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Revision of Previously Issued Consolidated Financial Statements (Unaudited)

12 Months Ended

Jun. 30, 2024

Accounting Changes and Error Corrections [Abstract]

Revision of Previously Issued Consolidated Financial Statements (Unaudited)

23. Revision of Previously Issued Consolidated Financial Statements (Unaudited)

As described in Note 2 “Summary of Significant Accounting Policies,” Adtalem identified an error in the presentation of capitalized cloud computing implementation costs in its previously issued financial statements. Adtalem assessed the materiality of this error individually and in the aggregate with other previously identified errors to prior periods’ Consolidated Financial Statements and concluded the errors were not material to prior periods and therefore, amendments of previously filed reports are not required. The errors impacted the unaudited Consolidated Balance Sheets and unaudited Consolidated Statements of Cash Flows as of and for the nine months ended March 31, 2024 and 2023, as of and for the six months ended December 31, 2023 and 2022, and as of and for the three months ended September 30, 2023 and 2022. In each of Adtalem’s fiscal year 2025 interim Form 10-Qs, the impact of this revision will be incorporated into the prior periods, as applicable. In connection with this revision, Adtalem also corrected other immaterial errors in the prior periods, including certain errors that had previously been adjusted for in the period identified.

The following tables summarize the effect of the revision on the affected line items within the Consolidated Balance Sheets (in thousands):


	March 31, 2024
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Prepaid expenses and other current assets	$	59,401	$	4,183	$	63,584
Total current assets		387,634		4,183		391,817
Noncurrent assets:
Property and equipment, net		272,792		(33,135)		239,657
Other assets, net		67,768		28,952		96,720
Total noncurrent assets		2,327,400		(4,183)		2,323,217


	December 31, 2023
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Prepaid expenses and other current assets	$	58,356	$	3,010	$	61,366
Total current assets		378,099		3,010		381,109
Noncurrent assets:
Property and equipment, net		260,484		(25,187)		235,297
Other assets, net		65,852		22,177		88,029
Total noncurrent assets		2,322,826		(3,010)		2,319,816


	September 30, 2023
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Cash and cash equivalents	$	262,438	$	(1,612)	$	260,826
Restricted cash		1,988		1,612		3,600
Prepaid expenses and other current assets		60,750		2,103		62,853
Total current assets		472,928		2,103		475,031
Noncurrent assets:
Property and equipment, net		264,766		(18,097)		246,669
Other assets, net		67,634		15,994		83,628
Total noncurrent assets		2,321,233		(2,103)		2,319,130


	March 31, 2023
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Cash and cash equivalents	$	315,373	$	(1,613)	$	313,760
Restricted cash		1,804		1,613		3,417
Prepaid expenses and other current assets		102,573		514		103,087
Total current assets		533,034		514		533,548
Noncurrent assets:
Property and equipment, net		252,797		(6,234)		246,563
Other assets, net		67,618		5,720		73,338
Total noncurrent assets		2,334,083		(514)		2,333,569


	December 31, 2022
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Cash and cash equivalents	$	207,776	$	(1,492)	$	206,284
Restricted cash		2,234		1,492		3,726
Prepaid expenses and other current assets		113,564		1,081		114,645
Total current assets		423,116		1,081		424,197
Noncurrent assets:
Property and equipment, net		275,617		(3,275)		272,342
Other assets, net		116,613		3,043		119,656
Total noncurrent assets		2,419,922		(232)		2,419,690
Total assets		2,843,038		849		2,843,887
Liabilities and shareholders' equity:
Current liabilities:
Deferred revenue		115,658		5,177		120,835
Total current liabilities		371,462		5,177		376,639
Noncurrent liabilities:
Other liabilities		61,901		9,177		71,078
Total noncurrent liabilities		948,854		9,177		958,031
Total liabilities		1,320,316		14,354		1,334,670
Shareholders' equity:
Retained earnings		2,349,146		(13,505)		2,335,641
Total shareholders' equity		1,522,722		(13,505)		1,509,217
Total liabilities and shareholders' equity		2,843,038		849		2,843,887


	September 30, 2022
	As Reported		Adjustment		As Revised
Assets:
Current assets:
Cash and cash equivalents	$	327,515	$	(1,681)	$	325,834
Restricted cash		2,480		1,681		4,161
Noncurrent assets:
Property and equipment, net		281,581		(416)		281,165
Other assets, net		120,630		416		121,046

The following tables summarize the effect of the revision on the affected line items within the Consolidated Statements of Cash Flows (in thousands):


	Nine Months Ended March 31, 2024
	As Reported		Adjustment		As Revised
Operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$	32,106	$	(2,227)	$	29,879
Changes in assets and liabilities:
Cloud computing implementation assets		—		(19,262)		(19,262)
Accounts payable		10,841		1,791		12,632
Net cash provided by operating activities-continuing operations		246,809		(19,698)		227,111
Net cash provided by operating activities		255,205		(19,698)		235,507
Investing activities:
Capital expenditures		(52,014)		19,698		(32,316)
Net cash used in investing activities-continuing operations		(51,886)		19,698		(32,188)
Net cash used in investing activities		(51,886)		19,698		(32,188)
Non-cash investing and financing activities:
Accrued capital expenditures		11,086		(4,869)		6,217


	Six Months Ended December 31, 2023
	As Reported		Adjustment		As Revised
Operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$	20,714	$	(1,333)	$	19,381
Changes in assets and liabilities:
Cloud computing implementation assets		—		(11,314)		(11,314)
Accounts payable		7,824		1,931		9,755
Net cash provided by operating activities-continuing operations		83,069		(10,716)		72,353
Net cash provided by operating activities		92,584		(10,716)		81,868
Investing activities:
Capital expenditures		(30,328)		10,716		(19,612)
Net cash used in investing activities-continuing operations		(30,200)		10,716		(19,484)
Net cash used in investing activities		(30,200)		10,716		(19,484)
Non-cash investing and financing activities:
Accrued capital expenditures		9,062		(5,009)		4,053


	Three Months Ended September 30, 2023
	As Reported		Adjustment		As Revised
Operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$	9,778	$	(440)	$	9,338
Changes in assets and liabilities:
Cloud computing implementation assets		—		(4,224)		(4,224)
Accounts payable		(2,870)		52		(2,818)
Net cash provided by operating activities-continuing operations		90,726		(4,612)		86,114
Net cash provided by operating activities		99,685		(4,612)		95,073
Investing activities:
Capital expenditures		(15,046)		4,612		(10,434)
Net cash used in investing activities-continuing operations		(14,946)		4,612		(10,334)
Net cash used in investing activities		(14,946)		4,612		(10,334)
Non-cash investing and financing activities:
Accrued capital expenditures		9,217		(3,130)		6,087


	Nine Months Ended March 31, 2023
	As Reported		Adjustment		As Revised
Operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$	31,618	$	(112)	$	31,506
Changes in assets and liabilities:
Cloud computing implementation assets		—		(6,234)		(6,234)
Accounts payable		12,286		1,483		13,769
Net cash provided by operating activities-continuing operations		149,821		(4,863)		144,958
Net cash provided by operating activities		149,417		(4,863)		144,554
Investing activities:
Capital expenditures		(19,056)		4,863		(14,193)
Net cash provided by investing activities-continuing operations		33,871		4,863		38,734
Net cash provided by investing activities		30,697		4,863		35,560
Non-cash investing and financing activities:
Accrued capital expenditures		10,474		(1,483)		8,991


	Six Months Ended December 31, 2022
	As Reported		Adjustment		As Revised
Operating activities:
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	$	21,461	$	(34)	$	21,427
Changes in assets and liabilities:
Cloud computing implementation assets		—		(3,275)		(3,275)
Accounts payable		13,233		475		13,708
Net cash provided by operating activities-continuing operations		42,277		(2,834)		39,443
Net cash provided by operating activities		41,415		(2,834)		38,581
Investing activities:
Capital expenditures		(9,747)		2,834		(6,913)
Net cash used in investing activities-continuing operations		(9,748)		2,834		(6,914)
Net cash used in investing activities		(12,922)		2,834		(10,088)
Non-cash investing and financing activities:
Accrued capital expenditures		5,209		(475)		4,734


	Three Months Ended September 30, 2022
	As Reported		Adjustment		As Revised
Operating activities:
Changes in assets and liabilities:
Cloud computing implementation assets	$	—	$	(416)	$	(416)
Accounts payable		8,711		243		8,954
Net cash provided by operating activities-continuing operations		91,476		(173)		91,303
Net cash provided by operating activities		91,346		(173)		91,173
Investing activities:
Capital expenditures		(5,551)		173		(5,378)
Net cash used in investing activities-continuing operations		(5,503)		173		(5,330)
Net cash used in investing activities		(6,314)		173		(6,141)
Non-cash investing and financing activities:
Accrued capital expenditures		4,713		(243)		4,470