XML 45 R20.htm IDEA: XBRL DOCUMENT
v3.22.2

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 12. Goodwill and Intangible Assets The table below summarizes goodwill balances by reporting unit (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2022 | ​ | 2021
Chamberlain | ​ | $ | 4,716 | ​ | $ | 4,716
Walden | ​ | ​ | 651,052 | ​ | ​ | —
AUC | ​ |  | 68,321 | ​ |  | 68,321
RUSM and RUSVM | ​ |  | 237,173 | ​ |  | 237,173
Total | ​ | $ | 961,262 | ​ | $ | 310,210
​ The table below summarizes goodwill balances by reportable segment (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2022 | ​ | 2021
Chamberlain | ​ | $ | 4,716 | ​ | $ | 4,716
Walden | ​ | ​ | 651,052 | ​ | ​ | —
Medical and Veterinary | ​ | ​ | 305,494 | ​ | ​ | 305,494
Total | ​ | $ | 961,262 | ​ | $ | 310,210
​ The table below summarizes the changes in goodwill balances by reportable segment (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Medical and | ​ | ​ | ​
​ | ​ | Chamberlain | ​ | Walden | ​ | Veterinary | ​ | Total
June 30, 2020 | ​ | $ | 4,716 | ​ | $ | — | ​ | $ | 305,494 | ​ | $ | 310,210
June 30, 2021 | ​ | ​ | 4,716 | ​ | ​ | — | ​ | ​ | 305,494 | ​ | ​ | 310,210
Acquisition |  | ​ | — |  | ​ | 651,052 |  | ​ | — |  | ​ | 651,052
June 30, 2022 | ​ | $ | 4,716 | ​ | $ | 651,052 | ​ | $ | 305,494 | ​ | $ | 961,262
​ Amortizable intangible assets consisted of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2022 | ​ | ​
​ | ​ | Gross Carrying | ​ | Accumulated | ​ | Weighted-Average
​ | ​ | Amount | ​ | Amortization | ​ | Amortization Period
Student relationships | ​ | $ | 161,900 | ​ | $ | (87,457) |  | 3 Years
Curriculum | ​ |  | 56,091 | ​ |  | (9,817) |  | 5 Years
Total | ​ | $ | 217,991 | ​ | $ | (97,274) |  | ​
​ Indefinite-lived intangible assets consisted of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2022 | ​ | 2021
Walden trade name | ​ | $ | 119,560 | ​ | $ | —
AUC trade name | ​ | ​ | 17,100 | ​ | ​ | 17,100
Ross trade name | ​ | ​ | 5,100 | ​ | ​ | 5,100
Chamberlain Title IV eligibility and accreditations | ​ |  | 1,200 | ​ |  | 1,200
Walden Title IV eligibility and accreditations | ​ | ​ | 495,800 | ​ | ​ | —
AUC Title IV eligibility and accreditations | ​ |  | 100,000 | ​ |  | 100,000
Ross Title IV eligibility and accreditations | ​ |  | 14,100 | ​ |  | 14,100
Total | ​ | $ | 752,860 | ​ | $ | 137,500
​ The table below summarizes the indefinite-lived intangible asset balances by reportable segment (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30,
​ | ​ | 2022 | ​ | 2021
Chamberlain | ​ | $ | 1,200 | ​ | $ | 1,200
Walden | ​ | ​ | 615,360 | ​ | ​ | —
Medical and Veterinary | ​ | ​ | 136,300 | ​ | ​ | 136,300
Total | ​ | $ | 752,860 | ​ | $ | 137,500
​ Amortization expense for amortized intangible assets was $97.3 million for the year ended June 30, 2022. There was no amortization expense for the years ended June 30, 2021 or 2020. Future intangible asset amortization expense, by reporting unit, is expected to be as follows (in thousands): ​
​ | ​ | ​ | ​
​ | ​ | ​
Fiscal Year | ​ | Walden
2023 | ​ | $ | 61,239
2024 | ​ |  | 35,644
2025 | ​ |  | 11,220
2026 | ​ |  | 11,220
2027 | ​ |  | 1,394
Total | ​ | $ | 120,717
​ Curriculum is amortized on a straight-line basis. Student relationships is amortized based on the estimated retention of the students and giving consideration to the revenue and cash flow associated with these existing students. Indefinite-lived intangible assets related to trade names and Title IV eligibility and accreditations are not amortized, as there are no legal, regulatory, contractual, economic, or other factors that limit the useful life of these intangible assets to the reporting entity. Goodwill and indefinite-lived intangibles are not amortized, but are tested for impairment annually and when an event occurs or circumstances change such that it is more likely than not that an impairment may exist. There were no triggering events in fiscal year 2022. Our annual testing date is May 31. Adtalem has four reporting units that contained goodwill as of May 31, 2022. 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 is recognized to the extent the fair value of the reporting unit goodwill is less than the carrying amount of the goodwill, up to the amount of goodwill recorded. In analyzing the results of operations and business conditions of all four reporting units, it was determined that a quantitative impairment analysis was not necessary for any reporting unit to determine if the carrying values of the reporting unit exceeded their fair values as of the May 31, 2022 annual impairment review date because it was determined to be more likely than not that fair value exceeded carrying value. Adtalem has four reporting units that contained indefinite-lived intangible assets as of May 31, 2022. For indefinite-lived intangible assets, management first analyzes qualitative factors, including results of operations and business conditions of the four reporting units that contained indefinite-lived intangible assets, significant changes in cash flows at the individual indefinite-lived intangible asset level, if applicable, as well as how much previously calculated fair values exceed carrying values to determine if it is more likely than not that the intangible assets associated with these reporting units have been impaired. In qualitatively assessing the indefinite-lived intangible assets of the four reporting units, it was determined that it was more likely than not that these assets’ fair values exceeded their carrying values as of the May 31, 2022 annual impairment review date.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration