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Discontinued Operations and Assets Held for Sale | 3 Months Ended
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Sep. 30, 2022
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations and Assets Held for Sale | 4. Discontinued Operations and Assets Held for Sale On December 11, 2018, Adtalem completed the sale of DeVry University to Cogswell Education, LLC (“Cogswell”) for de minimis consideration. As the sale represented a strategic shift that had a major effect on Adtalem’s operations and financial results, DeVry University is presented in Adtalem’s Consolidated Financial Statements as a discontinued operation. The purchase agreement includes an earn-out entitling Adtalem to payments of up to $20.0 million over a ten-year period payable based on DeVry University’s free cash flow. Adtalem received $2.9 million during the second quarter of fiscal year 2022 related to the earn-out. In connection with the closing of the sale, Adtalem loaned to DeVry University $10.0 million under the terms of the promissory note, dated as of December 11, 2018 (the “ DeVry Note”). The DeVry Note bore interest at a rate of 4% per annum, payable annually in arrears, and had a maturity date of January 1, 2022. We received the loan repayment of $10.0 million during the third quarter of fiscal year 2022. The DeVry Note is included on the Consolidated Balance Sheets in prepaid expenses and other current assets as of September 30, 2021. Adtalem has retained certain leases associated with DeVry University operations. Adtalem remains the primary lessee on these leases and subleases to DeVry University. In addition, Adtalem owns the buildings for certain DeVry University operating and administrative office locations and leases space to DeVry University under one-year operating leases, renewable annually at DeVry University’s option with the exception of one lease which expires in December 2023. Adtalem records the proceeds from these leases and subleases as an offset to operating costs. Adtalem also assigned certain leases to DeVry University but remains contingently liable under these leases. On March 10, 2022, Adtalem completed the sale of ACAMS, Becker, and OCL to Wendel Group and Colibri Group (“Purchaser”), pursuant to the Equity Purchase Agreement (“Purchase Agreement”) dated January 24, 2022. Pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, Adtalem sold the issued and outstanding shares of ACAMS, Becker, and OCL to the Purchaser for $962.7 million, net of cash of $21.5 million, subject to certain post-closing adjustments. In addition, on June 17, 2022, Adtalem completed the sale of EduPristine for de minimis consideration, which resulted in a transfer of $1.9 million in cash. We recorded a loss of $3.4 million in the first quarter of fiscal year 2023 for post-closing working capital adjustments to the initial sales price for ACAMS, Becker, and OCL, which is included in loss on disposal of discontinued operations before income taxes in the Consolidated Statements of Income (Loss). These divestitures are the culmination of a long-term strategy to sharpen the focus of our portfolio and enhance our ability to address the rapidly growing and unmet demand for healthcare professionals in the U.S. As these sales represented a strategic shift that had a major effect on Adtalem’s operations and financial results, these businesses previously included in our former Financial Services segment are presented in Adtalem’s Consolidated Financial Statements as discontinued operations. In accordance with GAAP, we have classified ACAMS, Becker, OCL, and EduPristine entities as “Held for Sale” and “Discontinued Operations” in all periods presented as applicable. The following is a summary of balance sheet information of assets and liabilities reported as held for sale as of September 30, 2021, which includes ACAMS, Becker, OCL, and EduPristine (in thousands): ​
​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​
​ | ​ | 2021 | ​
Assets: |  | ​ | ​ | ​
Current assets: |  | ​ | ​ | ​
Cash and cash equivalents | ​ | $ | 36,101 | ​
Accounts receivable, net | ​ |  | 22,821 | ​
Prepaid expenses and other current assets | ​ |  | 3,803 | ​
Total current assets held for sale | ​ |  | 62,725 | ​
Noncurrent assets: | ​ |  | ​ | ​
Property and equipment, net | ​ | ​ | 13,546 | ​
Operating lease assets | ​ |  | 1,377 | ​
Intangible assets, net | ​ |  | 136,263 | ​
Goodwill | ​ |  | 376,164 | ​
Other assets, net | ​ |  | 3,277 | ​
Total noncurrent assets held for sale | ​ |  | 530,627 | ​
Total assets held for sale | ​ | $ | 593,352 | ​
​ | ​ | ​ | ​ | ​
Liabilities: | ​ |  | ​ | ​
Current liabilities: | ​ |  | ​ | ​
Accounts payable | ​ | $ | 13,886 | ​
Accrued payroll and benefits | ​ |  | 7,584 | ​
Accrued liabilities | ​ |  | 2,605 | ​
Deferred revenue | ​ |  | 29,664 | ​
Current operating lease liabilities | ​ |  | 1,299 | ​
Total current liabilities held for sale | ​ |  | 55,038 | ​
Noncurrent liabilities: | ​ |  | ​ | ​
Long-term operating lease liabilities | ​ |  | 503 | ​
Deferred income taxes | ​ |  | 31,155 | ​
Other liabilities | ​ |  | 912 | ​
Total noncurrent liabilities held for sale | ​ |  | 32,570 | ​
Total liabilities held for sale | ​ | $ | 87,608 | ​
​ The following is a summary of income statement information of operations reported as discontinued operations, which includes ACAMS, Becker, OCL, and EduPristine operations through the date of each respective sale, a loss from post-closing working capital adjustments, and activity related to the DeVry University divestiture, which includes litigation and settlement costs we continue to incur (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​
​ | ​ | September 30, | ​
​ | ​ | 2022 | ​ | 2021 | ​
Revenue | ​ | $ | — | ​ | $ | 59,257 | ​
Operating cost and expense: | ​ |  | ​ | ​ |  | ​ | ​
Cost of educational services | ​ |  | — | ​ |  | 11,060 | ​
Student services and administrative expense | ​ |  | 3,438 | ​ |  | 54,247 | ​
Total operating cost and expense | ​ |  | 3,438 | ​ |  | 65,307 | ​
Loss from discontinued operations before income taxes | ​ | ​ | (3,438) | ​ | ​ | (6,050) | ​
Loss on disposal of discontinued operations before income taxes | ​ | ​ | (3,359) | ​ | ​ | — | ​
Benefit from income taxes | ​ |  | 3,143 | ​ |  | 25,228 | ​
(Loss) income from discontinued operations | ​ | $ | (3,654) | ​ | $ | 19,178 | ​
​

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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