Assets Held for Sale

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

During 2023, two of the Company’s subsidiaries that operate K-12 educational programs in Mexico met the criteria for classification as held for sale under ASC 360-10-45-9, “Long-Lived Assets Classified as Held for Sale.” The sale of the K-12 campuses is intended to allow the Mexico segment to focus on its core business. The planned sale of this disposal group does not represent a strategic shift and therefore does not qualify for presentation as a discontinued operation in the Consolidated Financial Statements. In addition, during 2023 and 2024, several parcels of land and buildings at campuses in Mexico and a parcel of land in the United States met the criteria for classification as held for sale under ASC 360-10-45-9. The assets and liabilities are recorded at the lower of their carrying values or their estimated fair values less costs to sell. As discussed below, the sales of certain real estate in the United States and Mexico were completed during 2024. The carrying amounts of the major classes of assets and liabilities that were classified as held for sale are presented in the following table:


	December 31, 2024		December 31, 2023
Assets Held for Sale
Cash and cash equivalents	$	246	$	502
Receivables, net	319		376
Property and equipment, net	2,897		6,310
Operating lease right-of-use assets, net	7,512		9,094
Other assets	—		11
Total assets held for sale	$	10,974	$	16,293


Liabilities Held for Sale
Deferred revenue and student deposits	$	756	$	731
Operating leases, including current portion	7,606		9,214
Long-term debt, including current portion	704		859
Other liabilities	603		703
Total liabilities held for sale	$	9,669	$	11,507

The long-term debt balance represents a finance lease for property.

Property Sales

During the second quarter of 2024, the Company completed the sale of a parcel of land in the United States that was classified as held for sale as of December 31, 2023. The Company received proceeds of approximately $3,100 from the sale and recognized a loss of approximately $24, which is included in Direct costs in the Consolidated Statement of Operations for 2024.

During the third quarter of 2024, the Company completed the sale of real estate in Mexico that was classified as held for sale as of December 31, 2023. In connection with this transaction, the Company also terminated two lease agreements in Mexico, resulting in a net loss of approximately $4,500 that is included in Direct costs in the Consolidated Statement of Operations for 2024.

During the fourth quarter of 2024, the Company completed the sales of additional real estate in Mexico that was classified as held for sale as of December 31, 2023. The Company received proceeds of approximately $14,400 and recognized a gain of approximately $9,400, which is included in Direct costs in the Consolidated Statement of Operations for 2024.

Dispositions

Walden Divestiture

On August 12, 2021, the Company closed the transaction pursuant to the Membership Interest Purchase Agreement (the Walden Purchase Agreement), dated September 11, 2020, with Adtalem Global Education Inc., a Delaware corporation (the Walden Purchaser). Pursuant to the Walden Purchase Agreement, the Company sold to the Walden Purchaser all of the issued and outstanding equity interest in Walden e-Learning, LLC, a Delaware limited liability company and a wholly owned

subsidiary of the Company (Walden), and its subsidiary, Walden University, LLC, a Florida limited liability company and an indirect wholly owned subsidiary of the Company (together with Walden, the Walden Group).

Under the Walden Purchase Agreement, the Company agreed to indemnify the Walden Purchaser under certain circumstances. In January 2024, the Walden Purchaser made a claim under these indemnification provisions and the Company determined that approximately $5,500 was payable to the Walden Purchaser. Accordingly, as of December 31, 2023, the Company recorded a liability for this amount through loss on sale of discontinued operations, as it represented an adjustment to the sale price of the Walden Group. This liability was fully settled during the fourth quarter of 2024.