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FINANCING RECEIVABLES | 3 Months Ended
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Sep. 30, 2019
Receivables [Abstract] |
FINANCING RECEIVABLES | NOTE 6: FINANCING RECEIVABLES Adtalem’s financing receivables consist of trade receivables related to institutional loan programs 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 at rates from 3.0% to 12.0% per annum accrue each month on the unpaid balance. Most students are required to begin repaying their loans while they are still in school with a minimum payment level designed to demonstrate their capability to repay, reduce the possibility of over borrowing and to minimize interest being accrued on the loan balance. Payments may increase upon completing or departing school. 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’s flexible payment plans with terms of up to 18-months. 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. Loans are considered nonperforming if they are more than 90 days past due. Since all of Adtalem’s institutional loans 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).
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2019 | ​ | June 30, 2019 | ​ | September 30, 2018
Gross Institutional Loans |  | ​ | ​ |  | $ | 47,673 |  | ​ | ​ |  | $ | 47,937 |  | ​ | ​ |  | $ | 48,936
Allowance for Credit Losses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at July 1 |  | $ | (6,289) | ​ | ​ | ​ |  | $ | (10,003) | ​ | ​ | ​ |  | $ | (10,003) | ​ | ​ | ​
Charge-offs and Adjustments | ​ | ​ | 26 | ​ | ​ | ​ | ​ | ​ | 10,777 | ​ | ​ | ​ | ​ | ​ | 5,355 | ​ | ​ | ​
Recoveries | ​ | ​ | (24) | ​ | ​ | ​ | ​ | ​ | (83) | ​ | ​ | ​ | ​ | ​ | (32) | ​ | ​ | ​
Additional Provision | ​ | ​ | (3,291) | ​ | ​ | ​ | ​ | ​ | (6,980) | ​ | ​ | ​ | ​ | ​ | (2,462) | ​ | ​ | ​
Balance at End of Period | ​ | ​ | ​ | ​ | ​ | (9,578) | ​ | ​ | ​ | ​ | ​ | (6,289) | ​ | ​ | ​ | ​ | ​ | (7,142)
Net Institutional Loans | ​ | ​ | ​ |  | $ | 38,095 | ​ | ​ | ​ |  | $ | 41,648 | ​ | ​ | ​ |  | $ | 41,794
​ Of the net balances above, $14.1 million, $16.6 million and $12.7 million was classified as Accounts Receivable, Net on the Consolidated Balance Sheets at September 30, 2019, June 30, 2019 and September 30, 2018, respectively, and $24.0 million, $25.1 million and $29.1 million, representing amounts due beyond one year, was classified as Other Assets, Net on the Consolidated Balance Sheets at September 30, 2019, June 30, 2019 and September 30, 2018, 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). ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | June 30, | ​ | September 30,
​ |  | 2019 |  | 2019 |  | 2018
Institutional Loans: |  | ​ |  | ​ | ​ |  |  | ​ |
Performing | ​ | $ | 36,712 | ​ | $ | 38,049 | ​ | $ | 41,963
Nonperforming | ​ |  | 10,961 | ​ |  | 9,888 | ​ |  | 6,973
Total Institutional Loans | ​ | $ | 47,673 | ​ | $ | 47,937 | ​ | $ | 48,936
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Greater |  | ​ | ​ |  | ​ | ​ |  | ​ | ​
​ | ​ | ​ | ​ | ​ | 30-59 | ​ | 60-89 | ​ | Than 90 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Total
​ | ​ | 1-29 Days | ​ | Days Past | ​ | Days Past | ​ | Days Past | ​ | Total | ​ | ​ | ​ | ​ | Institutional
​ | ​ | Past Due | ​ | Due | ​ | Due | ​ | Due | ​ | Past Due | ​ | Current | ​ | Loans
Institutional Loans: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
September 30, 2019 | ​ | $ | 3,317 | ​ | $ | 1,342 | ​ | $ | 526 | ​ | $ | 10,961 | ​ | $ | 16,146 | ​ | $ | 31,527 | ​ | $ | 47,673
June 30, 2019 | ​ | $ | 3,578 | ​ | $ | 2,458 | ​ | $ | 687 | ​ | $ | 9,888 | ​ | $ | 16,611 | ​ | $ | 31,326 | ​ | $ | 47,937
September 30, 2018 | ​ | $ | 6,437 | ​ | $ | 757 | ​ | $ | 752 | ​ | $ | 6,973 | ​ | $ | 14,919 | ​ | $ | 34,017 | ​ | $ | 48,936
​ Allowances for credit losses on nonperforming loans as of September 30, 2019, June 30, 2019 and September 30, 2018 were $9.4 million, $6.1 million and $7.0 million, respectively. ​ In connection with the completion of the sale of DeVry University, Adtalem loaned $10.0 million to DeVry University under the terms of the Note. The Note bears interest at a rate of 4% per annum, payable annually in arrears, and has a maturity date of January 1, 2022. The value of the DeVry University loan receivable included in Other Assets, Net on the Consolidated Balance Sheet as of September 30, 2019 and June 30, 2019 is estimated by discounting the future cash flows using an average of current rates for similar arrangements, which is estimated at 4% per annum. Management has evaluated the collectability of this note and has determined no reserve is necessary. On July 31, 2019, Adtalem sold its Chicago, Illinois, campus facility to DePaul College Prep Foundation (“DePaul College Prep”). In connection with the sale, Adtalem holds a mortgage from DePaul College Prep for $46.8 million. The mortgage is due on July 31, 2024 as a balloon payment and bears interest at a rate of 4% per annum, payable monthly. The value of the DePaul College Prep loan receivable included in Other Assets, Net on the Consolidated Balance Sheet as of September 30, 2019 is $40.4 million, which is estimated by discounting the future cash flows using an average of current rates for similar arrangements, which is estimated at 7% per annum. Management has evaluated the collectability of this note and has determined no reserve is necessary.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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