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Leases | 3 Months Ended
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Sep. 30, 2021
Lessee Disclosure [Abstract] |
Leases | 11. Leases We determine if a contract contains a lease at inception. We have entered into operating leases for academic sites, housing facilities, and office space which expire at various dates through June 2032, most of which include options to terminate for a fee or extend the leases for an additional five-year period. The lease term includes the noncancelable period of the lease, as well as any periods for which we are reasonably certain to exercise extension options. We elected to account for lease and non-lease components (e.g., common-area maintenance costs) as a single lease component for all operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We have not entered into any financing leases. Operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets represent our right to use an underlying asset during the lease term. Operating lease assets and liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. Operating lease assets are adjusted for any prepaid or accrued lease payments, lease incentives, initial direct costs, and impairments. Our incremental borrowing rate is utilized in determining the present value of the lease payments based upon the information available at the commencement date. Our incremental borrowing rate is determined using a secured borrowing rate for the same currency and term as the associated lease. Operating lease expense is recognized on a straight-line basis over the lease term. As of September 30, 2021, we entered into one additional lease that has not yet commenced. The lease is expected to commence during the fourth quarter of fiscal year 2022, has a 12-year lease term, and will result in an additional lease asset and lease liability of approximately $18.9 million. The components of lease cost were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | September 30,
​ | ​ | 2021 | ​ | 2020
Operating lease cost | ​ | $ | 14,387 | ​ | $ | 12,780
Sublease income | ​ |  | (3,338) | ​ |  | (4,341)
Total lease cost | ​ | $ | 11,049 | ​ | $ | 8,439
​ Maturities of lease liabilities by fiscal year as of September 30, 2021 were as follows (in thousands): ​
​ | ​ | ​ | ​
​ | ​ | Operating
Fiscal Year | ​ | Leases
2022 (remaining) | ​ | $ | 51,853
2023 | ​ | ​ | 56,899
2024 | ​ | ​ | 44,370
2025 | ​ | ​ | 33,340
2026 | ​ | ​ | 20,118
Thereafter | ​ | ​ | 59,545
Total lease payments | ​ |  | 266,125
Less: tenant improvement allowance not yet received | ​ | ​ | (4,886)
Less: imputed interest | ​ | ​ | (39,340)
Present value of lease liabilities | ​ | $ | 221,899
​ Lease term and discount rate were as follows: ​
​ | ​ | ​ | ​
​ | ​ | September 30,
​ | ​ | 2021
Weighted-average remaining operating lease term (years) | ​ | ​ | 5.5
Weighted-average operating lease discount rate | ​ | ​ | 5.6%
​ Supplemental disclosures of cash flow information related to leases were as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended
​ | ​ | September 30,
​ | ​ | 2021 | ​ | 2020
Cash paid for amounts in the measurement of operating lease liabilities (net of sublease receipts) | ​ | $ | 13,545 | ​ | $ | 11,427
Operating lease assets obtained in exchange for operating lease liabilities | ​ | $ | 6,111 | ​ | $ | 26,528
​ Adtalem maintains agreements to lease either a portion or the full space of three facilities owned by Adtalem to DeVry University with various expiration dates through December 2023. Adtalem maintains agreements to sublease either a portion or the full leased space at 12 of its operating lease locations. Most of these subleases are a result of Adtalem retaining leases associated with restructured lease activities at DeVry University and Carrington College prior to their divestitures during fiscal year 2019. All sublease expirations with DeVry University and Carrington coincide with Adtalem’s original head lease expiration dates. At that time, Adtalem will be relieved of its obligations. In addition, Adtalem has entered into subleases with non-affiliated entities for vacated or partially vacated space from restructuring activities. Adtalem’s sublease agreements expire at various dates through December 2025. We record sublease income as an offset against our lease expense recorded on the head lease. For leases which Adtalem vacated or partially vacated space, we recorded estimated restructuring charges in prior periods. Actual results may differ from these estimates, which could result in additional restructuring charges or reversals. Future minimum lease and sublease rental income under these agreements as of September 30, 2021, were as follows (in thousands): ​
​ | ​ | ​ | ​
Fiscal Year | ​ | Amount
2022 (remaining) | ​ | $ | 13,218
2023 | ​ | ​ | 16,078
2024 | ​ |  | 10,261
2025 | ​ |  | 5,121
2026 | ​ |  | 2,038
Total lease and sublease rental income | ​ | $ | 46,716
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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