XML 25 R15.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Accounts Receivable and Credit Losses | 6 Months Ended
--- | ---
Dec. 31, 2023
Receivables [Abstract] |
Accounts Receivable and Credit Losses | 9. Accounts Receivable and Credit Losses We categorize our accounts receivable balances as trade receivables or financing receivables. Our trade receivables relate to student balances occurring in the normal course of business. Trade receivables have a term of less than one year and are included in accounts receivable, net on our Consolidated Balance Sheets. Our financing receivables relate to credit extension programs where the student is provided payment terms in excess of one year with their respective school and are included in accounts receivable, net and other assets, net on our Consolidated Balance Sheets. The classification of our accounts receivable balances was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2023
​ | ​ | ​ | Gross | ​ | ​ | Allowance | ​ | ​ | Net
Trade receivables, current | ​ | $ | 166,107 | ​ | $ | (35,020) | ​ | $ | 131,087
Financing receivables, current | ​ | ​ | 4,941 | ​ | ​ | (2,362) | ​ | ​ | 2,579
Accounts receivable, current | ​ | $ | 171,048 | ​ | $ | (37,382) | ​ | $ | 133,666
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables, current | ​ | $ | 4,941 | ​ | $ | (2,362) | ​ | $ | 2,579
Financing receivables, noncurrent | ​ | ​ | 36,775 | ​ | ​ | (10,964) | ​ | ​ | 25,811
Total financing receivables | ​ | $ | 41,716 | ​ | $ | (13,326) | ​ | $ | 28,390
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2023
​ | ​ | ​ | Gross | ​ | ​ | Allowance | ​ | ​ | Net
Trade receivables, current | ​ | $ | 129,318 | ​ | $ | (29,190) | ​ | $ | 100,128
Financing receivables, current | ​ | ​ | 4,757 | ​ | ​ | (2,136) | ​ | ​ | 2,621
Accounts receivable, current | ​ | $ | 134,075 | ​ | $ | (31,326) | ​ | $ | 102,749
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables, current | ​ | $ | 4,757 | ​ | $ | (2,136) | ​ | $ | 2,621
Financing receivables, noncurrent | ​ | ​ | 36,368 | ​ | ​ | (9,332) | ​ | ​ | 27,036
Total financing receivables | ​ | $ | 41,125 | ​ | $ | (11,468) | ​ | $ | 29,657
​ Our financing receivables relate to credit extension programs available to students at Chamberlain, AUC, RUSM, and RUSVM. These credit extension programs are designed to assist students who are unable to completely cover educational costs consisting of tuition, fees, and books, and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM, and RUSVM allow students to finance their living expenses. Repayment plans for financing agreements are developed to address the financial circumstances of the particular student. Interest charges at rates from 3.0% to 12.0% per annum accrue each month on the unpaid balance once a student withdraws or graduates from a program. Most students are required to begin repaying their loans while they are still in school with a minimum payment level designed to demonstrate their capability to repay, which reduces the possibility of over borrowing. Payments may increase upon completing or departing school. After a student leaves school, the student typically will have a monthly installment repayment plan. Credit Quality The primary credit quality indicator for our financing receivables is delinquency. Balances are considered delinquent when contractual payments on the loan become past due. We write-off financing receivable balances after they have been sent to a third party collector, the timing of which varies by the institution granting the loan, but in most cases is when the financing agreement is at least 181 days past due. Payments are applied first to outstanding interest and then to the unpaid principal balance. The credit quality analysis of financing receivables as of December 31, 2023 was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized Cost Basis by Origination Year | ​ | ​ | ​
​ | ​ | Prior | ​ | 2020 | ​ | 2021 | ​ | 2022 | ​ | 2023 | ​ | 2024 | ​ | Total
1-30 days past due |  | $ | 555 | ​ | $ | 120 |  | $ | 539 |  | $ | 383 |  | $ | 2,115 |  | $ | 913 |  | $ | 4,625
31-60 days past due | ​ | ​ | 112 | ​ | ​ | 12 | ​ | ​ | 32 | ​ | ​ | 97 | ​ | ​ | 280 | ​ | ​ | 302 | ​ | ​ | 835
61-90 days past due | ​ | ​ | 62 | ​ | ​ | — | ​ | ​ | 206 | ​ | ​ | 12 | ​ | ​ | 804 | ​ | ​ | 45 | ​ | ​ | 1,129
91-120 days past due | ​ | ​ | 31 | ​ | ​ | — | ​ | ​ | 13 | ​ | ​ | 50 | ​ | ​ | 364 | ​ | ​ | 97 | ​ | ​ | 555
121-150 days past due | ​ | ​ | 205 | ​ | ​ | 17 | ​ | ​ | 188 | ​ | ​ | — | ​ | ​ | 919 | ​ | ​ | 321 | ​ | ​ | 1,650
Greater than 150 days past due | ​ | ​ | 3,120 | ​ | ​ | 573 | ​ | ​ | 1,242 | ​ | ​ | 2,137 | ​ | ​ | 1,047 | ​ | ​ | 22 | ​ | ​ | 8,141
Total past due | ​ | ​ | 4,085 | ​ | ​ | 722 | ​ | ​ | 2,220 | ​ | ​ | 2,679 | ​ | ​ | 5,529 | ​ | ​ | 1,700 | ​ | ​ | 16,935
Current | ​ | ​ | 6,365 | ​ | ​ | 717 | ​ | ​ | 5,108 | ​ | ​ | 2,321 | ​ | ​ | 6,122 | ​ | ​ | 4,148 | ​ | ​ | 24,781
Financing receivables, gross | ​ | $ | 10,450 | ​ | $ | 1,439 | ​ | $ | 7,328 | ​ | $ | 5,000 | ​ | $ | 11,651 | ​ | $ | 5,848 | ​ | $ | 41,716
Gross write-offs | ​ | $ | 345 | ​ | $ | 244 | ​ | $ | 213 | ​ | $ | 145 | ​ | $ | 210 | ​ | $ | — | ​ | $ | 1,157
​ The credit quality analysis of financing receivables as of June 30, 2023 was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized Cost Basis by Origination Year | ​ | ​ | ​
​ | ​ | Prior | ​ | 2019 | ​ | 2020 | ​ | 2021 | ​ | 2022 | ​ | 2023 | ​ | Total
1-30 days past due |  | $ | 186 | ​ | $ | 79 |  | $ | 115 |  | $ | 137 |  | $ | 735 |  | $ | 1,944 |  | $ | 3,196
31-60 days past due | ​ | ​ | 61 | ​ | ​ | 34 | ​ | ​ | — | ​ | ​ | 359 | ​ | ​ | 573 | ​ | ​ | 1,103 | ​ | ​ | 2,130
61-90 days past due | ​ | ​ | 97 | ​ | ​ | 39 | ​ | ​ | 110 | ​ | ​ | 65 | ​ | ​ | 559 | ​ | ​ | 368 | ​ | ​ | 1,238
91-120 days past due | ​ | ​ | 2 | ​ | ​ | 17 | ​ | ​ | 2 | ​ | ​ | 13 | ​ | ​ | 77 | ​ | ​ | 200 | ​ | ​ | 311
121-150 days past due | ​ | ​ | 62 | ​ | ​ | 37 | ​ | ​ | 26 | ​ | ​ | 45 | ​ | ​ | 147 | ​ | ​ | 129 | ​ | ​ | 446
Greater than 150 days past due | ​ | ​ | 2,641 | ​ | ​ | 734 | ​ | ​ | 708 | ​ | ​ | 2,071 | ​ | ​ | 1,457 | ​ | ​ | 381 | ​ | ​ | 7,992
Total past due | ​ | ​ | 3,049 | ​ | ​ | 940 | ​ | ​ | 961 | ​ | ​ | 2,690 | ​ | ​ | 3,548 | ​ | ​ | 4,125 | ​ | ​ | 15,313
Current | ​ | ​ | 6,199 | ​ | ​ | 1,112 | ​ | ​ | 820 | ​ | ​ | 5,350 | ​ | ​ | 2,608 | ​ | ​ | 9,723 | ​ | ​ | 25,812
Financing receivables, gross | ​ | $ | 9,248 | ​ | $ | 2,052 | ​ | $ | 1,781 | ​ | $ | 8,040 | ​ | $ | 6,156 | ​ | $ | 13,848 | ​ | $ | 41,125
​ Allowance for Credit Losses The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in our accounts receivable balances as of each balance sheet date. In evaluating the collectability of all our accounts receivable balances, we utilize historical events, current conditions, and reasonable and supportable forecasts about the future. For our trade receivables, we primarily use historical loss rates based on an aging schedule and a student’s status to determine the allowance for credit losses. As these trade receivables are short-term in nature, management believes a student’s status provides the best credit loss estimate, while also factoring in delinquency. Students still attending classes, recently graduated, or current on payments are more likely to pay than those who are inactive due to being on a leave of absence, withdrawing from school, or not current on payments. For our financing receivables, we primarily use historical loss rates based on an aging schedule. As these financing receivables are based on long-term financing agreements offered by Adtalem, management believes that delinquency provides the best credit loss estimate. As the financing receivable balances become further past due, it is less likely we will receive payment, causing our estimate of credit losses to increase. The following tables provide a roll-forward of the allowance for credit losses (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended December 31, 2023 |  | Six Months Ended December 31, 2023
​ | ​ | Trade | ​ | Financing | ​ | Total |  | Trade | ​ | Financing | ​ | Total
Beginning balance |  | $ | 32,361 | ​ | $ | 12,186 |  | $ | 44,547 | ​ | $ | 29,190 | ​ | $ | 11,468 |  | $ | 40,658
Write-offs | ​ | ​ | (11,139) | ​ | ​ | (421) | ​ | ​ | (11,560) | ​ | ​ | (19,551) | ​ | ​ | (1,157) | ​ | ​ | (20,708)
Recoveries | ​ | ​ | 2,307 | ​ | ​ | 254 | ​ | ​ | 2,561 | ​ | ​ | 4,928 | ​ | ​ | 444 | ​ | ​ | 5,372
Provision for credit losses | ​ | ​ | 11,491 | ​ | ​ | 1,307 | ​ | ​ | 12,798 | ​ | ​ | 20,453 | ​ | ​ | 2,571 | ​ | ​ | 23,024
Ending balance | ​ | $ | 35,020 | ​ | $ | 13,326 | ​ | $ | 48,346 | ​ | $ | 35,020 | ​ | $ | 13,326 | ​ | $ | 48,346
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended December 31, 2022 | ​ | Six Months Ended December 31, 2022
​ | ​ | Trade | ​ | Financing | ​ | Total | ​ | Trade | ​ | Financing | ​ | Total
Beginning balance |  | $ | 32,882 | ​ | $ | 15,624 |  | $ | 48,506 | ​ | $ | 30,897 | ​ | $ | 14,891 |  | $ | 45,788
Write-offs | ​ | ​ | (14,712) | ​ | ​ | (397) | ​ | ​ | (15,109) | ​ | ​ | (20,176) | ​ | ​ | (616) | ​ | ​ | (20,792)
Recoveries | ​ | ​ | 1,848 | ​ | ​ | 32 | ​ | ​ | 1,880 | ​ | ​ | 4,256 | ​ | ​ | 34 | ​ | ​ | 4,290
Provision for credit losses | ​ | ​ | 7,498 | ​ | ​ | 786 | ​ | ​ | 8,284 | ​ | ​ | 12,539 | ​ | ​ | 1,736 | ​ | ​ | 14,275
Ending balance | ​ | $ | 27,516 | ​ | $ | 16,045 | ​ | $ | 43,561 | ​ | $ | 27,516 | ​ | $ | 16,045 | ​ | $ | 43,561
​

X
- Definition The entire disclosure for accounts receivable, contract receivable, receivable held-for-sale, and nontrade receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//326/tableOfContent + Details
Name: | us-gaap_AccountsAndNontradeReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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