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Summary of Significant Accounting Policy (Tables) | 12 Months Ended
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Jun. 30, 2019
Summary of Significant Accounting Policies |
Schedule of impact of adoption of ASU 606 | The impact of adoption on the Company’s consolidated statements of operations for the year ended June 30, 2019 was as follows:
|  |  | Year Ended June 30, 2019
|  |  | As |  |  |  |  |  |
|  |  | Reported |  | Adjustment |  | Amounts
|  |  | Under |  | due to ASC |  | under
|  |  | ASC 606 |  | 606 |  | ASC 605
|  |  |  | (In thousands)
Revenues |  |  | $ | 1,015,752 |  | $ | (203) |  | $ | 1,015,549
Selling, administrative, and other operating expenses |  |  |  | 297,350 |  |  | (263) |  |  | 297,087
Income from operations |  |  |  | 45,486 |  |  | 60 |  |  | 45,546
Net income |  |  |  | 37,209 |  |  | 60 |  |  | 37,269
Net income attributable to common stockholders |  |  | $ | 37,209 |  | $ | 60 |  | $ | 37,269
The impact of adoption on the Company’s consolidated balance sheets as of June 30, 2019 was as follows:
|  |  | June 30, 2019
|  |  | As Reported |  | Adjustment |  | Amounts
|  |  | Under ASC |  | due to ASC |  | under ASC
|  |  | 606 |  | 606 |  | 605
|  |  |  | (In thousands)
Other current assets |  |  | $ | 12,307 |  | $ | (273) |  | $ | 12,034
Deposits and other assets |  |  |  | 48,330 |  |  | (629) |  |  | 47,701
Total assets |  |  |  | 819,606 |  |  | (902) |  |  | 818,704
Deferred revenue |  |  |  | 22,828 |  |  | (2,263) |  |  | 20,565
Total liabilities |  |  |  | 186,241 |  |  | (2,263) |  |  | 183,978
Retained earnings (accumulated deficit) |  |  |  | 22,447 |  |  | 60 |  |  | 22,507
Total stockholders' equity |  |  |  | 633,365 |  |  | 60 |  |  | 633,425
Schedule of disaggregation of revenue |
|  |  | Year Ended
|  |  | June 30, 2019
|  |  |  | (In thousands)
Managed Public School Programs |  |  | $ | 890,275
Institutional |  |  |  |
Non-managed Public School Programs |  |  |  | 50,623
Institutional Software & Services |  |  |  | 39,330
Total Institutional |  |  |  | 89,953
Private Pay Schools and Other |  |  |  | 35,524
Total Revenues |  |  | $ | 1,015,752
Schedule of accounts receivables, contract assets and deferred revenue |
|  |  | June 30, |  | July 1,
|  |  | 2019 |  | 2018
|  |  | (In thousands)
Accounts receivable |  |  | $ | 191,639 |  | $ | 176,319
Unbilled receivables (included in accounts receivable) |  |  |  | 16,189 |  |  | 12,143
Deferred revenue |  |  |  | 22,828 |  |  | 25,580
Schedule of useful lives of property and equipment |
|  | Useful Life
Student and state testing computers |  | 3 - 5 years
Computer hardware |  | 3 years
Computer software |  | 3 - 5 years
Web site development |  | 3 years
Office equipment |  | 5 years
Furniture and fixtures |  | 7 years
Leasehold improvements |  | 3 - 12 years
Schedule of goodwill activity |
($ in millions) |  | Amount
Goodwill |  |  |
Balance as of June 30, 2016 |  | $ | 87.3
Adjustment to purchase price of LTS Education Systems ("LTS") |  |  | (0.1)
Balance as of June 30, 2017 |  | $ | 87.2
Acquisition of Big Universe, Inc. |  |  | 3.0
Balance as of June 30, 2018 |  | $ | 90.2
Adjustments |  |  | —
Balance as of June 30, 2019 |  | $ | 90.2
Schedule of intangible assets |
|  | June 30, 2019 |  | June 30, 2018
($ in millions) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
Trade names |  | $ | 17.6 |  | $ | (9.4) |  | $ | 8.2 |  | $ | 17.6 |  | $ | (8.5) |  | $ | 9.1
Customer and distributor relationships |  |  | 20.5 |  |  | (14.7) |  |  | 5.8 |  |  | 20.5 |  |  | (13.4) |  |  | 7.1
Developed technology |  |  | 3.2 |  |  | (2.8) |  |  | 0.4 |  |  | 3.2 |  |  | (2.2) |  |  | 1.0
Other |  |  | 1.4 |  |  | (0.8) |  |  | 0.6 |  |  | 1.4 |  |  | (0.6) |  |  | 0.8
Total |  | $ | 42.7 |  | $ | (27.7) |  | $ | 15.0 |  | $ | 42.7 |  | $ | (24.7) |  | $ | 18.0
Schedule of calculation of basic and diluted net income (loss) per share |
|  |  | Year Ended June 30,
|  |  | 2019 |  | 2018 |  | 2017
|  |  | (In thousands except share and per share data)
Basic net income per share computation: |  |  |  |  |  |  |  |  |  |
Net income attributable to common stockholders |  |  | $ | 37,209 |  | $ | 27,620 |  | $ | 451
Weighted average common shares — basic |  |  |  | 38,848,780 |  |  | 39,282,674 |  |  | 38,298,581
Basic net income per share |  |  | $ | 0.96 |  | $ | 0.70 |  | $ | 0.01
Diluted net income per share computation: |  |  |  |  |  |  |  |  |  |
Net income attributable to common stockholders |  |  | $ | 37,209 |  | $ | 27,620 |  | $ | 451
Share computation: |  |  |  |  |  |  |  |  |  |
Weighted average common shares — basic |  |  |  | 38,848,780 |  |  | 39,282,674 |  |  | 38,298,581
Effect of dilutive stock options and restricted stock awards |  |  |  | 2,096,020 |  |  | 1,355,070 |  |  | 1,202,353
Weighted average common shares — diluted |  |  |  | 40,944,800 |  |  | 40,637,744 |  |  | 39,500,934
Diluted net income per share |  |  | $ | 0.91 |  | $ | 0.68 |  | $ | 0.01
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | The following table summarizes certain fair value information at June 30, 2019 for assets or liabilities measured at fair value on a nonrecurring basis.
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Lease exit liability |  | $ | 1,779 |  | $ | — |  | $ | — |  | $ | 1,779
The following table summarizes certain fair value information at June 30, 2018 for assets or liabilities measured at fair value on a nonrecurring basis.
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Lease exit liability |  | $ | 2,758 |  | $ | — |  | $ | — |  | $ | 2,758
Schedule of assets and liabilities measured at fair value on a recurring basis |
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Lease exit liability |  | $ | 2,758 |  | $ | — |  | $ | — |  | $ | 2,758
The following table summarizes certain fair value information at June 30, 2019 for assets or liabilities measured at fair value on a recurring basis.
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Convertible note received in acquisition |  | $ | 5,006 |  |  | — |  |  | — |  |  | 5,006
The following table summarizes certain fair value information at June 30, 2018 for assets or liabilities measured at fair value on a recurring basis.
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Contingent consideration associated with acquisitions |  | $ | 1,345 |  | $ | — |  | $ | — |  | $ | 1,345
Schedule of activity related to fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis |
|  | Fair Value Measurements Using:
|  |  |  |  | Quoted Prices |  |  |  |
|  |  |  |  | in Active |  | Significant |  |
|  |  |  |  | Markets for |  | Other |  | Significant
|  |  |  |  | Identical |  | Observable |  | Unobservable
|  |  |  |  | Assets |  | Input |  | Inputs
Description |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
|  |  | (In thousands)
Contingent consideration associated with acquisitions |  | $ | 1,345 |  | $ | — |  | $ | — |  | $ | 1,345
The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2019.
|  |  | Year Ended June 30, 2019
|  |  |  |  | Purchases, |  |  |  |  |  |
|  | Fair Value |  | Issuances, |  | Unrealized |  | Fair Value
Description |  | June 30, 2018 |  | and Settlements |  | Gains (Losses) |  | June 30, 2019
|  | (In thousands)
Contingent consideration associated with acquisitions |  | $ | 1,345 |  | $ | (1,347) |  | $ | 2 |  | $ | —
Convertible note received in acquisition |  |  | — |  |  | 5,006 |  |  | — |  |  | 5,006
The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2018.
|  |  | Year Ended June 30, 2018
|  |  |  |  | Purchases, |  |  |  |  |  |
|  | Fair Value |  | Issuances, |  | Unrealized |  | Fair Value
Description |  | June 30, 2017 |  | and Settlements |  | Gains (Losses) |  | June 30, 2018
|  | (In thousands)
Contingent consideration associated with acquisitions |  |  | 2,806 |  |  | (1,319) |  |  | (142) |  |  | 1,345
The following table presents activity related to the Company’s fair value measurements categorized as Level 3 of the valuation hierarchy, valued on a recurring basis, for the year ended June 30, 2017.
|  |  | Year Ended June 30, 2017
|  |  |  |  | Purchases, |  |  |  |  |  |
|  | Fair Value |  | Issuances, |  | Unrealized |  | Fair Value
Description |  | June 30, 2016 |  | and Settlements |  | Gains (Losses) |  | June 30, 2017
|  | (In thousands)
Redeemable noncontrolling interest in Middlebury Interactive Learning |  | $ | 6,801 |  | $ | (9,134) |  | $ | 2,333 |  | $ | —
Contingent consideration associated with acquisitions |  |  | 2,947 |  |  | — |  |  | (141) |  |  | 2,806
Total |  | $ | 9,748 |  | $ | (9,134) |  | $ | 2,192 |  | $ | 2,806

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