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Accounts and Financing Receivables | 3 Months Ended
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Sep. 30, 2024
Receivables [Abstract] |
Accounts and Financing Receivables | 9. Accounts and Financing Receivables Our accounts receivables relate to student balances occurring in the normal course of business. Accounts receivables have a term of less than one year and are included in accounts and financing receivables, 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 and financing receivables, net and other assets, net on our Consolidated Balance Sheets. The classification of our accounts and financing receivable balances was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, 2024
​ | ​ | ​ | Gross | ​ | ​ | Allowance | ​ | ​ | Net
Accounts receivables, current | ​ | $ | 205,610 | ​ | $ | (36,691) | ​ | $ | 168,919
Financing receivables, current | ​ | ​ | 5,319 | ​ | ​ | (2,729) | ​ | ​ | 2,590
Accounts and financing receivables, current | ​ | $ | 210,929 | ​ | $ | (39,420) | ​ | $ | 171,509
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables, current | ​ | $ | 5,319 | ​ | $ | (2,729) | ​ | $ | 2,590
Financing receivables, noncurrent | ​ | ​ | 35,277 | ​ | ​ | (10,738) | ​ | ​ | 24,539
Total financing receivables | ​ | $ | 40,596 | ​ | $ | (13,467) | ​ | $ | 27,129
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2024
​ | ​ | ​ | Gross | ​ | ​ | Allowance | ​ | ​ | Net
Accounts receivables, current | ​ | $ | 159,406 | ​ | $ | (35,336) | ​ | $ | 124,070
Financing receivables, current | ​ | ​ | 5,239 | ​ | ​ | (2,476) | ​ | ​ | 2,763
Accounts and financing receivables, current | ​ | $ | 164,645 | ​ | $ | (37,812) | ​ | $ | 126,833
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables, current | ​ | $ | 5,239 | ​ | $ | (2,476) | ​ | $ | 2,763
Financing receivables, noncurrent | ​ | ​ | 36,214 | ​ | ​ | (10,082) | ​ | ​ | 26,132
Total financing receivables | ​ | $ | 41,453 | ​ | $ | (12,558) | ​ | $ | 28,895
​ 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. 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 when they are 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 September 30, 2024 was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized Cost Basis by Origination Year | ​ | ​ | ​
​ | ​ | Prior | ​ | 2021 | ​ | 2022 | ​ | 2023 | ​ | 2024 | ​ | 2025 | ​ | Total
1-30 days past due |  | $ | 437 | ​ | $ | 321 |  | $ | 477 |  | $ | 279 |  | $ | 1,797 |  | $ | 152 |  | $ | 3,463
31-60 days past due | ​ | ​ | 104 | ​ | ​ | 56 | ​ | ​ | 130 | ​ | ​ | 752 | ​ | ​ | 100 | ​ | ​ | — | ​ | ​ | 1,142
61-90 days past due | ​ | ​ | 119 | ​ | ​ | — | ​ | ​ | 267 | ​ | ​ | 124 | ​ | ​ | 929 | ​ | ​ | — | ​ | ​ | 1,439
91-120 days past due | ​ | ​ | 215 | ​ | ​ | 25 | ​ | ​ | 23 | ​ | ​ | 495 | ​ | ​ | 414 | ​ | ​ | — | ​ | ​ | 1,172
121-150 days past due | ​ | ​ | 132 | ​ | ​ | 28 | ​ | ​ | 100 | ​ | ​ | 501 | ​ | ​ | 676 | ​ | ​ | — | ​ | ​ | 1,437
Greater than 150 days past due | ​ | ​ | 2,926 | ​ | ​ | 1,654 | ​ | ​ | 1,120 | ​ | ​ | 2,046 | ​ | ​ | 1,874 | ​ | ​ | — | ​ | ​ | 9,620
Total past due | ​ | ​ | 3,933 | ​ | ​ | 2,084 | ​ | ​ | 2,117 | ​ | ​ | 4,197 | ​ | ​ | 5,790 | ​ | ​ | 152 | ​ | ​ | 18,273
Current | ​ | ​ | 6,003 | ​ | ​ | 3,580 | ​ | ​ | 1,167 | ​ | ​ | 3,784 | ​ | ​ | 5,660 | ​ | ​ | 2,129 | ​ | ​ | 22,323
Financing receivables, gross | ​ | $ | 9,936 | ​ | $ | 5,664 | ​ | $ | 3,284 | ​ | $ | 7,981 | ​ | $ | 11,450 | ​ | $ | 2,281 | ​ | $ | 40,596
Gross write-offs | ​ | $ | 414 | ​ | $ | 125 | ​ | $ | 357 | ​ | $ | 175 | ​ | $ | 27 | ​ | $ | — | ​ | $ | 1,098
​ The credit quality analysis of financing receivables as of June 30, 2024 was as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized Cost Basis by Origination Year | ​ | ​ | ​
​ | ​ | Prior | ​ | 2020 | ​ | 2021 | ​ | 2022 | ​ | 2023 | ​ | 2024 | ​ | Total
1-30 days past due |  | $ | 552 | ​ | $ | — |  | $ | 214 |  | $ | 111 |  | $ | 1,188 |  | $ | 1,146 |  | $ | 3,211
31-60 days past due | ​ | ​ | 213 | ​ | ​ | 90 | ​ | ​ | 65 | ​ | ​ | 37 | ​ | ​ | 567 | ​ | ​ | 1,488 | ​ | ​ | 2,460
61-90 days past due | ​ | ​ | 174 | ​ | ​ | — | ​ | ​ | 5 | ​ | ​ | 110 | ​ | ​ | 370 | ​ | ​ | 257 | ​ | ​ | 916
91-120 days past due | ​ | ​ | — | ​ | ​ | 11 | ​ | ​ | 434 | ​ | ​ | 20 | ​ | ​ | 206 | ​ | ​ | 791 | ​ | ​ | 1,462
121-150 days past due | ​ | ​ | 51 | ​ | ​ | 88 | ​ | ​ | 63 | ​ | ​ | 314 | ​ | ​ | 268 | ​ | ​ | 91 | ​ | ​ | 875
Greater than 150 days past due | ​ | ​ | 2,556 | ​ | ​ | 466 | ​ | ​ | 1,366 | ​ | ​ | 1,300 | ​ | ​ | 1,920 | ​ | ​ | 987 | ​ | ​ | 8,595
Total past due | ​ | ​ | 3,546 | ​ | ​ | 655 | ​ | ​ | 2,147 | ​ | ​ | 1,892 | ​ | ​ | 4,519 | ​ | ​ | 4,760 | ​ | ​ | 17,519
Current | ​ | ​ | 6,014 | ​ | ​ | 748 | ​ | ​ | 3,944 | ​ | ​ | 1,897 | ​ | ​ | 4,549 | ​ | ​ | 6,782 | ​ | ​ | 23,934
Financing receivables, gross | ​ | $ | 9,560 | ​ | $ | 1,403 | ​ | $ | 6,091 | ​ | $ | 3,789 | ​ | $ | 9,068 | ​ | $ | 11,542 | ​ | $ | 41,453
Gross write-offs | ​ | $ | 1,145 | ​ | $ | 279 | ​ | $ | 509 | ​ | $ | 597 | ​ | $ | 729 | ​ | $ | 2 | ​ | $ | 3,261
​ Allowance for Credit Losses The allowance for credit losses represents an estimate of the lifetime expected credit losses inherent in our accounts and financing receivable balances as of each balance sheet date. In evaluating the collectability of our accounts and financing receivable balances, we utilize historical events, current conditions, and reasonable and supportable forecasts about the future. For our accounts 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 accounts 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 September 30, 2024
​ | ​ | Accounts | ​ | Financing | ​ | Total
Beginning balance |  | $ | 35,336 | ​ | $ | 12,558 |  | $ | 47,894
Write-offs | ​ | ​ | (13,111) | ​ | ​ | (1,098) | ​ | ​ | (14,209)
Recoveries | ​ | ​ | 2,577 | ​ | ​ | 176 | ​ | ​ | 2,753
Provision for credit losses | ​ | ​ | 11,889 | ​ | ​ | 1,831 | ​ | ​ | 13,720
Ending balance | ​ | $ | 36,691 | ​ | $ | 13,467 | ​ | $ | 50,158
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2023
​ | ​ | Accounts | ​ | Financing | ​ | Total
Beginning balance |  | $ | 29,190 | ​ | $ | 11,468 |  | $ | 40,658
Write-offs | ​ | ​ | (8,412) | ​ | ​ | (736) | ​ | ​ | (9,148)
Recoveries | ​ | ​ | 2,621 | ​ | ​ | 190 | ​ | ​ | 2,811
Provision for credit losses | ​ | ​ | 8,962 | ​ | ​ | 1,264 | ​ | ​ | 10,226
Ending balance | ​ | $ | 32,361 | ​ | $ | 12,186 | ​ | $ | 44,547
​

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- 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
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