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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Summary of effect of revision on affected line items within financial statements

The following table summarizes the effect of the revisions on the affected line items within the Consolidated Balance Sheets (in thousands):


		June 30, 2022
		As reported			Adjustment			As revised
Assets:
Current assets:
Prepaid expenses and other current assets		$	126,467		$	1,065		$	127,532
Total current assets			556,039			1,065			557,104
Total assets			3,029,175			1,065			3,030,240
Liabilities and shareholders' equity:
Current liabilities:
Accrued payroll and benefits			66,642			1,150			67,792
Deferred revenue			144,840			4,970			149,810
Total current liabilities			417,527			6,120			423,647
Noncurrent liabilities:
Other liabilities			65,074			8,626			73,700
Total noncurrent liabilities			1,106,581			8,626			1,115,207
Total liabilities			1,524,108			14,746			1,538,854
Shareholders' equity:
Retained earnings			2,322,810			(12,414)			2,310,396
Accumulated other comprehensive loss			(960)			(1,267)			(2,227)
Total shareholders' equity			1,505,067			(13,681)			1,491,386
Total liabilities and shareholders' equity			3,029,175			1,065			3,030,240

The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Income (in thousands, except per share data):


		Year Ended June 30, 2022									Year Ended June 30, 2021
		As reported			Adjustment			As revised			As reported			Adjustment			As revised
Revenue		$	1,387,122		$	(5,280)		$	1,381,842		$	906,901		$	(7,653)		$	899,248
Operating cost and expense:
Student services and administrative expense			568,056			(1,562)			566,494			292,482			—			292,482
Total operating cost and expense			1,306,658			(1,562)			1,305,096			788,849			—			788,849
Operating income			80,464			(3,718)			76,746			118,052			(7,653)			110,399
Other income, net			3,820			(2,712)			1,108			6,732			—			6,732
(Loss) income from continuing operations before income taxes			(45,064)			(6,430)			(51,494)			83,419			(7,653)			75,766
Benefit from (provision for) income taxes			15,237			302			15,539			(13,089)			771			(12,318)
(Loss) income from continuing operations			(29,827)			(6,128)			(35,955)			70,330			(6,882)			63,448
Discontinued operations:
(Loss) income from discontinued operations before income taxes			(395)			(591)			(986)			9,485			(178)			9,307
(Provision for) benefit from income taxes			(125,556)			5			(125,551)			(3,340)			178			(3,162)
Income from discontinued operations			347,532			(586)			346,946			6,145			—			6,145
Net income			317,705			(6,714)			310,991			76,475			(6,882)			69,593
Net income attributable to Adtalem			317,705			(6,714)			310,991			76,909			(6,882)			70,027

Amounts attributable to Adtalem:
Net (loss) income from continuing operations			(29,827)			(6,128)			(35,955)			70,330			(6,882)			63,448
Net income from discontinued operations			347,532			(586)			346,946			6,579			—			6,579
Net income attributable to Adtalem			317,705			(6,714)			310,991			76,909			(6,882)			70,027

Earnings (loss) per share:
Basic:
Continuing operations		$	(0.62)		$	(0.12)		$	(0.74)		$	1.37		$	(0.13)		$	1.24
Discontinued operations		$	7.18		$	(0.01)		$	7.17		$	0.13		$	—		$	0.13
Total basic earnings per share		$	6.57		$	(0.14)		$	6.43		$	1.50		$	(0.14)		$	1.36
Diluted:
Continuing operations		$	(0.62)		$	(0.12)		$	(0.74)		$	1.36		$	(0.13)		$	1.23
Discontinued operations		$	7.18		$	(0.01)		$	7.17		$	0.13		$	—		$	0.13
Total diluted earnings per share		$	6.57		$	(0.14)		$	6.43		$	1.49		$	(0.13)		$	1.36

To conform to current period presentation, the previously reported interest and dividend income and investment gain (loss) lines have been condensed to other income, net.

The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Comprehensive Income (in thousands):


		Year Ended June 30, 2022									Year Ended June 30, 2021
		As reported			Adjustment			As revised			As reported			Adjustment			As revised
Net income		$	317,705		$	(6,714)		$	310,991		$	76,475		$	(6,882)		$	69,593
Gain on foreign currency translation adjustments			59			(59)			—			713			—			713
Comprehensive income before reclassification			317,764			(6,773)			310,991			78,291			(6,882)			71,409
Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments			(349)			645			296			—			—			—
Comprehensive income			324,110			(6,128)			317,982			78,165			(6,882)			71,283
Comprehensive income attributable to Adtalem			324,110			(6,128)			317,982			78,599			(6,882)			71,717

The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Cash Flows (in thousands):


		Year Ended June 30, 2022									Year Ended June 30, 2021
		As reported			Adjustment			As revised			As reported			Adjustment			As revised
Operating activities:
Net income		$	317,705		$	(6,714)		$	310,991		$	76,475		$	(6,882)		$	69,593
Income from discontinued operations			(347,532)			586			(346,946)			(6,145)			—			(6,145)
(Loss) income from continuing operations			(29,827)			(6,128)			(35,955)			70,330			(6,882)			63,448
Adjustments to reconcile net income to net cash provided by operating activities:
Loss (gain) on investments			—			3,271			3,271			(2,638)			—			(2,638)
Changes in assets and liabilities:
Prepaid expenses and other current assets			569			(3,396)			(2,827)			(17,198)			(771)			(17,969)
Accrued payroll and benefits			(13,268)			1,150			(12,118)			12,552			—			12,552
Deferred revenue			65,075			5,280			70,355			5,312			7,653			12,965
Net cash provided by operating activities-continuing operations			163,825			177			164,002			168,760			—			168,760
Net cash provided by operating activities			10,424			177			10,601			192,199			—			192,199
Investing activities:
Proceeds from sales of marketable securities			—			3,447			3,447			2,721			—			2,721
Purchases of marketable securities			—			(3,624)			(3,624)			(10,745)			—			(10,745)
Net cash used in investing activities-continuing operations			(1,509,108)			(177)			(1,509,285)			(47,905)			—			(47,905)
Net cash used in investing activities			(551,627)			(177)			(551,804)			(56,688)			—			(56,688)

The following table summarizes the effect of the revisions on the affected line items within the Consolidated Statements of Shareholders’ Equity (in thousands):


		As reported			Adjustment			As revised
June 30, 2020
Retained earnings		$	1,927,568		$	1,182		$	1,928,750
Accumulated other comprehensive loss			(9,055)			(1,853)			(10,908)
Total shareholders' equity			1,310,421			(671)			1,309,750
June 30, 2021
Retained earnings			2,005,105			(5,700)			1,999,405
Accumulated other comprehensive loss			(7,365)			(1,853)			(9,218)
Total shareholders' equity			1,301,070			(7,553)			1,293,517
June 30, 2022
Retained earnings			2,322,810			(12,414)			2,310,396
Accumulated other comprehensive loss			(960)			(1,267)			(2,227)
Total shareholders' equity			1,505,067			(13,681)			1,491,386
Year Ended June 30, 2021
Net income attributable to Adtalem			76,909			(6,882)			70,027
Year Ended June 30, 2022
Net income attributable to Adtalem			317,705			(6,714)			310,991
Other comprehensive income, net of tax			59			(59)			—
Reclassification adjustment for realized (gain) loss on foreign currency translation adjustments			(349)			645			296