment is the result of the addition of $11.5 million with the acquisition of EduPristine. This increase was partially offset by a change in the value of the British Sterling Pound and Indian Rupee compared to the U.S. dollar. Since Becker’s European subsidiary’s and EduPristine’s goodwill is recorded in local currency, fluctuations in the values of the British Sterling Pound and Indian Rupee in relation to the U.S. dollar will cause changes in the balance of this asset. The decrease in the goodwill balance from June 30, 2017 in the Technology and Business segment is the result of a change in the value of the Brazilian Real compared to the U.S. dollar. This decrease was partially offset by the addition of $5.6 million with the acquisition of SJT. Since Adtalem Brazil goodwill is recorded in local currency, fluctuations in the value of the Brazilian Real in relation to the U.S. dollar will cause changes in the balance of this asset. The table below summarizes the indefinite-lived intangible asset balances by reporting segment (in thousands): Reporting Segment June 30, 2018 June 30, 2017 Medical and Healthcare $ 137,500 $ 137,500 Professional Education 69,126 67,812 Technology and Business 111,324 130,626 Total $ 317,950 $ 335,938 Total indefinite-lived intangible assets decreased by $18.0 million from June 30, 2017. The decrease is the result of a change in the value of the Brazilian Real as compared to the U.S. dollar, as well as a $0.4 million impairment at Joao Pessoa, an institution at Adtalem Brazil. This decrease was partially offset by the addition of $0.2 million with the acquisition of SJT and $1.4 million with the acquisition of EduPristine. Since Adtalem Brazil intangible assets are recorded in local currency, fluctuations in the value of the Brazilian Real in relation to the U.S. dollar will cause changes in the balance of these assets. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES | NOTE 11: RESTRUCTURING CHARGES During fiscal year 2018, Adtalem recorded restructuring charges related to workforce reductions and real estate consolidations at the medical and veterinary schools, Becker Europe and Adtalem’s home office. At Adtalem Brazil, restructuring charges were recorded for the planned divestiture of the Sao Luis and Joao Pessoa institutions in fiscal year 2019. We also recorded a reduction to restructuring charges in fiscal year 2018 for an adjustment to previously accrued estimates for real estate consolidations at Adtalem’s home office. During fiscal year 2017, Adtalem recorded restructuring charges related to workforce reductions and real estate consolidations at the administrative support operations of the medical and veterinary schools and Adtalem’s home office. Termination benefit charges, as a result of reducing Adtalem’s workforce by 196 and 173 positions in fiscal years 2018 and 2017, respectively, represented severance pay and benefits for these employees. Adtalem’s home office is classified as “Home Office and Other” in “Note 16: Segment Information.” Pre-tax restructuring charges by segment were as follows (in thousands): Year Ended June 30, 2018 Year Ended June 30, 2017 Real Estate Termination Benefits Total Real Estate Termination Benefits Total Medical and Healthcare $ 26 $ 777 $ 803 $ 1,884 $ 698 $ 2,582 Professional Education - 357 357 - - - Technology and Business 1,216 - 1,216 - - - Home Office and Other (373 ) 3,064 2,691 7,858 2,533 10,391 Total $ 869 $ 4,198 $ 5,067 $ 9,742 $ 3,231 $ 12,973 The following table summarizes the separation and restructuring plan activity for the fiscal years 2018 and 2017, for which cash payments are required (in thousands): Liability balance at June 30, 2016 $ 48,223 Increase in liability (separation and other charges) 27,620 Reduction in liability (payments and adjustments) (29,728 ) Liability balance at June 30, 2017 46,115 Increase in liability (separation and other charges) 19,893 Reduction in liability (payments and adjustments) (27,081 ) Liability balance at June 30, 2018 $ 38,927 Of this liability balance, $14.5 million is recorded as Accrued Liabilities and $24.4 million is recorded as Other Liabilities on the Consolidated Balance Sheet at June 30, 2018. These liability balances primarily represent rent accruals and costs for employees that have either not yet separated from Adtalem or their full severance has not yet been paid. All of these remaining costs are expected to be paid over the next 12 months except for rent charges which may be paid out for periods of up to 7 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12: INCOME TAXES The components of income from continuing operations before income taxes are as follows (in thousands): Year Ended June 30, 2018 2017 2016 U.S. $ 63,353 $ (13,553 ) $ 36,505 Foreign 135,330 144,812 114,317 Total $ 198,683 $ 131,259 $ 150,822 The income tax provisions related to the above results are as follows (in thousands): Year Ended June 30, Income Tax Provision (Benefit): 2018 2017 2016 Current Tax Provision U.S. Federal $ 69,986 $ 1,162 $ 37,239 State and Local (599 ) (3,834 ) (6,256 ) Foreign 7,831 3,777 2,685 Total Current 77,218 1,105 33,668 Deferred Tax Provision (Benefit): U.S. Federal 19,020 (2,745 ) (20,044 ) State and Local (1,173 ) 6,155 7,552 Foreign (10,963 ) 5,079 4,150 Total Deferred 6,884 8,489 (8,342 ) Income Tax Provision $ 84,102 $ 9,594 $ 25,326 The income tax provisions differ from those that would be computed using the statutory U.S. federal rate as a result of the following items (in thousands): Year Ended June 30, 2018 2017 2016 Income Tax at Statutory Rate $ 55,750 28.1 % $ 45,941 35.0 % $ 52,788 35.0 % Lower Rates on Foreign Operations (30,749 ) (15.5 )% (42,911 ) (32.7 )% (33,271 ) (22.1 )% State Income Taxes 3,648 1.8 % 1,348 1.0 % 3,240 2.1 % Impact of Tax Cuts and Jobs Act 103,878 52.3 % - 0.0 % - 0.0 % Loss on Investment in Subsidiary (48,903 ) (24.6 %) - 0.0 % - 0.0 % Benefit on Foreign Intangibles (8,813 ) (4.5 %) - 0.0 % - 0.0 % Permanent Non-Deductible/(Taxable) Items 7,715 3.9 % 2,720 2.1 % 1,931 1.3 % Other 1,576 0.8 % 2,496 1.9 % 638 0.5 % Income Tax Provision $ 84,102 42.3 % $ 9,594 7.3 % $ 25,326 16.8 % Deferred income tax assets (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. These assets and liabilities are composed of the following (in thousands): Year Ended June 30, 2018 2017 2016 Employee Benefits $ 11,957 $ 18,648 $ 16,712 Stock-Based Compensation 7,577 18,130 21,239 Deferred Rent 9,841 17,588 22,135 Receivable Reserve 7,953 11,308 18,476 Restructuring Costs 8,704 17,148 18,820 Depreciation 3,380 - - Other Reserves 2,420 6,701 3,978 Loss and Credit Carryforwards, Net 37,340 37,569 24,213 Less: Valuation Allowance (11,496 ) (9,456 ) (8,624 ) Gross Deferred Tax Assets 77,676 117,636 116,949 Depreciation - (10,641 ) (21,700 ) Amortization of Intangible Assets (68,011 ) (106,952 ) (73,397 ) Gross Deferred Tax Liability (68,011 ) (117,593 ) (95,097 ) Net Deferred Taxes $ 9,665 $ 43 $ 21,852 As of June 30, 2018, Adtalem has $314.0 million of gross, post apportioned state net operating loss carryforwards, and $58.1 million of foreign net operating loss carryforwards in Brazil, St. Maarten and other jurisdictions. Adtalem has the following tax net operating loss (tax effected) and credit carryforwards as of June 30, 2018 (in thousands): June 30, Years of Expiration 2018 Beginning Ending U.S. Credit Carryforwards $ 271 2027 2027 State Net Operating Loss Carryforwards 17,440 2019 2039 State Credit Carryforwards 8,425 2019 2028 Foreign Net Operating Loss Carryforwards 8,082 2021 2038 Foreign Net Operating Loss Carryforwards 3,122 No Expiration Gross Deferred Tax Assets $ 37,340 Four of Adtalem’s operating units, AUC, which operates in St. Maarten, RUSM, which operates in Dominica, RUSVM, which operates in St. Kitts, and Adtalem Brazil, which operates in Brazil, all benefit from local tax incentives. 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. Both of these agreements have been extended to provide, in the case of RUSM, an indefinite period of exemption and, in the case of RUSVM, exemption until 2037. See “Note 18: Subsequent Event” for information related to the planned relocation of RUSM to Barbados from Dominica. Adtalem Brazil’s effective tax rate reflects benefits derived from its participation in PROUNI, a Brazilian program for providing scholarships to a portion of its undergraduate students. 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 $11.5 million and $9.5 million as of June 30, 2018 and 2017, respectively, for other foreign and state net operating loss and state tax credit carryforwards. Based on Adtalem’s expectations for future taxable income, management believes that it is more likely than not that operating income in respective jurisdictions will be sufficient to recognize fully all deferred tax assets, except as explained above. Prior to enactment of the Tax Cuts and Jobs Act of 2017, (the “Tax Act”), Adtalem did not record a U.S. federal or state tax provision for the undistributed earnings of its international subsidiaries. As a result of the Tax Act, Adtalem has revised its prior intent to indefinitely reinvest accumulated undistributed earnings and profits in foreign operations, and now only intends to maintain this assertion with respect to accumulated and future earnings in Brazil. As of June 30, 2018, the cumulative undistributed earnings attributable to operations in Brazil was approximately $74.5 million. The effective tax rate on income from continuing operations was 42.3% for fiscal year 2018 compared to 7.3% for the prior year. A tax expense special item of $103.9 million was recorded in fiscal year 2018 related to the impact of the Tax Act, which was enacted into law on December 22, 2017. 8.8 A tax benefit special item of $19.7 million was recorded in fiscal year 2017 for settlement costs of various regulatory authority litigation. The effective tax rates on income from continuing operations excluding special items were 19.1% and 16.0% for fiscal years 2018 and 2017, respectively. The Tax Act includes significant changes to the U.S. corporate income tax system, which reduces the U.S. federal corporate tax rate from 35.0% to 21.0% as of January 1, 2018; shifts to a modified territorial tax regime, which requires companies to pay a transition tax on earnings of certain foreign subsidiaries that were previously tax deferred; and creates new taxes on certain foreign-sourced earnings. The decrease in the U.S. federal corporate tax rate from 35.0% to 21.0% results in a blended statutory tax rate of 28.1% for the fiscal year ended June 30, 2018. The new taxes on certain foreign-sourced earnings under the Tax Act are effective for Adtalem after the fiscal year ended June 30, 2018. The tax expense recorded in fiscal year 2018 upon enactment of the Tax Act included $96.3 million for the one-time transition tax on the deemed repatriation of foreign earnings, payable over eight years; $4.9 million to record the impact of the reduction in tax rates on our net deferred tax asset position; and $2.7 million for state income and foreign withholding taxes on undistributed foreign earnings that are no longer intended to be indefinitely reinvested in foreign operations. The Internal Revenue Service (“IRS”) issued proposed Treasury Regulations covering the Tax Act on August 1, 2018. After these regulations are published in the Federal Register, the proposed regulations are subject to a 60-day comment period. Final regulations are expected to be issued after comments have been properly considered. Any adjustments needed to account for the impact of the Tax Act will be completed during the measurement period, which is not expected to be more than a year from the date of enactment. The SEC has issued rules that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Tax Act includes provisions for Global Intangible Low-Taxed Income (“GILTI”) wherein taxes are imposed on foreign income in excess of a deemed return on tangible assets of foreign corporations. This income will effectively be taxed in general at a 10.5% tax rate. The Tax Act also includes a based erosion anti-abuse tax provision (“BEAT”), which taxes certain payments from a U.S. corporation to its foreign subsidiaries. Both the GILTI and BEAT provisions of the Tax Act become effective for Adtalem after the fiscal year ended June 30, 2018. Adtalem has not completed its analysis on the potential impact to its deferred tax assets and liabilities, or whether to (i) account for GILTI as a component of tax expense in the period in which Adtalem is subject to the rules (the “period cost method”), or (ii) account for GILTI in Adtalem’s measurement of deferred taxes (the “deferred method”). As of June 30, 2018 the total amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of tax benefits, was $34.4 million. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $34.4 million as of June 30, 2018. As of June 30, 2017, the total amount of gross unrecognized tax benefits for uncertain tax positions, including positions impacting only the timing of benefits, was $7.9 million. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $6.7 million as of June 30, 2017. 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. 0.6 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, 2018, 2017, and 2016 was $2.6 million, $2.0 million and $1.6 million, respectively. Interest and penalties recognized during the years ended June 30, 2018, 2017, and 2016 were $0.6 million, $0.4 million and $0.2 million, respectively. The changes in our unrecognized tax benefits were (in thousands): Year Ended June 30, 2018 2017 2016 Beginning Balance, July 1 $ 7,901 $ 7,497 $ 8,475 Increases from Positions Taken During Prior Periods 1,151 1,397 346 Decreases from Positions Taken During Prior Periods (5,711 ) (1,445 ) (1,716 ) Increases from Positions Taken During the Current Period 31,063 452 392 Ending Balance, June 30 $ 34,404 $ 7,901 $ 7,497 Adtalem files tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. Adtalem remains generally subject to examination in the U.S. for years beginning on or after July 1, 2017; in various states for years beginning on or after July 1, 2013; and in our significant foreign jurisdictions for years beginning on or after July 1, 2013. Adtalem is currently under audit by the State of South Carolina and the City of New York for various tax years between 2011 and 2015. The IRS has completed its examination of the Adtalem U.S. tax returns for the years ending June 30, 2014, 2015 and 2016. Although we have recorded tax reserves for potential adjustments to tax liabilities for prior years, we cannot provide assurance that a material adjustment, either positive or negative, will not result when the audits are concluded. |
DEBT
DEBT | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 13: DEBT Long-term debt consists of the following (in thousands): June 30, 2018 June 30, 2017 Total Debt: Term B Loan $ 300,000 $ - Revolver - 125,000 Total Principal Payments Due 300,000 125,000 Deferred Debt Issuance Costs (6,927 ) - Total Amount Outstanding 293,073 125,000 Less Current Portion: Term B Loan (3,000 ) - Noncurrent Portion $ 290,073 $ 125,000 Scheduled maturities of long-term debt for the next five fiscal years ending June 30 and in the aggregate are as follows (in thousands): Fiscal Year Maturity Payments 2019 $ 3,000 2020 3,000 2021 3,000 2022 3,000 2023 3,000 Thereafter 285,000 $ 300,000 Prior Credit Facility Adtalem entered into a revolving credit facility on March 31, 2015, which was set to expire on March 31, 2020 (“Prior Credit Facility”). The Prior Credit Facility provided for a multi-currency revolving credit facility in the amount of $400 million and $100 million available for letters of credit. As of June 30, 2017, Adtalem borrowings under the Prior Credit Facility was $125 million with a weighted average interest rate of 3.18%. Senior Secured Credit Facilities On April 13, 2018, Adtalem replaced the Prior Credit Facility with new credit facilities under a new Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for (1) a $300 million revolving facility (“Revolver”) with a maturity date of April 13, 2023 and (2) a $300 million senior secured Term B loan (“Term B Loan”) with a maturity date of April 13, 2025. We refer to the Revolver and Term B Loan collectively as the “Credit Facility.” The Revolver has availability for currencies other than U.S. dollars of up to $200 million . Subject to certain conditions set forth in the Credit Agreement, the Credit Facility may be increased by $250 million. Term B Loan For Eurocurrency Rate Loans, Term B Loan interest is equal to LIBOR or a LIBOR-equivalent rate plus 3%. For Base Rate Loans, Term B Loan interest is equal to the base rate plus 2%. The Term B Loan amortizes in equal quarterly installments of $750,000, with the balance due at maturity on April 13, 2025. As of June 30, 2018, the interest rate for borrowings under the Term B Loan facility was 5.08%, which approximated the effective interest rate. Revolver Revolver interest is equal to LIBOR or a LIBOR-equivalent rate for Eurocurrency Rate Loans or a base rate, plus an applicable rate based on Adtalem’s consolidated leverage ratio, as defined in the Credit Agreement. The applicable rate ranges from 1.75% to 2.75% for Eurocurrency Rate Loans and from 0.75% to 1.75% for Base Rate Loans. Adtalem letters of credit outstanding were $68.4 and $68.5 million as of June 30, 2018 and 2017, respectively. Of this amount, $68.4 million was posted in the second quarter of fiscal year 2017 in relation to the FTC Settlement (see “Note 3: Regulatory Settlements”). Upon the close of the sale of DeVry University (see “Note 2: Discontinued Operations and Assets Held for Sale”), Adtalem will continue to post this letter of credit on behalf of DeVry University. As of June 30, 2018, Adtalem is charged an annual fee equal to 2.25% of the undrawn face amount of the outstanding letters of credit under the Revolver, payable quarterly. The agreement also requires payment of a commitment fee equal to 0.40% of the undrawn portion of the Revolver as of June 30, 2018. The amount undrawn under the Revolver, which includes the impact of the outstanding letters of credit, was $231.6 million as of June 30, 2018. The letter of credit fees and commitment fees are adjustable quarterly, based upon Adtalem’s achievement of certain financial ratios. Debt Issuance Costs Adtalem incurred $9.9 million in fees that were capitalized in relation to the Credit Agreement entered into on April 13, 2018, $7.1 million of which was related to the Term B Loan facility and $2.7 million of which was related to the Revolver facility. The deferred debt issuance costs related to the Term B Loan are presented as a direct deduction from the face amount of the debt, while the deferred debt issuance costs related to the Revolver are classified as Other Assets, Net on the Consolidated Balance Sheets. The remaining $1.4 million of unamortized debt issuance costs related to the Prior Credit Facility was expensed as Interest Expense in the Consolidated Statements of Income (Loss) for the year ended June 30, 2018. The following table summarizes the total deferred debt issuance costs for the Term B Loan and Revolver, which will be amortized over seven years and five years, respectively (in thousands). Term B Loan Revolver Total Deferred Debt Issuance Costs at June 30, 2017 $ - $ 1,935 $ 1,935 Deferred Debt Issuance Costs for Credit Agreement 7,148 2,723 9,871 Amortization of Deferred Debt Issuance Costs (221 ) (2,052 ) (2,273 ) Deferred Debt Issuance Costs at June 30, 2018 $ 6,927 $ 2,606 $ 9,533 Covenants and Guarantees The Credit Agreement contains customary covenants, including restrictions on our and 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, sell or otherwise transfer assets. The Credit Agreement contains covenants that, among other things, require maintenance of certain financial ratios, as defined in the agreement. Maintenance of these financial ratios could place restrictions on Adtalem’s ability to pay dividends. These financial ratios include a consolidated fixed charge coverage ratio, a consolidated leverage ratio and a U.S. Department of Education financial responsibility ratio based upon a composite score of an equity ratio, a primary reserve ratio and a net income ratio. Failure to maintain any of these ratios or to comply with other covenants contained in the agreement would constitute an event of default and could result in termination of the agreement and require payment of all outstanding borrowings and replacement of outstanding letters of credit. Adtalem was in compliance with the debt covenants as of June 30, 2018. The stock of all U.S. and certain foreign subsidiaries of Adtalem is pledged as collateral for borrowings under the Credit Agreement. The Term B Loan requires mandatory prepayments equal to a percentage of Excess Cash Flow, which is defined within the Credit Agreement, subject to incremental step-downs, depending on the Consolidated Leverage Ratio. Beginning in fiscal year 2019, the Excess Cash Flow payment will be due in the first quarter of each year, and is based on the Excess Cash Flow and Leverage Ratio for the prior year. Our borrowings under the Credit Facility are guaranteed by us and all of our domestic subsidiaries (subject to certain exceptions) and secured by a first lien on our assets and the assets of our guarantor subsidiaries (excluding real estate), including capital stock of the subsidiaries. Deferred Purchase Price Agreements Adtalem also has liabilities recorded for deferred purchase price agreements with sellers related to the purchases of Faculdade Diferencial Integral (“Facid”), Faculdade Ideal (“Faci”), Damasio, Grupo Ibmec, Faculdade de Imperatriz (“Facimp”) and SJT. This financing is in the form of holdbacks of a portion of the purchase price of these acquisitions or installment payments. Payments are made under these agreements based on payment schedules or the resolution of any pre-acquisition contingencies. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 14: EMPLOYEE BENEFIT PLANS Success Sharing Retirement Plan All U.S. employees who meet certain eligibility requirements can participate in Adtalem’s 401(k) Success Sharing Retirement Plan. Adtalem contributes to the plan an amount up to 4% of the total eligible compensation of colleagues who make contributions under the plan. In addition, Adtalem may also make discretionary contributions for the benefit of all eligible employees. Expenses for the matching and discretionary contributions under the plan were $10.9 million, $12.9 million and $11.8 million in fiscal years 2018, 2017 and 2016, respectively. Colleague Stock Purchase Plan Under provisions of Adtalem’s Colleague Stock Purchase Plan, any eligible colleague (employee) may authorize Adtalem to withhold up to $25,000 of annual wages to purchase common stock of Adtalem at 95% of the prevailing market price on the purchase date. The purchase date is defined as the last business day of each month. Adtalem subsidizes the remaining 5% and pays all brokerage commissions and administrative fees associated with the plan. These expenses were insignificant for the years ended June 30, 2018, 2017 and 2016. Total shares issued to the plan were 20,725, 33,548 and 55,162 in fiscal years 2018, 2017 and 2016, respectively. This plan is 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15: COMMITMENTS AND CONTINGENCIES Adtalem and its subsidiaries lease certain equipment and facilities under noncancelable operating leases, some of which contain renewal options, escalation clauses and requirements to pay taxes, insurance and maintenance costs. Future minimum rental commitments for all noncancelable operating leases having a remaining term in excess of one year at June 30, 2018, are as follows (in thousands): Fiscal Year Amount 2019 $ 67,295 2020 65,032 2021 58,913 2022 50,309 2023 46,716 Thereafter 100,537 The table above excludes payments associated with leases which will be transferred to Cogswell and SJVC upon the closing sale dates of DeVry University and Carrington. Adtalem recognizes rent expense on a straight-line basis over the term of the lease, although the lease may include escalation clauses that provide for lower rent payments at the start of the lease term and higher lease payments at the end of the lease term. Rent expense for the years ended June 30, 2018, 2017 and 2016 was $46.6 million, $44.4 million and $37.6 million, respectively. 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, 2018, 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. The timing or outcome of the following matters, or 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 May 13, 2016, a putative class action lawsuit was filed by the Pension Trust Fund for Operating Engineers, individually and on behalf of others similarly situated, against Adtalem, Daniel Hamburger, Richard M. Gunst, and Timothy J. Wiggins in the United States District Court for the Northern District of Illinois. The complaint was filed on behalf of a putative class of persons who purchased Adtalem common stock between February 4, 2011 and January 27, 2016. The complaint cites the ED January 2016 Notice and a civil complaint (the “FTC lawsuit”) filed by the FTC on January 27, 2016 against Adtalem, DeVry University, Inc., and DeVry/New York Inc. (collectively, the “Adtalem Parties”), which was resolved with the FTC in 2017, that alleged that certain of DeVry University’s advertising claims were false or misleading or unsubstantiated at the time they were made in violation of Section 5(a) of the Federal Trade Commission Act, as the basis for claims that defendants made false or misleading statements regarding DeVry University’s graduate employment rate and the earnings of DeVry University graduates relative to the graduates of other universities and colleges. As a result of these alleged false or misleading statements, the plaintiff alleged that defendants overstated Adtalem’s growth, revenue and earnings potential and made false or misleading statements about Adtalem’s business, operations and prospects. The plaintiff alleged direct liability against all defendants for violations of §10(b) and Rule 10b-5 of the Exchange Act and asserted liability against the individual defendants pursuant to §20(a) of the Exchange Act. The plaintiff sought monetary damages, interest, attorneys’ fees, costs and other unspecified relief. On July 13, 2016, the Utah Retirement System (“URS”) moved for appointment as lead plaintiff and approval of its selection of counsel, which was not opposed by the Pension Trust Fund for Operating Engineers and URS was appointed as lead plaintiff on August 24, 2016. URS filed a second amended complaint (“SAC”) on December 23, 2016. The SAC sought to represent a putative class of persons who purchased Adtalem common stock between August 26, 2011 and January 27, 2016 and named an additional individual defendant, Patrick J. Unzicker. Like the original complaint, the SAC asserted claims against all defendants for alleged violations of §10(b) and Rule 10b-5 of the Exchange Act and asserted liability against the individual defendants pursuant to §20(a) of the Exchange Act for alleged material misstatements or omissions regarding DeVry University graduate outcomes. On January 27, 2017, defendants moved to dismiss the SAC, which motion was granted on December 6, 2017 without prejudice. The plaintiffs filed a Third Amended Complaint (“TAC”) on January 29, 2018. The Adtalem parties moved to dismiss the TAC on March 30, 2018. On or about June 21, 2016, T’Lani Robinson and Robby Brown filed an arbitration demand with the American Arbitration Association in Chicago, seeking to represent a putative class of students who received a DeVry University education from January 1, 2008 until April 8, 2016 (the “Putative Class Period”). Following Adtalem’s filing of a declaratory judgment action in the United States District Court for the Northern District of Illinois seeking, among other things, an order declaring that federal court is the appropriate venue for this putative class action, on September 12, 2016, Robinson and Brown voluntarily withdrew their demand for arbitration. On September 20, 2016, Robinson and Brown answered the declaratory judgement action and filed a putative class action counterclaim, individually and on behalf of others similarly situated, against Adtalem Inc., DeVry University, Inc., and DeVry/New York, Inc. in the United States District Court for the Northern District of Illinois. The counterclaim asserted causes of action for breach of contract, misrepresentation, concealment, negligence, violations of the Illinois Uniform Deceptive Trade Practices Act, the Illinois Consumer Fraud and Deceptive Trade Practices Act, and the Illinois Private Business and Vocational Schools Act, conversion, unjust enrichment, and declaratory relief. The plaintiffs sought monetary, declaratory, injunctive, and other unspecified relief. On November 4, 2016, following a stipulated dismissal of the declaratory action, the Adtalem Parties moved to dismiss the counterclaim after which plaintiffs voluntarily withdrew it. On December 2, 2016, Robinson and Brown filed an amended complaint adding two additional named plaintiffs. The amended complaint purports to assert nationwide class claims under the above-referenced Illinois statutes and common law theories on behalf of those who, during the Putative Class Period, (i) enrolled in DeVry University; (ii) financed their education with DeVry University with direct loans administered by ED; or (iii) entered into an enrollment agreement with DeVry University and otherwise paid for a DeVry University education. The amended complaint also seeks to represent a fourth class of individuals residing in, or enrolled in a DeVry University campus located in, California during the Putative Class Period bringing claims under the California Business and Profession Code. In addition to the claims previously asserted as described above, the amended complaint adds a claim for breach of fiduciary duty owed students in administering Title IV funds. A motion to dismiss the amended complaint was filed by the Adtalem Parties and granted by the court, without prejudice, on February 12, 2018. The Court granted plaintiffs leave to file an amended complaint by April 12, 2018. The plaintiffs did not file an amended complaint by such date and the court entered an order on April 13, 2018 dismissing the case without prejudice. On October 14, 2016, a putative class action lawsuit was filed by Debbie Petrizzo and five other former DeVry University students, individually and on behalf of others similarly situated, against the Adtalem Parties in the United States District Court for the Northern District of Illinois (the “ Petrizzo On October 28, 2016, a putative class action lawsuit was filed by Jairo Jara and eleven others, individually and on behalf of others similarly situated, against the Adtalem Parties in the United States District Court for the Northern District of Illinois (the “ Jara By order dated November 28, 2016, the district court ordered the Petrizzo Jara Petrizzo On April 12, 2018, the Petrizzo plaintiffs refiled their complaint with a new lead plaintiff, Renee Heather Polly. The plaintiffs refiled complaint is nearly identical to the complaint previously dismissed by the court on February 12, 2018. The Adtalem Parties moved to dismiss this refiled complaint on May 14, 2018. On January 17, 2017, Harriet Myers filed a complaint derivatively on behalf of Adtalem in the United States District Court for the Northern District of Illinois against individual defendants Daniel M. Hamburger, Timothy J. Wiggins, Richard M. Gunst, Patrick J. Unzicker, Christopher B. Begley, David S. Brown, Lisa W. Wardell, Ann Weaver Hart, Lyle Logan, Alan G. Merten, Fernando Ruiz, Ronald L. Taylor and James D. White. Adtalem was named as a nominal defendant only. The plaintiffs have agreed to a stipulated order moving the case to the United States District Court for the District of Delaware. Citing the FTC lawsuit and settlement, the ED January 2016 Notice and ED Settlement, and the allegations in the lawsuit filed by the Pension Trust Fund for Operating Engineers, each referenced above, the plaintiff alleges that the individual defendants have breached their fiduciary duties and violated federal securities law since at least 2011. The plaintiff asserts that the individual defendants permitted Adtalem to engage in unlawful conduct, failed to correct misconduct or prevent its recurrence, and failed to ensure the accurate dissemination of information to shareholders. The complaint attempts to state three claims: (i) breach of fiduciary duty by all named defendants for allegedly allowing the illegal conduct to occur, (ii) unjust enrichment by all individual defendants in the receipt of compensation, and (iii) violation of Section 14(a) of the Exchange Act by failing to disclose the alleged illegal scheme in proxy statements and falsely stating that compensation was based on “pay for performance” where those performance results were allegedly false. The plaintiff seeks on behalf of Adtalem monetary, injunctive and other unspecified relief. On June 20, 2017, the City of Hialeah Employees Retirement System filed a complaint derivatively on behalf of Adtalem in the Court of Chancery of the State of Delaware States District Court for the Northern District of Illinois against individual defendants Daniel M. Hamburger, Christopher B. Begley, Lisa W. Wardell, Lyle Logan, Fernando Ruiz, Ronald L. Taylor and James D. White. Adtalem was named as a nominal defendant only. Citing the FTC lawsuit and settlement, the ED January 2016 Notice and ED settlement, and documents produced in response to plaintiff’s request under Section 220 of the Delaware Code, the plaintiff alleges that the individual defendants have breached their fiduciary duties. The plaintiff asserts that the individual defendants permitted Adtalem and DeVry University to make, and failed to stop, false and misleading advertisements in breach of their fiduciary duties and in bad faith. The plaintiff seeks on behalf of Adtalem monetary and other unspecified relief. A motion to dismiss the complaint was filed by the Adtalem Parties on September 1, 2017, which was partially granted as to one count and partially denied as to another count on April 20, 2018. On April 13, 2018, a putative class action lawsuit was filed by Nicole Versetto, individually and on behalf of other similarly situated, against 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 who purchased or paid for a DeVry University program between January 1, 2008 and April 8, 2016. The plaintiffs claim 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 plaintiffs seek 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 Adtalem Parties moved to dismiss this complaint on June 20, 2018. On May 8, 2018, the Carlson Law Firm filed a lawsuit against the Adtalem Parties on behalf of 71 individual former DeVry University students. Calson filed this lawsuit in the United States District Court for the Western District of Texas. Plaintiffs contend that DeVry University “made deceptive representations about the benefits of obtaining a degree from DeVry University” in violation of Texas state laws and seek full restitution of all monies paid to DeVry University and any student loan lenders, punitive damages, and attorneys’ fees. The Adtalem Parties moved to dismiss this complaint on June 5, 2018. On June 21, 2018, the Stoltman Law Firm filed a lawsuit against Adtalem in Cook County Circuit Court, alleging that Adtalem breached a contract with the Stoltman Law Firm to pay filing fees associated with arbitration claims the Stoltman Law Firm has filed with JAMS. The Stoltman Law Firm is seeking Specific Performance from the Court. Adtalem moved to dismiss this complaint on August 3, 2018. On June 27, 2018, the Carlson Law Firm filed a lawsuit on behalf of 32 former DeVry University students against the Adtalem Parties. Carlson filed this lawsuit in the United States District Court for the Western District of Texas. The allegations are identical to the allegations in the lawsuit The Carlson Law Firm filed on May 8, 2018. Specifically, plaintiffs contend that DeVry University “made deceptive representations about the benefits of obtaining a degree from DeVry University” in violation of Texas state laws and seek full restitution of all monies paid to DeVry University and any student loan lenders, punitive damages, and attorneys’ fees. The Adtalem Parties plan to move to dismiss this complaint on or before August 28, 2018. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 16: SEGMENT INFORMATION Beginning in the second quarter of fiscal year 2018, DeVry University operations are classified as discontinued operations. In addition, beginning in the fourth quarter of fiscal year 2018, Carrington operations are classified as discontinued operations. See “Note 2: Discontinued Operations and Assets Held for Sale” for further information. Therefore, segment information presented excludes the results of DeVry University and Carrington, which were previously classified within the U.S. Traditional Postsecondary segment and are presented as discontinued operations in the Consolidated Financial Statements. Discontinued operations assets are included in the table below to reconcile to Total Consolidated Assets presented on the Consolidated Balance Sheets. In addition, certain expenses previously allocated to DeVry University and Carrington within the U.S. Traditional Postsecondary segment have been reclassified to the Home Office and Other segment based on discontinued operating reporting guidance regarding allocation of corporate overhead. Adtalem’s principal business is the provision of educational services. Adtalem presents three reporting segments: “Medical and Healthcare,” which includes the operations of Chamberlain and the medical and veterinary schools (which include AUC, RUSM and RUSVM); “Professional Education,” which includes the operations of Becker, ACAMS and EduPristine; and “Technology and Business,” which includes the operations of Adtalem Brazil. 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, in part, on each segment’s operating income. Intersegment sales are accounted for at amounts comparable to sales to nonaffiliated customers and are eliminated in consolidation. “Home Office and Other” includes activity not allocated to a reporting segment and is included to reconcile segment results to the Consolidated Financial Statements. The accounting policies of the segments are the same as those described in “Note 4: Summary of Significant Accounting Policies.” Summary financial information by reporting segment is as follows (in thousands): Year Ended June 30, 2018 2017 2016 Revenue: Medical and Healthcare $ 815,674 $ 802,462 $ 783,655 Professional Education 147,195 131,769 102,921 Technology and Business 270,934 276,341 196,097 Home Office and Other (2,592 ) (2,663 ) (2,598 ) Total Consolidated Revenue $ 1,231,211 $ 1,207,909 $ 1,080,075 Operating Income (Loss) from Continuing Operations: Medical and Healthcare $ 189,672 $ 187,138 $ 178,484 Professional Education 27,695 19,866 28,043 Technology and Business 29,431 36,204 13,580 Home Office and Other (1) (39,322 ) (107,710 ) (64,017 ) Total Consolidated Operating Income from Continuing Operations $ 207,476 $ 135,498 $ 156,090 Segment Assets: Medical and Healthcare $ 988,920 $ 905,741 $ 834,975 Professional Education 456,589 451,261 91,741 Technology and Business 547,110 606,563 583,020 Home Office and Other 291,760 186,217 386,617 Discontinued Operations 60,582 165,236 200,643 Total Consolidated Assets $ 2,344,961 $ 2,315,018 $ 2,096,996 Additions to Long-Lived Assets: Medical and Healthcare $ 34,099 $ 15,774 $ 25,645 Professional Education 15,063 364,275 1,120 Technology and Business 25,998 19,222 206,955 Home Office and Other 10,675 6,477 10,806 Total Consolidated Additions to Long-Lived Assets $ 85,835 $ 405,748 $ 244,526 Reconciliation to Consolidated Financial Statements Capital Expenditures $ 66,530 $ 42,508 $ 51,455 Increase in Capital Assets from Acquisitions 381 4,913 13,778 Increase in Intangible Assets and Goodwill 18,924 358,327 179,293 Total Increase in Consolidated Long-Lived Assets $ 85,835 $ 405,748 $ 244,526 Depreciation Expense (2): Medical and Healthcare $ 29,731 $ 31,938 $ 33,795 Professional Education 1,999 1,869 1,550 Technology and Business 10,282 10,117 5,444 Home Office and Other 1,274 1,881 2,530 Total Consolidated Depreciation Expense $ 43,286 $ 45,805 $ 43,319 Intangible Asset Amortization Expense: Professional Education $ 6,501 $ 7,482 $ 563 Technology and Business 3,037 3,687 4,629 Total Consolidated Amortization Expense $ 9,538 $ 11,169 $ 5,192 (1) Home Office and Other Operating Loss includes $52.2 million in charges in the year ended June 30, 2017 for regulatory settlements as described in "Note 3: Regulatory Settlements." (2) Depreciation expense for each reporting segment has been modified to current presentation to include the Home Office and Other depreciation which is allocated to each reporting segment. Adtalem conducts its educational operations in the U.S., Dominica, St. Kitts, St. Maarten, Brazil, Canada, Europe, the Middle East, India, China and the Pacific Rim. Other international revenue, which is derived principally from Europe and the Pacific Rim, was less than 5% of total revenue for each of the years ended June 30, 2018, 2017 and 2016. Revenue and long-lived assets by geographic area are as follows (in thousands): Year Ended June 30, 2018 2017 2016 Revenue from Unaffiliated Customers: Domestic Operations $ 610,967 $ 585,865 $ 531,025 International Operations: Dominica, St. Kitts and St. Maarten 342,831 340,861 346,235 Brazil 270,934 276,341 196,097 Other 6,479 4,842 6,718 Total International 620,244 622,044 549,050 Total Consolidated Revenue $ 1,231,211 $ 1,207,909 $ 1,080,075 Long-Lived Assets: Domestic Operations $ 148,724 $ 164,324 $ 191,966 International Operations: Dominica, St. Kitts and St. Maarten 182,701 190,843 190,513 Brazil 94,467 104,497 106,878 Other 2,021 3,378 3,388 Total International 279,189 298,718 300,779 Total Consolidated Long-Lived Assets $ 427,913 $ 463,042 $ 492,745 No one customer accounted for more than 10% of Adtalem's consolidated revenue. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 17: QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized unaudited quarterly data for the years ended June 30, 2018 and 2017, are as follows: Quarter First Second Third Fourth Total Year (in thousands, except per share amounts) 2018 Revenue $ 293,143 $ 308,211 $ 310,070 $ 319,787 $ 1,231,211 Operating Income from Continuing Operations $ 29,886 $ 59,918 $ 52,505 $ 65,167 $ 207,476 Amounts Attributable to Adtalem Global Education: Income (Loss) from Continuing Operations $ 25,438 $ (51,841 ) $ 42,905 $ 97,413 $ 113,915 Loss from Discontinued Operations $ (12,653 ) $ (29,315 ) $ (3,571 ) $ (34,607 ) $ (80,146 ) Net Income (Loss) Attributable to Adtalem Global Education $ 12,785 $ (81,156 ) $ 39,334 $ 62,806 $ 33,769 Earnings (Loss) per Common Share Attributable to Adtalem Global Education Shareholders: Basic: Continuing Operations $ 0.41 $ (0.85 ) $ 0.70 $ 1.60 $ 1.85 Discontinued Operations $ (0.20 ) $ (0.48 ) $ (0.06 ) $ (0.57 ) $ (1.30 ) Total $ 0.20 $ (1.33 ) $ 0.64 $ 1.03 $ 0.55 Diluted: Continuing Operations $ 0.40 $ (0.85 ) $ 0.69 $ 1.58 $ 1.83 Discontinued Operations $ (0.20 ) $ (0.48 ) $ (0.06 ) $ (0.56 ) $ (1.29 ) Total $ 0.20 $ (1.33 ) $ 0.63 $ 1.02 $ 0.54 Quarter First Second Third Fourth Total Year (in thousands, except per share amounts) 2017 Revenue $ 292,042 $ 301,513 $ 299,138 $ 315,216 $ 1,207,909 Operating Income from Continuing Operations $ 35,127 $ 3,164 $ 45,466 $ 51,741 $ 135,498 Amounts Attributable to Adtalem Global Education: Income from Continuing Operations $ 26,994 $ 11,746 $ 38,332 $ 42,902 $ 119,974 (Loss) Income from Discontinued Operations $ (1,842 ) $ 2,667 $ 1,527 $ (43 ) $ 2,309 Net Income Attributable to Adtalem Global Education $ 25,152 $ 14,413 $ 39,859 $ 42,859 $ 122,283 Earnings (Loss) per Common Share Attributable to Adtalem Global Education Shareholders: Basic: Continuing Operations $ 0.43 $ 0.18 $ 0.60 $ 0.68 $ 1.89 Discontinued Operations $ (0.03 ) $ 0.04 $ 0.02 $ (0.00 ) $ 0.04 Total $ 0.40 $ 0.23 $ 0.63 $ 0.68 $ 1.93 Diluted: Continuing Operations $ 0.42 $ 0.18 $ 0.60 $ 0.67 $ 1.87 Discontinued Operations $ (0.03 ) $ 0.04 $ 0.02 $ (0.00 ) $ 0.04 Total $ 0.39 $ 0.23 $ 0.62 $ 0.67 $ 1.91 Cash Dividends Declared per Common Share $ - $ 0.18 $ - $ - $ 0.18 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | NOTE 18: SUBSEQUENT EVENT On August 3, 2018, Adtalem announced plans to relocate RUSM to Barbados from its temporary location in Knoxville, Tennessee at facilities owned by and a facility on St Kitts. This decision was not finalized until after June 30, 2018. Academic facilities will be located in Bridgetown. Student housing will be located close to academic facilities in the parish of Christ Church at an existing housing community that will include amenities, student services and convenient transportation to campus. It is expected that students will begin the January 2019 semester in Barbados, pending final regulatory approval from ED. RUSM had moved to the temporary location after Hurricane Maria severely damaged its facilities on Dominica. Since the Dominica facilities will no longer be used by RUSM, management will evaluate the net realizable value of the land, buildings and equipment, which had a net book value of $35.2 million at June 30, 2018, in the first quarter of fiscal year 2019. This may require write-down of all or a portion of these assets. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Jun. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years Ended June 30, 2018, 2017 and 2016 Description of Allowances and Reserves Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year (in thousands) FY2018 Deducted from accounts receivable for refunds $ 450 $ 16,882 (c) $ - $ 16,945 (b) $ 387 Deducted from accounts receivable for uncollectible accounts 24,570 16,925 (1,283 ) (a) 12,630 (b) 27,582 Deducted from long-term notes receivable for uncollectible notes 15 (5 ) - - 10 Deducted from deferred tax assets for valuation allowances 9,456 2,266 (19 ) 207 11,496 Restructuring expense reserve 46,115 19,893 - 27,081 (d) 38,927 FY2017 Deducted from accounts receivable for refunds $ 690 $ 15,525 (c) $ - $ 15,765 (b) $ 450 Deducted from accounts receivable for uncollectible accounts 25,524 19,003 (240 )(a) 19,717 (b) 24,570 Deducted from long-term notes receivable for uncollectible notes 16 (1 ) - - 15 Deducted from deferred tax assets for valuation allowances 8,624 883 1,865 1,916 9,456 Restructuring expense reserve 48,223 27,620 - 29,728 (d) 46,115 FY2016 Deducted from accounts receivable for refunds $ 412 $ 14,602 (c) $ - $ 14,324 (b) $ 690 Deducted from accounts receivable for uncollectible accounts 17,848 15,437 (217 )(a) 7,544 (b) 25,524 Deducted from long-term notes receivable for uncollectible notes 1,708 (1,217 ) (475 )(e) - 16 Deducted from deferred tax assets for valuation allowances 10,552 - - 1,928 (f) 8,624 Restructuring expense reserve 26,992 67,495 - 46,264 (d) 48,223 Prior period amounts in the table have been revised to remove items related to discontinued operations (see "Note 2: Discontinued Operations and Assets Held for Sale"). (a) Effects of foreign currency translation charged to Accumulated Other Comprehensive Loss. (b) Write-offs of uncollectable amounts and cash refunds. (c) Amounts recorded as a reduction of revenue, including adjustment for withdrawn students. (d) Payments and/or adjustments of liabilities for restructuring reserve. (e) Reclassification between accounts. (f) Adjustments to valuation allowance include increase of $2.9 million and a decrease of $4.9 million in fiscal year 2016. |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Adtalem and its wholly-owned and majority-owned 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 Income Attributable to Noncontrolling Interest” in our Consolidated Statements of Income (Loss). Unless indicated, or the context requires otherwise, references to years refer to Adtalem’s fiscal years. |
Equity/Cost Method Investment | Equity /Cost Method Investment The equity method of accounting is used for an investment where we have the ability to influence the operating and financial decisions of the investee but do not possess more than a 50% ownership interest. Generally, this occurs when the ownership interest is greater than 20%. The investment is initially recorded at cost and classified as Other Assets, Net on the Consolidated Balance Sheets. The carrying amount of the investment is adjusted in subsequent periods for Adtalem’s share of the earnings or losses of the investee, which is recorded in the Consolidated Statements of Income (Loss) as Equity Method Investment Loss. The cost method of accounting is used for an investment where we do not have the ability to influence the operating and financial decisions of the investee. Generally, this occurs when the ownership interest is less than 20%. The investment is recorded at cost and classified as Other Assets, Net on the Consolidated Balance Sheets. During fiscal year 2018, Adtalem invested $5.0 million for a 3.68% equity interest (on a fully-diluted basis) in Singularity University (“SU”) and is recorded using the cost method of accounting. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include time deposits, high-grade commercial paper, money market funds and bankers acceptances with original maturities of three months or less. Short-term investment objectives are to minimize risk and maintain liquidity. These investments are stated at cost (which approximates fair value) because of their short duration or liquid nature. Adtalem places its cash and temporary cash investments with high credit quality institutions. Cash and cash equivalent balances in U.S. bank accounts are generally in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limit. Cash and cash equivalent balances in Brazilian bank accounts are generally in excess of the deposit insurance limits for Brazilian banks. Adtalem has not experienced any losses on its cash and cash equivalents. Management periodically evaluates the creditworthiness of the security issuers and financial institutions with which it invests and maintains deposit accounts. |
Marketable Securities and Investments | Marketable Securities and Investments Adtalem owns investments in marketable securities that have been designated as “available-for-sale” in accordance with authoritative guidance. Available-for-sale securities are carried at fair value with the unrealized gains and losses reported in the Consolidated Balance Sheets as a component of Accumulated Other Comprehensive Loss. Marketable securities and investments consist of investments in mutual funds, which are classified as available-for-sale securities. The following is a summary of our available-for-sale marketable securities at June 30, 2018 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,137 $ - $ 32 $ 1,169 Stock Mutual Funds 2,581 - 505 3,086 Total Marketable Securities $ 3,718 $ - $ 537 $ 4,255 The following is a summary of our available for sale marketable securities at June 30, 2017 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,112 $ - $ 64 $ 1,176 Stock Mutual Funds 2,448 - 389 2,837 Total Marketable Securities $ 3,560 $ - $ 453 $ 4,013 Investments are classified as short-term if they are readily convertible to cash or have other characteristics of short-term investments such as highly liquid markets or maturities within one year. All mutual fund investments are recorded at fair market value based upon quoted market prices. At June 30, 2018 and 2017, all of the bond and stock mutual fund investments are held in a rabbi trust for the purpose of paying benefits under Adtalem’s non-qualified deferred compensation plan. Realized gains and losses are computed on the basis of specific identification and are included in Interest in the Consolidated Statements of Income (Loss). Adtalem has not recorded any realized gains or realized losses for fiscal year 2018, 2017 or 2016. See “Note 6: Fair Value Measurements” for further disclosures on the Fair Value of Financial Instruments. |
Financial Aid and Restricted Cash | Financial Aid and Restricted Cash A significant portion of revenue is received from students who participate in government financial aid and assistance programs which are subject to political and governmental budgetary considerations. There is no assurance that such funding will be maintained at current levels. Extensive and complex regulations in the U.S. and Brazil govern all of the government financial assistance programs in which students participate. Administration of these programs is periodically reviewed by various regulatory agencies. Any regulatory violation could be the basis for disciplinary action, which could include the suspension, limitation or termination from such financial aid programs. 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. |
Revenue Recognition | Revenue Recognition Tuition Chamberlain and Adtalem Brazil higher education tuition revenue is recognized on a straight-line basis over their respective applicable academic terms. In addition, AUC, RUSM and RUSVM basic science curriculum revenue is recognized on a straight-line basis over the applicable academic term. The clinical portion of the AUC, RUSM and RUSVM education programs are conducted primarily in U.S. teaching hospitals and veterinary schools under the oversight of the institutions. AUC, RUSM and RUSVM are responsible for the billing and collection of tuition from their students during the period of clinical education. Revenue is recognized on a weekly basis based on actual program attendance during the period of the clinical program. Fees paid to the hospitals and veterinary schools to support the educational infrastructure required to train AUC, RUSM and RUSVM students are charged to expense on the same basis. Becker, ACAMS and Adtalem Brazil’s live classroom test preparation revenue is recognized on a straight-line basis over the applicable delivery period. Revenue from conferences and training services, which are generally short-term in duration, is recognized when the conference or training service is provided. Other Educational Sales of ACAMS subscriptions, membership dues and certifications, along with textbooks, electronic books and other educational products, including Becker and ACAMS self-study sales, are included in Other Educational Revenue in the Consolidated Statements of Income (Loss). Revenue from subscriptions and membership dues is recognized on a straight-line basis over the applicable subscription or membership period. Revenue from certifications is recognized when the certification process is complete. Textbooks, electronic books and other educational products revenue is recognized when the sale occurs. In addition, fees from international licensees of the Becker programs are included in Other Educational Revenue and recognized when confirmation of course delivery is received. Refunds and Provisions Estimates of Adtalem’s expected refunds are determined at the outset of each academic term, based upon actual experience in previous terms. Inputs to this analysis include refunds issued, withdrawal rates and historical amounts owed by students for that portion of a term that was completed. Management reassesses collectability throughout the period revenue is recognized by the Adtalem institutions, on a student-by-student basis. 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. The provisions for refunds, which are reported as a reduction to Tuition Revenue in the Consolidated Statements of Income (Loss), are recognized in the same ratable fashion as revenue to most appropriately match these costs with the tuition revenue in that term. Provisions for refunds were $16.9 million, $15.5 million and $14.6 million for the years ended June 30, 2018, 2017 and 2016, respectively. Provisions for refunds are monitored and adjusted as necessary within the academic term and adjusted for actual refunds issued and withdrawn student accounts receivable balances at the completion of an 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. All refunds are netted against revenue during the applicable academic term. Reserves related to refunds and uncollectible accounts totaled $28.0 million and $25.0 million at June 30, 2018 and 2017, respectively. The allowance for uncollectible accounts is determined by analyzing the current aging of accounts receivable and historical loss rates on collections of accounts receivable. In addition, management considers projections of future receivable levels and collection loss rates. We monitor the inputs to this analysis periodically throughout the year. Provisions required to maintain the allowance at appropriate levels are charged to expense in each period as required. Provisions for uncollectible accounts, which are included in the Cost of Educational Services in the Consolidated Statements of Income (Loss), for years ended June 30, 2018, 2017 and 2016 were $16.9 million, $19.0 million and $15.4 million, respectively. |
Internal-Use Software Development Costs | Internal-Use Software Development Costs Adtalem capitalizes certain internal-use software development costs that are amortized using the straight-line method over the estimated lives of the software, not to exceed seven years. Capitalized costs include external direct costs of equipment, materials and services consumed in developing or obtaining internal-use software and payroll-related costs for employees directly associated with the internal-use software development project. Capitalization of such costs ceases at the point at which the project is substantially complete and ready for its intended purpose. Capitalized internal-use software development costs for projects not yet complete are included as Construction in Progress in the Land, Building and Equipment section of the Consolidated Balance Sheets. As of June 30, 2018 and 2017, the net balance of capitalized internal-use software development costs was $13.5 million and $5.9 million, respectively. |
Land, Building and Equipment | Land, Building and Equipment Land, Building and Equipment, including both purchased and internal-use software development costs, are recorded at cost. Cost also includes additions and those improvements that enhance performance, increase the capacity or lengthen the useful lives of the assets. 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 profit or loss included in income in the period incurred. Assets under construction are reflected in Construction in Progress until they are placed into service for their intended use. Interest is capitalized as a component of cost on major projects during the construction period. 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. Leased property meeting certain criteria is capitalized, and the present value of the related lease payments is recorded as a liability. Amortization of capitalized leased assets is computed on the straight-line method over the term of the lease or the life of the related 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. |
Business Combinations, Intangible Assets and Goodwill | Business Combinations, Intangible Assets and Goodwill Intangible assets relate mainly to acquired business operations (see “Note 9: Business Combinations”). These assets consist of the fair value of certain identifiable assets acquired. Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. In accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), goodwill and indefinite-lived intangibles arising from a business combination are not amortized and charged to expense over time. Instead, goodwill and indefinite-lived intangibles 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, 2018. For goodwill, if the carrying amount of the reporting unit containing the goodwill exceeds the fair value of that reporting unit, an impairment loss is recognized to the extent the “implied fair value” of the reporting unit goodwill is less than the carrying amount of the goodwill. For indefinite-lived intangible assets, if the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess. See “Note 10: Intangible Assets” for results of Adtalem’s required impairment analysis of its intangible assets and goodwill. Intangible assets with finite lives are amortized over their expected economic lives. These lives range from 1 to 18 years. Amortization of all intangible assets and certain goodwill is being deducted for tax reporting purposes over statutory lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Adtalem evaluates the carrying amount of its significant long-lived assets whenever changes in circumstances or events indicate that the value of such assets may not be fully recoverable. 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. In the year ended June 30, 2018, we recorded impairment charges of $34.7 million and $17.2 million to write-down building, building improvements, furniture and equipment to zero based on the fair market value of the DeVry University and Carrington operations, respectively, which are classified within discontinued operations. Additionally, during the first quarter of fiscal year 2018, the campuses of AUC and RUSM were damaged from Hurricanes Irma and Maria, respectively. Based on current estimates, we recorded hurricane-related impairment charges to building, building improvements, furniture and equipment of $31.0 million in fiscal year 2018, along with receivables for insurance reimbursements of these amounts, less deductibles, of $21.9 million as of June 30, 2018. The impairment charges are included in Cost of Educational Services in the Consolidated Statements of Income (Loss). For a discussion of the impairment review of goodwill and intangible assets see “Note 10: Intangible Assets.” |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for Cash and Cash Equivalents, Marketable Securities and Investments (see “Note 6: Fair Value Measurements”), Restricted Cash, Accounts Receivable, Net, Accounts Payable, Accrued Liabilities and Deferred Revenue approximate fair value because of the immediate or short-term maturity of these financial instruments. Adtalem’s long-term debt (see “Note 13: Debt”) bears interest at a floating rate reset to current rates on a monthly basis. Therefore, the carrying amount of Adtalem’s long-term debt approximates fair value. |
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. Adtalem Brazil’s and EduPristine’s operations and Becker’s and ACAMS’s international operations are 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 included in the component of Shareholders’ Equity designated as Accumulated Other Comprehensive Loss. Transaction gains or losses during each of the years ended June 30, 2018, 2017 and 2016 were not material. |
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. Four of Adtalem’s operating units, AUC, which operates in St. Maarten, RUSM, which operates in Dominica, RUSVM, which operates in St. Kitts, and Adtalem Brazil, which operates in Brazil, all benefit from local tax incentives. 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. Both of these agreements have been extended to provide, in the case of RUSM, an indefinite period of exemption and, in the case of RUSVM, exemption until 2037. Adtalem Brazil’s effective tax rate reflects benefits derived from its participation in PROUNI, a Brazilian program for providing scholarships to a portion of its undergraduate students. As a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), Adtalem revised its prior intent to indefinitely reinvest accumulated undistributed earnings and profits in foreign operations, and now only intends to maintain this assertion with respect to accumulated and future earnings in Brazil. |
Noncontrolling Interest | Noncontrolling Interest Adtalem currently maintains a 97.9% ownership interest in Adtalem Brazil with the remaining 2.1% owned by members of the current Adtalem Brazil senior management group. In addition, Adtalem currently maintains a 69% ownership interest in EduPristine with the remaining 31% owned by Kaizen Management Advisors (“Kaizen”), an India-based private equity firm. The adjustment to increase or decrease the Adtalem Brazil and EduPristine noncontrolling interest each reporting period for their respective proportionate shares of Adtalem Brazil’s and EduPristine’s profit (loss) flows through the Consolidated Statements of Income (Loss) based on Adtalem’s noncontrolling interest accounting policy. Since July 1, 2015, Adtalem has had the right to exercise a call option and purchase any remaining Adtalem Brazil stock from Adtalem Brazil management. Likewise, Adtalem Brazil management has had the right to exercise a put option and sell its remaining ownership interest in Adtalem Brazil to Adtalem. Beginning on March 26, 2020, Adtalem will have the right to exercise a call option and purchase any remaining EduPristine stock from Kaizen. Likewise, Kaizen will have 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 will have the right to exercise a put option and sell its remaining ownership interest in EduPristine to Adtalem. Since the put options are out of the control of Adtalem, authoritative guidance requires the noncontrolling interest, which includes the value of the put options, to be displayed outside of the equity section of the Consolidated Balance Sheets. The Adtalem Brazil management and Kaizen put options are being accreted to their respective redemption values in accordance with the terms of the related stock purchase agreements. The adjustments to increase or decrease the put options to their expected redemption values each reporting period are recorded in retained earnings in accordance with GAAP. The following is a reconciliation of the noncontrolling interest balance (in thousands): Year Ended June 30, 2018 2017 Balance at Beginning of Year $ 6,285 $ 5,112 Net Income Attributable to Noncontrolling Interest 528 997 (Decrease) Increase in Redemption Value of Noncontrolling Interest Put Options (1,872 ) 176 Acquisition of Noncontrolling Interest in EduPristine 4,074 - Capital Investment from Noncontrolling Interest in EduPristine 95 - Balance at End of Year $ 9,110 $ 6,285 |
Earnings per Common Share | Earnings per Common Share Basic earnings per share is computed by dividing net income or loss attributable to Adtalem by the weighted average number of common shares outstanding during the period plus unvested participating restricted stock units (“RSUs”). Diluted earnings per share is computed by dividing net income or loss attributable to Adtalem by the weighted average number of shares assuming dilution. 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. Excluded from the computations of diluted earnings per share were outstanding stock-based grants representing 980 1,682 2,803 The following is a reconciliation of basic shares to diluted shares (in thousands): June 30, 2018 2017 2016 Weighted Average Shares Outstanding 60,760 62,656 63,254 Unvested Participating RSUs 702 843 782 Basic Shares 61,462 63,499 64,036 Effect of Dilutive Stock Options 818 520 335 Diluted Shares 62,280 64,019 64,371 |
Treasury Stock | Treasury Stock Adtalem’s Board of Directors (the “Board”) has authorized share repurchase programs on ten occasions (see “Note 8: Dividends and Share Repurchase Programs”). The tenth share repurchase program was approved on February 16, 2017 and commenced in February 2017. Shares that are repurchased by Adtalem are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. From time to time, shares of our common stock are delivered back to Adtalem under a swap arrangement resulting from employees’ exercise of incentive stock options pursuant to the terms of the Adtalem Stock Incentive Plans (see “Note 5: Stock-Based Compensation”). In addition, shares of our common stock are delivered back to Adtalem for payment of withholding taxes from employees for vesting RSUs. These shares are recorded as Treasury Stock at cost and result in a reduction of Shareholders’ Equity. Treasury shares are reissued on a monthly basis, at market value, to the Adtalem Colleague Stock Purchase Plan in exchange for employee payroll deductions. 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 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. |
Stock-Based Compensation | Stock-Based Compensation 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. With the adoption of Accounting Standard Update (“ASU”) 2016-09 on July 1, 2017, we account for forfeitures of outstanding but unvested grants in the period they occur. If factors change and different assumptions are employed in the valuation of stock-based grants in future periods, the stock-based compensation expense that Adtalem records may differ significantly from what was recorded in previous periods. The fair value of share-based awards, including those with performance conditions, are measured as of the grant date. The fair value of Adtalem’s stock option awards was estimated using a binomial model. This model uses historical cancelation and exercise experience of Adtalem to determine the option value. It also takes into account the illiquid nature of employee options during the vesting period. Share-based compensation expense is amortized for the estimated number of shares expected to vest. The estimated number of shares that will vest is based on management’s determination of the probable outcome of the performance conditions, which may require considerable judgment. Adtalem records a cumulative adjustment to share-based compensation expense in periods when the estimate of the number of shares expected to vest changes. Expense is recognized to reflect the actual vested shares following the resolution of the performance conditions. |
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 disclosure of contingent assets and liabilities at the date of the financial statements and the amounts of revenue and expense reported during the period. Actual results could differ from those estimates. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is composed of the change in cumulative translation adjustment, primarily at Adtalem Brazil, and unrealized gains on available-for-sale marketable securities, net of the effects of income taxes. The Accumulated Other Comprehensive Loss balance at June 30, 2018 consists of $142.6 million of cumulative translation losses ($139.6 million attributable to Adtalem and $3.0 million attributable to noncontrolling interest) and $0.4 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.1 million and all attributable to Adtalem. At June 30, 2017, this balance consisted of $59.4 million of cumulative translation losses ($58.1 million attributable to Adtalem and $1.3 million attributable to noncontrolling interest) and $0.3 million of unrealized gains on available-for-sale marketable securities, net of tax of $0.2 million and all attributable to Adtalem. |
Advertising Expense | Advertising Expense Advertising costs are recognized as expense in the period in which materials are purchased or services are performed. Advertising expense, which is included in Student Services and Administrative Expense in the Consolidated Statements of Income (Loss), was $80.5 million, $75.6 million and $68.3 million for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. |
Hurricane Expense | Hurricane Expense AUC and RUSM were affected by hurricane events occurring in the first quarter of fiscal year 2018. Adtalem recorded expenses of $63.3 million associated with the evacuation process, temporary housing and transportation of students, faculty and staff, and incremental additional costs of teaching in alternate locations in the year ended June 30, 2018. Received and expected insurance proceeds of $59.0 million were recorded to offset these expenses in the year ended June 30, 2018. Based upon preliminary damage assessments of facilities, impairment write-downs of building, building improvements, furniture and equipment of $31.0 million were recorded in the year ended June 30, 2018. Expected insurance proceeds of $21.9 million were recorded to offset these expenses in the year ended June 30, 2018. In total, $13.4 million of net expense was recorded in Cost of Educational Services in the Consolidated Statement of Income (Loss) for the year ended June 30, 2018. The recorded expense primarily represents the deductibles under the related insurance policies. |
Restructuring Charges | Restructuring Charges Adtalem’s financial statements include charges related to severance and related benefits for reductions in staff. These charges also include early lease termination or cease-of-use costs and accelerated depreciation and gains and losses on disposals of property and equipment related to campus and administrative office consolidations (see “Note 11: Restructuring Charges”). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-02: “Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This guidance was issued to allow a reclassification from accumulated other comprehensive income to retained earnings for tax effects of items within accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of this guidance is permitted. In the third quarter of fiscal year 2018, we adopted this guidance. We have chosen not to make the election to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. The adoption of this guidance did not have an impact on the Consolidated Financial Statements. In June 2016, FASB issued ASU No. 2016-13: “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This guidance was issued to provide financial statement users with more decision-useful information about the expected losses on financial instruments by replacing the incurred loss impairment methodology with a methodology that reflects expected credit losses by requiring a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Management is evaluating the impact the guidance will have on Adtalem’s Consolidated Financial Statements. In March 2016, FASB issued ASU No. 2016-09: “Compensation–Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This guidance was issued to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeitures, and classification on the statement of cash flows. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Excess tax benefits and tax deficiencies will no longer be recorded to additional paid-in capital, but rather to income tax expense or benefit in the income statement, which may increase volatility in the income statement. An accounting policy election exists to account for forfeitures as they occur. Also, adoption will require changes to classification of certain stock-based compensation transactions on the statement of cash flows. The cash outflow from employee taxes paid when shares are withheld by the employer will be reclassified from operating activities to financing activities on the statement of cash flows. In the first quarter of fiscal year 2018, we retrospectively adopted this guidance. We elected to account for forfeitures when they occur versus our prior practice of applying a forfeiture rate. The election resulted in a cumulative adjustment to increase retained earnings and decrease additional paid-in-capital, each by $0.6 million and the corresponding tax effect to decrease retained earnings and increase deferred tax assets, each by $0.2 million. See “Reclassifications” section below within this footnote, which discusses the disclosure impact to the Consolidated Statements of Cash Flows. In February 2016, FASB issued ASU No. 2016-02: “Leases (Topic 842).” This guidance was issued to increase transparency and comparability among organizations by recognizing right-to-use assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management is evaluating the impact the guidance will have on Adtalem’s Consolidated Financial Statements and believes the adoption will impact the Consolidated Balance Sheet with significant increases in assets and liabilities. In January 2016, FASB issued ASU No. 2016-01: “Financial Instruments–Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” This guidance was issued to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The guidance eliminates the classification of equity securities into different categories (that is, trading or available-for-sale) and requires equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance will require Adtalem to record the changes in the fair value of its available-for-sale equity investments through net income. Management anticipates the adoption will not have a significant impact on Adtalem’s Consolidated Financial Statements. In May 2014, FASB issued ASU No. 2014-09: “Revenue from Contracts with Customers (Topic 606).” This guidance was issued to clarify the principles for recognizing revenue and develop a common revenue standard for GAAP and International Financial Reporting Standards (“IFRS”). The guidance is effective for the fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Adtalem will implement this guidance effective July 1, 2018 using the retrospective approach. Management has assessed Adtalem’s revenue recognition policies and procedures, and anticipates the adoption will not have a significant impact on Adtalem’s Consolidated Financial Statements. |
Reclassifications | Reclassifications Beginning in the second quarter of fiscal year 2018, DeVry University operations are classified as discontinued operations. In addition, beginning in the fourth quarter of fiscal year 2018, Carrington operations are classified as discontinued operations. See “Note 2: Discontinued Operations and Assets Held for Sale” for further information. Prior period amounts have been revised to conform to the current classification. Certain expenses previously allocated to DeVry University and Carrington within the U.S. Traditional Postsecondary segment have been reclassified to the Home Office and Other segment based on discontinued operation reporting guidance regarding allocation of corporate overhead. See “Note 16: Segment Information” for additional information. In the first quarter of fiscal year 2018, we retrospectively adopted ASU 2016-09: “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09, cash outflows from employee taxes paid when shares are withheld are classified as a financing activity. Our prior practice classified these amounts as an operating activity in the statement of cash flows. Therefore, we changed line items on the Consolidated Statements of Cash Flows for the years ended June 30, 2017 and 2016 as follows (in thousands): Year Ended June 30, 2017 2016 Net Cash Provided by Operating Activities: Previously Reported $ 227,964 $ 228,009 Adjustment 2,956 3,474 As Reported $ 230,920 $ 231,483 Net Cash Provided by Financing Activities: Previously Reported $ 88,799 $ (65,621 ) Adjustment (2,956 ) (3,474 ) As Reported $ 85,843 $ (69,095 ) |
DISCONTINUED OPERATIONS AND A29
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Balance Sheet Information of Assets and Liabilities Reported as Discontinued Operations | The following is a summary of balance sheet information of assets and liabilities reported as held for sale (in thousands). June 30, 2018 2017 ASSETS: Current Assets: Cash and Cash Equivalents $ 1 $ 1,553 Restricted Cash 13,404 7,805 Accounts Receivable, Net 25,294 24,685 Prepaid Expenses and Other Current Assets 8,433 6,223 Total Current Assets Held for Sale 47,132 40,266 Land, Building and Equipment Held for Sale, Net - 62,561 Noncurrent Assets: Intangible Assets - 21,845 Goodwill - 22,196 Perkins Program Fund, Net 13,450 13,450 Other Assets, Net - 4,918 Total Noncurrent Assets Held for Sale 13,450 62,409 Total Assets Held for Sale $ 60,582 $ 165,236 LIABILITIES: Current Liabilities: Accounts Payable $ 24,312 $ 21,202 Accrued Salaries, Wages and Benefits 13,979 19,335 Accrued Liabilities 1,514 9,182 Deferred Revenue 16,634 14,016 Total Current Liabilities Held for Sale 56,439 63,735 Noncurrent Liabilities: Deferred Income Taxes, Net 216 983 Total Noncurrent Liabilities Held for Sale 216 983 Total Liabilities Held for Sale $ 56,655 $ 64,718 The following is a summary of income statement information of operations reported as discontinued operations (in thousands). Year Ended June 30, 2018 2017 2016 REVENUE: Tuition $ 446,534 $ 566,721 $ 722,879 Other Educational 37,734 35,170 40,583 Total Revenue 484,268 601,891 763,462 OPERATING COST AND EXPENSE: Cost of Educational Services 271,357 323,949 417,827 Student Services and Administrative Expense 222,323 249,109 301,403 Restructuring Expense 18,507 16,852 71,838 Asset Impairment Charge - Intangibles and Goodwill 44,041 - 147,660 Asset Impairment Charge - Building and Equipment 51,972 - - Loss on Sale of Assets 230 - - Regulatory Settlements - 4,102 - Loss on Assets Held for Sale - 4,764 - Gain on Sale of Assets - - (7,032 ) Total Operating Cost and Expense 608,430 598,776 931,696 Operating (Loss) Income from Discontinued Operations (124,162 ) 3,115 (168,234 ) Interest Income - 20 113 (Loss) Income from Discontinued Operations Before Income Taxes (124,162 ) 3,135 (168,121 ) Income Tax Benefit (Provision) 44,016 (826 ) 39,869 (Loss) Income from Discontinued Operations $ (80,146 ) $ 2,309 $ (128,252 ) |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Available-For-Sale Marketable Securities | Marketable securities and investments consist of investments in mutual funds, which are classified as available-for-sale securities. The following is a summary of our available-for-sale marketable securities at June 30, 2018 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,137 $ - $ 32 $ 1,169 Stock Mutual Funds 2,581 - 505 3,086 Total Marketable Securities $ 3,718 $ - $ 537 $ 4,255 The following is a summary of our available for sale marketable securities at June 30, 2017 (in thousands): Gross Unrealized Cost (Loss) Gain Fair Value Marketable Securities: Bond Mutual Fund $ 1,112 $ - $ 64 $ 1,176 Stock Mutual Funds 2,448 - 389 2,837 Total Marketable Securities $ 3,560 $ - $ 453 $ 4,013 |
Reconciliation of Non-Controlling Interest Balance | The following is a reconciliation of the noncontrolling interest balance (in thousands): Year Ended June 30, 2018 2017 Balance at Beginning of Year $ 6,285 $ 5,112 Net Income Attributable to Noncontrolling Interest 528 997 (Decrease) Increase in Redemption Value of Noncontrolling Interest Put Options (1,872 ) 176 Acquisition of Noncontrolling Interest in EduPristine 4,074 - Capital Investment from Noncontrolling Interest in EduPristine 95 - Balance at End of Year $ 9,110 $ 6,285 |
Reconciliation of Basic Shares to Diluted Shares | The following is a reconciliation of basic shares to diluted shares (in thousands): June 30, 2018 2017 2016 Weighted Average Shares Outstanding 60,760 62,656 63,254 Unvested Participating RSUs 702 843 782 Basic Shares 61,462 63,499 64,036 Effect of Dilutive Stock Options 818 520 335 Diluted Shares 62,280 64,019 64,371 |
Condensed Cash Flow Statement | Therefore, we changed line items on the Consolidated Statements of Cash Flows for the years ended June 30, 2017 and 2016 as follows (in thousands): Year Ended June 30, 2017 2016 Net Cash Provided by Operating Activities: Previously Reported $ 227,964 $ 228,009 Adjustment 2,956 3,474 As Reported $ 230,920 $ 231,483 Net Cash Provided by Financing Activities: Previously Reported $ 88,799 $ (65,621 ) Adjustment (2,956 ) (3,474 ) As Reported $ 85,843 $ (69,095 ) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of options Activity | The following is a summary of options activity for the fiscal year ended June 30, 2018: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Options Price Life (in Years) (in thousands) Outstanding at July 1, 2017 2,794,850 $ 34.68 Options Granted 491,275 33.90 Options Exercised (823,829 ) 30.14 Options Forfeited (73,015 ) 29.72 Options Expired (583,148 ) 46.56 Outstanding at June 30, 2018 1,806,133 32.88 6.32 $ 28,516 Exercisable at June 30, 2018 819,480 $ 38.29 3.78 $ 9,069 |
Summary of stock appreciation rights activity | The following is a summary of stock appreciation rights activity for the fiscal year ended June 30, 2018: Weighted Number of Weighted Average Aggregate Stock Average Remaining Intrinsic Appreciation Exercise Contractual Value Rights Price Life (in Years) (in thousands) Outstanding at July 1, 2017 99,500 $ 45.04 Rights Exercised (34,100 ) 38.71 Rights Canceled (65,400 ) 48.34 Outstanding at June 30, 2018 - - - $ - Exercisable at June 30, 2018 - $ - - $ - |
Fair Values of Stock Option Awards Estimated Weighted Average Assumptions | Fiscal Year 2018 2017 2016 Expected Life (in Years) 6.68 6.88 6.78 Expected Volatility 41.45 % 42.41 % 41.35 % Risk-free Interest Rate 1.95 % 1.41 % 1.85 % Dividend Yield 0.00 % 1.19 % 1.01 % Pre-vesting Forfeiture Rate NA 10.00 % 3.00 % |
Summary of Restricted Stock Units Activity | Weighted Average Number of Grant Date RSUs Fair Value Outstanding at July 1, 2017 1,279,667 $ 26.14 RSUs Granted 516,090 34.67 RSUs Vested (378,859 ) 31.35 RSUs Forfeited (189,940 ) 27.79 Outstanding at June 30, 2018 1,226,958 $ 28.31 |
Total Stock-Based Compensation Expense Included in Consolidated Statement of Earnings | The following table shows total stock-based compensation expense included in the Consolidated Statements of Income (Loss) (in thousands): Year Ended June 30, 2018 2017 2016 Cost of Educational Services $ 4,464 $ 5,312 $ 5,617 Student Services and Administrative Expense 9,487 11,288 16,751 Restructuring Expense 548 - - 14,499 16,600 22,368 Income Tax Benefit (5,829 ) (5,819 ) (8,564 ) Net Stock-Based Compensation Expense $ 8,670 $ 10,781 $ 13,804 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents Adtalem's assets and liabilities at June 30, 2018, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 430,690 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 4,255 - - Institutional Loans Receivable, Net - 44,320 - Deferred Acquisition Obligations - 18,585 - Total Financial Assets at Fair Value $ 434,945 $ 62,905 $ - The following table presents Adtalem's assets and liabilities at June 30, 2017, that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands). Level 1 Level 2 Level 3 Cash and Cash Equivalents $ 240,426 $ - $ - Available-for-Sale Investments: Marketable Securities, short-term 4,013 - - Institutional Loans Receivable, Net - 39,537 - Deferred Acquisition Obligations - 26,590 - FIES Receivable - 22,860 - Total Financial Assets at Fair Value $ 244,439 $ 88,987 $ - |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Institutional Loan Balances and Related Allowances for Credit Losses | The following table details the institutional loan balances along with the related allowances for credit losses (in thousands). June 30, 2018 2017 Gross Institutional Loans $ 54,323 $ 49,273 Allowance for Credit Losses: Balance at July 1 $ (9,736 ) $ (6,498 ) Charge-offs and Adjustments 330 436 Recoveries (61 ) (94 ) Additional Provision (536 ) (3,580 ) Balance at End of Period (10,003 ) (9,736 ) Net Institutional Loans $ 44,320 $ 39,537 |
Credit Risk Profiles of Institutional Student Loan Balances | The following tables detail the credit risk profiles of the institutional loan balances based on payment activity and an aging of past due institutional loans (in thousands). June 30, 2018 2017 Institutional Loans: Performing $ 44,492 $ 39,745 Nonperforming 9,831 9,528 Total Institutional Loans $ 54,323 $ 49,273 |
Institutional Student Loans Past Due | 1-29 Days Past Due 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Total Institutional Loans Institutional Loans: June 30, 2018 $ 8,473 $ 900 $ 3,099 $ 9,831 $ 22,303 $ 32,020 $ 54,323 June 30, 2017 $ 5,900 $ 1,686 $ 369 $ 9,528 $ 17,483 $ 31,790 $ 49,273 |
DIVIDENDS AND STOCK REPURCHAS34
DIVIDENDS AND STOCK REPURCHASE PROGRAMS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |
Shares Repurchased Under Programs | Adtalem has repurchased shares under the following programs as of June 30, 2018: Date Shares Total Cost Authorized Repurchased (in millions) November 15, 2006 908,399 $ 35.0 May 13, 2008 1,027,417 50.0 November 11, 2009 972,205 50.0 August 11, 2010 1,103,628 50.0 November 10, 2010 968,105 50.0 May 20, 2011 2,396,143 100.0 November 2, 2011 3,478,299 100.0 August 29, 2012 2,005,317 62.7 December 15, 2015 1,672,250 36.6 February 16, 2017 4,330,141 165.0 Totals 18,861,904 $ 699.3 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Association Of Certified Anti-Money Laundering Specialists [Member] | |
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). July 1, 2016 Current Assets $ 24,895 Property and Equipment 432 Other Long-term Assets 3,131 Intangible Assets 88,600 Goodwill 274,689 Total Assets Acquired 391,747 Liabilities Assumed 37,619 Net Assets Acquired $ 354,128 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The values and estimated useful lives by asset type are as follows (in thousands): July 1, 2016 Value Assigned Estimated Useful Life Customer Relationships $ 42,500 10 years Curriculum 5,000 3 years Non-compete Agreements 700 1 year Proprietary Technology 500 4 years |
Sao Judas Tadeu [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in thousands). November 1, 2017 Current Assets $ 558 Property and Equipment 64 Other Long-term Assets 9 Intangible Assets 381 Goodwill 5,636 Total Assets Acquired 6,648 Liabilities Assumed 684 Net Assets Acquired $ 5,964 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The value and estimated useful life by asset type is as follows (in thousands): November 1, 2017 Value Assigned Estimated Useful Life Student Relationships $ 162 6 months |
Edupristine [Member] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition of Adtalem’s majority interest in EduPristine (in thousands). February 5, 2018 Current Assets $ 866 Property and Equipment 239 Other Long-term Assets 69 Intangible Assets 1,380 Goodwill 11,527 Total Assets Acquired 14,081 Liabilities Assumed 2,715 Net Assets Acquired $ 11,366 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following (in thousands): June 30, 2018 Gross Carrying Amount Accumulated Amortization Weighted Average Amortization Period Amortizable Intangible Assets: Student Relationships $ 8,193 $ (6,972 ) 5 Years Customer Relationships 42,900 (9,598 ) 10 Years Non-compete Agreements 700 (700 ) 1 Year Curriculum/Software 6,833 (4,265 ) 4 Years Franchise Contracts 9,064 (1,720 ) 18 Years Clinical Agreements 336 (112 ) 15 Years Trade Names 976 (904 ) 10 Years Proprietary Technology 500 (250 ) 4 Years Total $ 69,502 $ (24,521 ) Indefinite-Lived Intangible Assets: Trade Names $ 106,132 Ross Title IV Eligibility and Accreditations 14,100 Intellectual Property 13,940 Chamberlain Title IV Eligibility and Accreditations 1,200 AUC Title IV Eligibility and Accreditations 100,000 Adtalem Brazil Accreditation 82,578 Total $ 317,950 June 30, 2017 Gross Carrying Amount Accumulated Amortization Amortizable Intangible Assets: Student Relationships $ 12,459 $ (9,323 ) Customer Relationships 42,900 (4,923 ) Non-compete Agreements 700 (665 ) Curriculum/Software 7,147 (2,329 ) Franchise Contracts 10,615 (1,425 ) Clinical Agreements 393 (104 ) Trade Names 1,145 (945 ) Proprietary Technology 500 (125 ) Total $ 75,859 $ (19,839 ) Indefinite-Lived Intangible Assets: Trade Names $ 109,519 Ross Title IV Eligibility and Accreditations 14,100 Intellectual Property 13,940 Chamberlain Title IV Eligibility and Accreditations 1,200 AUC Title IV Eligibility and Accreditations 100,000 Adtalem Brazil Accreditation 97,179 Total $ 335,938 |
Estimated Amortization Expense for Amortized Intangible Assets | Estimated amortization expense for amortizable intangible assets for the next five fiscal years ending June 30 and in the aggregate, by reporting unit, is as follows (in thousands): Professional Adtalem Fiscal Year Education Brazil Total 2019 $ 6,422 $ 1,728 $ 8,150 2020 4,671 1,270 5,941 2021 4,440 775 5,215 2022 4,300 526 4,826 2023 4,118 526 4,644 Thereafter 11,268 4,937 16,205 |
Changes in Carrying Amount of Goodwill, by Segment | The table below summarizes goodwill balances by reporting unit (in thousands): Reporting Unit June 30, 2018 June 30, 2017 Chamberlain $ 4,716 $ 4,716 AUC 68,321 68,321 RUSM and RUSVM 237,173 237,173 Professional Education 317,699 306,653 Adtalem Brazil 185,978 212,223 Total $ 813,887 $ 829,086 The table below summarizes goodwill balances by reporting segment (in thousands): Reporting Segment June 30, 2018 June 30, 2017 Medical and Healthcare $ 310,210 $ 310,210 Professional Education 317,699 306,653 Technology and Business 185,978 212,223 Total $ 813,887 $ 829,086 The table below summarizes the changes in the carrying amount of goodwill by reporting segment (in thousands): Medical and Healthcare Professional Education Technology and Business Total Balance at June 30, 2016 $ 310,210 $ 32,043 $ 223,558 $ 565,811 Purchase Accounting Adjustments - - (3,603 ) (3,603 ) Acquisitions - 274,689 - 274,689 Foreign exchange rate changes - (79 ) (7,732 ) (7,811 ) Balance at June 30, 2017 310,210 306,653 212,223 829,086 Acquisitions - 11,527 5,636 17,163 Foreign exchange rate changes - (481 ) (31,881 ) (32,362 ) Balance at June 30, 2018 $ 310,210 $ 317,699 $ 185,978 $ 813,887 |
Summary of Indefinite-Lived Intangible Assets Balances by Reporting Segment | The table below summarizes the indefinite-lived intangible asset balances by reporting segment (in thousands): Reporting Segment June 30, 2018 June 30, 2017 Medical and Healthcare $ 137,500 $ 137,500 Professional Education 69,126 67,812 Technology and Business 111,324 130,626 Total $ 317,950 $ 335,938 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Pre-tax restructuring charges by segment were as follows (in thousands): Year Ended June 30, 2018 Year Ended June 30, 2017 Real Estate Termination Benefits Total Real Estate Termination Benefits Total Medical and Healthcare $ 26 $ 777 $ 803 $ 1,884 $ 698 $ 2,582 Professional Education - 357 357 - - - Technology and Business 1,216 - 1,216 - - - Home Office and Other (373 ) 3,064 2,691 7,858 2,533 10,391 Total $ 869 $ 4,198 $ 5,067 $ 9,742 $ 3,231 $ 12,973 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the separation and restructuring plan activity for the fiscal years 2018 and 2017, for which cash payments are required (in thousands): Liability balance at June 30, 2016 $ 48,223 Increase in liability (separation and other charges) 27,620 Reduction in liability (payments and adjustments) (29,728 ) Liability balance at June 30, 2017 46,115 Increase in liability (separation and other charges) 19,893 Reduction in liability (payments and adjustments) (27,081 ) Liability balance at June 30, 2018 $ 38,927 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income before Income Tax | The components of income from continuing operations before income taxes are as follows (in thousands): Year Ended June 30, 2018 2017 2016 U.S. $ 63,353 $ (13,553 ) $ 36,505 Foreign 135,330 144,812 114,317 Total $ 198,683 $ 131,259 $ 150,822 |
Income Tax Provisions (Benefits) | The income tax provisions related to the above results are as follows (in thousands): Year Ended June 30, Income Tax Provision (Benefit): 2018 2017 2016 Current Tax Provision U.S. Federal $ 69,986 $ 1,162 $ 37,239 State and Local (599 ) (3,834 ) (6,256 ) Foreign 7,831 3,777 2,685 Total Current 77,218 1,105 33,668 Deferred Tax Provision (Benefit): U.S. Federal 19,020 (2,745 ) (20,044 ) State and Local (1,173 ) 6,155 7,552 Foreign (10,963 ) 5,079 4,150 Total Deferred 6,884 8,489 (8,342 ) Income Tax Provision $ 84,102 $ 9,594 $ 25,326 |
Income Tax Provisions Computed using Statutory U.S. Federal Rate | The income tax provisions differ from those that would be computed using the statutory U.S. federal rate as a result of the following items (in thousands): Year Ended June 30, 2018 2017 2016 Income Tax at Statutory Rate $ 55,750 28.1 % $ 45,941 35.0 % $ 52,788 35.0 % Lower Rates on Foreign Operations (30,749 ) (15.5 )% (42,911 ) (32.7 )% (33,271 ) (22.1 )% State Income Taxes 3,648 1.8 % 1,348 1.0 % 3,240 2.1 % Impact of Tax Cuts and Jobs Act 103,878 52.3 % - 0.0 % - 0.0 % Loss on Investment in Subsidiary (48,903 ) (24.6 %) - 0.0 % - 0.0 % Benefit on Foreign Intangibles (8,813 ) (4.5 %) - 0.0 % - 0.0 % Permanent Non-Deductible/(Taxable) Items 7,715 3.9 % 2,720 2.1 % 1,931 1.3 % Other 1,576 0.8 % 2,496 1.9 % 638 0.5 % Income Tax Provision $ 84,102 42.3 % $ 9,594 7.3 % $ 25,326 16.8 % |
Deferred Tax Assets (Liabilities) | These assets and liabilities are composed of the following (in thousands): Year Ended June 30, 2018 2017 2016 Employee Benefits $ 11,957 $ 18,648 $ 16,712 Stock-Based Compensation 7,577 18,130 21,239 Deferred Rent 9,841 17,588 22,135 Receivable Reserve 7,953 11,308 18,476 Restructuring Costs 8,704 17,148 18,820 Depreciation 3,380 - - Other Reserves 2,420 6,701 3,978 Loss and Credit Carryforwards, Net 37,340 37,569 24,213 Less: Valuation Allowance (11,496 ) (9,456 ) (8,624 ) Gross Deferred Tax Assets 77,676 117,636 116,949 Depreciation - (10,641 ) (21,700 ) Amortization of Intangible Assets (68,011 ) (106,952 ) (73,397 ) Gross Deferred Tax Liability (68,011 ) (117,593 ) (95,097 ) Net Deferred Taxes $ 9,665 $ 43 $ 21,852 |
Net Operating Loss and Credit Carryforwards | Adtalem has the following tax net operating loss (tax effected) and credit carryforwards as of June 30, 2018 (in thousands): June 30, Years of Expiration 2018 Beginning Ending U.S. Credit Carryforwards $ 271 2027 2027 State Net Operating Loss Carryforwards 17,440 2019 2039 State Credit Carryforwards 8,425 2019 2028 Foreign Net Operating Loss Carryforwards 8,082 2021 2038 Foreign Net Operating Loss Carryforwards 3,122 No Expiration Gross Deferred Tax Assets $ 37,340 |
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands): Year Ended June 30, 2018 2017 2016 Beginning Balance, July 1 $ 7,901 $ 7,497 $ 8,475 Increases from Positions Taken During Prior Periods 1,151 1,397 346 Decreases from Positions Taken During Prior Periods (5,711 ) (1,445 ) (1,716 ) Increases from Positions Taken During the Current Period 31,063 452 392 Ending Balance, June 30 $ 34,404 $ 7,901 $ 7,497 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following (in thousands): June 30, 2018 June 30, 2017 Total Debt: Term B Loan $ 300,000 $ - Revolver - 125,000 Total Principal Payments Due 300,000 125,000 Deferred Debt Issuance Costs (6,927 ) - Total Amount Outstanding 293,073 125,000 Less Current Portion: Term B Loan (3,000 ) - Noncurrent Portion $ 290,073 $ 125,000 |
Schedule of Maturities of Long-term Debt | Scheduled maturities of long-term debt for the next five fiscal years ending June 30 and in the aggregate are as follows (in thousands): Fiscal Year Maturity Payments 2019 $ 3,000 2020 3,000 2021 3,000 2022 3,000 2023 3,000 Thereafter 285,000 $ 300,000 |
Schedule Of Debt Issuance Costs | The following table summarizes the total deferred debt issuance costs for the Term B Loan and Revolver, which will be amortized over seven years and five years, respectively (in thousands). Term B Loan Revolver Total Deferred Debt Issuance Costs at June 30, 2017 $ - $ 1,935 $ 1,935 Deferred Debt Issuance Costs for Credit Agreement 7,148 2,723 9,871 Amortization of Deferred Debt Issuance Costs (221 ) (2,052 ) (2,273 ) Deferred Debt Issuance Costs at June 30, 2018 $ 6,927 $ 2,606 $ 9,533 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Commitments for Non-Cancellable Operating Leases | Future minimum rental commitments for all noncancelable operating leases having a remaining term in excess of one year at June 30, 2018, are as follows (in thousands): Fiscal Year Amount 2019 $ 67,295 2020 65,032 2021 58,913 2022 50,309 2023 46,716 Thereafter 100,537 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Tabulation of Business Segment Information Based on Current Segmentation | Summary financial information by reporting segment is as follows (in thousands): Year Ended June 30, 2018 2017 2016 Revenue: Medical and Healthcare $ 815,674 $ 802,462 $ 783,655 Professional Education 147,195 131,769 102,921 Technology and Business 270,934 276,341 196,097 Home Office and Other (2,592 ) (2,663 ) (2,598 ) Total Consolidated Revenue $ 1,231,211 $ 1,207,909 $ 1,080,075 Operating Income (Loss) from Continuing Operations: Medical and Healthcare $ 189,672 $ 187,138 $ 178,484 Professional Education 27,695 19,866 28,043 Technology and Business 29,431 36,204 13,580 Home Office and Other (1) (39,322 ) (107,710 ) (64,017 ) Total Consolidated Operating Income from Continuing Operations $ 207,476 $ 135,498 $ 156,090 Segment Assets: Medical and Healthcare $ 988,920 $ 905,741 $ 834,975 Professional Education 456,589 451,261 91,741 Technology and Business 547,110 606,563 583,020 Home Office and Other 291,760 186,217 386,617 Discontinued Operations 60,582 165,236 200,643 Total Consolidated Assets $ 2,344,961 $ 2,315,018 $ 2,096,996 Additions to Long-Lived Assets: Medical and Healthcare $ 34,099 $ 15,774 $ 25,645 Professional Education 15,063 364,275 1,120 Technology and Business 25,998 19,222 206,955 Home Office and Other 10,675 6,477 10,806 Total Consolidated Additions to Long-Lived Assets $ 85,835 $ 405,748 $ 244,526 Reconciliation to Consolidated Financial Statements Capital Expenditures $ 66,530 $ 42,508 $ 51,455 Increase in Capital Assets from Acquisitions 381 4,913 13,778 Increase in Intangible Assets and Goodwill 18,924 358,327 179,293 Total Increase in Consolidated Long-Lived Assets $ 85,835 $ 405,748 $ 244,526 Depreciation Expense (2): Medical and Healthcare $ 29,731 $ 31,938 $ 33,795 Professional Education 1,999 1,869 1,550 Technology and Business 10,282 10,117 5,444 Home Office and Other 1,274 1,881 2,530 Total Consolidated Depreciation Expense $ 43,286 $ 45,805 $ 43,319 Intangible Asset Amortization Expense: Professional Education $ 6,501 $ 7,482 $ 563 Technology and Business 3,037 3,687 4,629 Total Consolidated Amortization Expense $ 9,538 $ 11,169 $ 5,192 (1) Home Office and Other Operating Loss includes $52.2 million in charges in the year ended June 30, 2017 for regulatory settlements as described in "Note 3: Regulatory Settlements." (2) Depreciation expense for each reporting segment has been modified to current presentation to include the Home Office and Other depreciation which is allocated to each reporting segment. |
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, 2018 2017 2016 Revenue from Unaffiliated Customers: Domestic Operations $ 610,967 $ 585,865 $ 531,025 International Operations: Dominica, St. Kitts and St. Maarten 342,831 340,861 346,235 Brazil 270,934 276,341 196,097 Other 6,479 4,842 6,718 Total International 620,244 622,044 549,050 Total Consolidated Revenue $ 1,231,211 $ 1,207,909 $ 1,080,075 Long-Lived Assets: Domestic Operations $ 148,724 $ 164,324 $ 191,966 International Operations: Dominica, St. Kitts and St. Maarten 182,701 190,843 190,513 Brazil 94,467 104,497 106,878 Other 2,021 3,378 3,388 Total International 279,189 298,718 300,779 Total Consolidated Long-Lived Assets $ 427,913 $ 463,042 $ 492,745 |
QUARTERLY FINANCIAL DATA (UNA42
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA | Summarized unaudited quarterly data for the years ended June 30, 2018 and 2017, are as follows: Quarter First Second Third Fourth Total Year (in thousands, except per share amounts) 2018 Revenue $ 293,143 $ 308,211 $ 310,070 $ 319,787 $ 1,231,211 Operating Income from Continuing Operations $ 29,886 $ 59,918 $ 52,505 $ 65,167 $ 207,476 Amounts Attributable to Adtalem Global Education: Income (Loss) from Continuing Operations $ 25,438 $ (51,841 ) $ 42,905 $ 97,413 $ 113,915 Loss from Discontinued Operations $ (12,653 ) $ (29,315 ) $ (3,571 ) $ (34,607 ) $ (80,146 ) Net Income (Loss) Attributable to Adtalem Global Education $ 12,785 $ (81,156 ) $ 39,334 $ 62,806 $ 33,769 Earnings (Loss) per Common Share Attributable to Adtalem Global Education Shareholders: Basic: Continuing Operations $ 0.41 $ (0.85 ) $ 0.70 $ 1.60 $ 1.85 Discontinued Operations $ (0.20 ) $ (0.48 ) $ (0.06 ) $ (0.57 ) $ (1.30 ) Total $ 0.20 $ (1.33 ) $ 0.64 $ 1.03 $ 0.55 Diluted: Continuing Operations $ 0.40 $ (0.85 ) $ 0.69 $ 1.58 $ 1.83 Discontinued Operations $ (0.20 ) $ (0.48 ) $ (0.06 ) $ (0.56 ) $ (1.29 ) Total $ 0.20 $ (1.33 ) $ 0.63 $ 1.02 $ 0.54 Quarter First Second Third Fourth Total Year (in thousands, except per share amounts) 2017 Revenue $ 292,042 $ 301,513 $ 299,138 $ 315,216 $ 1,207,909 Operating Income from Continuing Operations $ 35,127 $ 3,164 $ 45,466 $ 51,741 $ 135,498 Amounts Attributable to Adtalem Global Education: Income from Continuing Operations $ 26,994 $ 11,746 $ 38,332 $ 42,902 $ 119,974 (Loss) Income from Discontinued Operations $ (1,842 ) $ 2,667 $ 1,527 $ (43 ) $ 2,309 Net Income Attributable to Adtalem Global Education $ 25,152 $ 14,413 $ 39,859 $ 42,859 $ 122,283 Earnings (Loss) per Common Share Attributable to Adtalem Global Education Shareholders: Basic: Continuing Operations $ 0.43 $ 0.18 $ 0.60 $ 0.68 $ 1.89 Discontinued Operations $ (0.03 ) $ 0.04 $ 0.02 $ (0.00 ) $ 0.04 Total $ 0.40 $ 0.23 $ 0.63 $ 0.68 $ 1.93 Diluted: Continuing Operations $ 0.42 $ 0.18 $ 0.60 $ 0.67 $ 1.87 Discontinued Operations $ (0.03 ) $ 0.04 $ 0.02 $ (0.00 ) $ 0.04 Total $ 0.39 $ 0.23 $ 0.62 $ 0.67 $ 1.91 Cash Dividends Declared per Common Share $ - $ 0.18 $ - $ - $ 0.18 |
NATURE OF OPERATIONS - Addition
NATURE OF OPERATIONS - Additional Information (Detail) | Jun. 30, 2018 |
Adtalem Brazil [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 97.90% |
Edupristine [Member] | |
Noncontrolling Interest, Ownership Percentage by Parent | 69.00% |
DISCONTINUED OPERATIONS AND A44
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Summary of Balance Sheet Information of Assets and Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current Assets: | ||
Cash and Cash Equivalents | $ 1 | $ 1,553 |
Restricted Cash | 13,404 | 7,805 |
Accounts Receivable, Net | 25,294 | 24,685 |
Prepaid Expenses and Other Current Assets | 8,433 | 6,223 |
Total Current Assets Held for Sale | 47,132 | 40,266 |
Land, Building and Equipment Held for Sale, Net | 0 | 62,561 |
Noncurrent Assets: | ||
Intangible Assets | 0 | 21,845 |
Goodwill | 0 | 22,196 |
Perkins Program Fund, Net | 13,450 | 13,450 |
Other Assets, Net | 0 | 4,918 |
Total Noncurrent Assets Held for Sale | 13,450 | 62,409 |
Total Assets Held for Sale | 60,582 | 165,236 |
Current Liabilities: | ||
Accounts Payable | 24,312 | 21,202 |
Accrued Salaries, Wages and Benefits | 13,979 | 19,335 |
Accrued Liabilities | 1,514 | 9,182 |
Deferred Revenue | 16,634 | 14,016 |
Total Current Liabilities Held for Sale | 56,439 | 63,735 |
Noncurrent Liabilities | ||
Deferred Income Taxes, Net | 216 | 983 |
Total Noncurrent Liabilities Held for Sale | 216 | 983 |
Total Liabilities Held for Sale | $ 56,655 | $ 64,718 |
DISCONTINUED OPERATIONS AND A45
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE (Summary of Income Statement Information of Operations) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
REVENUE: | |||
Tuition | $ 446,534 | $ 566,721 | $ 722,879 |
Other Educational | 37,734 | 35,170 | 40,583 |
Total Revenue | 484,268 | 601,891 | 763,462 |
OPERATING COST AND EXPENSE: | |||
Cost of Educational Services | 271,357 | 323,949 | 417,827 |
Student Services and Administrative Expense | 222,323 | 249,109 | 301,403 |
Restructuring Expense | 18,507 | 16,852 | 71,838 |
Asset Impairment Charge - Intangibles and Goodwill | 44,041 | 0 | 147,660 |
Asset Impairment Charge - Building and Equipment | 51,972 | 0 | 0 |
Loss on Sale of Assets | 230 | 0 | 0 |
Regulatory Settlements | 0 | 4,102 | 0 |
Loss on Assets Held for Sale | 0 | 4,764 | 0 |
Gain on Sale of Assets | 0 | 0 | (7,032) |
Total Operating Cost and Expense | 608,430 | 598,776 | 931,696 |
Operating (Loss) Income from Discontinued Operations | (124,162) | 3,115 | (168,234) |
Interest Income | 0 | 20 | 113 |
(Loss) Income from Discontinued Operations Before Income Taxes | (124,162) | 3,135 | (168,121) |
Income Tax Benefit (Provision) | 44,016 | (826) | 39,869 |
(Loss) Income from Discontinued Operations | $ (80,146) | $ 2,309 | $ (128,252) |
DISCONTINUED OPERATIONS AND A46
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE - Additional Information (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Asset Impairment Charges | $ 58.6 |
Gain (Loss) on Disposition of Assets | 0.2 |
Property Plant And Equipment Consideration | 11.1 |
Property Plant And Equipment Held For Sale | 11.3 |
Carrington Operations [Member] | |
Asset Impairment Charges | $ 37.4 |
REGULATORY SETTLEMENTS - Additi
REGULATORY SETTLEMENTS - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Inquiry Settlement | $ 2,250 |
Inquiry Settlement Penalties | 500 |
Inquiry Settlement Charge | 2,750 |
Letter of Credit [Member] | |
Letter Of Credit Title IV Disbursement, Amount | 68,400 |
Permanent Injunction And Monetary Judgment Agreement [Member] | |
Settlement Payment | 49,400 |
Forgivable Of Loan | 30,400 |
Forgivable Of Account Receivable | 20,200 |
Regulatory Settlement Charge | 56,300 |
Loan Write Offs | 4,100 |
Home Office And Other [Member] | |
Regulatory Settlement Charge | 52,200 |
Discontinued Operations [Member] | |
Regulatory Settlement Charge | $ 4,100 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Available-For-Sale Marketable Securities) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Gross Unrealized Cost | $ 3,718 | $ 3,560 |
Gross Unrealized (Loss) | 0 | 0 |
Gross Unrealized Gain | 537 | 453 |
Gross Unrealized Fair Value | 4,255 | 4,013 |
Bond Mutual Fund [Member] | ||
Gross Unrealized Cost | 1,137 | 1,112 |
Gross Unrealized (Loss) | 0 | 0 |
Gross Unrealized Gain | 32 | 64 |
Gross Unrealized Fair Value | 1,169 | 1,176 |
Stock Mutual Funds [Member] | ||
Gross Unrealized Cost | 2,581 | 2,448 |
Gross Unrealized (Loss) | 0 | 0 |
Gross Unrealized Gain | 505 | 389 |
Gross Unrealized Fair Value | $ 3,086 | $ 2,837 |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Non-Controlling Interest Balance) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Noncontrolling Interest [Line Items] | |||
Balance at Beginning of Year | $ 6,285 | $ 5,112 | |
Net Income Attributable to Noncontrolling Interest | 528 | 997 | $ 410 |
(Decrease) Increase in Redemption Value of Noncontrolling Interest Put Options | (1,872) | 176 | (1,804) |
Acquisition of Noncontrolling Interest in EduPristine | 4,074 | 0 | |
Capital Investment from Noncontrolling Interest in EduPristine | 95 | 0 | |
Balance at End of Year | $ 9,110 | $ 6,285 | $ 5,112 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reconciliation of Basic Shares to Diluted Shares) (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Weighted Average Shares Outstanding | 60,760 | 62,656 | 63,254 |
Unvested Participating RSUs | 702 | 843 | 782 |
Basic Shares | 61,462 | 63,499 | 64,036 |
Effect of Dilutive Stock Options | 818 | 520 | 335 |
Diluted Shares | 62,280 | 64,019 | 64,371 |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassification of line items on the Consolidated Statements of Cash Flows) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Cash Provided by Operating Activities: | $ 239,189 | $ 230,920 | $ 231,483 |
Net Cash Provided by Financing Activities: | $ 37,204 | 85,843 | (69,095) |
Previously Reported [Member] | |||
Net Cash Provided by Operating Activities: | 227,964 | 228,009 | |
Net Cash Provided by Financing Activities: | 88,799 | (65,621) | |
Adjustment [Member] | |||
Net Cash Provided by Operating Activities: | 2,956 | 3,474 | |
Net Cash Provided by Financing Activities: | $ (2,956) | $ (3,474) |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Reserves related to uncollectible accounts and refunds | $ 28,000 | $ 25,000 | |
Net balance of capitalized software development costs | $ 13,500 | $ 5,900 | |
Anti-dilutive shares excluded from computations of earnings per share | 980 | 1,682 | 2,803 |
Cumulative translation losses | $ 142,600 | $ 59,400 | |
Advertising expense | 80,500 | 75,600 | $ 68,300 |
Provisions For Refund Payments | 16,900 | 15,500 | 14,600 |
Cost of Goods and Services Sold, Total | 645,604 | 638,245 | 568,950 |
Insurance Settlements Receivable | 21,900 | ||
Loss from Catastrophes | 63,300 | ||
Unusual or Infrequent Item, or Both, Insurance Proceeds | 59,000 | ||
Singularity University [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cost Method Investments | $ 5,000 | ||
Cost Method Investments Interest percentage | 3.68% | ||
DeVry University [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 34,700 | ||
Carrington Operations [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | 17,200 | ||
Accounting Standards Update 2016-09 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative Effect on Retained Earnings, Tax | 200 | ||
Cumulative Effect on Retained Earnings, before Tax | 600 | ||
Noncontrolling Interest | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative translation losses | 3,000 | 1,300 | |
Educational Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Provision for Doubtful Accounts | 16,900 | 19,000 | $ 15,400 |
Hurricane Expense [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | 31,000 | ||
Cost of Goods and Services Sold, Total | $ 13,400 | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 20.00% | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Finite-Lived Intangible Asset, Useful Life | 18 years | ||
Buildings And Leasehold Improvements [Member] | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Buildings And Leasehold Improvements [Member] | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Computer Furniture And Equipment [Member] | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Computer Furniture And Equipment [Member] | Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 8 years | ||
Adtalem Brazil | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest of parent in subsidiary | 97.90% | ||
Adtalem Global Education Inc. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cumulative translation losses | $ 139,600 | 58,100 | |
Tax effect on unrealized gains on available-for-sale securities | 400 | 300 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 100 | $ 200 | |
Edupristine | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest of parent in subsidiary | 69.00% | ||
Kaizen | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest of parent in subsidiary | 31.00% | ||
Adtalem Brazil Senior Management Group | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Ownership interest of parent in subsidiary | 2.10% |
STOCK-BASED COMPENSATION (Summa
STOCK-BASED COMPENSATION (Summary of Options Activity) (Detail) - Stock Option $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Number of Options, Outstanding at beginning of period | shares | 2,794,850 |
Number of Options, Granted | shares | 491,275 |
Number of Options, Exercised | shares | (823,829) |
Number of Options Forfeited | shares | (73,015) |
Number of Options Expired | shares | (583,148) |
Number of Options, Outstanding at end of period | shares | 1,806,133 |
Number of Options, Exercisable at end of period | shares | 819,480 |
Weighted Average Exercise Price at beginning of period | $ / shares | $ 34.68 |
Weighted Average Exercise Price, Options Granted | $ / shares | 33.90 |
Weighted Average Exercise Price, Options Exercised | $ / shares | 30.14 |
Weighted Average Exercise Price, Options Forfeited | $ / shares | 29.72 |
Weighted Average Exercise Price, Options Expired | $ / shares | 46.56 |
Weighted Average Exercise Price, Outstanding at end of period | $ / shares | 32.88 |
Weighted Average Exercise Price, Exercisable at end of period | $ / shares | $ 38.29 |
Weighted Average Remaining Contractual Life, Outstanding at end of period | 6 years 3 months 25 days |
Weighted Average Remaining Contractual Life, Exercisable at end of period | 3 years 9 months 11 days |
Aggregate Intrinsic Value, Outstanding at End of period | $ | $ 28,516 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 9,069 |
STOCK-BASED COMPENSATION (Sum54
STOCK-BASED COMPENSATION (Summary of Stock Appreciation Rights Activity) (Detail) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Number of Stock Appreciation Rights, Outstanding at beginning of period | shares | 99,500 |
Number of Stock Appreciation Rights, Rights Exercised | shares | (34,100) |
Number of Stock Appreciation Rights, Rights Canceled | shares | (65,400) |
Number of Stock Appreciation Rights, Outstanding at end of period | shares | 0 |
Number of Stock Appreciation Rights, Exercisable at end of period | shares | 0 |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ / shares | $ 45.04 |
Weighted Average Grant Date Fair Value, Nonvested Rights Exercised | $ / shares | 38.71 |
Weighted Average Grant Date Fair Value, Nonvested Rights Canceled | $ / shares | 48.34 |
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Nonvested Exercisable at end of period | $ / shares | $ 0 |
Aggregate Intrinsic Value, Outstanding at end of period | $ | $ 0 |
Aggregate Intrinsic Value, Exercisable at end of period | $ | $ 0 |
STOCK-BASED COMPENSATION (Fair
STOCK-BASED COMPENSATION (Fair Values of Stock Option Awards Weighted Average Assumptions) (Detail) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Life (in Years) | 6 years 8 months 5 days | 6 years 10 months 17 days | 6 years 9 months 11 days |
Expected Volatility | 41.45% | 42.41% | 41.35% |
Risk-free Interest Rate | 1.95% | 1.41% | 1.85% |
Dividend Yield | 0.00% | 1.19% | 1.01% |
Pre-vesting Forfeiture Rate | 10.00% | 3.00% |
STOCK-BASED COMPENSATION (Sum56
STOCK-BASED COMPENSATION (Summary of Restricted Stock Units Activity) (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units Outstanding at beginning of period | 1,279,667 | ||
Restricted Stock Units Outstanding, Shares Granted | 516,090 | ||
Restricted Stock Units Outstanding, Shares Vested | (378,859) | ||
Restricted Stock Units Outstanding, Shares Forfeited | (189,940) | ||
Restricted Stock Units Outstanding at end of period | 1,226,958 | 1,279,667 | |
Weighted Average Grant Date Fair Value, Nonvested beginning balance | $ 26.14 | ||
Weighted Average Grant Date Fair Value, Shares Granted | 34.67 | $ 23.92 | $ 24.41 |
Weighted Average Grant Date Fair Value, Shares Vested | 31.35 | ||
Weighted Average Grant Date Fair Value, Shares Forfeited | 27.79 | ||
Weighted Average Grant Date Fair Value, Nonvested ending balance | $ 28.31 | $ 26.14 |
STOCK-BASED COMPENSATION (Total
STOCK-BASED COMPENSATION (Total Stock-Based Compensation Expense Included in Consolidated Statement of Income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | $ 14,499 | $ 16,600 | $ 22,368 |
Income Tax Benefit | (5,829) | (5,819) | (8,564) |
Net Stock-Based Compensation Expense | 8,670 | 10,781 | 13,804 |
Cost of Educational Services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | 4,464 | 5,312 | 5,617 |
Student Services And Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | 9,487 | 11,288 | 16,751 |
Restructuring Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-Based Compensation Expense | $ 548 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $ 11.4 | $ 6.2 | $ 0.1 |
Total pre-tax unrecognized compensation costs related to non-vested awards | $ 22.7 | ||
Total pre-tax unrecognized compensation costs related to non-vested awards expected to be recognized, years | 2 years 4 months 24 days | ||
Total fair value of options and Restricted Stock Units vested | $ 14.8 | $ 13.9 | $ 21.7 |
Stock Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average estimated grant date fair values, for options granted at market price, per share | $ 14.63 | $ 9.09 | $ 8.85 |
Common Stock, Capital Shares Reserved for Future Issuance | 8,236,479 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 34.67 | $ 23.92 | $ 24.41 |
Restricted Stock Units Outstanding, Shares Granted | 516,090 | ||
Performance Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units Outstanding, Shares Granted | 246,890 | ||
Non-Performance Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units Outstanding, Shares Granted | 269,200 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets Measured at Fair Value on Recurring Basis) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Available-for-Sale Investments: | ||
Marketable Securities, short-term | $ 4,255 | $ 4,013 |
Institutional Loans Receivable, Net | 44,320 | 39,537 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 430,690 | 240,426 |
Available-for-Sale Investments: | ||
Marketable Securities, short-term | 4,255 | 4,013 |
Institutional Loans Receivable, Net | 0 | 0 |
Deferred Acquisition Obligations | 0 | 0 |
FIES Receivable | 0 | |
Total Financial Assets at Fair Value | 434,945 | 244,439 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Available-for-Sale Investments: | ||
Marketable Securities, short-term | 0 | 0 |
Institutional Loans Receivable, Net | 44,320 | 39,537 |
Deferred Acquisition Obligations | 18,585 | 26,590 |
FIES Receivable | 22,860 | |
Total Financial Assets at Fair Value | 62,905 | 88,987 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Available-for-Sale Investments: | ||
Marketable Securities, short-term | 0 | 0 |
Institutional Loans Receivable, Net | 0 | 0 |
Deferred Acquisition Obligations | 0 | 0 |
FIES Receivable | 0 | |
Total Financial Assets at Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Accrued Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Acquisition Obligations | $ 4.3 | $ 14.8 |
Deferred Rent and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred Acquisition Obligations | $ 14.3 | $ 11.8 |
FINANCING RECEIVABLES (Institut
FINANCING RECEIVABLES (Institutional Loan Balances and Related Allowances for Credit Losses) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivables [Line Items] | ||
Gross Institutional Loans | $ 54,323 | $ 49,273 |
Allowance for Credit Losses: | ||
Balance at July 1 | (9,736) | (6,498) |
Charge-offs and Adjustments | 330 | 436 |
Recoveries | (61) | (94) |
Additional Provision | (536) | (3,580) |
Balance at End of Period | (10,003) | (9,736) |
Net Institutional Loans | $ 44,320 | $ 39,537 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles of Institutional Loan Balance) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivables [Line Items] | ||
Total Institutional Loans | $ 54,323 | $ 49,273 |
Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | 54,323 | 49,273 |
Performing | Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | 44,492 | 39,745 |
Nonperforming | Credit Risk Profiles Of Institutional Loans | ||
Financing Receivables [Line Items] | ||
Total Institutional Loans | $ 9,831 | $ 9,528 |
FINANCING RECEIVABLES (Instit63
FINANCING RECEIVABLES (Institutional Loans Past Due) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | $ 22,303 | $ 17,483 |
Institutional Loans, Current | 32,020 | 31,790 |
Total Institutional Loans | 54,323 | 49,273 |
Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 8,473 | 5,900 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 900 | 1,686 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | 3,099 | 369 |
Financing Receivables Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Institutional Loans, Past Due | $ 9,831 | $ 9,528 |
FINANCING RECEIVABLES - Additio
FINANCING RECEIVABLES - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Accounts Receivable | ||
Financing Receivables [Line Items] | ||
Net Institutional Student Loans, classified as Accounts Receivable | $ 21.2 | $ 17.8 |
Other Assets | ||
Financing Receivables [Line Items] | ||
Net Institutional Student Loans, classified as Accounts Receivable | $ 23.1 | $ 21.8 |
DIVIDENDS AND STOCK REPURCHAS65
DIVIDENDS AND STOCK REPURCHASE PROGRAMS (Shares Repurchased under Programs) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Repurchases [Line Items] | |||
Total Cost | $ 137,028 | $ 48,508 | $ 32,634 |
Stock Repurchase Programs Total | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 18,861,904 | ||
Total Cost | $ 699,300 | ||
Authorized on November 15, 2006 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 908,399 | ||
Total Cost | $ 35,000 | ||
Authorized on May 13, 2008 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 1,027,417 | ||
Total Cost | $ 50,000 | ||
Authorized on November 11, 2009 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 972,205 | ||
Total Cost | $ 50,000 | ||
Authorized on August 11, 2010 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 1,103,628 | ||
Total Cost | $ 50,000 | ||
Authorized on November 10, 2010 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 968,105 | ||
Total Cost | $ 50,000 | ||
Authorized on May 20, 2011 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 2,396,143 | ||
Total Cost | $ 100,000 | ||
Authorized on November 2, 2011 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 3,478,299 | ||
Total Cost | $ 100,000 | ||
Authorized On August 29, 2012 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 2,005,317 | ||
Total Cost | $ 62,700 | ||
Authorized On December 15, 2015 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 1,672,250 | ||
Total Cost | $ 36,600 | ||
Authorized On February 16, 2017 | |||
Share Repurchases [Line Items] | |||
Shares Repurchased | 4,330,141 | ||
Total Cost | $ 165,000 |
DIVIDENDS AND STOCK REPURCHAS66
DIVIDENDS AND STOCK REPURCHASE PROGRAMS - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 23, 2015 | Dec. 22, 2016 | Jun. 24, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Feb. 16, 2017 |
Share Repurchases [Line Items] | |||||||
Payments for Repurchase of Common Stock | $ 137,028 | $ 48,508 | $ 32,634 | ||||
Tenth share repurchase plan [Member] | |||||||
Share Repurchases [Line Items] | |||||||
Payments for Repurchase of Common Stock | $ 137,000 | ||||||
Treasury Stock Shares Acquired | 3,544,845 | ||||||
Maximum | Tenth share repurchase plan [Member] | |||||||
Share Repurchases [Line Items] | |||||||
Authorized amount for repurchase | $ 300,000 | ||||||
Adtalem [Member] | |||||||
Share Repurchases [Line Items] | |||||||
Payments of Dividends | $ 11,600 | $ 11,400 | $ 11,400 |
BUSINESS COMBINATIONS (Estimate
BUSINESS COMBINATIONS (Estimated Fair Values of Assets Acquired and Liabilities Assumed) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Feb. 05, 2018 | Nov. 01, 2017 | Jun. 30, 2017 | Jul. 02, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 813,887 | $ 829,086 | |||
Association Of Certified Anti-Money Laundering Specialists [Member] | |||||
Business Acquisition [Line Items] | |||||
Current Assets | $ 24,895 | ||||
Property and Equipment | 432 | ||||
Other Long-term Assets | 3,131 | ||||
Intangible Assets | 88,600 | ||||
Goodwill | 274,689 | ||||
Total Assets Acquired | 391,747 | ||||
Liabilities Assumed | 37,619 | ||||
Net Assets Acquired | $ 354,128 | ||||
Sao Judas Tadeu [Member] | |||||
Business Acquisition [Line Items] | |||||
Current Assets | $ 558 | ||||
Property and Equipment | 64 | ||||
Other Long-term Assets | 9 | ||||
Intangible Assets | 381 | ||||
Goodwill | 5,636 | ||||
Total Assets Acquired | 6,648 | ||||
Liabilities Assumed | 684 | ||||
Net Assets Acquired | $ 5,964 | ||||
Edupristine [Member] | |||||
Business Acquisition [Line Items] | |||||
Current Assets | $ 866 | ||||
Property and Equipment | 239 | ||||
Other Long-term Assets | 69 | ||||
Intangible Assets | 1,380 | ||||
Goodwill | 11,527 | ||||
Total Assets Acquired | 14,081 | ||||
Liabilities Assumed | 2,715 | ||||
Net Assets Acquired | $ 11,366 |
BUSINESS COMBINATIONS (Acquired
BUSINESS COMBINATIONS (Acquired Intangible Assets Subject to Amortization and Values and Estimated Useful Lives) (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Jul. 02, 2016 |
Association Of Certified Anti-Money Laundering Specialists [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 42,500 | |
Amortizable intangible assets, estimated useful lives | 10 years | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Curriculum [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 5,000 | |
Amortizable intangible assets, estimated useful lives | 3 years | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Non-compete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 700 | |
Amortizable intangible assets, estimated useful lives | 1 year | |
Association Of Certified Anti-Money Laundering Specialists [Member] | Proprietary Technology [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 500 | |
Amortizable intangible assets, estimated useful lives | 4 years | |
Sao Judas Tadeu [Member] | Student Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Amortizable intangible assets | $ 162 | |
Amortizable intangible assets, estimated useful lives | 6 years |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Detail) $ in Thousands | Feb. 05, 2018USD ($) | Nov. 01, 2017USD ($)Numbers | Jul. 02, 2016USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 400 | ||||||
Payments to Acquire Businesses, Gross | $ 5,000 | $ 0 | $ 0 | ||||
Association Of Certified Anti-Money Laundering Specialists [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 88,600 | ||||||
Payments to Acquire Businesses, Gross | $ 330,600 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Long-term Line of Credit | $ 175,000 | ||||||
Cash Acquired from Acquisition | 23,500 | ||||||
Association Of Certified Anti-Money Laundering Specialists [Member] | Trade Name [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 39,900 | ||||||
Sao Judas Tadeu [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number Of Students In Degree Programs | Numbers | 2,700 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 381 | ||||||
Payments to Acquire Businesses, Gross | 1,000 | ||||||
Business Combination, Consideration Transferred | $ 6,000 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Contingent Consideration | $ 5,000 | ||||||
Sao Judas Tadeu [Member] | Trade Name [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 200 | ||||||
Edupristine [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 1,380 | ||||||
Payments to Acquire Businesses, Gross | $ 3,200 | $ 1,300 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 64.00% | 69.00% | |||||
Equity Method Investment, Ownership Percentage | 36.00% | ||||||
Equity Method Investments, Fair Value Disclosure | $ 4,100 | ||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 4,100 | ||||||
Edupristine [Member] | Student Services And Administrative Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 1,200 | ||||||
Edupristine [Member] | Trade Name [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 1,400 |
INTANGIBLE ASSETS (Schedule of
INTANGIBLE ASSETS (Schedule of Intangible Assets) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 69,502 | $ 75,859 |
Amortizable Intangible Assets, Accumulated Amortization | (24,521) | (19,839) |
Indefinite-lived Intangible Assets, Gross Carrying Amount | 317,950 | 335,938 |
Student Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 8,193 | 12,459 |
Amortizable Intangible Assets, Accumulated Amortization | $ (6,972) | (9,323) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 5 years | |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 42,900 | 42,900 |
Amortizable Intangible Assets, Accumulated Amortization | $ (9,598) | (4,923) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 10 years | |
Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 700 | 700 |
Amortizable Intangible Assets, Accumulated Amortization | $ (700) | (665) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 1 year | |
Curriculum/Software [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 6,833 | 7,147 |
Amortizable Intangible Assets, Accumulated Amortization | $ (4,265) | (2,329) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 4 years | |
Franchise Contracts [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 9,064 | 10,615 |
Amortizable Intangible Assets, Accumulated Amortization | $ (1,720) | (1,425) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 18 years | |
Proprietary Technology [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 500 | 500 |
Amortizable Intangible Assets, Accumulated Amortization | $ (250) | (125) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 4 years | |
Clinical Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 336 | 393 |
Amortizable Intangible Assets, Accumulated Amortization | $ (112) | (104) |
Amortizable Intangible Assets, Weighted Average Amortization Period | 15 years | |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $ 976 | 1,145 |
Amortizable Intangible Assets, Accumulated Amortization | (904) | (945) |
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 106,132 | 109,519 |
Amortizable Intangible Assets, Weighted Average Amortization Period | 10 years | |
Ross Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 14,100 | 14,100 |
Intellectual Property [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 13,940 | 13,940 |
Chamberlain Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 1,200 | 1,200 |
AUC Title IV Eligibility and Accreditations [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | 100,000 | 100,000 |
Adtalem Brazil Accreditation [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 82,578 | $ 97,179 |
INTANGIBLE ASSETS (Estimated Am
INTANGIBLE ASSETS (Estimated Amortization Expense for Amortized Intangible Assets) (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Intangible Assets [Line Items] | |
2,019 | $ 8,150 |
2,020 | 5,941 |
2,021 | 5,215 |
2,022 | 4,826 |
2,023 | 4,644 |
Thereafter | 16,205 |
Adtalem Brazil [Member] | |
Intangible Assets [Line Items] | |
2,019 | 1,728 |
2,020 | 1,270 |
2,021 | 775 |
2,022 | 526 |
2,023 | 526 |
Thereafter | 4,937 |
Professional Education [Member] | |
Intangible Assets [Line Items] | |
2,019 | 6,422 |
2,020 | 4,671 |
2,021 | 4,440 |
2,022 | 4,300 |
2,023 | 4,118 |
Thereafter | $ 11,268 |
INTANGIBLE ASSETS (Summary of G
INTANGIBLE ASSETS (Summary of Goodwill Balances by Reporting Unit) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 813,887 | $ 829,086 |
Chamberlain [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 4,716 | 4,716 |
AUC [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 68,321 | 68,321 |
RUSM and RUSVM [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 237,173 | 237,173 |
Professional Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 317,699 | 306,653 |
Adtalem Brazil [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 185,978 | $ 212,223 |
INTANGIBLE ASSETS (Summary of73
INTANGIBLE ASSETS (Summary of Goodwill Balances by Reporting Segment) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill [Line Items] | ||
Goodwill | $ 813,887 | $ 829,086 |
Medical And Healthcare [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 310,210 | 310,210 |
Professional Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 317,699 | 306,653 |
Technology and Business [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 185,978 | $ 212,223 |
INTANGIBLE ASSETS (Changes in C
INTANGIBLE ASSETS (Changes in Carrying Amount of Goodwill, by Segment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 829,086 | $ 565,811 |
Purchase Accounting Adjustments | (3,603) | |
Acquisitions | 17,163 | 274,689 |
Foreign exchange rate changes | (32,362) | (7,811) |
Goodwill ending balance | 813,887 | 829,086 |
Medical And Healthcare [Member] | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 310,210 | 310,210 |
Purchase Accounting Adjustments | 0 | |
Acquisitions | 0 | 0 |
Foreign exchange rate changes | 0 | 0 |
Goodwill ending balance | 310,210 | 310,210 |
Professional Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 306,653 | 32,043 |
Purchase Accounting Adjustments | 0 | |
Acquisitions | 11,527 | 274,689 |
Foreign exchange rate changes | (481) | (79) |
Goodwill ending balance | 317,699 | 306,653 |
Technology And Business [Member] | ||
Goodwill [Line Items] | ||
Goodwill beginning balance | 212,223 | 223,558 |
Purchase Accounting Adjustments | (3,603) | |
Acquisitions | 5,636 | 0 |
Foreign exchange rate changes | (31,881) | (7,732) |
Goodwill ending balance | $ 185,978 | $ 212,223 |
INTANGIBLE ASSETS (Summary of I
INTANGIBLE ASSETS (Summary of Indefinite-Lived Intangible Assets Balances by Reporting Segment) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 317,950 | $ 335,938 |
Medical and Healthcare | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 137,500 | 137,500 |
Professional Education [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | 69,126 | 67,812 |
Technology And Business | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets balances | $ 111,324 | $ 130,626 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) | Dec. 04, 2017 | Jun. 28, 2018 | May 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Feb. 05, 2018 | Nov. 01, 2017 |
Intangible Assets [Line Items] | ||||||||||
Amortization of Intangible Assets | $ 9,538,000 | $ 11,169,000 | $ 5,192,000 | |||||||
Indefinite-lived Intangible Assets, Period Increase (Decrease) | 18,000,000 | |||||||||
Goodwill | $ 813,887,000 | 813,887,000 | 829,086,000 | |||||||
Intangible Assets, Net (Excluding Goodwill) | $ 362,931,000 | $ 362,931,000 | 391,958,000 | |||||||
Percentage Of Intangible Assets Including Goodwill | 50.00% | 50.00% | ||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 20,200,000 | $ 1,600,000 | ||||||||
Goodwill, Impairment Loss | $ 22,200,000 | |||||||||
Goodwill, Acquired During Period | $ 17,163,000 | 274,689,000 | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 317,950,000 | 317,950,000 | 335,938,000 | |||||||
ACAMS [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Impaired Intangible Asset, Method for Fair Value Determination | The key assumptions used in calculating the fair value of this trade name included a discount rate of 12.2%, a royalty rate of 5% and revenue growth of 13.6% over the forecast period. Assuming all other assumptions remained constant, if the discount rate increased to 14.6% calculated fair value would equal carrying value of this asset at May 31, 2018. Similarly, assuming all other assumptions remained constant, if the royalty rate decreased to 4.6% calculated fair value would equal carrying value at May 31, 2018. | |||||||||
DeVry University [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 1 | |||||||||
US Education Holdings LLC [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 1 | |||||||||
Indefinite-lived Intangible [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Fair Value In Excess Of Carrying Value Minimum Percentage | 35.00% | |||||||||
Minimum Percentage of Premium of Fair Value Due to Increase in Discount Rate | 22.00% | |||||||||
Goodwill [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Fair Value In Excess Of Carrying Value Minimum Percentage | 55.00% | |||||||||
Minimum Percentage of Premium of Fair Value Due to Increase in Discount Rate | 41.00% | |||||||||
Edupristine [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 11,527,000 | |||||||||
Indefinite-lived Intangible Assets Acquired | 1,400,000 | |||||||||
Sao Judas Tadeu [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 5,636,000 | |||||||||
Indefinite-lived Intangible Assets Acquired | 200,000 | |||||||||
Professional Education [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Amortization of Intangible Assets | 6,501,000 | 7,482,000 | 563,000 | |||||||
Goodwill | 317,699,000 | 317,699,000 | 306,653,000 | |||||||
Goodwill, Acquired During Period | 11,527,000 | 274,689,000 | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 69,126,000 | 69,126,000 | 67,812,000 | |||||||
Technology And Business [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Amortization of Intangible Assets | 3,037,000 | 3,687,000 | $ 4,629,000 | |||||||
Goodwill, Acquired During Period | 5,636,000 | 0 | ||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 111,324,000 | 111,324,000 | 130,626,000 | |||||||
Adtalem Brazil [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 185,978,000 | 185,978,000 | $ 212,223,000 | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 400,000 | |||||||||
Impaired Intangible Asset, Method for Fair Value Determination | The key assumptions utilized in calculating the fair value of this reporting unit were a discount rate of 13.9%, revenue growth rate of 10% over the forecast period and a terminal growth rate of 5%. Assuming all other assumptions remained constant the discount rate for Adtalem Brazil would have to increase to 14.8% for the calculated fair value to equal carrying value of this reporting unit at May 31, 2018. Similarly, holding all other assumptions constant the terminal growth rate would have to decrease to 3.7% for calculated fair value to equal carrying value of Adtalem Brazil at May 31, 2018. | |||||||||
Adtalem Brazil [Member] | Indefinite-lived Intangible [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Fair Value In Excess Of Carrying Value Minimum Percentage | 10.00% | |||||||||
Adtalem Brazil [Member] | Goodwill [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Fair Value In Excess Of Carrying Value Percentage | 12.00% | |||||||||
Association Of Certified Anti-Money Laundering Specialists [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 39.9 | |||||||||
Association Of Certified Anti-Money Laundering Specialists [Member] | Indefinite-lived Intangible [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Fair Value In Excess Of Carrying Value Minimum Percentage | 10.00% | |||||||||
Measurement Input, Discount Rate [Member] | Minimum [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Weighted Average Discount Rate, Percent | 11.20% | |||||||||
Measurement Input, Discount Rate [Member] | Minimum [Member] | Indefinite-lived Intangible [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Weighted Average Discount Rate, Percent | 11.20% | |||||||||
Measurement Input, Discount Rate [Member] | Maximum [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Weighted Average Discount Rate, Percent | 13.90% | |||||||||
Measurement Input, Discount Rate [Member] | Maximum [Member] | Indefinite-lived Intangible [Member] | ||||||||||
Intangible Assets [Line Items] | ||||||||||
Weighted Average Discount Rate, Percent | 13.90% |
RESTRUCTURING CHARGES (Pre-tax
RESTRUCTURING CHARGES (Pre-tax Restructuring Charges) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 5,067 | $ 12,973 | $ 2,389 |
Medical and Healthcare | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 803 | 2,582 | |
Professional Education [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 357 | 0 | |
Technology and Business | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,216 | 0 | |
Home Office and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2,691 | 10,391 | |
Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 4,198 | 3,231 | |
Termination Benefits | Medical and Healthcare | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 777 | 698 | |
Termination Benefits | Professional Education [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 357 | 0 | |
Termination Benefits | Technology and Business | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Termination Benefits | Home Office and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 3,064 | 2,533 | |
Real Estate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 869 | 9,742 | |
Real Estate | Medical and Healthcare | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 26 | 1,884 | |
Real Estate | Professional Education [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Real Estate | Technology and Business | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,216 | 0 | |
Real Estate | Home Office and Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ (373) | $ 7,858 |
RESTRUCTURING CHARGES (Separati
RESTRUCTURING CHARGES (Separation and Restructuring Plan Activity) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Liability beginning balance | $ 46,115 | $ 48,223 |
Increase in liability (separation and other charges) | 19,893 | 27,620 |
Reduction in liability (payments and adjustments) | (27,081) | (29,728) |
Liability ending balance | $ 38,927 | $ 46,115 |
RESTRUCTURING CHARGES - Additio
RESTRUCTURING CHARGES - Additional Information (Detail) pure in Thousands, $ in Millions | 12 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Number of Positions Eliminated | 196 | 173 |
Adtalem Global Education Inc. | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve, Noncurrent | $ 24.4 | |
Restructuring Reserve, Current | $ 14.5 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Before Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Line Items] | |||
U.S. | $ 63,353 | $ (13,553) | $ 36,505 |
Foreign | 135,330 | 144,812 | 114,317 |
Total | $ 198,683 | $ 131,259 | $ 150,822 |
INCOME TAXES (Income Tax Provis
INCOME TAXES (Income Tax Provisions (Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current Tax Provision | |||
U.S. Federal | $ 69,986 | $ 1,162 | $ 37,239 |
State and Local | (599) | (3,834) | (6,256) |
Foreign | 7,831 | 3,777 | 2,685 |
Total Current | 77,218 | 1,105 | 33,668 |
Deferred Tax Provision (Benefit): | |||
U.S. Federal | 19,020 | (2,745) | (20,044) |
State and Local | (1,173) | 6,155 | 7,552 |
Foreign | (10,963) | 5,079 | 4,150 |
Total Deferred | 6,884 | 8,489 | (8,342) |
Income Tax Provision | $ 84,102 | $ 9,594 | $ 25,326 |
INCOME TAXES (Income Tax Prov82
INCOME TAXES (Income Tax Provisions Computed using Statutory U.S. Federal Rate) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | |||
Income Tax at Statutory Rate | $ 55,750 | $ 45,941 | $ 52,788 |
Lower Rates on Foreign Operations | (30,749) | (42,911) | (33,271) |
State Income Taxes | 3,648 | 1,348 | 3,240 |
Impact of Tax Cuts and Jobs Act | 103,878 | 0 | 0 |
Loss on Investment in Subsidiary | (48,903) | 0 | 0 |
Benefit on Foreign Intangibles | (8,813) | 0 | 0 |
Permanent Non-Deductible/(Taxable) Items | 7,715 | 2,720 | 1,931 |
Other | 1,576 | 2,496 | 638 |
Income Tax Provision | $ 84,102 | $ 9,594 | $ 25,326 |
Income Tax at Statutory Rate | 28.10% | 35.00% | 35.00% |
Lower Rates on Foreign Operations | (15.50%) | (32.70%) | (22.10%) |
State Income Taxes | 1.80% | 1.00% | 2.10% |
Impact of Tax Cuts and Jobs Act | 52.30% | 0.00% | 0.00% |
Loss on Investment in Subsidiary | (24.60%) | 0.00% | 0.00% |
Benefit on Foreign Intangibles | (4.50%) | 0.00% | 0.00% |
Permanent Non-Deductible/(Taxable) Items | 3.90% | 2.10% | 1.30% |
Other | 0.80% | 1.90% | 0.50% |
Income Tax Provision | 42.30% | 7.30% | 16.80% |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Tax Asset (Liabilities)) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Employee Benefits | $ 11,957 | $ 18,648 | $ 16,712 |
Stock-Based Compensation | 7,577 | 18,130 | 21,239 |
Deferred Rent | 9,841 | 17,588 | 22,135 |
Receivable Reserve | 7,953 | 11,308 | 18,476 |
Restructuring Costs | 8,704 | 17,148 | 18,820 |
Depreciation | 3,380 | 0 | 0 |
Other Reserves | 2,420 | 6,701 | 3,978 |
Loss and Credit Carryforwards, Net | 37,340 | 37,569 | 24,213 |
Less: Valuation Allowance | (11,496) | (9,456) | (8,624) |
Gross Deferred Tax Assets | 77,676 | 117,636 | 116,949 |
Depreciation | 0 | (10,641) | (21,700) |
Amortization of Intangible Assets | (68,011) | (106,952) | (73,397) |
Gross Deferred Tax Liability | (68,011) | (117,593) | (95,097) |
Net Deferred Taxes | $ 9,665 | $ 43 | $ 21,852 |
INCOME TAXES (Tax Net Operating
INCOME TAXES (Tax Net Operating Loss (Tax Effected) and Credit Carryforwards) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gross Deferred Tax Assets | $ 37,340 | $ 37,569 | $ 24,213 |
U.S. [Member] | |||
Deferred Tax Assets, Tax Credit Carryforwards | $ 271 | ||
Deferred Tax Assets Tax Credit Carryforward Expiration Period Start | 2,027 | ||
Deferred Tax Assets Tax Credit Carryforward Expiration Period End | 2,027 | ||
State [Member] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 17,440 | ||
Deferred Tax Assets, Tax Credit Carryforwards | $ 8,425 | ||
Deferred Tax Assets Operating Loss Carry forwards Expiration Period Start | 2,019 | ||
Deferred Tax Assets Tax Credit Carryforward Expiration Period Start | 2,019 | ||
Deferred Tax Assets Operating Loss Carry forwards Expiration Period End | 2,039 | ||
Deferred Tax Assets Tax Credit Carryforward Expiration Period End | 2,028 | ||
Foreign [Member] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 8,082 | ||
Deferred Tax Assets Operating Loss Carry forwards Expiration Period Start | 2,021 | ||
Deferred Tax Assets Operating Loss Carry forwards Expiration Period End | 2,038 | ||
Foreign [Member] | |||
Deferred Tax Assets, Operating Loss Carryforwards | $ 3,122 |
INCOME TAXES (Changes in Unreco
INCOME TAXES (Changes in Unrecognized Tax Benefits) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Beginning Balance, July 1 | $ 7,901 | $ 7,497 | $ 8,475 |
Increases from Positions Taken During Prior Periods | 1,151 | 1,397 | 346 |
Decreases from Positions Taken During Prior Periods | (5,711) | (1,445) | (1,716) |
Increases from Positions Taken During the Current Period | 31,063 | 452 | 392 |
Ending Balance, June 30 | $ 34,404 | $ 7,901 | $ 7,497 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ 74,500 | |||
Effective Income Tax Rate Reconciliation, Percent | 42.30% | 7.30% | 16.80% | |
Income Tax Expense Benefit Special Items | $ 48,900 | $ 19,700 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% | 35.00% | 35.00% | |
Transition Tax Expenses | $ 96,300 | |||
Effective Income Tax Rate Reconciliation Impact On Foreign Tax Rate | 10.50% | |||
Other Income Tax Expense Benefit Continuing Operations Tax Act | $ 103,900 | |||
Income Tax Deferred Taxes Impact Tax Act | 4,900 | |||
State Income And Foreign With holding Taxes Un distributed Foreign Earnings Tax Act | $ 2,700 | |||
Effective Income Tax Rate Continuing Operations Excluding Special Items | 19.10% | 16.00% | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 2,600 | $ 2,000 | $ 1,600 | |
Income Tax Examination, Penalties and Interest Expense | 600 | 400 | 200 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 34,400 | 6,700 | ||
Deferred Tax Assets, Valuation Allowance | 11,496 | 9,456 | 8,624 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 314,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 58,100 | |||
Unrecognized Tax Benefits | 34,404 | $ 7,901 | $ 7,497 | $ 8,475 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 600 | |||
Adtalem Brazil [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income Tax Expense Benefit Special Items | $ 8,800 | |||
Minimum [Member] | Scenario, Plan [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 28.10% |
DEBT (Long-term debt) (Detail)
DEBT (Long-term debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Total Debt: | ||
Long-term Debt, Gross | $ 300,000 | $ 125,000 |
Deferred Debt Issuance Costs | (6,927) | 0 |
Total Amount Outstanding | 293,073 | 125,000 |
Less Current Portion: | ||
Term B Loan | (3,000) | 0 |
Noncurrent Portion | 290,073 | 125,000 |
Revolver [Member] | ||
Total Debt: | ||
Long-term Debt, Gross | 0 | 125,000 |
Term B Loan [Member] | ||
Total Debt: | ||
Long-term Debt, Gross | $ 300,000 | $ 0 |
DEBT (Scheduled maturities of l
DEBT (Scheduled maturities of long-term debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
2,019 | $ 3,000 | |
2,020 | 3,000 | |
2,021 | 3,000 | |
2,022 | 3,000 | |
2,023 | 3,000 | |
Thereafter | 285,000 | |
Long-term Debt | $ 300,000 | $ 125,000 |
DEBT (Debt Issuance Costs) (Det
DEBT (Debt Issuance Costs) (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
Deferred Debt Issuance Costs at June 30, 2017 | $ 0 |
Deferred Debt Issuance Costs at June 30, 2018 | 6,927 |
Term B Loan [Member] | |
Deferred Debt Issuance Costs at June 30, 2017 | 0 |
Deferred Debt Issuance Costs For Credit Agreement | 7,148 |
Amortization of Deferred Debt Issuance Costs | (221) |
Deferred Debt Issuance Costs at June 30, 2018 | 6,927 |
Revolver [Member] | |
Deferred Debt Issuance Costs at June 30, 2017 | 1,935 |
Deferred Debt Issuance Costs For Credit Agreement | 2,723 |
Amortization of Deferred Debt Issuance Costs | (2,052) |
Deferred Debt Issuance Costs at June 30, 2018 | 2,606 |
Total [Member] | |
Deferred Debt Issuance Costs at June 30, 2017 | 1,935 |
Deferred Debt Issuance Costs For Credit Agreement | 9,871 |
Amortization of Deferred Debt Issuance Costs | (2,273) |
Deferred Debt Issuance Costs at June 30, 2018 | $ 9,533 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | Apr. 13, 2018 | Mar. 31, 2015 | Jun. 30, 2018 | Jun. 30, 2017 |
Line of Credit Facility [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 68,400,000 | $ 68,500,000 | ||
Line Of Credit Facility Unused Capacity Commitment Fee Percentage | 0.40% | |||
Letter of Credit Annual Fee Percentage | 2.25% | |||
Line of Credit Facility, Initiation Date | Apr. 13, 2018 | Mar. 31, 2015 | ||
Debt, Weighted Average Interest Rate | 3.18% | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 231,600,000 | |||
Long-term Debt | 293,073,000 | $ 125,000,000 | ||
Line of Credit Facility, Increase (Decrease), Net | $ 250,000,000 | |||
Debt Issuance Costs, Gross | $ 9,900,000 | |||
Debt Issuance Costs Write-off | $ 1,400,000 | |||
Term B Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.08% | |||
Debt Instrument, Maturity Date | Apr. 13, 2025 | |||
Debt Instrument, Face Amount | $ 300,000,000 | |||
Debt Instrument, Periodic Payment, Principal | 750,000 | |||
Debt Issuance Costs, Gross | $ 7,100,000 | |||
Debt Issuance Costs Amortization Period | 7 years | |||
Eurocurrency Rate [Member] | Term B Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR-equivalent rate plus 3% | |||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||
Base Rate [Member] | Term B Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Description of Variable Rate Basis | base rate plus 2% | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | $ 400,000,000 | ||
Line of Credit Facility, Expiration Date | Apr. 13, 2023 | Mar. 31, 2020 | ||
Foreign Currency Borrowing Capacity | $ 200,000,000 | |||
Long-term Debt | 125,000,000 | |||
Debt Issuance Costs, Gross | $ 2,700,000 | |||
Debt Issuance Costs Amortization Period | 5 years | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 1.75% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 2.75% | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 0.75% | |||
Revolving Credit Facility [Member] | Prime Rate [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 1.75% | |||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | $ 100,000,000 | ||
Letter Of Credit Title IV Disbursement, Amount | $ 68,400,000 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 10,900,000 | $ 12,900,000 | $ 11,800,000 |
Employee Stock Purchase Program Authorized Amount | $ 25,000 | ||
Employee Purchase Plan Purchase Price Percentage Of Fair Market Value | 95.00% | ||
Employee Purchase Plan Purchase Price Percentage Of Subsidy By Employer | 5.00% | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 20,725 | 33,548 | 55,162 |
COMMITMENTS AND CONTINGENCIES92
COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Commitments for Non-Cancellable Operating Leases) (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
2,019 | $ 67,295 |
2,020 | 65,032 |
2,021 | 58,913 |
2,022 | 50,309 |
2,023 | 46,716 |
Thereafter | $ 100,537 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense | $ 46.6 | $ 44.4 | $ 37.6 |
SEGMENT INFORMATION (Tabulation
SEGMENT INFORMATION (Tabulation of Business Segment Information Based on Current Segmentation) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | $ 319,787 | $ 310,070 | $ 308,211 | $ 293,143 | $ 315,216 | $ 299,138 | $ 301,513 | $ 292,042 | $ 1,231,211 | $ 1,207,909 | $ 1,080,075 |
Total Consolidated Operating Income from Continuing Operations | 65,167 | $ 52,505 | $ 59,918 | $ 29,886 | 51,741 | $ 45,466 | $ 3,164 | $ 35,127 | 207,476 | 135,498 | 156,090 |
Discontinued Operations | 60,582 | 165,236 | 60,582 | 165,236 | |||||||
Total Consolidated Assets | 2,344,961 | 2,315,018 | 2,344,961 | 2,315,018 | 2,096,996 | ||||||
Total Consolidated Additions to Long-Lived Assets | 85,835 | 405,748 | 244,526 | ||||||||
Total Consolidated Depreciation Expense | 43,286 | 45,805 | 43,319 | ||||||||
Total Consolidated Amortization Expense | 9,538 | 11,169 | 5,192 | ||||||||
Discontinued Operations, Held-for-sale [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Discontinued Operations | 60,582 | 165,236 | 60,582 | 165,236 | 200,643 | ||||||
Reconciliation to Consolidated Financial Statements [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Capital Expenditures | 66,530 | 42,508 | 51,455 | ||||||||
Increase in Capital Assets from Acquisitions | 381 | 4,913 | 13,778 | ||||||||
Increase in Intangible Assets and Goodwill | 18,924 | 358,327 | 179,293 | ||||||||
Total Consolidated Additions to Long-Lived Assets | 85,835 | 405,748 | 244,526 | ||||||||
Medical and Healthcare [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 815,674 | 802,462 | 783,655 | ||||||||
Total Consolidated Operating Income from Continuing Operations | 189,672 | 187,138 | 178,484 | ||||||||
Total Consolidated Assets | 988,920 | 905,741 | 988,920 | 905,741 | 834,975 | ||||||
Total Consolidated Additions to Long-Lived Assets | 34,099 | 15,774 | 25,645 | ||||||||
Total Consolidated Depreciation Expense | 29,731 | 31,938 | 33,795 | ||||||||
Professional Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 147,195 | 131,769 | 102,921 | ||||||||
Total Consolidated Operating Income from Continuing Operations | 27,695 | 19,866 | 28,043 | ||||||||
Total Consolidated Assets | 456,589 | 451,261 | 456,589 | 451,261 | 91,741 | ||||||
Total Consolidated Additions to Long-Lived Assets | 15,063 | 364,275 | 1,120 | ||||||||
Total Consolidated Depreciation Expense | 1,999 | 1,869 | 1,550 | ||||||||
Total Consolidated Amortization Expense | 6,501 | 7,482 | 563 | ||||||||
Technology and Business [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 270,934 | 276,341 | 196,097 | ||||||||
Total Consolidated Operating Income from Continuing Operations | 29,431 | 36,204 | 13,580 | ||||||||
Total Consolidated Assets | 547,110 | 606,563 | 547,110 | 606,563 | 583,020 | ||||||
Total Consolidated Additions to Long-Lived Assets | 25,998 | 19,222 | 206,955 | ||||||||
Total Consolidated Depreciation Expense | 10,282 | 10,117 | 5,444 | ||||||||
Total Consolidated Amortization Expense | 3,037 | 3,687 | 4,629 | ||||||||
Home Office and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | (2,592) | (2,663) | (2,598) | ||||||||
Total Consolidated Operating Income from Continuing Operations | (39,322) | (107,710) | (64,017) | ||||||||
Total Consolidated Assets | $ 291,760 | $ 186,217 | 291,760 | 186,217 | 386,617 | ||||||
Total Consolidated Additions to Long-Lived Assets | 10,675 | 6,477 | 10,806 | ||||||||
Total Consolidated Depreciation Expense | $ 1,274 | $ 1,881 | $ 2,530 |
SEGMENT INFORMATION (Revenues a
SEGMENT INFORMATION (Revenues and Long-Lived Assets by Geographic Area) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | $ 319,787 | $ 310,070 | $ 308,211 | $ 293,143 | $ 315,216 | $ 299,138 | $ 301,513 | $ 292,042 | $ 1,231,211 | $ 1,207,909 | $ 1,080,075 |
Total Consolidated Long-lived Assets | 427,913 | 463,042 | 427,913 | 463,042 | 492,745 | ||||||
Domestic Operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 610,967 | 585,865 | 531,025 | ||||||||
Total Consolidated Long-lived Assets | 148,724 | 164,324 | 148,724 | 164,324 | 191,966 | ||||||
Dominica, St. Kitts and St. Maarten [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 342,831 | 340,861 | 346,235 | ||||||||
Total Consolidated Long-lived Assets | 182,701 | 190,843 | 182,701 | 190,843 | 190,513 | ||||||
Brazil [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 270,934 | 276,341 | 196,097 | ||||||||
Total Consolidated Long-lived Assets | 94,467 | 104,497 | 94,467 | 104,497 | 106,878 | ||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 6,479 | 4,842 | 6,718 | ||||||||
Total Consolidated Long-lived Assets | 2,021 | 3,378 | 2,021 | 3,378 | 3,388 | ||||||
Total International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Consolidated Revenue | 620,244 | 622,044 | 549,050 | ||||||||
Total Consolidated Long-lived Assets | $ 279,189 | $ 298,718 | $ 279,189 | $ 298,718 | $ 300,779 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Concentration Risk, Benchmark Description | less than 5% | less than 5% | less than 5% |
Home Office And Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Regulatory Settlement Charge | $ 52.2 | ||
Sales Revenue, Net [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
QUARTERLY FINANCIAL DATA (UNA97
QUARTERLY FINANCIAL DATA (UNAUDITED) (Summary of Quarterly Data) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue | $ 319,787 | $ 310,070 | $ 308,211 | $ 293,143 | $ 315,216 | $ 299,138 | $ 301,513 | $ 292,042 | $ 1,231,211 | $ 1,207,909 | $ 1,080,075 |
Operating Income from Continuing Operations | 65,167 | 52,505 | 59,918 | 29,886 | 51,741 | 45,466 | 3,164 | 35,127 | 207,476 | 135,498 | 156,090 |
Amounts Attributable to Adtalem Global Education: [Abstract] | |||||||||||
Income (Loss) from Continuing Operations | 97,413 | 42,905 | (51,841) | 25,438 | 42,902 | 38,332 | 11,746 | 26,994 | 113,915 | 119,974 | 125,086 |
Loss from Discontinued Operations | (34,607) | (3,571) | (29,315) | (12,653) | (43) | 1,527 | 2,667 | (1,842) | (80,146) | 2,309 | (128,252) |
Net Income Attributable to Adtalem Global Education | $ 62,806 | $ 39,334 | $ (81,156) | $ 12,785 | $ 42,859 | $ 39,859 | $ 14,413 | $ 25,152 | $ 33,769 | $ 122,283 | $ (3,166) |
Earnings Per Share, Basic [Abstract] | |||||||||||
Continuing Operations | $ 1.60 | $ 0.70 | $ (0.85) | $ 0.41 | $ 0.68 | $ 0.60 | $ 0.18 | $ 0.43 | $ 1.85 | $ 1.89 | $ 1.95 |
Discontinued Operations | (0.57) | (0.06) | (0.48) | (0.20) | 0 | 0.02 | 0.04 | (0.03) | (1.30) | 0.04 | |
Total | 1.03 | 0.64 | (1.33) | 0.20 | 0.68 | 0.63 | 0.23 | 0.40 | 0.55 | 1.93 | (0.05) |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Continuing Operations | 1.58 | 0.69 | (0.85) | 0.40 | 0.67 | 0.60 | 0.18 | 0.42 | 1.83 | 1.87 | 1.94 |
Discontinued Operations | (0.56) | (0.06) | (0.48) | (0.20) | 0 | 0.02 | 0.04 | (0.03) | (1.29) | 0.04 | |
Total | $ 1.02 | $ 0.63 | $ (1.33) | $ 0.20 | 0.67 | 0.62 | 0.23 | 0.39 | 0.54 | 1.91 | (0.05) |
Cash Dividends Declared per Common Share | $ 0 | $ 0 | $ 0.18 | $ 0 | $ 0 | $ 0.18 | $ 0.36 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Subsequent Event [Line Items] | ||
Property, Plant and Equipment, Net | $ 388,654 | $ 488,826 |
Ross University School of Medicine [Member] | ||
Subsequent Event [Line Items] | ||
Property, Plant and Equipment, Net | $ 35,200 |
SCHEDULE II (Valuation and Qual
SCHEDULE II (Valuation and Qualifying Accounts and Reserves) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Deductions | $ (4,900) | ||||
Allowance for accounts receivable for refunds [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | $ 450 | $ 690 | 412 | ||
Charged to Costs and Expenses | [1] | 16,882 | 15,525 | 14,602 | |
Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | [2] | 16,945 | 15,765 | 14,324 | |
Balance at End of Year | 387 | 450 | 690 | ||
Allowance for accounts receivable for uncollectible accounts [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 24,570 | 25,524 | 17,848 | ||
Charged to Costs and Expenses | 16,925 | 19,003 | 15,437 | ||
Charged to Other Accounts | [3] | (1,283) | (240) | (217) | |
Deductions | [2] | 12,630 | 19,717 | 7,544 | |
Balance at End of Year | 27,582 | 24,570 | 25,524 | ||
Allowance for longterm notes receivable for uncollectible notes [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 15 | 16 | 1,708 | ||
Charged to Costs and Expenses | (5) | (1) | (1,217) | ||
Charged to Other Accounts | 0 | 0 | (475) | [4] | |
Deductions | 0 | 0 | 0 | ||
Balance at End of Year | 10 | 15 | 16 | ||
Deferred tax assets valuation allowances [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 9,456 | 8,624 | 10,552 | ||
Charged to Costs and Expenses | 2,266 | 883 | 0 | ||
Charged to Other Accounts | (19) | 1,865 | 0 | ||
Deductions | 207 | 1,916 | 1,928 | [5] | |
Balance at End of Year | 11,496 | 9,456 | 8,624 | ||
Restructuring expense reserve [Member] | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 46,115 | 48,223 | 26,992 | ||
Charged to Costs and Expenses | 19,893 | 27,620 | 67,495 | ||
Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | [6] | 27,081 | 29,728 | 46,264 | |
Balance at End of Year | $ 38,927 | $ 46,115 | $ 48,223 | ||
[1] | Amounts recorded as a reduction of revenue, including adjustment for withdrawn students. | ||||
[2] | Write-offs of uncollectable amounts and cash refunds. | ||||
[3] | Effects of foreign currency translation charged to Accumulated Other Comprehensive Loss. | ||||
[4] | Reclassification between accounts. | ||||
[5] | Adjustments to valuation allowance include increase of $2.9 million and a decrease of $4.9 million in fiscal year 2016. | ||||
[6] | Payments and/or adjustments of liabilities for restructuring reserve. |
SCHEDULE II (Valuation and Q100
SCHEDULE II (Valuation and Qualifying Accounts and Reserves) (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Valuation Allowances and Reserves, Additions for Adjustments | $ 2.9 |
Valuation Allowances and Reserves, Deductions | $ 4.9 |